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Frost & Sullivan: Lower Import Duties and Rising Customer Demand to Boost Russian Electronics Manufacturing Market
Date:5/26/2009

LONDON, May 26 /PRNewswire/ -- Russia has been looked upon as an unfavourable market for electronics manufacturing by foreign electronics manufacturers in the past. This negative perception has been in spite of the country's cost-competitive advantages as well as its growing domestic market. However, liberalisation coupled with heightened demand from key end-user segments such as consumer electronics is aiding the growth of the electronics manufacturing market in Russia.

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New analysis from Frost & Sullivan (http://www.smt.frost.com), Russian Electronics Manufacturing Markets, finds that the market earned revenues of $1.85 billion in 2008 and estimates this to reach $4.91 billion in 2015. The following segments are covered in the research: 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 FPD products such as 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 m
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