-- Asia-Pacific and Latin America will be prime revenue-generating destinations, projects Frost & Sullivan
MOUNTAIN VIEW, California, Jan. 8, 2015 /PRNewswire/ -- Aerospace and defense (A&D) original equipment manufacturers (OEMs) increasingly depend on electronic manufacturing service (EMS) providers to address risk management, logistics and aftermarket service needs. EMS providers with global a supply chain and advanced technological capabilities are in the best position to exploit this trend.
New analysis from Frost & Sullivan, Global EMS Providers Market in Aerospace and Defense, finds that the market earned revenues of $16.64 billion in 2014. This will increase steadily to $25.23 billion by 2019.
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"To maximize revenues, EMS providers must respond effectively to changes in the A&D industry," said Frost & Sullivan Measurement & Instrumentation Research Analyst Apoorva Ravikrishnan. "Specifically, they must take advantage of market opportunities and stave off threats that have emerged with the decline in the defense sector and growth of the aerospace sector."
Chief among these threats is the sequestration of defense budgets in the United States and Europe. To lessen its impact, EMS providers must target critical defense segments which have witnessed fewer budget cuts and still have high growth potential.
EMS providers should look at the aerospace sector, which is leaning towards more electronics usage. As global gross domestic product expands and air passenger traffic increases, growth potential in the aerospace segment is particularly promising.
Asia-Pacific will be a hotspot for EMS providers as aerospace OEMs shift focus to this region. Toward the end of the forecast period, the Latin American market – especially Brazil – is also expected to become a lucrative destination for EMS providers in the aerospace sector.
"Tapping these markets in the face of intensifying competition may prove challenging," stated Ravikrishnan. "EMS providers must invest in responsive manufacturing and offer specialized services to gain patronage among A&D OEMs."
Global EMS Providers Market in Aerospace and Defense is part of the Electronic Devices Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the Global Radio Frequency Identification in Manufacturing Market, Test and Measurement in the Global Electronics Manufacturing Services Market, and Analysis of the Global Radio Frequency Identification Tags Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Global EMS Providers Market in Aerospace and Defense
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