El Segundo, CA - Worldwide contract manufacturing revenues will reach nearly $300 billion by 2008, says a research firm.

Sales of EMS and ODM services are on track to hit $298.4 billion, a compound annual growth rate of 13.7% through 2008, iSuppli Corp. said yesterday.

Last year, sales of EMS and ODM firms were $190 billion, up 20.1% year-on-year. The surge was a marked improvement over 2003, in which revenues climbed 5.4%.

EMS sales were $116.5 billion in 2004, up 15.8%, iSuppli said. ODM revenues were up 27.2% to $73.6 billion.

Global EMS revenue is expected to reach $164.4 billion by 2008, a five-year CAGR of 9.5%. Worldwide ODM sales will rise at a CAGR of 21.2%, to $134 billion, according to iSuppli.

The research firm expects ODMs to push toward branding their own products during that time.