Growth in global electronics output to ease to 2.6% in 2008

Oxford , October 2008

Global electronics output is forecast to reach US$1,659 billion in 2008, 2.6% higher than a year earlier. Although growth in China is will ease in the second- half of 2008 the country now accounts for 25% of global electronics production.

The growing dominance of China reflects the trend for manufacturers to migrate volume manufacturing to lower costs locations. According to the latest survey from Reed Electronics Research (RER) at the end of 2008, 55% of global electronics output will be in low cost locations, up from 33% in 2000 and only 25% in 1995. Despite China ’s position emerging countries such as India , Brazil , Russia and Vietnam are expected to play a greater role on the world stage.

The current turmoil in the global financial markets makes the short-term outlook for the global electronics industry uncertain and difficult to predict. In the longer-term, however, the prospects remain good led by strong growth in emerging markets. According to RER the global electronics market is forecast to reach US$1,873 billion by 2011, up from US$1,613 billion in 2007.

Percentage of Electronic production undertaken in high-cost and low-cost locations 1995-2008

Source: Yearbook of World Electronics Data, Reed Electronics Research

Just published the Volume 3 of the Yearbook of World Electronics Data provides a unique perspective on the global electronics industry including summary data for production (2005-2008) and markets (2005-2011) for 53 countries. In addition the report also provides a more detailed look at nine countries including China , Mexico and Vietnam . For further information contact anita.caird@rer.co.uk

Reed Electronics Research (RER) specialises in providing international business information sources designed to assist senior management, marketing and business development personnel, industry watchers and analysts in keeping abreast of changes, developments and other factors affecting their business. RER is part of the global Reed Electronics Group a part Reed Business Information a leading provider of critical information and marketing solutions to business professionals and a member of Reed Elsevier.