This is a best prospect industry sector for this country. Includes a market overview and trade data.
Manufacturing of electronic and electrical equipment has been one of the fastest growing industries in Estonia. While many firms are concentrated in Tallinn and its surroundings, the industry has an impact on regional development as well. The Estonian electronics industry benefitted from the shortening of supply chains during the COVID-19 crisis, which led to some of manufacturing activities returning to Europe from Asia. Estonian electronics sector annual turnover is about 12 million euros.
The electronics industry’s dominant sub-sector is the manufacturing of electrical machinery and apparatuses, followed by telecommunication equipment and medical, precision, and optical instruments. While the sector is dominated by small local companies, there are also several subsidiaries of international corporations, including from the United States, which are mostly oriented towards subcontracting for exports. Nearly 84 percent of electronics production is exported. Estonia’s main export partners in electronics are Sweden, Finland, Germany, and the United States. Electrical components and equipment is the biggest export and import article in Estonia-U.S. bilateral trade. Estonia has several near-shoring activities, mainly from Scandinavia, due to Estonia’s favorable geographical location, relatively cost-efficient labor compared to Scandinavian countries, and ease of doing business.
Manufacturing of electronic devices
Supplies and machinery for electronics manufacturing
As a developed technology market, Estonian clients are always looking for innovative technologies and components to enhance product technical features. Developments in the Estonian telecom, defense, and energy markets have had a positive effect on the increased demand for electronic components. Estonian purchasing decisions are typically driven by price and technical support.