Surface Mount Technology Equipment Market Forecasts to 2028 – Global Analysis By Equipment (Placement Equipment, Inspection Equipment, Cleaning Equipment), Component (Transistor and Diodes, Passive Surface Mount Devices, Integrated Circuits), End User (Te

Surface Mount Technology Equipment Market Forecasts to 2028 – Global Analysis By Equipment (Placement Equipment, Inspection Equipment, Cleaning Equipment), Component (Transistor and Diodes, Passive Surface Mount Devices, Integrated Circuits), End User (Telecommunication, Automotive, Consumer Electronics), and By Geography

According to Stratistics MRC, the Global Surface Mount Technology Equipment Market is accounted for $4.77 billion in 2021 and is expected to reach $9.42 billion by 2028 growing at a CAGR of 10.2% during the forecast period. Surface mount technology (SMT) equipment is the process of mounting electronic components onto a printed circuit board. This technology varies significantly from traditional soldering thru-hole technology. The components are usually very small and are attached to the surface of the PCB by using solder paste. SMT equipment is used in all types of electronics manufacturing, from large-scale assembly operations to consumer products. The initial costs are lower for these materials. Their applications provide better mechanical efficiency under conditions of shock and vibration.

Market Dynamics:

Driver:

Rising demand for miniaturized consumer electronics products

The increasing necessitate for miniaturized products has led to the expansion of smaller electrical components which occupy less area. This is merely probable when the hardware components of the devices, such as PCB, are little in size and can run effortlessly while integrating a numeral of components. The SMT helps in using and assembling much smaller components, hence facilitating a portable, smaller, and lightweight electronic device. It enables a very compact assembly of components on a printed circuit board using the obtainable space in the finest manner. Using the SMT method, both layers of the PCBs can be used for assembling and the final PCB area for the same circuits can be decreased by 50%. In addition, the demand for miniaturization in the electronics market as well as the rising intricacy of devices has led to the need for greater component density in any PCB assembly.

Restraint:

High frequency and need for thermal management

The designing of an electronic device is a complicated process as there are numerous factors that require to be considered while designing any electronic circuit, especially in the surface mount technology. The factors that require to be measured while designing the device comprise high-frequency applications and thermal management and pressure on PCB owing to coefficient of thermal expansion (CTE) mismatch. Moreover, the factors that must be considered when designing for high-frequency applications, such as consumer electronics and telecommunications, include the cross talk noise between these lines, impedance of the signal lines on the packages, and inductance interconnects on the PCB. All factors together restrain the growth of the surface mount technology equipment market.

Opportunity:

Growing demand for LED lighting

LEDs have become an alternative light source to conventional incandescent and fluorescent bulbs. The lifespan and electrical efficiency of LED lightings is much higher than that of incandescent bulbs, and they are also more efficient than fluorescent bulbs. The electronics manufacturing industry is reaping the benefits of the features of LEDs such as small size and low power consumption. Compared with the conventional lighting technologies, LED components offer high brightness, power efficiency, and low carbon emissions. Most of the SMT placement equipment is capable of placing multiple components on a circuit board at one time. It helps in increasing the production rates and decreasing the labor costs as these equipment’s are automated and reduces the error during manufacturing, thus driving the growth of the SMT equipment market. Owing to the increased demand for LED lighting, the market for the surface mount technology equipment is also expected to grow in the near future.

Threat:

Challenges in surface mount technology equipment

Repairing products contrived using SMT equipment is complicated and requires highly skilled personnel and specialized tools. Greater packaging complexities (e.g. miniaturization and dual sided mounting) coupled with tightening soldering quality requirements are bolstering the demand for sophisticated inspection processes to ensure efficient product control and low overall repair costs. Inspection must be done while the process is happening and not just via testing after the SMT operation is complete. This ensures quality and improves yields, because issues are addressed sooner. Relying on real-time machine vision dramatically improves the accuracy of the placement and thus the quality of the packaging of surface mounted devices. Since every company must overcome the hurdle of high quality, it forces enterprises operating in the market to focus on product innovation to enjoy sustainable growth and competitive differentiation. Owing to the presence of significant entry barriers, the margins in this industry are very low.

The placement equipment segment is expected to be the largest during the forecast period

The placement equipment segment is estimated to have a lucrative growth, due to growing demand for printed circuit board (PCB) in smartphones. Placement equipment is used to place components on the printed circuit board assemblies. It can be either manually operated or automatically operated based on the requirement of the SMT equipment market. Moreover, the increasing trend towards automation in the electronics assembly process is likely to drive demand for placement equipment during the forecast period.

The consumer electronics segment is expected to have the highest CAGR during the forecast period

The consumer electronics segment is anticipated to witness the fastest CAGR growth during the forecast period, due to increasing adoption of innovative electronic products in day-to-day life for convenience, rising demand for smartphones and other consumer electronics, and growing integration of biometrics and security in consumer electronics devices. The high development which is responsible for the reduced size and weight of consumer electronics devices is the inclusion in these applications of surface mount technology. Surface mounted components are smaller, thinner and lighter than through-hole packages that use more space and power, and contribute significantly to the product's total weight. The transition towards electronic devices with high power consumption, such as smart home appliances and wearable technology, will also support the market growth in this segment.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period, due to the huge number of consumers in the region, rise in sales of flex PCBs, thriving electronic contract manufacturing, the GDP growth, rapid urbanization and industrialization with an increased investment towards smart & efficient technology and increased per capita income, with most contributions coming from India, China, and Japan.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period owing to the rising demand from end-use applications such as automotive and telecommunications, growth of hardware and manufacturing industry by supporting innovative start-ups, and rising trend of miniaturization of electronic components and electrification of vehicles. Countries such as the U.K, Poland, Belgium, are generating high demand for surface mount technology, due to rapid digitalization and flourishing electronics industry. Rising demand for electronic products ranging from smartphones and medical devices to wearables, laptops, computers and other consumer appliances will further expand the size of the Europe surface mount technology equipment market in the future.

Key players in the market

Some of the key players profiled in the Surface Mount Technology Equipment Market include CyberOptics Corporation, Nordson Corporation, Hitachi, Ltd., Electro Scientific Industries, Inc., Fuji Machine Manufacturing Co., Ltd., Mycronic AB, Illinois Tool Works, Inc., Nikon Metrology NV, Omron Corporation, Orbotech, Ltd., Panasonic Corporation, Teradyne, Inc., Viscom AG, Yamaha Motor Co. Ltd., Naprotek, Inc., Heller Industries, Inc., YXLON International GmbH, and Glenbrook Technologies, Inc.

Key Developments:

In April 2019, Panasonic Corporation announced that it had integrated welding solutions and surface mount technology (SMT) machine business into a single division that would be known as Smart Factory Solutions

In December 2016, Nordson introduced PureFlow Hoses with RediFlex II mounts that improve the adhesive performance of the product, thereby reducing material degradation. The hoses previously used by the customers were replaced by PureFlow Hoses to prevent unplanned downtime.

In August 2016, Electro Scientific Industries (ESI) launched two new processing systems, namely, Redstone and Lodestone flex processing system for delivering flexible printed circuit (FPC) solutions. This increased the product portfolio of laser-based PCB manufacturing solutions with low cost for integrated circuit (IC) packaging.

In March 2016, CyberOptics Corporation signed an agreement with Nordson YESTECH (U.S.) to supply its proprietary 3D multi-reflection suppression (MRS) sensors. This enabled the company to expand its customer base.

Equipments Covered:
• Placement Equipment
• Screen Printing Equipment
• Rework and Repair Equipment
• Inspection Equipment
• Cleaning Equipment
• Soldering Equipment
• Pick and Place
• Coating Equipment
• Dispenser Equipment

Components Covered:
• Transistor and Diodes
• Passive Surface Mount Devices
• Integrated Circuits

Products Covered:
• Light-Emitting Diode (LED) SMT Equipment
• Automatic SMT Equipment
• Multifunctional SMT Equipment

Types Covered:
• 4500-cph
• 36000-cph
• 77000-cph
• 84000-cph

Sales Channels Covered:
• Independent Reps/Distributors
• Direct Sales

End Users Covered:
• Telecommunication
• Automotive
• Industrial
• Consumer Electronics
• Medical
• Aerospace & Defense
• Energy & Power Systems
• Healthcare
• Computing & Storage
• Military

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances