Inviting Opportunities for EMS Providers at the Heart of Europe

Electronic Manufacturing Services in Germany

July 2012

Electromedical Technologies

The electromedical industry in Germany has an

annual turnover of around EUR 1.5 billion. Medi-

cal technologies are one of the key areas of the

federal government’s high-tech strategy. The

combination of medical and information technol-

ogies ensure EMS providers with strong posi-

tions: contractors will benefit from product

EMS opportunities in Germany

The European Electronic Manufacturing Services (EMS) provider

market is expected to witness a CAGR of 10.1% between 2011

and 2017. Further demand for cost reduction will increase the

role of EMS providers in the electronics market.

Germany hosts the entire value chain with Europe’s largest elec-

tronics industry accounting for EUR 178 billion in 2011. German

EMS accounts for 20% of the European EMS market. Growth

drivers include automotive, industrial, medical electronics and

renewable energy.

Automotive electronics

Automotive electronics is the biggest segment of the German

electronics industry with 39.6% market share. Microelectronics

value per vehicle is expected to grow from USD 155 in 2000 to

USD 400 in 2020. A low EMS provider penetration rate (less than

12%), and the increasing number of electronic products are at-

tractive factors for EMS providers in the automotive electronics

segment.

Industrial Electronics

Industrial Electronics accounts for 25,1% of German electronics.

Revenue grew 146% from 2000 till 2011 and constitutes 50% of

Europe’s market. Germany’s strength in industrial electronics

creates opportunities for EMS providers specialized in this field.

This list is not intended to be exhaustive. Source: Germany Trade & Invest Research, July 2012

Turnover of German Electronics Industry (in bn EUR)

Source: ZVEI

The Top 25 EMS Companies in Germany

Nr. Company Location Expertise

01 Zollner Elektronik AG Zandt Electronic and Mechanical Devices

02 SRI Holding AG Durach Telecommunications Technology Equipment and Facilities

03 Jumo GmbH & Co. KG Fulda Full-service Electronics Production

04 EN Electornic Network AG Bornheim Electronic Components

05 Katek GmbH Professionelle Eletronik

Grassau Electronic Components and Devices

06 ml&s manufacturing , logis-tics & services GmbH & Co. KG

Greifswald Telecommunications Technology Equipment and Facilities

07 BMK Group GmbH & Co. KG Augusburg Engineering and PCB-Assembly

08 SUMIDA Components & Obernzell Electronic Components and Devices

09 BuS Elektronik GmbH & Co. KG

Riesa Service Provider

10 TQ-Systems GmbH Seefeld Systems, Components, Devices

11 paragon AG Delbrück Automotive and Electronic Solutions

12 Tonfuk GmbH Ermsleben Falkenstein/Harz Electronic Equipment and Devices

13 bebro electronic GmbH Frickenhausen, Munich

Electronic and Mechanic Devices

14 RSG Elotech GmbH Bad Lobenstein Printed Circuit Boards production

15 Eckelmann AG Wiesbaden Electronics Solutions for Measurement and Control

16 RAFI Eltec GmbH Überlingen Electronic Equipment and Devices

17 ROB-Electronic GmbH Neulingen Customized Components Manufacturing

18 LACON Electronic GmbH Karlsfeld Electronic Components and Installation Materials

19 Ihlemann AG Braunschweig Printed Circuit Boards, SMD Production

20 SERO GmbH Rohrbach Systems, Components, Devices

21 s.e.t. electronics AG Mönchengladbach Electronic Devices and Systems

22 AEMtec GmbH Berlin Electronic Design and Manufacturing

23 LTi Electronics GmbH Lahnau Electronic Components and Devices

24 Sanmina - SCI Germany GmbH

Gunzenhausen Electric Products and Printed Circuit Boards Assembly

25 RAWE Electronic GmbH Weiler-Siemerberg

Electronic Components and Devices

www.gtai.com/electronics

For further information:

Germany Trade & Invest GmbH Friedrichstraße 60 10117 Berlin Germany

T. +49 30 200 099-0 F. +49 30 200 099-111

Electronic Manufacturing Services in Germany

May 2012

German EMS accounts for 20% of

European EMS market.

There is a low EMS provider pen-

etration rate (less than 12%) in

automotive electronics.

German industrial electronics

accounts for 50% of Europe’s

share.

EMS providers will benefit from

increasing opportunities in medi-

cal technology and renewable

energy.

About Us

Germany Trade & Invest is the for-

eign trade and inward investment

agency of the Federal Republic of

Germany. The organization advises

and supports foreign companies seek-

ing to expand into the German mar-

ket and assists companies established

in Germany looking to enter foreign

markets. All inquiries relating to Ger-

many as a business and investment

location are treated confidentially.

Our investment services and related

publications are free of charge.

Our project management services

include:

market research & competitive

analyses

assistance with market entry stra

-tegies

legal and tax information

support with the site selection

information on financing and in-

centives

© Germany Trade & Invest, 2012

All information provided by Germany Trade & Invest is

for informational purposes only and not legally binding. Germany Trade & Invest does not accept liability for

inaccuracies or errors in translation.

trends such as increasing virtualiza-

tion, mobile applications, real-time

communication, and diagnostics.

Renewable energy

By 2020, it is projected that renewa-

ble energy will account for 36% of

electricity generated in Germany.

Gaining cost benefits from EMS pro-

viders’ improved process control and

manufacturing expertise will remain

a primary driver for increasing the

EMS role in the global renewable

energy and smart grid markets. Par-

ticipating in the renewable energy

industry necessitates significant R&D

investment.

Trends in EMS Segments

Due to the importance of electronic

assembly cost optimization for Origi-

nal Equipment Manufacturers

(OEMs), EMS future markets will also

include design, aftermarket services,

and supply chain support.

Frost & Sullivan reports the following

EMS segments to drive value and

growth by 2020:

Supply chain support industry

revenue is projected to increase

from 8.5% in 2010 to 20% in

2020.

Design services are forecasted to

increase from 5.5% in 2010 to

15% by 2020.

Aftermarket services are ex-

pected to account for 10% of the

EMS provider market revenue by

2020.

German EMS Industry

Landscape

Germany is the host to approximately

350-400 EMS companies. 80% of

them are small enterprises with less

than EUR 10 million annual turnover.

However, large companies (that have

more than EUR 50 million annual

turnover) still constitute around 50%

of industry turnover.

Association & Networks - About 35

EMS providers from Germany, Austria

and Switzerland are organised in the

“Services in EMS" initiative within the

ZVEI.

Advantages

The advantages of establishing your business in Germany:

The European EMS provider mar-

ket is expected to witness a CAGR

of 10.1% between 2011 and

2017.

EMS Segments global growth trend (in %)

Source: Frost & Sullivan