Yearbook of World Electronics Data Series - Volume 4 - East Europe 2007/2008Reed Electronics ResearchJuly 1, 2007 SKU: BT1491093 |
| Countries covered: Europe The dynamics of the electronics industry have changed. Volume production is gravitating towards lowcost locations, which in turn are the markets which offer the most longterm potential. Lower volume, highmix products will however continue to be manufactured in high-cost locations, creating significant opportunities throughout the supply chain. In 1995 production in “high-cost” locations* accounted for 75% of electronics output. By 2000 this figure had already fallen to 67%. However, following the collapse of the IT bubble in 2000 the transfer of production has accelerated and in 2005 high cost locations accounted for only 51% of the total. Between 1995 and 2005 Asia Pacific’s share of global electronics production increased from 20% to 40%. More importantly during this period China’s share of global electronics production increased from 3% to 18% and transformed the structure of the global electronics industry. Although China will continue to gain global share over the next five years and was forecast to surpass the US as the largest electronics producer in 2006, it will face increasing competition not only from other countries in Asia but also from lowcost locations in Europe and the Americas. |
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