Mar 5, 2021

Electronics manufacturing services to grow US$118.49bn

Electronics
SmartManufacturing
growth
Market
Georgia Wilson
2 min
Electronics
Latest insights from Technavio reveal that the global electronics manufacturing services market between 2020 and 2024 will grow US$118.49bn...

This week, Technavio released its Electronics Manufacturing Services Market by Enduser and Geography Forecast and Analysis 2021-2025. In the report Technavio revealed that the global electronics manufacturing services market between 2020 and 2024 is expected to grow by US$118.49bn. 

With the increased adoption of smart manufacturing being a key factor in the market's growth, the report identifies Asia-Pacific (APAC) as the key growth region for the industry. The region is expected to deliver significant opportunities between 2020 and 2024. However, something for industry leaders to watch out for is continuously complex supply chains and shrinking margins that may pose challenges to the growth.

Trends in the global electronics manufacturing services market

When it comes to the end user, the market experienced a maximum growth in computing and consumer appliances. It is said this is driven by the rising demand for consumer electronics devices. It is expected that this segment of the market will be significant during the forecasted period.

Looking at the geographic landscape for the industry, Technavio reports that 79% of the market growth for the global electronics manufacturing services market will originate from the APAC region between 2020 and 2024. 

Growing economic activities, as well as the region’s ongoing urbanisation is said to be crucial for driving the growth of the market. Specifically, China, Taiwan, and India are expected to be key markets for the electronics manufacturing services market in APAC.

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Who is Technavio?

Technavio is a leading global technology research and advisory company, founded in 2003. The company provides research and analysis on emerging market trends, providing actionable insights for businesses to identify market opportunities.

For more information on manufacturing topics - please take a look at the latest edition of Manufacturing Global.

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May 12, 2021

Gartner: Leaders Lack Skilled Smart Manufacturing Workers

SmartManufacturing
DigitalTransformation
DigitalFactory
ConnectedFactory
2 min
57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support smart manufacturing digitalisation

With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.

While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.

“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.

“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”

Change Management

Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.

“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.

Technology and People

While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.

“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.

Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.

Discover Gartner's Five Best Practices for Post COVID-19 Innovation' in manufacturing.

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