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Lower Import Duties and Rising Customer Demand to Boost Russian Electronics Manufacturing Market Finds Frost & Sullivan - Russia has been looked upon as an unfavourable market for electronics manufacturing by foreign electronics manufacturers in the past
Lower Import Duties and Rising Customer Demand to Boost Russian Electronics Manufacturing Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2009/05/26 - Russia has been looked upon as an unfavourable market for electronics manufacturing by foreign electronics manufacturers in the past.

   
 
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This negative perception has been in spite of the country's cost-competitive advantages as well as its growing domestic market. However, liberalisation coupled with heightened demand from key end-user segments such as consumer electronics is aiding the growth of the electronics manufacturing market in Russia.

New analysis from Frost & Sullivan (smt.frost.com), Russian Electronics Manufacturing Markets, finds that the market earned revenues of $1.85 billion in 2008 and estimates this to reach $4.91 billion in 2015. The following segments are covered in the research: original equipment manufacturing, electronics manufacturing, electronics manufacturing services, PTH and original design manufacturing.

"The lowering of import duties on liquid crystal display (LCD) components will positively impact market prospects," notes Frost & Sullivan Research Analyst Harish Natesan. "The increasing demand for flat panel display (FPD) products will be another key factor influencing the growth of the Russian electronics manufacturing market."

The demand for FPD products such as televisions and monitors has been rising rapidly over the past few years, especially due to the downward price trends of these products. The Russian government's initiative to encourage LCD manufacturing has resulted in the lowering of import duties on components used in LCD products. Such moves are expected to attract many key LCD manufacturers as well as their electronic manufacturing services (EMS) partners to Russia.

However, the global economic slowdown is a key factor restraining the entry of foreign investors into Russia. Many multinational OEMs as well as EMS companies have postponed or shelved plans to enter Russia amidst the current economic crisis.

"The global economic slowdown will continue to have an impact on foreign investments in electronics manufacturing," cautions Natesan. "Many multinational companies have deferred plans of a proposed entry amidst the recessionary scenario."

Despite the current gloom, the market remains optimistic. In the last few years, foreign manufacturers have increasingly penetrated Russia due to the liberal economic and fiscal policies introduced by the government as well as the increasing demand in major segments such as automotive and consumer electronics.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Russian Electronics Manufacturing Markets is part of the Surface Mount Technologies Growth Partnership Service programme, which also includes research in the following markets: Bulgarian Electronics Manufacturing Markets, Polish Electronics Manufacturing Markets and Slovakian Electronics Manufacturing Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 35 offices on six continents.

Russian Electronics Manufacturing Markets / M3AA-28

 
 
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Lower Import Duties and Rising Customer Demand to Boost Russian Electronics Manufacturing Market Finds Frost & Sullivan

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