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TMCNet:  Frost & Sullivan: Opportunities for Electronics Manufacturing Services in Medical Industry Increasing

[May 20, 2013]

Frost & Sullivan: Opportunities for Electronics Manufacturing Services in Medical Industry Increasing

May 20, 2013 (M2 PRESSWIRE via COMTEX) -- Original equipment manufacturers (OEMs) are increasingly turning to electronics manufacturing service (EMS) providers to better handle the escalating volumes of electronic content in the medical industry. With opportunities for high-level product assembly and complete build projects expected to increase, the potential for EMS in the medical industry will progress gradually over the next few years.


New analysis from Frost & Sullivan (http://www.smt.frost.com), EMS Opportunities in the Medical Industry, research finds that the market earned revenue of more than $16.43 billion in 2012 and estimates this to reach $34.38 billion in 2019.

"The challenge in maintaining certified, state-of-the-art manufacturing facilities and complex supply chain operations is that it strains OEMs' profit margins, compelling them to adopt EMS," said Frost & Sullivan Electronics and Manufacturing Equipment Research Analyst Lavanya Rammohan. "EMS providers, with their exposure to various verticals, are the ideal solution to manage the electronics boom in healthcare brought about by the use of wireless communications, robotics and software." Rising demand for engineering support as well as improving EMS competencies in product introduction, manufacture design and value-add services will boost EMS growth in the medical industry.

However, despite EMS providers' growing expertise, the risk of liabilities prevents OEMs from outsourcing several services. Stringent regulations place medical OEMs under huge scrutiny, thereby limiting their outsourcing to tactical operations, such as printed circuit board assembly and sub-system assembly.

Strict regulations also lengthen the outsourcing cycle, as OEMs are cautious in decision-making and favor EMS vendors with proven expertise. Manufacturers' preference to retain intellectual property and strategic customer touch points reduces revenue possibilities for EMS dealers.

"EMS suppliers need to focus on developing strong relationships with original equipment manufacturers to build trust and capability, as OEM-EMS partnerships require long-term commitment in order for outsourcing to increase," concluded Rammohan. "Service providers must be aware of industry trends, including financial models, long sales realization cycles, manufacturing challenges, supply chain complexities, certifications and audits, to offer all-round services." Please follow the link below to find the presentation on Slideshare: http://www.slideshare.net/FrostandSullivan/analysis-of-global-electronics-manufacturing-services-market-opportunities-in-the-medical-industry If you are interested in more information on this research, please send an email to Julia Nikishkina, Corporate Communications, at julia.nikishkina@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

EMS Opportunities in the Medical Industry is part of the Surface Mount Technologies Growth Partnership Service program. Frost & Sullivan's related research services include: 360 Degree on EMS and ODM Markets, EMS The impact of Smart Grids and Renewable Energy on the EMS Market, Opportunity Analysis for Outsourcing in the EMS Design Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Frost & Sullivan, 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. 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 Contact: Julia Nikishkina Corporate Communications - Europe P: +7 (499) 918 6146 E: julia.nikishkina@frost.com http://www.frost.com @FS_ Automation About Frost & Sullivan (C) 2013 Frost & Sullivan ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.com on the world wide web. Inquiries to info@m2.com.

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