LONDON, 26 May 2009. Growing demand from key end-users such as consumer electronics is aiding the growth of the electronics manufacturing market in Russia, say market analysts at Frost & Sullivan in London.
The Russian electronic contract manufacturing market earned revenues of $1.85 billion in 2008, and may earn $4.91 billion in 2015, Frost & Sullivan analysts say in the report Russian Electronics Manufacturing Markets, which covers 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 flat panel displays in 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.
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