2025 and Beyond: Our Trend Predictions for Electronics Manufacturing

Key drivers shaping the industry

The electronics manufacturing services market was valued at USD 580.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of over 5% from 2024 to 2032, reaching approximately USD 926.6 billion.

This growth is driven by increasing demand across various sectors, including consumer electronics, automotive electronics, medical devices and telecommunications equipment. As the demand for these products increases, so does the expectation of customers, resulting in ever-more complex devices featuring the latest technology advancements.

5G, automation and AI

The rollout of 5G networks is just the beginning. Over the next decade, we’ll witness the development and deployment of 6G technology, offering exceptional speed and connectivity.

In turn, this will facilitate advancements in automation and artificial intelligence (AI). For example, smart factories equipped with AI-driven robots and automated systems will enhance efficiency, reduce human error and lower production costs. Equally, predictive maintenance — facilitated by AI — will enable real-time monitoring of equipment health, minimising downtime and improving productivity.

Advanced semiconductor technologies

Semiconductors — including both front-end and back-end segments — are also poised for significant advancements. Global sales of semiconductor manufacturing equipment are set to reach USD 109 billion in 2024, growing 3.4% year-on-year. This growth will only continue in 2025 — with sales expected to hit a new high of USD 128 billion.

Innovations in semiconductor technologies — such as advanced packaging, system-on-chip (SoC) designs and new materials like gallium nitride (GaN) and silicon carbide (SiC) — will drive the next wave of electronic devices. These advancements will enable higher performance, lower power consumption and enhanced functionality in electronic products.

Customisation and personalisation

Consumer demand for personalised products is also on the rise; 36% of consumers say they’re willing to pay more for personalised products.

To meet this demand and remain competitive, electronics manufacturers will need to leverage technologies like 3D printing and modular design. These innovations are becoming more accessible and cost-effective, enabling the production of customised electronics at scale and allowing manufacturers to cater to individual preferences without compromising efficiency or cost-effectiveness.

The integration of AI and machine learning is also enhancing the ability to offer personalised recommendations and configurations. As these technologies continue to evolve, they will further drive the trend towards customisation and personalisation.

Sustainability and green manufacturing

As environmental concerns continue to gain prominence, we’ll see more and more of the electronics manufacturing industry pivot towards sustainable practices. This includes the use of eco-friendly materials, energy-efficient production processes and waste-reduction techniques.

Manufacturers will also increasingly adopt circular economy principles. Instead of a linear ‘take-make-dispose’ approach, the focus is shifting towards recycling, remanufacturing and reusing components. This model aims to keep materials in use for as long as possible and reduce waste. In 2025 and beyond, this approach will become more prevalent as manufacturers recognise the economic and environmental benefits of reducing waste and extending product lifecycles.

Immense potential ahead

The next few years hold immense potential for electronics manufacturing. As we approach 2025, the industry will continue to evolve — driven by technological advancements, changing consumer demands and the hot topic of sustainability.

For businesses looking to tap into these trends, partnering with a reliable electronics manufacturing services (EMS) provider is crucial. EMS providers are integral to the electronics supply chain, offering various services, including design, assembly and production.

At EMS, we offer an extensive range of additional electronics manufacturing solutions that perfectly complement our core PCB design and assembly services. As well as PCBA, we also provide cable assembly, procurement, turnkey assembly and test solutions for a range of different applications and industries — all from our base in the UK.

Contact us today at +44 (0)1635 588 871 or sales@emsolutions.uk.com to find out how we can help with your next project.