Automation in Electronic Manufacturing Services (EMS) Market Size, Share and Trends 2025 to 2034

Automation in Electronic Manufacturing Services (EMS) Market Size and Forecast 2025 to 2034

The automation in electronic manufacturing services (EMS)  market enhances electronics production through robotics, AI, and smart systems, boosting efficiency, quality, and scalability. The market growth is attributed to the increasing demand for efficient and scalable productions processes. Ongoing advancements in automation technologies further contribute to market expansion.

Automation in Electronic Manufacturing Services (EMS) Market Key Takeaways

• Asia Pacific dominated the automation in electronic manufacturing services (EMS) market in 2024.
• North America is projected to grow at the fastest CAGR in the market during the forecast period.
• By type of automation, the industrial robots segment held the largest market share in 2024.
• By type of automation, the software automation segment is expected to grow at the fastest CAR between 2025 to 2034. 
• By end-use industry, the consumer electronics segment held a considerable market share in 2024.
• By end-use industry, the automotive and EVs segment is anticipated to grow at the highest CAGR during the forecast period.

Impact of Artificial Intelligence on the Automation in Electronic Manufacturing Services (EMS) Market

Artificial Intelligence (AI) leads to a fundamental automation transformation within electronic manufacturing services, as it allows enhancement in operation precision. Manufacturers can utilize computer vision systems to check for assembly defects, thus maintaining high product standards while running at full speed. Furthermore, the integration of AI reduces human mistakes and enables manufacturers to develop personalized products with accelerated innovation cycles. AI also optimizes workflows and increases production efficiency.

Market Overview

The automation in electronic manufacturing services (EMS) market is growing rapidly, driven by the rising need for increased efficiency, accuracy, and speed in production. The demand for advanced manufacturing technologies continues to rise, further driving the growth of the market. The combination of robotics with AI and Machine Learning technologies is revolutionizing electronic production lines. The rising focus on improving quality and production output further drives market growth. According to the World Economic Forum’s report on mixed manufacturing (2023), more than 70% of worldwide manufacturing organizations perform automated procedures for cost reduction combined with quality advancement. Additionally, the increasing adoption of Industry 4.0 technologies and government initiatives promoting industrial automation contribute to market growth. 

Automation in Electronic Manufacturing Services (EMS) Market Growth Factors

• Rising demand for energy-efficient production is expected to boost the growth of the automation in electronic manufacturing services (EMS) market.
• Advancements in ML and AI technologies are anticipated to enhance manufacturing efficiency, supporting market growth.
• The rising need for customization and flexibility in production processes is likely to spur the demand for automation solutions.
• Shortage of skilled labor is projected to increase reliance on automated manufacturing systems, contributing to market growth.
• The integration of 5G technology enables real-time monitoring and control in automated production lines.
• The increasing focus on reducing operating costs is likely to boost the adoption of automation in manufacturing.
• Government support and initiatives for smart manufacturing are projected to boost the growth of the market in the coming years. 

Market Scope

Market Dynamics

Drivers

Growing Adoption of Industry 4.0 Approach

The high utilization of the Industry 4.0 approach in various industries is a major factor driving the growth of the automation in electronic manufacturing services (EMS) market. Manufacturing industries are rapidly transitioning toward the Industry 4.0 approach. This approach enables manufacturers to enhance efficiency, productivity, and flexibility while enabling more intelligent decision-making and customization in manufacturing operations. Such approaches provide complete transparency that allows quick decisions throughout the manufacturing domain. In addition, the rising focus on industrial automation drives the market’s growth. Automation solutions allow businesses to deliver customized products while minimizing waste. According to the International Telecommunication Union (ITU), in 2023, manufacturing companies across industrialized nations have adopted one or more 4.0 technologies. Furthermore, through the Industry 4.0 approach, manufacturing businesses can satisfy varying consumers’ needs.

Restraint

High Initial Investments

High initial investments are anticipated to limit the widespread adoption of automation technologies, which hinders the growth of the automation in electronic manufacturing services (EMS) market. Implementing automation technologies requires significant upfront investments in software, hardware, and equipment. Small and middle-sized enterprises often encounter difficulties paying for advanced automation and robotics systems. In addition, integrating automation into existing production lines creates complexities, requiring special training and limiting the adoption of automation technologies.

Opportunity

Rising Investments in Smart Factory

Rising investments in smart factory infrastructure are expected to create immense opportunities for key players competing in the market. The development of smart manufacturing receives financing through entities. This funding enables manufacturers to invest in AI, the Internet of Things (IoT), and robotics technologies. The European Commission invested heavily under its Digital Europe Program in 2024 to establish smart electronics production facilities throughout all EU member states. Moreover, the development of new technologies creates immense market opportunities with capabilities to maintain connected and scalable operations. 

Type of Automation Insights

The industrial robots (assembly, welding, material handling, etc.) segment dominated the automation in electronic manufacturing services (EMS) market in 2024. This is mainly due to their exceptional precision and efficient task execution capabilities. Industrial robots perform essential tasks, reducing the need for manual intervention and labor. According to a research report by the National Institute of Standards and Technology (NIST), industrial robots gained significant popularity in smart manufacturing programs in 2023. The rise in the demand for industrial automation further bolstered the segment’s growth.

The software automation (MES, ERP integration, AI-driven analytics) segment is projected to grow at a significant CAGR in the coming years, owing to the rising adoption of software solutions in automation technologies. Software automation automates repetitive tasks and processes, reducing human intervention and increasing efficiency and accuracy. With the growing digital manufacturing ecosystems, software automation is emerging as an essential element. Additionally, manufacturers choose this flexible solution due to its cost-effectiveness.

End-user Industry Insights

The consumer electronics segment held a considerable share of the automation in electronic manufacturing services (EMS) market in 2024. This is mainly due to the increased demand for electronic devices. Since modern electronic devices have become increasingly complex, manufacturers choose automation technologies for precision manufacturing. The World Health Organization (WHO) declared in 2023 that digital technologies need to be used for improving supply chain efficiency by replacing manual work with automated systems. The increased production of consumer electronics further bolstered the segment’s growth.

The automotive & EVs segment is anticipated to grow at the highest CAGR during the forecast period. The growth of the segment can be attributed to the rising focus on existing fleet electrification and increasing integration of ADAS and infotainment systems. This, in turn, boosts the demand for complex automotive electronics that require improved manufacturing techniques. The rising production of vehicles is likely to support segmental growth.

Regional Insights

Asia Pacific led the automation in electronic manufacturing services (EMS) market by capturing the largest share in 2024. This is mainly due to the presence of a large number of electronics manufacturing facilities in this region. Countries like China, India, South Korea, and Taiwan are the world’s largest manufacturing hubs for electronics, boosting the demand for advanced automation technologies. Government initiatives promoting industrial automation further bolstered the market in the region. Government-led programs, like "Make in India" campaign, encouraged manufacturers to invest in automation technologies, solidifying the region’s position in the global market.

North America is expected to experience the fastest growth during the forecast period. The growth of the market in the region can be attributed to the region's strong focus on reducing operational costs and enhancing production output. The labor shortage is encouraging electronics manufacturers to adopt automation solutions. There is a high demand for high-tech and specialized EMS solutions in sectors like healthcare, automotive, and aerospace. The presence of major tech companies further supports market growth. Rockwell Automation and other tech companies are focusing on enhancing their regional operations to enhance their software and hardware research capacities. Furthermore, the region’s robust industrial base and the rapid development of advanced technologies contribute to regional market growth.

Automation in Electronic Manufacturing Services (EMS) Market Companies

• Benchmark Electronics Inc
• Celestica Inc
• COMPAL Inc
• Fabrinet
• Flex Ltd
• Hon Hai Precision Industry Co. Ltd
• Jabil Inc
• Plexus Corporation
• Sanmina Corporation
• Wistron Corporation

Latest Announcement by Industry Leader

• In April 2025, Rockwell Automation, Inc., the world’s leading company in industrial automation and digital transformation, announced the official launch of its Emulate3D Factory Test capabilities at Hannover Messe 2025, scheduled from 31 March to 4 April in Hannover, Germany. Matheus Bulho, Senior Vice President of Software and Control at Rockwell Automation, emphasized the importance of this innovation by stating, “Scaling digital twins to the full factory level is critical for modern industrial operations.” The Emulate3D Factory Test solution enables manufacturers to test, refine, and optimize their automation systems with enhanced precision and efficiency—prior to installing any physical equipment—supporting faster deployment and more reliable production outcomes.

Recent Developments

• In February 2025, Adverb, a robotics automation company, introduced three cutting-edge products at LogiMAT India 2025, held from February 13-15 at the Bombay Exhibition Centre in Mumbai. The launch featured Trakr 2.0, an assistive dog robot with enhanced vision and gesture-based controls; HOCA, a carousel automation system; and Bricks, a versatile user interface, each designed to elevate warehousing operations across industries by improving efficiency, safety, and adaptability. According to Sangeet Kumaar, Co-founder & CEO of Adverb, these innovations represent a major step forward, building on the positive reception of the original Trakr by delivering smarter, more responsive solutions tailored to the dynamic demands of modern warehousing.
• In November 2024, Vingroup announced the formation of VinRobotics Research, Development, and Application Company, backed by a charter capital of VND 1,000 billion. The new company aims to drive innovation in industrial robotics by enhancing production efficiency and automating processes across multiple sectors. The ownership structure includes Vingroup (51%), Pham Nhat Vuong (39%), and other stakeholders. Ngo Quoc Hung has been appointed as CEO to lead the initiative focused on advancing smart manufacturing and automation technologies in Vietnam and beyond.
• In September 2024, ABB India launched ABB-free@home, a wireless smart home automation system designed to enhance comfort, security, and energy efficiency in residential spaces. This system supports interoperability with third-party devices, white goods, and EV chargers—all accessible through a single interface. A key feature includes the Matter Bridge Add-on, enabling seamless integration of diverse smart home devices through the open-source Matter standard, allowing users to build personalized, scalable smart home ecosystems.
• In May 2024, Siemens unveiled the Simatic Automation Workstation, a groundbreaking solution aimed at simplifying factory operations by consolidating multiple hardware components into a single software-based platform. This innovation allows manufacturers to replace traditional hardware PLCs, HMIs, and edge devices with one integrated workstation, effectively bridging Information Technology (IT) workflows with Operational Technology (OT) environments and improving operational flexibility and scalability.
• In May 2023, Global engineering technology leader Renishaw introduced its newly developed RCS product line, tailored for the industrial automation sector. Leveraging its deep expertise in industrial metrology, the company aims to streamline commissioning, calibration, and maintenance processes in robotics and automation systems. The lineup includes three core solutions: RCS L-90, a ballbar device for accuracy, and health checks. Supported by dedicated software suites, these tools aim to streamline workflows and boost the reliability of automation systems.

Segments Covered in the Report

By Type of Automation

• Robotic Process Automation (RPA)
• Industrial Robots (Assembly, Welding, Material Handling, etc.)
• Automated Optical Inspection (AOI)
• Automated Test Equipment (ATE)
• Material Handling Systems (Conveyors, AGVs, etc.)
• Software Automation (MES, ERP Integration, AI-driven analytics)
• Others (e.g., Machine Vision, Smart Sensors)

By End-Use Industry

• Consumer Electronics
• Automotive & EVs
• Industrial
• Telecommunications
• Healthcare Devices
• Aerospace & Defense
• Others (e.g., Renewable Energy, IoT Devices)

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa