The electronic manufacturing services (EMS) industry contracted by 11% in 2009, less than expected due to a resurgence of consumer spending late in the year. According to a new forecast avilable from Electronics.ca Publications, the EMS industry will enjoy a compound annual growth rate of 8% for the 2010-2014 forecast period. But the recovery is still on shaky ground, with periods of weakness expected into 2011.

The market for meters and communications equipment alone is worth between EUR15 and EUR26 billion, and the scale of the metering opportunity is circa 200 million meters across Western Europe, spanning electricity and gas. With a market of over 250 million meters coming to fruition over the next eight years, and with buyers insisting on interoperability, becoming part of a common standards community will be necessary for sales success.

The recession has accelerated the shift of global electronics to China, including not only manufacturing but sales and design. China is growing as a global consumer of electronics, and Chinese companies like Huawei are overtaking multinational competitors. Electronics.ca InForum’s forecast supports the view that the current recovery is real and sustainable, based on extraordinary government efforts and on Chinese-led growth. However, significant challenges to consumer spending and the inability of developed countries to sustain recovery efforts indefinitely, will lead to a long period of below normal growth.

Announcements of futuristic looking electric vehicles (EVs) made the main headlines at the 2009 Frankfurt Motor Show, but it is hybrid vehicle production which is forecast to be the main driver in the automotive sector for the next ten years.