LONDON -- The past decade has not been kind to Western makers of electronics equipment, as market share of world production has fallen from 67% to 40% during that span, a new research report says. While the West will continue to experience anemic growth over the next couple years, however, even China will see its share slip.

Global electronics production will grow 3.2% per year from 1.41 trillion euros in 2012 to 1.66 trillion euros ($2.29 trillion), DECISION says.

As high-volume production migrated to Asia, North America, Europe and Japan have been left to fight over high-mix, lower-volume programs, DECISION says. But while China's share of world production more than doubled, to 38%, between 2002 and 2012, rising labor costs are taking their toll on China, which is now being challenged by India, Vietnam and Malaysia. As such, China's production share is expected to slip to 36% by 2017.

European and North American production, which is focused on automotive, aeronautics, industrial and medical sectors, will grow 1.7% and 1.9%, respectively, between 2012 and 2017.

Meanwhile, emerging economies made up 16% of the global electronics equipment production in 2012, the report says, and will see an annual growth rate of 7.9% that will bring its share to 20% by 2017.

Electronics production in South America and Africa is forecast to grow 7.2% annually through 2017 driven by a strong demand in telecommunication equipment, industrial electronics, aerospace and defense electronics.

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