The proliferation of advanced electronic products and complex electronic content is compelling original equipment manufacturers (OEMs) to outsource testing needs to electronic manufacturing service (EMS) providers. Technological change and product innovation in other industries such as automotive, medical, electronics and defense increases use of electronics opens up opportunities for EMS providers to offer modern, customized testing solutions.
New analysis from Frost & Sullivan, Test & Measurement in the Global Electronics Manufacturing Services Market, finds that the market earned revenues of $2.11 billion in 2013 and estimates this to reach $3.99 billion in 2020. The EMS test services covered include defect analysis, in-circuit testing, inspection with image processing, functional testing, automatic optical inspection, burn-in and X-ray inspection.
Increasing circuit board densities, decreasing space between holes, and the growing requirement for printed circuit boards (PCBs) to perform in hot and humid environments is creating demand for complex testing solutions. To save on costs, OEMs are outsourcing testing operations to EMS vendors, who are developing a new generation of testing products with higher frequencies, embedded passives, greater densities, and finer lines.
OEMs also rely on EMS providers to manufacture, sub-assemble and assemble cost-effective PCBs at a faster time-to-market. EMS providers will particularly benefit from offering in-circuit testing, which is used to evaluate passive components of PCBs for presence, continuity, connection, and faults to avoid additional costs in manufacturing.
In-circuit test costs per pin for high-performance PCBs have remained stable for some time. However, new demands for higher speeds, greater accuracy, more timing sets, and enhanced vector memory have escalated capital costs for high-performance test and measurement equipment, posing a challenge for EMS providers.
EMS providers will benefit from strategically choosing segments to compete in. Focusing on expanding manufacturing capacity to achieve economies of scale for high-volume products such as computers, notebooks and low-end mobile handsets will be profitable. Moderate-volume products like medical equipment, which are mostly protected by OEM-specific intellectual property, can also provide EMS vendors with the required balance of margins and competition.
Role of T&M in Electronics Contract Manufacturing Market is part of the Surface Mount Technologies (testandmeasurement.frost.com) Growth Partnership Service program. Frost & Sullivan’s related research services include: Analysis of the Global Ultrasonic Non-destructive Test Equipment Market, Strategic Analysis of the General Purpose Test Equipment Market in North America, and In-depth Analysis of the Global Portable/Handheld Test Equipment Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on “the next big thing" | Register: Gain access to visionary innovation
Role of T&M in Electronics Contract Manufacturing Market / ND1C-28