PARIS -- The electronics industry produces some €1.14 trillion worth of product last year, making it the world' second largest market, behind automotive, says a new research report.

Only vehicles and related components, at €1.8 trillion, make up a larger sector, says Decision, a Paris-based research firm.

But the market will take a dip this year, dropping 6.8% worldwide. It will be the sector's first recession since 2001, Decision said.

The firm predicts a five-year growth rate of 2.7%, returning to 2008 levels by 2011.

Asia is the largest producer of electronics gear, the firm says, with 50% share, half of which is data processing and telecom products.

Europe and North America are second and third , respectively, with an aggregate 40% of  the world production. Component manufacturers' sales made up 30% of market, while electronics manufacturing services providers combined for 20% in 2008, the firm said.

Decision predicts the rebound will be faster than the recession of 2001-02, and thatnew demand for energy, security and health applications will drive the next growth cycle of electronics.