ULIKE DESIGN
In 2020, the total market of OEM suppliers will be about US $2011 billion, accounting for more than 58% of the total electronic market in China. By 2025, OEMs will grow at a CAGR of 3.6%, with a total amount of US $240.5 billion. However, as more and more suppliers rely on contract manufacturing, especially EMS, the percentage of original equipment manufacturers in the whole market will decline slightly.
China has a unique position in the global electronic industry. At the same time, it has the largest manufacturing capacity of various electronic products and almost the largest consumer market for these products. In addition, as a partner of electronic companies from all over the world, the country is not only the best place to establish manufacturing and assembly facilities, but also a very difficult place for foreign companies to do business.
On the bright side, China seems to have unlimited engineering and design talents with relatively low wages, although this advantage has gradually disappeared in recent years, as well as a low-cost parts supply base and well-organized infrastructure, which can provide a supply chain to assemble parts into products and transport these goods anywhere in the world.
In 2020, the total amount of China's OEM market will be close to US $2011 billion and will increase to US $240.5 billion by 2025, with a CAGR of 3.6%, more than three times the growth rate of cogs outside China.
As the industry recovers from the shortage of semiconductor components caused by the pandemic and gradually moves away from consumer electronics, computers will become the fastest-growing industry. Therefore, computer products will grow fastest at a CAGR of 7.6%. The communication industry will also grow significantly, but at a slightly slower rate, with a CAGR of 6.9%. Medical and automotive products will also grow at a CAGR of 6.7% and 6.0% respectively.
So far, consumer goods is the largest industry segment of OEM in China in 2020. However, due in part to the increasing outsourcing of consumer OEMs to large EMS companies, the growth of this industry segment will be much slower - with a CAGR of only 2.3%.
China has a unique position in the global electronic industry. At the same time, it has the largest manufacturing capacity of various electronic products and almost the largest consumer market for these products. In addition, as a partner of electronic companies from all over the world, the country is not only the best place to establish manufacturing and assembly facilities, but also a very difficult place for foreign companies to do business.
On the bright side, China seems to have unlimited engineering and design talents with relatively low wages, although this advantage has gradually disappeared in recent years, as well as a low-cost parts supply base and well-organized infrastructure, which can provide a supply chain to assemble parts into products and transport these goods anywhere in the world.
In 2020, the total amount of China's OEM market will be close to US $2011 billion and will increase to US $240.5 billion by 2025, with a CAGR of 3.6%, more than three times the growth rate of cogs outside China.
As the industry recovers from the shortage of semiconductor components caused by the pandemic and gradually moves away from consumer electronics, computers will become the fastest-growing industry. Therefore, computer products will grow fastest at a CAGR of 7.6%. The communication industry will also grow significantly, but at a slightly slower rate, with a CAGR of 6.9%. Medical and automotive products will also grow at a CAGR of 6.7% and 6.0% respectively.
So far, consumer goods is the largest industry segment of OEM in China in 2020. However, due in part to the increasing outsourcing of consumer OEMs to large EMS companies, the growth of this industry segment will be much slower - with a CAGR of only 2.3%.
