PUBLISHER: Reed Electronics Research | PRODUCT CODE: 1858293
PUBLISHER: Reed Electronics Research | PRODUCT CODE: 1858293
CEE's electronics industry is focused on a small number of major global OEMs and electronic manufacturing services providers with the focus on the 3C segments. In total, the 3C segments amounted to US$42.8 billion in 2024, 77.5% of electronics equipment output. 3C production is centered on five countries with Poland, Slovakia and Turkey major centres for TV production. Production in the Czech Republic is focused on computing while Hungary is produces a combination of computing and consumer electronics related equipment.
After declining in 2023, on the back of the slowdown in the PC market, the production of computer equipment surged in 2024 with growth of 21.5% with output forecast to increase by a further 12.3% in 2025. Growth has been driven by the demand for servers and other equipment related to AI and data centres. The Czech Republic, Hungary and Poland have been the main beneficiaries with computer related output in the three countries increasing by 28.2% in 2024 and a forecasted 13.2% in 2025.
The focus on 3C has been a key factor in the growth of electronics industry across CEE. However, with volume manufacturing in the hands of a relatively few companies the region continues to be vulnerable to the individual strategies of the company. Companies will need to balance the advantages of producing in close proximity to the European market against the advantages offered through lower costs by utilising manufacturing facilities in China and increasingly other Asian countries.
Industrial and high-end communications equipment production within the region will continue to take an increasing share of production, although in overall percentage terms it will remain low because of the dominant position held by the 3C segment. Although this will be led by foreign investment as companies look to move production from higher cost West European locations or in the case of non-European companies look to establish a low-cost manufacturing base to serve the European market, it is also an area where indigenous companies will compete.
The region is already a production base for many of the leading European Electronic Manufacturing Services (EMS) providers with the proportion of production undertaken in the region forecast to increase over the period to 2028. Although the major players with large volume production plants will continue to dominate in value terms companies over the period there will be significant investment by medium-sized companies looking for a lower-cost European production base.
Within CEE, components accounted for only 11.6% of electronics output in 2024. There are a number of indigenous companies although they tend to be small and focused on passive components. Foreign companies who have established operations in the country including Infineon Technologies and onsemi, both companies expanding their existing semiconductor facilities in the region with onsemi in June 2024 announcing plans to invest US$2 billion to expand silicon carbide wafer production at its existing operations in the Czech Republic.
Apart from the impact on Europe and globally, Russia's invasion of Ukraine continues to influence the country's electronics industry. For the current report we have provided information on the structure of the industry in 2024. The forecasts for Russian production and markets, which are largely based on an analysis of ITC and UN trade data, limited government statistics and Russian media sources, assume that output in US dollars will increase by 9.1% in 2024 and 14.5% in 2025. Following two years of double-digit declines output for the Ukrainian electronics industry increased by 20.9% in 2024 and is forecast to increase by a further 9.5% in 2025. In 2024, Russia and Ukraine accounted for 8.2% of electronics production in the region and 25.6% of the market. At the end of 2024 electronics production in Russia and Ukraine was an estimated US$5.6 billion and compared to US$5.1 billion in the prior year, with growth in value terms being driven by developments in Russia. In the same period the electronics market increased by 5.1% to US$28.1 billion (2023: US$26.7 billion).
Published since 1991 'the Volume 3 of the Yearbook of World Electronics Data' provides:
The Yearbook is essential research providing key data for all areas of the electronics industry including:
'The Yearbook of World Electronics Data series' presents market and production statistics for the GLOBAL electronics industry. Available in three published volumes covering 53 countries and 13 major product groups, the yearbook is used in the formulation of business and market planning, in tracking trends based on a clear understanding of how the industry has developed historically and to provide a basis for medium and long-term forecasting.
53 country coverage, 13 major product groups
... comparable country by country and product by product.
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