Automation in Electronic Manufacturing Services (EMS) Market Size, Report by 2034

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.

Market Overview
Automation in the electronic manufacturing services (EMS) market is gaining momentum in sectors like automotive and industrial electronics, where reliability, safety, and performance are paramount. As vehicles become more digital and factories adopt Industry 4.0 practices, EMS companies are investing heavily in automated processes to meet rigorous quality and compliance requirements. Automation enhances traceability, reduces production defects, and allows for greater consistency in the manufacturing of complex automotive electronic components such as ECUs, sensors, and infotainment systems.

Drivers
One of the major drivers for automation in EMS for automotive and industrial electronics is the growing complexity and volume of electronics being integrated into vehicles and smart manufacturing systems. Strict quality standards, such as ISO/TS 16949 in the automotive industry, necessitate precision manufacturing that is best achieved through automation. Additionally, global trends such as electrification of vehicles and the rise of autonomous driving technologies are accelerating the need for scalable and highly accurate EMS automation.

Opportunities
The shift toward electric vehicles (EVs) and smart factories offers promising opportunities for automation vendors working within EMS. Demand is rising for automated inspection, testing, and packaging systems tailored to high-voltage battery management systems, power inverters, and electric drive controls. There is also significant potential for cloud-based monitoring platforms that allow for real-time diagnostics and analytics across geographically dispersed EMS facilities.

Challenges
One of the key challenges in this segment is managing production flexibility. Automotive and industrial customers often require customization and may change specifications mid-cycle, which can disrupt automated lines. Ensuring interoperability between legacy systems and new automation technologies is another hurdle, especially in plants with diverse machinery and software ecosystems.

Regional Insights
Europe leads the adoption of automation in EMS for automotive applications due to its strong automotive industry and focus on electrification. Germany, in particular, is a hotspot for innovation in automated EMS lines tailored for vehicle electronics. The U.S. is advancing rapidly in industrial EMS automation, fueled by increased investment in smart factory technologies. In Asia, Japan and South Korea are pioneering automation in robotics and automotive systems, driving local EMS companies toward high-end automation upgrades.

Recent Developments
Recent developments include strategic investments by EMS providers in automated optical inspection (AOI) and X-ray inspection systems to improve quality assurance. Major players have also begun incorporating blockchain into automated EMS lines to enhance traceability and component authentication. In parallel, governments in Europe and Asia are offering subsidies and tax incentives to encourage digitalization and automation in electronic manufacturing