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The final months of 2012 witnessed a larger than expected decline in electronics output across Western Europe, a trend which has continued through into 2013. Weak consumer and business confidence is expected to continue to dampen growth while on-going austerity measures will hold back government spending. However, despite the short-term problems facing the industry there are signs that the economies of Western Europe are beginning to show the potential for a sustained economic recovery. The emerging markets will play a significant role in the recovery in manufacturing output in Western Europe, in particular, for products in which the region is now focused.

According to a new market research report “Global Liquid Crystal on Silicon (LCoS) market (2013-2018) by Application (Consumer electronics, Automotive, Aviation, Military, Optical 3D measurement, Medical), Product (Projectors, HUD & HMD) and Geography (North America, Europe, APAC & ROW)”, the total market is expected to reach $1.75 billion by 2018, at a CAGR of 27.0%.

With the outlook for the European and global economy remaining uncertain growth in the European Electronic Manufacturing Services (EMS) Industry will weaken further in the later part of 2012 and is now forecast to decline by around 2% for the year as a whole to Euro 26.0 billion, according to the latest findings. The current economic crisis and low growth will continue into 2013 and although significant downside risks remain based on the latest indicators a modest recovery should begin in the later part of the year which should gain traction in 2014.

In June, the European semiconductor industry leading indicator continues to show signs of future slow sales. Also, in our European Semiconductor industry forecast report, we forecast sales to decrease 7.3% in the next 12 months compared with the previous 12 months

Preparing the smart grid for the rise of the electric car will offer significant opportunity for private funding in Europe, which will support growth alongside government incentives and national resource sharing, according to a new report. The new report found that European governments are eager to support the Electric Vehicle (EV) market in Europe through non-financial incentives, but independent companies are anticipated to develop the smart grid sector by making shrewd investments that will house substantial financial benefits in the future.

By 2016, analysts forecast €6.8 billion per year in smart grid investment in Europe. The market segments receiving the bulk of this investment will be Advanced Metering Infrastructure (AMI), Distribution Automation (DA), EVs and Utility Enterprise (IT systems). Currently, AMI is the most developed segment. Researchers analyze how utilities within each country are negotiating further deployment and triangulating between policy, in-house business cases and the consumer's role to enable industry growth.

The revised European Union (EU) Restriction of Hazardous Substances (RoHS) Directive was published today in the EU Official Journal. The Directive is expected to go into effect on July 21, 2011, twenty days after publication. Member States will have 18 months to transpose the Directive into national law. Member States' regulations are expected to take force no later than January 2, 2013.

The UK defence industry is set for a difficult 2011, as the government's austerity programme begins to impact on existing and potential contracts. The UK government has already taken certain significant moves – such as grounding the Harrier, cancelling various naval projects and cutting the overall size of the army. It is likely that further moves will follow. Furthermore, the government has made reforming the procurement system at the Ministry of Defence a main priority. While this is likely to ensure better value for money for the government, it risks limiting the profits of firms and disincentivising research and development if costs have to be increasingly borne by the companies themselves. To overcome these domestic burdens, it is likely that UK defence firms will focus on exports in the coming years.

Since their first appearance in 2007, ereaders have experienced much higher growth in North America than in EMEA, mainly as a result of the rapid uptake of Amazon Kindle devices by consumers in the U.S. However, as many European markets experience double-digit growth rates, the EMEA region is now set to expand, roughly matching the size of the North American market by 2015. Many factors are contributing to this growing trend. Firstly, e-ink technology and long-lasting battery charge have proven to offer an appealing reading experience for avid readers in EMEA, which justifies the purchase of a specialized reading device instead of an LCD multifunctional device such as a media tablet.

Following the sharp downturn in the European and global electronics industry at the end of 2008 and in the first half of 2009 the market has recovered. Led initially by the emerging markets, the recovery has gained momentum with the industry showing strong growth in all regions. However, in the final months of 2010 there were signs that growth was slowing and the outlook for 2011/2012 will now depend on a sustained growth in both the European and global economy. In Western Europe, the electronics industry has virtually completed the transformation from high-volume to shorter run production. In the future emphasis will be on areas where Europe has strong global position such as industrial, medical, high-end communications and automotive.

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