The global EMS market is projected to reach US$231.4 billion by the year 2015, driven by the rapid increase in ownership of electronic goods in high-population and developing countries of China, India, Brazil and Russia.

The continuous shift of production facilities to high cost locations is proving beneficial for Asia, East Europe, and Latin America markets.

China and India represents countries with vast potential. While the electronics supply base in India is in early growth phase, China is a well-established manufacturing location. Other competitive advantages for China are its Infrastructure and labor.

In China, with its population of 1.35 billion people, the yearly demand for consumer electronics goods is set to grow over the next few years.

Consumer Electronics and Computers & Peripherals comprise bulk of the market. In the telecommunications segment, potential opportunities for EMS providers are expected from wireless communications as well as from increased spending in basic infrastructure equipment. Asia-Pacific market for electronic contract manufacturing services in telecommunications segment is projected to exceed US$20 billion by 2013.

Take mobile phone for example, China now has more than 1 billion mobile subscribers and that’s more than three times the US!

Beside the increased demand in electronics, automotive sales in China has also raised sharply.

Statistics from the Traffic Administration under the Ministry of Public Security show that the total quantity of private automotive vehicles in China stood at 72.1 million by the end of June 2011.

Data shows that 11 cities ,such as Beijing, Shenzhen, Shanghai, Chengdu and Tianjin, have more than 1 million cars, and Beijing has more than 4.6 million cars.

In 2012 alone, the Chinese bought another 15.1 million new cars. Analysts expect new vehicle sales to surpass 20 million in 2013 for the first time, as auto industry begins to rebound.

The medical industry is also another sector that is set to grow. In 2010, more than 12 percent of the nation’s 1.3 billion population, (156 million) are over the age of 60 according to official figures.

Given the huge market and potentially big customer base, many production facilities are moving to China to be nearer to their customer and this give rise to many business opportunities to the EMS industries.

However business entrepreneur have also realized that, to capture the Chinese market, they need to cater to the preference of the Chinese.

Audi has been quick to realized this and have been selling cars with longer wheel base in all their models, namely, A4L, A6L and A8L. BMW, Mercedes, Infiniti, Volvo, Citroen are also offering long wheel base vehicle to satisfy the Chinese consumer and to capture the market…

In conclusion, yes there is a huge market in China but to capture the market, Entrepreneur needs to understand the needs of the Chinese consumer, what they desire and eventually to cater to their taste.

Join the conversation! 6 Comments

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  2. Great post, it’s good to know that the market in China is going strong, its a market that I am trying to tap into!!

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About Ikor

We are a global company committed to innovation that provides a total service for the design and manufacture of electronic circuits (EMS), including complete supply chain solutions for world-leading industrial and technological companies.


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