NEVADA CITY, CA – After China saw its economy shrink nearly 7% in the first quarter of 2020 – the first contraction of China’s economy since records began in 1992 – the centrally controlled economy almost immediately began to rebound, says New Venture Research, and the country ended the year by growing its real GDP 2.3%, the highest among the G20. China’s electronics assembly value reached a new high of nearly $346.3 billion in 2020, nearly half of the entire Asia/Pacific market, says the research firm.

In 2020, the total market for China’s OEM suppliers was about $201.1 billion, accounting for more than 58% of the total China electronics market. OEMs will grow through 2025 at a CAGR of 3.6% to $240.5 billion, more than three times the rate of growth of COGS outside China. However, the country’s percent of the total market will decline slightly as more suppliers rely on contract manufacturing, and especially EMS, firms.

Computers will be the fastest growing industry segment as the industry recovers from a shortage of semiconductor components caused by the pandemic and a gradual shift away from consumer electronics products. Computer products will grow at a CAGR of 7.6%. The communications sector will also grow sharply, though slightly less quickly, at a CAGR of 6.9%. Medical and automotive products will grow at a CAGR of 6.7% and 6%, respectively. Consumer products are by far the largest industry segment for China OEMs in 2020. However, in part because of increasing outsourcing among consumer OEMs to large EMS firms, the growth of this industry segment will be much slower: a 2.3% CAGR.

The leading OEMs with assembly facilities in China include Samsung, Sony, Panasonic, and Robert Bosch. China-based OEMs dominate within the China domestic market. The top ten alone accounts for more than half of revenues earned through operations in China, and based on 2020 revenues, eight of the top ten OEMs in China are headquartered in China.

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