BOSTON --  Revenues of Europe-based electronics manufacturing services firms are in recovery, according to a recent research report.

Reed Electronics Research says the European EMS market will reach €47.1 billion by 2009, up 139% from €19.7billion in 2003. Reed estimates the market grew 20.3% in 2004, to €23.7 billion.

One big factor: Eastern Europe. The cost savings gained by moving manufacturing to the emerging region is driving the rest of the continent. Eastern Europe's EMS sales will reach €11billion by 2009, up from an estimated €4 billion this year, Reed reports. Eastern Europe is already the third largest EMS market in Europe, with a 16.8% share.

Germany is the market share leader, at 23%, followed by the U.K. (18.1%) and France (13%).

As of last year, the 10 largest companies made up an estimated 64% of total EMS sales, Reed says.