Global Surface Mount Technology Market Size, Share & Industry Trends Analysis Report By Industry (Consumer Electronics, Telecommunication, Aerospace & Defense, Industrial, Medical, Automotive and Energy & Power Systems), By Equipment, By Regional Outlook

Global Surface Mount Technology Market Size, Share & Industry Trends Analysis Report By Industry (Consumer Electronics, Telecommunication, Aerospace & Defense, Industrial, Medical, Automotive and Energy & Power Systems), By Equipment, By Regional Outlook and Forecast, 2022 - 2028

The Global Surface Mount Technology Market size is expected to reach $8.6 billion by 2028, rising at a market growth of 8.0% CAGR during the forecast period.

SMT, which stands for surface-mount technology, is a technique that allows electronic components to be put directly on the top layer of a printed circuit board (PCB). Surface mount technology allows for producing various electronic devices referred to as "surface mount devices." The traditional soldering through-hole technology is much different from this newer technology.

In comparison to through-hole soldering, surface mount technology (SMT) utilizes soldering equipment as well as principles that are substantially distinct from those used for traditional soldering, resulting in increased electrical conductivity and dependability. Surface mount technology (SMT) is currently the approach that is utilized the most frequently for the assembly of consumer electrical products since it is both low-cost and high-production.

Surface mount technology can be broken down into its parts, which include integrated circuits, passive surface mount devices, as well as transistors and diodes. These materials have reduced the costs involved in the beginning stages of production. Furthermore, under conditions of vibration and stress, the implementations of these technologies enable improved mechanical efficiency (partly because of lower mass and partly because of less cantilevering).

The exponential increase of the electronics sector, the miniaturization of current electronic components, the enhanced usage of flexible PCBs, and the rising interest in electric vehicles are some of the key drivers boosting the growth of surface mount technology. Another key driver is the exponential growth of the semiconductor industry, which is driving the increase of surface mount technology.

COVID-19 Impact Analysis

The COVID-19 pandemic had a big influence on the market for surface mount technologies. A fall in demand for analog semiconductors was caused by the worldwide stagnation of new projects. In addition, workers stayed at home, making it difficult for factories to adopt new surface mount technologies, disrupting supply chains worldwide. However, due to a short halt in the manufacturing process and supply chain, COVID-19's effects on this market were only transitory. Surface mount technologies progressively saw a rise in manufacturing, supply chains, as well as demand as the situation became better. The COVID-19 accelerating the market's growth.

Market Growth Factors

Significant usage of SMT in the consumer electronics industry due to the high demand

Urbanization is increasing in developing countries as the worldwide middle class grows. So, these rising markets are significantly influencing the market. Technology advancement has led to the digital transformation age and the emergence of creative solutions. Companies are concentrating on promoting solutions to emphasize particular competitive dynamics related to digital transformation. Also, a growing number of low-power CPUs for portable devices are being developed. In the upcoming years, increased digital content, better connectivity, and mobility will allow further market expansion in the coming years.

Rising use of PCBs made with SMT in industrial equipment and security systems

Printed circuit boards are mostly developed using SMT to incorporate more components on a single board. Most of the equipment in manufacturing and distribution facilities, as well as other industrial settings, is powered by electronic components. Since they may be exposed to rough handling, extreme temperatures, vibrating machinery, or harsh chemicals, PCBs in industrial contexts need to be highly resilient and powerful to handle difficult situations. Many of them are thicker than standard PCBs and constructed of robust metals that are thermally resistant. Therefore, the rising use of PCBs in numerous sectors and equipment is driving the growth of the surface mount technology market.

Market Restraining Factors

Issues regarding the designing of surface mount components

SMT components can cause signal integrity issues, resulting in lower performance or overall failure of the board if they are not placed properly for their circuits. Designers of PCB layouts must arrange their components in accordance with the signal routes shown in the schematics and separate digital and analog components in the design partitions. When placing components, a clear signal return channel on the reference frame must be allowed. These factors collectively hinder the market for surface mount technology from expanding.

Equipment Outlook

Based on equipment, the surface mount technology market is segmented into inspection equipment, placement equipment, soldering equipment, screen printing equipment, cleaning equipment, and repair & rework equipment. The inspection equipment segment procured a significant revenue share in the surface mount technology market in 2021. Improvements in product technology, responsiveness, dependability, and inspection quality drive the demand for SMT inspection equipment. Over the projected period, the inspection equipment's demand is anticipated to rise due to the rising need in the industries of automotive, consumer electronics, telecommunication, computer, and storage.

Industry Outlook

Based on the industry, the surface mount technology market is bifurcated into consumer electronics, telecommunication, aerospace & defense, automotive, medical, industrial, and energy & power systems. The medical segment procured a promising growth rate in the surface mount technology market in 2021. Surface mount technology is expanding rapidly, which is being made possible by the increasing importance of PCBs in the sector and the explosive growth of applications in the healthcare industry. Recent years have seen the automation of processes, including diagnostic, therapeutic, and research strategies. PCBs are needed for additional monitoring devices, just like for implanted devices.

Regional Outlook

Region-wise, the surface mount technology market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region witnessed the maximum revenue share in the surface mount technology market in 2021. The market for surface mount technology in this region is expanding, with China and Japan among some of the key contributors. The regional SMT market is predicted to be driven by an increase in industrial activity as well as the region's growth as a center of efficient production. Asia Pacific is anticipated to continue being a market with strong growth for SMT equipment because numerous new electronics manufacturing initiatives are planned in the region.

The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; KLA Corporation, and Hitachi High-Tech Corporation (Hitachi, Ltd.) are the forerunners in the Surface Mount Technology Market. Companies such as Yamaha Motor Co., Ltd., Nordson Corporation, and Mycronic AB are some of the key innovators in Surface Mount Technology Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Nordson Corporation, KLA Corporation, Yamaha Motor Co., Ltd., Juki Corporation, Viscom AG, Hitachi High-Tech Corporation (Hitachi, Ltd.), Saki Corporation, Electro Scientific Industries (MKS Instruments, Inc. ), Fuji Machinery Co., Ltd. and Mycronic AB.

Recent Strategies Deployed in Surface Mount Technology Market

Mergers and Acquisitions:

Nov-2022: Nordson took over CyberOptics Corporation, a company focused on developing and manufacturing high-precision 3D optical sensing technology solutions. The acquisition expanded the former company's test and inspection platform for delivering diversified technology that broadens the company's product suite in the electronics and semiconductor industries.

Nov-2021: Nordson announced the acquisition of NDC Technologies, a company focused on providing precision measurement solutions, from Spectris PLC. The acquisition broadened Nordson’s test and inspection platform into new end markets and technologies.

May-2021: Mycronic took over atg Luther & Maelzer, a company engaged in developing, manufacturing, and supplying advanced equipment for electrical testing of PCB and substrate. The acquisition broadened and reinforced the former company's portfolio and created a platform for electrical testing.

Product Launches and Expansions:

Feb-2023: Yamaha Motor introduced YRM20DL, the premium high-efficiency dual-lane modular surface mounter that features increased actual and per-unit-area productivity with a newly created high-rigidity dual-lane conveyor by further reducing transport losses, etc. The company's flagship YRM20 universal mounter, which features high speed, high precision, and high versatility, serves as the foundation for YRM20DL. While in dual-lane production mode, YRM20DL offers a maximum PCB width of up to 330mm when the same width PCB is being conveyed at the front and back.

May-2022: Saki Corporation announced the launch of the new 3Di series of high-precision, high-speed, next-generation in-line 3D automated optical inspection (3D AOI) systems for complex inspection of high-density printed circuit boards with very small and tall components. This newest automated inspection system from Saki helps to improve quality control and productivity and is ideal for high-density PCB technology inspection of the highest calibre.

Jul-2021: Juki launched the High-Speed Compact Modular Mounter RX-8 system, which significantly boosts SMT production and has developed from earlier revolver head variants. The RX-8 securely processes microchip SMD components as small as 0.4 mm x 0.2 mm and as large as 5 mm square and as tall as 3 mm. The mounter uses two rotating mounting heads to achieve extremely high speeds for small components, including discrete chips and integrated circuits (ICs). To enhance the number of items that may be purchased at one stop from one feeder, the number of nozzles on each mounting head has been increased from 16 to 20 (to 1 head).

Partnerships, Collaborations and Agreements:

Oct-2021: Saki Corporation partnered with ASM Assembly Systems for enabling seamless machine connectivity in ASMPT’s pick-and-place machines using IPC Connected Factory Exchange (CFX) and Saki’s inspection and measurement systems. Customers now have access to robust production line systems that support IIoT/Smart Factory and allow "plug & play" machine-to-machine connectivity. Through this partnership, Saki and ASMPT aim to expand the Smart Factory concept's implementation while also giving manufacturers access to cutting-edge Industry 4.0 technology solutions that improve quality, productivity, and process optimization.

Nov-2020: Mycronic signed a partnership with Cogiscan for delivering machine connectivity for industry 4.0 applications. Cogiscan's multiprotocol connectivity platform has been integrated with Mycronic’s complete range of SMT equipment and software, including dispensing, printing, placement, and component storage solutions, for creating a portfolio of integrated machine and software systems for the printed circuit board assembly market.

Geographical and Business Expansions:

Feb-2023: Yamaha Motor announced the establishment of a new company in Singapore, Yamaha Robotics Solutions Asia Pte. Ltd, for expanding its presence in Southeast Asia and India. Along with trying to grow its distribution network, the company will also improve its distributor support system. As it pursues further business expansion, the company will create frameworks that permit the fast deployment of complex, all-inclusive solutions based on the Yamaha One-Stop Smart Solution idea.

Oct-2021: KLA Corporation announced the opening of two new facilities in Chennai for reinforcing their research and talent development. The company opened an Artificial Intelligence-Advanced Computing Lab (AI-ACL), which operates in conjunction with the Indian Institute of Technology (IIT) Madras, at the IIT-M Research park, for serving as a center of excellence for AI-focused research and development.

May-2020: KLA established a new business group centered on its Electronics, Packaging, and Components (EPC) businesses. The EPC Group expanded KLA's position in systems and services throughout the microelectronics and semiconductor value chain. The ICOS, Orbotech, and SPTS Technologies businesses are brought together by the EPC group to pursue growth prospects in emerging end markets. In order to bring complementary technologies, products, and services into one company and promote innovation and results in quickly expanding markets, this new group integrates KLA's acquisition of the Orbotech and SPTS businesses.

Scope of the Study

Market Segments covered in the Report:

By Industry

• Consumer Electronics
• Telecommunication
• Aerospace & Defense
• Industrial
• Medical
• Automotive
• Energy & Power Systems

• Placement Equipment
• Inspection Equipment
• Soldering Equipment
• Screen Printing Equipment
• Cleaning Equipment
• Repair & Rework Equipment

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

• Nordson Corporation
• KLA Corporation
• Yamaha Motor Co., Ltd.
• Juki Corporation
• Viscom AG
• Hitachi High-Tech Corporation (Hitachi, Ltd.)
• Saki Corporation
• Electro Scientific Industries (MKS Instruments, Inc. )
• Fuji Machinery Co., Ltd.
• Mycronic AB

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