751-Sabar Institute Of Management, Tajpur - Gujarat Technological ...

Overview:
Germany is the largest electronic equipment market in Europe. Demand in 2009 declined as a
result of the economic crisis, to a value of €957 billion (ZVEI, 2010). The year 2010 was marked
by moderate market growth, which is also expected for 2011.
The production of electronic equipment in Germany decreased by 17% in 2009 due to the impact
of the global recession and the closure or scaling back of production in the computing,
communications and consumer audio segments. However, production rebounded in 2010,
according to the German Electrical and Electronic Manufacturers’ Association (ZVEI). The
industry was also boosted by renewed growth in automobile production and increased demand
for electronic components.
The German electronics industry is highly innovative and characterized by frequent product and
process introductions. The industry yearly spends around €10 billion on Research and
Development and the German Electrical and Electronic Manufacturers’ Association reports that
over 40% of the industry turnover is the result of new products younger than three years. Solving
complexity and providing value added services are the core competences for success in the
German market. The productions of complex electronic components and systems as well as
projects that require special engineering know-how are indicated as growth markets.
Electronic Manufacturing Service opportunities in Germany
The European Electronic Manufacturing Services (EMS) provider market is expected to witness
a CAGR of 10.1% between 2011 and 2017. Further demand for cost reduction will increase the
role of EMS providers in the electronics market.
Germany hosts the entire value chain with Europe’s largest elec-tronics industry accounting for
EUR 178 billion in 2011. German EMS accounts for 20% of the European EMS market. Growth
drivers include automotive, industrial, medical electronics and renewable energy.
Automotive electronics
Automotive electronics is the biggest segment of the German electronics industry with 39.6%
market share. Microelectronics value per vehicle is expected to grow from USD 155 in 2000 to
USD 400 in 2020. A low EMS provider penetration rate (less than 12%), and the increasing
number of electronic products are at-tractive factors for EMS providers in the automotive
electronics segment.
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