NEW YORK -- With electronics assembly revenues set to rise at least 7% per year over the next four years, warranty and repair services opportunities will be abundant, a new report says.

OC&C Consultants, which interviewed analysts, OEMs, and EMS companies in several end-markets and geographies for the report, pegged the total value of the outsourced market at about 20% in 2009, rising to 23% by 2014. Medical will jump during the next four years, with the outsourced portion reaching 42% of the total available market. Meanwhile, automotive will be stagnant at 10%, and defense will contract 0.4%.

The overall electronics assembly market will reach $1.22 trillion by 2014, according to the report. All sectors will grow at least 7.4% compounded annually over the forecast period, with medical and automotive seeing the fastest rate of growth, at 9.7% and 9.4%, respectively, while computing will grow the slowest.

The firm found that compared to the largest companies Tier 3 EMS firms (those with annual sales less than $1 billion) have superior operating margins, averaging 4.8%, the average revenue growth is falling about 23%. The contraction likely is due to consolidation, versus loss of market share.

After-market services represent a prime opportunity, the firm found, reporting that the vast majority of the AMS market is comprised of cellphones and digital TVs. "OEMs have an opportunity to generate greater returns from their AMS activities through outsourcing of the processes," OC&C wrote.