According to the report, India is currently handicapped by a lack of infrastructure and suitable component supplier base. However, the country still offers "significant potential" and will likely be "one of the fastest growing electronics markets" over the next few years. In fact, the report expects India's electronics sector to triple in size by the year 2010.

In spite of China's emergence as a dominant force, other countries in the Asia-Pacific region are continuing to play an important role in the global electronics industry. South Korea, Malaysia, Singapore and Thailand are all ranked in the top 10 globally in terms of production. In particular, South Korean and Taiwanese companies have established a major presence within the global electronics industry. Other countries such as Singapore and Malaysia, with significant government support, are focusing on higher-value products and moving away from low-cost assembly.

In recent months, Reed Electronics Research has also reported that the electronics industry is growing in Eastern Europe as manufacturers flee high labor costs in the West. Specifically, electronics output in the region increased by 11.6 percent in 2003, 8.7 percent in 2004 and 8.4 percent in 2005.

In comparison, electronics output in Western Europe was stagnant in 2004 after declining by almost a third between 2000 and 2003. Today, Eastern European countries account for about 12 percent of total European output. As of 2004, Western Europe was still responsible for about 19 percent of the global total.

For more on Reed Electronics Research's Yearbook of World Electronics CLICK HERE.