Electronics lie at the heart of our modern world: They are in our smartphones, control industrial robots and are driving innovation in almost every sector. These electronics stem from a supply chain that is often very complex and at the same time is experiencing enormous growth. The market in electronic components is dominated by Asian and American heavyweights. European companies play a decisive role, particularly when it comes to development, but often struggle to take advantage of market opportunities.
The global electronics industry is estimated to be worth over 5.7 trillion euros (as of 2022). Ninety-five per cent of that is earned in only 53 countries. Europe accounts for 17 per cent of the global market, or around 952 billion euros. European electronics manufacturing services (EMS) companies, which produce components such as printed circuit boards for electronic manufacturers, recorded sales revenue of around 57 billion euros in 2023, an increase of eleven per cent over the previous year. Over 80 per cent of Europe’s 2,230 or so mostly small and medium-sized companies were able to increase their sales revenue. Between now and 2030, the European EMS market is expected to see annual growth of 6.7 per cent (CAGR). This will also lead to a further increase in demand for skilled workers; the number of employees in the sector already rose by 14,000 in 2023 to a total of 254,000. However, these growth expectations are coupled with rising labor and material costs, which is why margins are expected to stagnate and even decline in some cases.
Read the impulse in full length: Speed Meets Perfection.