Product Type: Market Research Report
Published by: Frost & Sullivan
Published: June 2006
Product Code: R1-4997Description Research Overview
This Frost & Sullivan research service titled Growth Opportunities for EMS and ODMs in the North American Telecom Industry provides an overview of EMS opportunities within the telecom segment. It also provides revenue forecasts, impacts of major industry challenges, analysis of market drivers and restraints, competitive analysis, and various trends affecting growth opportunities. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: mobile handsets, switches, private branch exchanges (PBXs), high-end networking systems, and other electronic markets such as wireless handsets, modems, and wireless PBXs.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Mobile handset market
- Private branch exchanges (PBXs)
- Switches
- High-end networking
- Other products such as wireless handsets and PBXs, modems
Technologies
The following technologies are covered in this research:
- Internet protocol (IP) telephony
- Voice over Internet protocol (VoIP)
- Wireless technologies such as Wi-Fi, ZigBee, WIMAX
Market Overview
Phenomenal Demand for Wireless Products Boosts Electronics Manufacturing Service in the North American Telecom Industry
Exceptional customer demand for wireless and mobile technologies in North America, especially in Mexico, is causing a major turnaround in the fortunes of the region’s telecom industry. This windfall has, in turn, given a significant boost to the electronics manufacturing service (EMS) providers market. The telecom industry, which was not profitable for EMS providers during the telecom slump, is proving to be a huge market. Telecom original equipment manufacturers (OEMs), having learnt from their experiences, have been keen to outsource not only manufacturing but also design services to EMS providers.
With the rise in demand for wireless and IP telephony, there will be a simultaneous hike in the level of outsourcing to EMS providers. "The telecom spending in the North American market is also increasing, thereby providing more prospects for EMS providers," says the analyst of this research service. "The demand for high-end networking and switching is also creating new market opportunities." The spurt in potential is encouraging EMS providers to focus on offering lucrative products and technologies.
Original Design Manufacturers’ Specialized Skills Weans the Market away from Electronics Manufacturing Service Providers
As OEMs increasingly outsource their design operations, the competition between EMS providers and original design manufacturers (ODMs) has intensified. "ODMs have the advantage of superior design skills, when compared to EMS providers, and are slowly expanding to include manufacturing and logistic operations as well," notes the analyst. "ODMs are gradually eating into EMS providers’ share within the telecom industry, as OEMs are beginning to choose ODMs as their strategic partners."
However, this competition is not likely to pose an immediate threat to EMS providers. This is because ODMs do not currently have vertical expertise or the experience required to cater to the telecom industry, and they tend to focus on the PC and notebook industries. Besides, EMS providers have been investing substantially in resources to increase their in-house design capabilities to fulfill the design requirements of their OEMs. Once ODMs strengthen their position within the telecom industry, the competition is anticipated to amplify.Table of Contents 1. Executive Summary
1. Market Overview
1. Introduction
2. Key Research Findings and Conclusions
1. Market Summary and Revenue Forecasts
2. Product and Technology Trends
3. Competitive Analysis
4. Conclusion
2. EMS Providers Opportunities
1. Introduction
1. Introduction
2. Definitions
2. Market Dynamics
1. Industry Challenges
2. Market Drivers
a. Growth Potential in Telecom Industry Encourages Outsourcing
b. Increasing Use of Telecom Electronics Spurs Outsourcing to EMS Providers
c. Need for Faster Time to Market Acts as an Incentive for OEMs to Outsource
d. Need for Product and Service Innovation Drive Outsourcing
e. Risk Diversification in Terms of Short Product Lifecycles and Unreliable Demand Encourages OEMs to Outsource
f. Rapid Technology Development Increases Outsourcing
g. Desire to Strengthen Strategic Positioning Induces Outsourcing to EMS Providers
h. The Need to Realise Cost Efficiencies (Reduce and Control Operating Costs) Drives Outsourcing
3. Market Restraints
a. Mounting Price Pressures Reduce Revenue Growth
b. Increasing Consolidation within Telecom OEMs Hinders Growth
c. Reluctance of OEMs to Outsource Inhibits EMS Revenue Growth
d. Shifting Base to Asia Pacific (APAC) Impedes Growth of North American Market
e. EMS Trend to Shift into Design Increases Capital Expenditure
4. Market Engineering Measurement Analysis
3. Revenue Forecasts and Geographical Analysis
1. Total Market Forecasts and Analysis
2. Revenue Forecast and Analysis- U.S
3. Revenue Forecasts and Analysis- Canada
4. Revenue Forecasts and Analysis-Mexico
4. Revenue Forecast and Analysis by Product
1. Mobile Handsets Market
2. Private Branch Exchanges
3. Telecom Switches Market
4. High-end Networking Market
5. Others
5. Market Trends
1. Technology Trends
2. Supply Chain Trends
6. Competitive and Strategic Roadmap
1. Market Share Analysis
2. Market Structure
3. EMS and ODMs Comparative Snapshot
1. Introduction
1. ODM Market Overview
2. Analysis of Business Models
1. EMS and ODM Business Models
2. Mixing Business Models
3. Strategic Comparison and Analysis
1. Choosing the Best Fit
2. Future Outlook
4. Appendix
1. DSD Tables
1. Annual Telecom Investments in North America
2. Wireless Revenues in North America
3. Capital Expenditure on IT Infrastructure in North America
4. Total Number of Manufacturing Establishments in North America
5. Total Electronic Components Contribution to Electronics Industry
List of Figures
Chapter 2
- EMS Provider Opportunities in the Telecom Industry: Impact of Top Ten Industry Challenges (North America), 2006-2012
- EMS Provider Opportunities in the Telecom Industry: Market Drivers Ranked in Order of Impact (North America), 2006-2012
- EMS Provider Opportunities in the Telecom Industry: Market Restraints Ranked in Order of Impact (North America), 2006-2012
- EMS Provider Opportunities in the Telecom Industry: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Telecom Industry: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Opportunities in the Telecom Industry: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Opportunities in the Telecom Industry: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Telecom Mobile Handsets Market: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Telecom Mobile Handsets Market: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Electronics Opportunities in the Telecom Mobile Handsets Market: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Electronics Opportunities in the Telecom Mobile Handsets Market: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Telecom PBX Market: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Telecom PBX Market: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Opportunities in the Telecom PBX Market: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Opportunities in the Telecom PBX Market: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Telecom Switch Market: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Telecom Switch Market: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Opportunities in the Telecom Switch Market: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Opportunities in the Telecom Switch Market: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Telecom High-end Networking Market: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Telecom High-end Networking Market: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Opportunities in the Telecom High-end Networking Market: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Opportunities in the Telecom High-end Networking Market: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Other Telecom Product Market: Revenue Forecasts (North America), 2002-2012
- EMS Provider Opportunities in the Other Telecom Product Market: Revenue Forecasts (U.S.), 2002-2012
- EMS Provider Opportunities in the Other Telecom Product Market: Revenue Forecasts (Canada), 2002-2012
- EMS Provider Opportunities in the Other Telecom Product Market: Revenue Forecasts (Mexico), 2002-2012
- EMS Provider Opportunities in the Telecom Industry: Competitive Structure (North America), 2005
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