SAN JOSE, Calif. -- The original design manufacturing (ODM) market is predicted to grow at a compound annual growth rate (CAGR) of 10.6% from about $30.42 billion in 2001 to $50.43 billion in 2006, according to a report from Electronic Trend Publications Inc.
Of that 2006 market $39.54 billion is ascribed to PCB manufacturing and $10.89 billion to so-called 'box assembly'.
ODMs have existed for many years as subcontractors to traditional equipment makers but are adding a larger part of the value of assembly as strongly branded equipment makers focus more on marketing and distributions and ODMs become assemblers and non-branded box builders.
The executive summary of the report gives a break down of the ODM market by sector and shows that computers represent more than half the ODM market in 2001 and will still do so in 2006 when the computer ODM market will be worth $32.91 billion. The communications sector will remain number two, growing to a market value of $10.06 billion in 2006, according to ETP. The consumer electronics will remain a distant third, the report predicts.
For the purposes of the report the worldwide ODM market has been segmented into four geographic regions: North America including Canada and Mexico; Europe including Eastern Europe and former Soviet satellite countries; Asia; and the rest of the world, or ROW including, in particular, Brazil, Israel, Australia, and India.
By region Asia is, and will remain, the dominant ODM manufacturing region growing with a CAGR of 13.3% to $37.89 billion, according to ETP. Europe from the smallest regional market base in 2001 is expected to grow the fastest with a CAGR of 19.2% while the ROW market is expected shrink during the period.