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The SMT Placement Equipment market is projected to reach a value of USD 905.05 million at a CAGR of 7.21% between 2022 and 2027. The global market is projected to experience significant growth in the coming years, driven by factors such as increasing demand for consumer electronics and advancements in technology.
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The SMT (Surface Mount Technology) Placement Equipment Market refers to the market for machines used in electronic manufacturing to place surface mount components onto printed circuit boards. Various technologies such as pick-and-place, screen printing, and soldering to accurately and efficiently assemble electronic components onto PCBs. The market is highly competitive, with manufacturers constantly innovating to improve the speed, accuracy, and efficiency of their machines.
A key driver for the market is the continuous evolution of machines, particularly pick-and-place machines. These machines play a crucial role in the market, ensuring precise and efficient assembly of components on electronic boards. The demand for advanced surface mount machines remains high, driven by the growing complexity of electronic devices. As the market expands, the innovation and capabilities of pick-and-place machines become integral, influencing the overall growth and efficiency of the SMT industry. The relentless pursuit of enhanced technology propels the market forward, meeting the dynamic needs of electronics manufacturing.
Technological advances in product offerings are primary market trends. Players in the surface mount technology placement equipment market are increasingly focusing on the integration of modular and flexible gate systems as well as enhanced feeder systems. Linear motors are used on the X and Y axes to improve the accuracy, speed, and rigidity of the servo ring. Players emphasize the high gain of the servo-loop because it leads to increased acceleration and deceleration of the shaft and reduced heat generation of the induction motor, thus ensuring that the device can operate for a long time while reducing the number of scheduled shutdowns required to cool the device.
Moreover, manufacturers are also improving the versatility of equipment with larger feed capacities and multi-function placement. Smart feeders are expected to have raised demand along with the changes and increasing complexity of production. These feeders can communicate with the equipment and eliminate the effects of misconfiguration by storing information about the type of feeder and the component installed. These factors are expected to drive the market growth and trends of the global SMT equipment market during the forecast period.
The future outlook of the market is promising, driven by continuous innovation in assembly equipment and pick-and-place machines. The SMT industry anticipates substantial growth, propelled by the increasing demand for surface mount devices (SMD) across various sectors. In-depth market research and growth analysis indicate a positive trajectory, with a focus on sources, market trends, and analysis. The industry is poised for expansion, emphasizing adaptability and technological advancements to meet evolving market demands, fostering a dynamic landscape for the future. Continuous market research remains pivotal for staying abreast of emerging trends and ensuring sustained growth.
The high cost of deployment is the key challenge that affects the growth of the market. Since automated SMT placement is a growing field and involves the use of advanced sensors and technology, they are expensive and require a large initial investment. In addition, it helps to save considerable labor costs and get a quick return on investment. However, end-user awareness of ways to reduce costs is low. Raising awareness and encouraging users to perform a cost-benefit analysis will help to overcome this challenge.
In addition, manufacturers in the US and Western Europe are expected to see reduced profits due to a steady decline in the ASP. With increasing competition from Chinese and Asian suppliers, major market players are forced to reduce prices to generate sales, which negatively affects the growth of the market during the forecast period.
The market share growth by the consumer electronics segment will be significant during the forecast period. This segment is expected to gain traction owing to improvements in technology related to the production of consumer electronics, light emitting diodes (LEDs) and compact fluorescent lamps (CFLs), liquid crystal displays, and television (LCD)/LED. There is a growing preference for efficient and lightweight electronics, and suppliers are expected to increase their investment in assembly applications. The market is expected to witness significant demand from original equipment manufacturers (OEMs) and contract manufacturers that manufacture electronic products for customers.
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The consumer electronics segment was valued at USD 720.40 million in 2017 and continued to grow until 2021. The increasing awareness of green technology by electronics manufacturers is expected to drive the adoption of LED components offering benefits such as brightness, energy efficiency, low carbon emissions, and efficiency. cost results. Government organizations should opt for LED lighting in public places and government offices. With these developments, the market players are also focusing on improving their capabilities. Therefore, such factors are expected to fuel the growth of the consumer electronics segment of the global market during the forecast period.
The market, a key player in the global electronics manufacturing industry, exhibits diverse types to meet evolving demands. A recent study highlights the role of advanced machines in Italy and Russia, addressing component density challenges in smartphones and IoT devices. The world witnesses a wide range, catering to various needs. Despite notable advancements, restraints persist, urging continuous innovation. As the Internet of Things expands, the market remains pivotal, adapting to an ever-changing landscape and propelling the electronics manufacturing industry forward.
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Asia-Pacific holds the largest market share in the industry, accounting for approximately 48%. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Countries such as China, Korea, Japan, India, and Taiwan are expected to support demand owing to their strong industrial presence and quality manufacturing units of semiconductors. China and Japan are among the top manufacturing countries, driving demand for flexible automation among manufacturers, mainly in the electronics and home appliance, semiconductor, and industrial sectors. One of the key drivers of the growth in the APAC market is the presence of existing manufacturing facilities that need modernization and upgrading.
Furthermore, China is seeing strong market growth driven by government initiatives in areas such as factory automation, industrial robotics, and artificial intelligence (AI). The country's Made in China 2025 initiative, similar to Germany's Industry 4.0 strategy, aims to develop technologies such as IoT, cloud computing, and big data analytics for use with automated equipment. The market in South Korea has grown significantly due to the government's emphasis on technological advances about information and communication technology (ICT) and digital connectivity. Hence, these factors are expected to drive the growth of the regional market during the forecast period.
The market analysis and report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The SMT equipment market's competitive landscape is marked by a robust industry where pick-and-place machines play a pivotal role. SMT assembly, particularly in the surface mount devices (SMD) sector, witnesses heightened demand. The market thrives on the evolving needs of the assembly industry, driving innovation in pick-and-place machines. With a diverse range of SMT placement machines catering to specific market demands, the industry's competitive edge lies in technological advancements and adaptability to changing trends. Continuous developments in assembly equipment underscore the dynamic nature of the industry, responding to the ever-growing demands of the market.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.21% |
Market growth 2023-2027 |
USD 905.05 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amistar Automation Inc., ASMPT Ltd., Autotronik GmbH, Beijing Torch Co. Ltd., DDM Novastar Inc., Europlacer Ltd., FRITSCH GmBH, FUJI Corp., Hanwha Corp., Juki Corp., Kulicke and Soffa Industries Inc., Mirae Corp., Mycronic AB, Nordson Corp., Panasonic Holdings Corp., SumiLax Technologies Pvt Ltd, Universal Instruments Corp., Versatec LLC, and Yamaha Motor Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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