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The Global Chip Mounter Market size is estimated to increase by USD 1,342.18 million at a CAGR of 4.95% between 2022 and 2027. The growth of the market depends on several factors, including the growing adoption of industry 4.0 architecture, increasing demand for PCBs, and the rising demand from the automotive industry.
This report extensively covers market segmentation by technology (SMT and THT), application (communications, computers, consumer electronics, automotive, and other applications), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Chip Mounter Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Market growth is being driven notably by the increasing demand for PCBs. The demand for PCBs has risen due to their usage in manufacturing electronic products like communication devices, consumer electronics products, computers, and micro-electromechanical systems. PCB manufacturers are adopting high-volume manufacturing strategies to meet this demand. PCBs form the core component of electronic products and provide an electronically conductive path for several components such as ICs, capacitors, resistors, transistors, and diodes. The rapid mounting of these components on a PCB has necessitated the use of chip mounters, which enable high-throughput capabilities in PCB manufacturing without any overlaps or loose connection issues.
The demand for PCBs is increasing globally due to the growing penetration of communication equipment, such as mobile and feature phones, and the increasing sales of consumer electronics products. The government's support for developing smart infrastructure has led to the adoption of connected devices and fueled advances in internet technologies. For instance, the EU has focused on devising strategies to equip its metropolitan cities with smart technologies. These factors are driving high-volume production in the electronic device industry and PCB manufacturing, which will subsequently drive market growth during the forecast period.
An emerging trend in the market is the increasing demand for 5G chipsets, which is expected to have a positive impact on the growth of the global market in the forecast period. 5G technology offers numerous advantages, such as high-frequency broadband capacity and ultra-low latency, which facilitate the development of industries such as industrial internet, AR/VR, cloud gaming, and real-time computing.
Integrated 5G chipsets enable faster processing and transfer of data, with transfer rates that are ten times faster than 4G. According to reports from Next Move Strategy Consulting, the Global 5G Chipset segment is projected to reach USD 90.79 billion by 2030. Currently, 186 operators in 48 countries are planning to develop 5G, with North America, Europe, and Asia accounting for 75% of all spectrum deployments. These factors are expected to drive market growth during the forecast period.
The growth of the market is being hindered by technical challenges in manufacturing high-quality chip mounters. Chip mounters are essential in automating assembly lines and improving manufacturing efficiency. To achieve the miniaturization of PCBs and their components, consistent improvements in mounting efficiencies are required. However, the demand for miniaturization has made it necessary for chip mounters to operate with reduced component spacing on PCBs, which can result in errors during operation. The customization of equipment and improper placement-related issues can affect the operational efficiency of end-users. Optimizing the position of the component feeder, the visual system's influence, the mount head's moving speed, and the role of nozzles and component mounting sequences together is a challenging process for vendors. Therefore, these factors are expected to limit market growth during the forecast period.
Vendors 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.
Autotronik SMT GmbH - The company offers automatic pick and place machines for the electronics industry. The key offerings of the company include chip mounters.
Essemtec AG- The company offers a wide range of flexible, scalable, and affordable fully integrated line solutions and multifunctional cell solutions such as SMT pick and place, SMT dispensing, component storage, and production software among others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The SMT segment was valued at USD 3,974.49 million in 2017 and continued to grow until 2021. Chip mounters are largely used in SMT-based PCB production as the components can be placed at a very high rate. Owing to such high-scale production capabilities, electronic product manufacturers are increasingly adopting chip mounters in SMT-based PCB manufacturing. Moreover, the growing demand for miniaturized electronic devices, such as smart wearable devices, mobile phones, and MP3 players, and high precision placement of small components on compact PCBs used in such miniaturized devices are boosting the demand for the use of chip mounters in the SMT segment. The growing miniaturization of electronic components has resulted in the development of advanced ICs integrated with submicronic features as small as 0.8 microns. Manual mounting procedures for the mass production of such compact PCBs using SMT are highly prone to errors. Hence, chip mounters find extensive use in the mass production of miniaturized electronic devices using SMT-based procedures, which is driving the revenue growth of chip mounters in the SMT segment. Therefore, owing to such factors the segment is expected to grow during the forecast period.
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Based on the application, the communications sub-segment is leading the market growth. Chip mounters are extensively used in the mounting of electronic components on PCBs, which form an integral part of communication devices, including broadcast equipment, cellphone towers, space communication systems, fiber-optic multiplexers, private branch exchange systems, video collaboration devices, and voice-over IP (VoIP)-enabled devices. PCBs are also used in manufacturing general communication systems like mobile phones, feature phones, high-speed routers, repeaters, and modems. The selection of an appropriate PCB is important in the telecommunication industry. With the rapid changes in designs, players are expected to increasingly opt for advanced and flexible chip mounters for high-speed mounting of such standard components on various types of PCBs. This is expected to drive revenue growth in the communication segment during the forecast period.
APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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APAC was the largest segment of the global market in 2022 and is expected to be the fastest-growing segment during the forecast period. This is because of the strong demand for chip mounters for PCB assembling in countries such as China, India, Japan, Taiwan, and South Korea. The rapid industrialization and significant production of consumer electronics, automobiles, and industrial machinery in these countries are driving the demand for chip mounters among electronic equipment and PCB manufacturers, which is fueling the growth of the market. Furthermore, in APAC, rapidly growing end-user industries, such as automotive, electrical and electronics, and aerospace and defense, the competitive production rate and manufacturing costs, and the high economic growth rates are also some of the major factors that will support the growth of the market during the forecast period.
Moreover, APAC is also rapidly becoming a major manufacturing hub for consumer electronic devices. Countries like Taiwan, China, Japan, South Korea, and India have some of the world's largest electronic manufacturing companies and foundries, which contribute considerably to the market in APAC. Growing demand for consumer electronic products and trending miniaturization of electronic components and products are expected to further promote the demand for chip mounters in APAC. Additionally, Taiwan, Japan, and China have the presence of a large number of PCB manufacturers, assemblers, and ECM service providers that are continuously expanding their operations to meet the growing demand from electronic product manufacturers producing smartphones and other consumer electronic products. As a result, vendors operating in the regional market are witnessing strong revenue growth in these countries.
COVID-19 in 2020 negatively affected the regional market. However, in 2021, the increase in vaccination measures and the relaxation of lockdown restrictions helped in the resumption of business activities, thereby, helping the market to rebound in the region. Therefore, such factors are expected to positively impact the growth of the regional market in focus during the forecast period.
The 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.
Chip Mounter Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.95% |
Market growth 2023-2027 |
USD 1,342.18 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.62 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASM Pacific Technology Ltd., Autotronik SMT GmbH, Canon Inc., DDM Novastar Inc., Essemtec AG, Europlacer Ltd., FAROAD, FUJI Corp., Hanwha Corp., Juki Corp., Kulicke and Soffa Industries Inc., Manncorp Inc., Nitto Denko Corp., Nordson Corp., Ohashi Engineering Co. Ltd., Panasonic Holdings Corp., Shenzhen Langke Automation Equipment Co. Ltd., Wenzhou Zhengbang Electronic Equipment Co. Ltd., Yamaha Motor Co. Ltd., and Zhejiang NeoDen Technology 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 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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