Surface Mount Technology (SMT) Equipment Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Surface Mount Technology (SMT) Equipment Market Forecast 2024-2028 

The Surface Mount Technology (SMT) Equipment Market size is estimated to grow by USD 2.54 billion at a CAGR of 7.72% between 2023 and 2028. The growth of the electronics market is driven by several factors, including the miniaturization of components, which enables the development of smaller and more powerful devices. The rising use of IoT devices and wearable technologies is also fueling market growth, as these devices require advanced electronics for connectivity and functionality. Additionally, the increasing usage of 3G, 4G, and 5G networks is driving demand for electronics that support wireless communications, such as smartphones and IoT devices. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the size of the Surface Mount Technology (SMT) Equipment Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (telecommunication, consumer electronics, aerospace and defense, automotive, and others), type (placement equipment, inspection equipment, soldering equipment, screen printing equipment, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

Market Segmentation By End-user Segment

The market share growth by the telecommunication segment will be significant during the forecast period. The growth in the telecom industry is driving the demand for advanced technologies, such as SMT equipment, in the placement process by involving the manufacturing of several networking and telecom products. Factors such as the demand for increased miniaturization and quicker time-to-market (TTM) are driving the demand for SMT equipment market to meet requirements for high-speed placement. 

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The telecommunication segment was the largest and was valued at USD 1.53 billion in 2018. Players in the telecom industry are expected to increasingly modify their offerings as per changes in industry norms related to both design and manufacturability. 0402 packaging has become the standard component size in the industry. With rapid changes in designs, players are expected to increasingly opt for surface mount technology (SMT) equipment for high-speed placement of components. The increasing demand for high-end PCBs with resistance to extreme weather conditions is expected to be a major market driver. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Market Segmentation By Type Segment   

SMT placement equipment is used to pick and place semiconductors and active and passive components on a PCB. SMT placement offers advantages such as efficiency in placing small components along with the reduction of undesirable electrical effects such as inductance and spurious capacitance. The SMT placement equipment segment is expected to gain traction as end-users across sectors are opting for more flexible production processes and focusing on improved operational performance. Another major factor that is expected to drive market growth during the forecast period is the emergence of data analytics and IoT for the improvement of remote monitoring and preventive maintenance services. Such factors are expected to drive the global market growth during the forecast period.

Regional Overview

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APAC is estimated to contribute 41% 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. Countries such as China, South Korea, Japan, India, and Taiwan are expected to drive the demand for surface mount technology (SMT) equipment due to their strong industrial presence and established semiconductor fabrication units. The future growth of the market in focus may stem from a sharp focus on application markets such as the automotive, electrical and electronics, and renewable energy sectors. China and Japan are among the top manufacturing countries, fueling the demand for flexible automation among manufacturers, mainly in the electronics and appliances, semiconductors, and automotive industries.

In addition, China is experiencing a surge in market growth owing to government initiatives in areas such as factory automation, industrial robots, and artificial intelligence (AI). The country's Made in China 2025 initiative, which is similar to the Industry 4.0 strategy of Germany, aims at the development of technologies such as IoT, cloud computing, and big data analytics to be used in conjunction with automated equipment. These factors drive the demand for surface mount technology (SMT) equipment in APAC during the forecast period. 

Market Dynamics and Customer Landscape

The market is witnessing robust growth due to the increasing demand for miniaturization and technological innovations in the consumer electronics sector. SMT equipment plays a crucial role in the assembly of electronic devices by placing components directly onto circuit boards. This method, known for its efficiency and precision, is essential for meeting the requirements of modern PCB design and PCB manufacturing. With the proliferation of IoT and smartphone adoption rates, the need for smaller passive component assemblies and semiconductor packaging is driving the market further. As the demand for electronic components continues to rise, the market is expected to expand, providing opportunities for capacitors, resistors, and other passive components manufacturers. Overall, the market is dynamic, driven by technological advancements and the continuous evolution of the electronics industry.

Key Market Driver

Miniaturization of components is notably driving the market growth. Another major driver of the market is the increase in emphasis on ensuring a smaller footprint and lower cost per board. This trend is further fueled by the need for product approvals and timely product launches to meet market demands. Manufacturers are also focusing on incorporating advanced technologies such as SM (Surface Mount) and SMT (Surface Mount Technology) for smaller passive component assemblies, driving technological innovations in the industry. Additionally, the growing demand for resistors, semiconductor packaging research, and semiconductors research is influenced by trends like smartphone adoption rates and the need for strategic market growth analysis to optimize the value chain.

As players in the electronics industry are increasingly focusing on reducing end-product dimensions using smaller passive components with size factors approaching 0.5 mm, the trend of miniaturization is expected to continue during the forecast period. However, as the demand for higher assembly densities increases, the demand that is equipped with advanced software and feeder technology is also expected to increase during the forecast period. This will increase the growth of the global market during the forecast period.

Major Market Trends

The growing electronic industry to increase the demand for SMT equipment is an emerging trend shaping the market.  EV sales and manufacturing are rising due to the rising demand for their use and offering a promising growth opportunity to the market. Because it offers superior mechanical efficiency under shock and vibration, surface-mount technology is used to manufacture the majority of the electrical components used in electric vehicles. Using conductive tracks and other features, circuit boards can mechanically support and electrically link electronic components. With the advent of Surface Mount Technology, PCB assembly is now done by solder joints, making spare parts and materials easier to remove from the target parts in the event of failure.

Moreover, most of the electronics are expected to be more compact, and there is an increase in demand for smaller units, where SMT makes this possible. But even though these units are not as bulky as older devices, there is a much higher component density, as well as more connections per component. This means that electronics can be more advanced and efficient than ever before while the form factor is still as compact as possible which has a positive impact on surface mount technology equipment market growth. Such factors are expected to drive the market during the forecast period. 

Significant Market Restrain

The high cost of deployment is a significant challenge hindering the market.  Since automated SMT is an evolving field and involves the use of sensors and advanced technologies, they are high-priced and require a large initial one-time investment. The equipment costs are typically high, and the costs go up due to customization requirements based on industry and operational requirements. Also, a plant facility may require several SMT placement equipment for smooth operations. Though large industries and corporations might be able to afford such huge initial investments, SMEs might find it difficult to adopt these equipment due to limited cash reserves. In addition, SMT equipment offers significant savings in labour costs and quick return on investments (ROI).

However, manufacturers from the US and Western Europe are expected to see a reduction in profits, as there is a steady decline in the average selling price (ASP) of SMT equipment. With increasing competition from Chinese and other Asian vendors, leading vendors such as FUJI Corp., Hanwha Corp., and Juki Corp. are compelled to reduce prices to generate sales, which may limit the surface mount technology equipment market growth.  Such factors are expected to affect the market during the forecast period.

Key Market Customer Landscape

The market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Surface Mount Technology (SMT) Equipment Market Companies?

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.

Amistar Automation Inc. - The company offers SMT equipment through its division ASMPT SMT Solutions.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Amistar Automation Inc.
• Autotronik SMT 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.
• SMTnet
• SumiLax SMT Technologies Pvt Ltd
• Universal Instruments Corp.
• Versatec LLC
• Yamaha Motor Co. Ltd.
• ASMPT Ltd.

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.

Segment Overview

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 2018 - 2022.

• End-user Outlook
  • Telecommunication
  • Consumer electronics
  • Aerospace and defense
  • Automotive
  • Others

• Type Outlook
  • Placement equipment
  • Inspection equipment
  • Soldering equipment
  • Screen printing equipment
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing rapid growth driven by technological innovations and increasing demand from industries like automotive, industrial, aerospace & defense, and healthcare. Companies like CyberOptics are at the forefront, offering advanced solutions such as the SQ3000 3D AOI System for PCB manufacturing. The market also benefits from machine learning and automation technology, improving manufacturing and testing & prototype services. With the rise of IoT and smartphone adoption, the demand for SMT equipment, including transistors, resistors, and capacitors, is expected to grow, especially in the consumer electronics and telecommunications sectors. Supply chain optimization and trade regulations play crucial roles in shaping the market's logistics and import-export analysis.

Furthermore, the market is witnessing significant growth driven by advancements in Semiconductor Research and Semiconductor Packaging. Key players like CyberOptics Corporation are introducing innovative solutions such as the SQ3000 3D AOI System to enhance PCB manufacturing processes. The market is benefiting from the increasing demand for Active components in various industries including automotive, industrial, aerospace & defense, and healthcare. Additionally, machine learning (ML) is being increasingly used to optimize value chain operations, especially in the logistics and E-commerce sectors. The rise of IoT and smartphone adoption is also driving demand for SMT equipment, particularly for Wireless communication standards. Leading companies like TE Connectivity, Royal Circuit Solutions, and Summit Interconnect are playing a pivotal role in meeting the demand for high-quality Printed Circuit Boards (PCBs).

The Global Surface Mount Technology (SMT) Equipment Market is experiencing dynamic growth, fueled by advancements in various industries such as automotive, logistics, e-commerce, and healthcare. As the demand for smaller, more efficient electronic components rises, the market for SMT equipment is expanding rapidly, both globally and within specific regions like the United States. One of the key drivers of this growth is the increasing adoption of surface mount technology in the production of Printed Circuit Boards (PCBs). Surface mount technology offers numerous advantages over traditional through-hole assembly methods, including higher component density, improved electrical performance, and lower manufacturing costs. This has made it the preferred choice for manufacturers across a wide range of industries, particularly in the automotive sector, where compact, lightweight electronics are essential for modern vehicles.

In addition to the automotive industry, the logistics and e-commerce sectors are also driving demand for SMT equipment. These industries rely heavily on advanced electronic systems for inventory management, order processing, and supply chain optimization. Surface mount technology enables the production of smaller, more energy-efficient devices that are well-suited to the needs of these fast-paced environments. Furthermore, the rise of the Internet of Things (IoT) has created new opportunities for SMT equipment manufacturers. IoT devices require compact, reliable electronics that can operate in diverse environments, from industrial settings to consumer electronics. This has led to increased demand for specialized SMT equipment capable of meeting the unique requirements of IoT applications. To meet this growing demand, manufacturers are investing in innovative solutions such as the Omron VT-X Alpha and the CyberOptics SQ3000 3D AOI System. These cutting-edge technologies offer advanced inspection capabilities, ensuring the quality and reliability of surface mount assemblies in industries ranging from IT & telecommunication to aerospace & defense. In conclusion, the Global Surface Mount Technology (SMT) Equipment Market presents a wealth of opportunities for manufacturers, suppliers, and service providers alike. By embracing the latest advancements in SMT equipment and adapting to the evolving needs of key industries, businesses can position themselves for success in this rapidly growing market.

Surface Mount Technology (SMT) Equipment Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 7.72%
Market Growth 2024-2028	USD 2.54 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	6.72
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 41%
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., Autotronik SMT 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., SMTnet, SumiLax SMT Technologies Pvt Ltd, Universal Instruments Corp., Versatec LLC, Yamaha Motor Co. Ltd., and ASMPT Ltd.
Market dynamics	Parent market analysis, Market Forecasting, 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 the 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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