Current Trends in Electronics Manufacturing Services
What we saw in the last three decades, electronics hardware just get smaller and smaller. It is interesting to observe that how quickly collective wisdom about the electronic manufacturing became obsolete. The fourth industrial revolution shifted the electronic manufacturing market towards Asia. And now Asian markets are getting saturated with manufacturing. It will ultimately change the face of the market. The cost of living in the Asian manufacturing hubs is reaching the level of western cities. The advantage of cost-effectiveness in these markets is reducing. To overcome these issue some of the manufacturing services are going towards even cheaper markets while others are outsourcing to other parts of the world.
Trends in Manufacturing Services Industry
Smart cars are trending high in the present market. A few years back only luxury cars were using features that required intelligent electronics. Now we are observing that smart features will be part of all the vehicles. In fact with the development of auto driving features in the future electronics might be more expensive part of the cars instead of mechanical part. In 2015 electronics was comprising 40% of the total cost of the car in some brands. The research in the autonomous vehicle is on the boom, and that is going to reshape the electronic manufacturing services.
Medical Electronic Services
Medical is another booming field of interest in the present. And more growth is predicted in the future. Some of the rapidly developing countries are buying medical equipment in high quantities. The growth is so hight that manufacturer is unable to meet the deadlines. The developed countries are moving to more sophisticated equipment as well. According Forbes the manufacturing services industry will grow a to 40 billion dollars by the end of this decade.
Go green is not a slogan anymore for hippies or nature geeks. The climate changes in the decades are worsened to many folds. There is mounting pressure on the governments and policies are made towards green economies. The industry is looking for Eco-friendly solutions in response to government legislation and offered incentives. The governments and businesses are increasingly looking for answers which are environment-friendly. One of the necessary focus is on energy production via carbon-free methods. Government is investing high in renewable energies. Subsequently increasing demand for services from electronics manufacturers.
As discussed above the Asian markets are no longer cheap as it used to be. According to Boston consulting group, the difference in manufacturing price between Asia and America is just 5% now considering all the hidden costs. Considering quality assurance and transportation time it might become more viable in the future to have manufacturing units in America. The other countries in South America are also growing very fast and could be the destination to manufacturing services.
Electronic manufacturing market is not easy to predict as it is changed in every five years. We can only observe the trends to see the future. Improvising with the changing playing filed of technology is essential.