Surface Mount Technology Market Share, Size, Trends, Industry Analysis Report, By Equipment (Inspection Equipment, Placement Equipment, Others); By Service; By Application; By Region, and Segment Forecasts, 2024 - 2032
- Published Date:Jan-2024
- Pages: 117
- Format: PDF
- Report ID: PM3551
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global surface mount technology market was valued at USD 4.88 billion in 2023 and is expected to grow at a CAGR of 8.30% during the forecast period. Increasing adoption of automation technology across various industries, including automotive, logistics, e-commerce, and manufacturing, is driving the growth of the SMT market. Automation has enabled companies to improve their efficiency and reduce their costs, leading to increased demand for SMT solutions. In particular, the growth of automation & robotics in the manufacturing industry has led to significant improvements in the efficiency & accuracy of the SMT process. Robotic pick-and-place machines can work with greater precision & speed, reducing the time and labor required for manufacturing. Automated inspection systems can also quickly detect defects in electronic components, ensuring high levels of quality and consistency.
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In addition to miniaturization, SMT also offers other benefits, such as increased reliability, improved electrical performance, and reduced manufacturing costs. SMT components are typically more durable and resistant to mechanical stress than through-hole components, which makes them more reliable in high-vibration or high-temperature environments. SMT also allows for shorter signal paths and reduced electromagnetic interference, which results in better electrical performance. Finally, SMT is often more cost-effective than through-hole assembly, since it requires less drilling and manual labor, and can be automated more easily.
SMT is primarily utilized for the assembly of electronic circuit boards, also known as printed circuit boards (PCBs). PCBs are used in a wide range of electronic devices, including smartphones, laptops, televisions, and medical devices. SMT enables the precise placement of both passive and active electronic components onto the surface of PCBs. SMT has significantly streamlined the PCB assembly process by eliminating the need for manual insertion of through-hole components. The use of automated equipment, such as pick-and-place machines and reflow ovens, has made the assembly process faster, more precise, and more cost-effective. This has allowed for the mass production of electronic devices with high levels of consistency and quality.
The surface mount technology market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
In SMT manufacturing, passive components can be made much smaller than through-hole components, allowing for greater miniaturization of electronic devices. Passive SMT components can have dimensions as small as 0.125 mm by 0.25 mm, making them ideal for use in small, portable electronic devices such as smartphones, wearables, and IoT devices. Passive components perform a variety of functions in electronic circuits, such as filtering out unwanted frequencies, decoupling power supplies, and regulating voltage levels. SMT technology has enabled the production of highly precise and reliable passive components, which can be placed on PCBs with high accuracy and consistency. This has contributed to the miniaturization of electronic devices and the development of new, innovative products.
SMT market also faces certain limitations and challenges that may hinder its growth. One such limitation is the high initial investment required to set up an SMT manufacturing unit. SMT manufacturing equipment can be expensive, and manufacturers need to invest in advanced technology and machinery to stay competitive. Additionally, the cost of thermal control equipment and other gear required for SMT manufacturing can be significant.
Industry Dynamics
Growth Drivers
Trend towards miniaturization in the electronics industry has indeed led to an increased demand for Surface Mount Technology (SMT). SMT is a procedure for electronic component placement that involves attaching components directly over the surface in a PCB, instead of inserting them into holes in the board. SMT components are typically much smaller than through-hole components, which makes them ideal for miniaturization. With SMT, components can be placed closer together on the PCB, which results in smaller, more compact devices. This has made SMT the preferred method of electronic component placement for many industries, including consumer electronics, telecommunications, automotive, and medical devices.
With AI and ML, SMT machines can learn from past experiences and improve the accuracy of component placement and the inspection process. This has resulted in higher-quality electronic components and has reduced the need for manual inspection, reducing the risk of human error and improving overall quality and consistency. Moreover, automation technology has enabled the production of electronic components in larger quantities at a lower cost, meeting the growing demand for electronic devices. Automation also offers flexibility in the production process, allowing for quick changes in production volume or product design.
Report Segmentation
The market is primarily segmented based on equipment, service, application, and region.
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By Equipment |
By Service |
By Application |
By Region |
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Placement equipment segment accounted for the largest market share in 2022
Placement equipment is a critical component of the SMT market, as these machines accurately and efficiently place electronic components onto PCBs. Pick-and-place machines are one of the most common types of placement equipment and are used to place components onto PCBs with high precision and speed. These machines use suction nozzles to pick up components and place them onto the appropriate location on the PCB.
Inspection equipment segment is anticipated to gain significant growth rate. Inspection equipment plays a critical role in the SMT manufacturing process, as it is used to inspect and detect defects that can affect the functionality and quality of electronic devices. There are various types of inspection equipment used in SMT manufacturing, including automated optical inspection (AOI) machines, X-ray inspection systems, and solder paste inspection (SPI) machines. Integrating AI and ML technologies in inspection equipment has enabled these machines to self-adjust and optimize their performance, further enhancing accuracy and speed. AI and ML can analyze large volumes of data generated during the inspection process and use this information to improve the accuracy of defect detection and reduce the risk of false positives and false negatives.
Designing segment held the significant market revenue share in 2022
Designing segment held the maximum surface mount technology market share in terms of revenue in 2022. Increasing complexity of electronic devices, such as smartphones and IoT devices, has resulted in a need for specialized PCB designs that can accommodate various components and functionality in a compact form factor. Designing services providers also offer design verification and testing services to ensure that the PCBs meet the necessary standards and specifications. The market for designing services is expected to continue to grow due to the increasing demand for specialized and customized electronic devices and the need to reduce manufacturing costs while maintaining high-quality standards.
Supply chain services segment expected to record steady growth. After procurement, the components are typically stored in inventory until they are needed for the manufacturing process. Inventory management involves tracking the inventory levels and ensuring that there is sufficient stock to meet production needs. This involves forecasting demand, managing lead times, and monitoring component quality. In addition, logistics and transportation services are critical in the SMT process as they ensure that the components are delivered to the manufacturing facility in a timely and cost-effective manner.
North America region dominated the global market in 2022
The North America region dominated the global market with considerable market share in 2022. Region has a highly developed manufacturing sector, which is increasingly adopting automation and robotics to improve production efficiency and reduce costs. This has led to a greater adoption of SMT technology in the manufacturing of electronic devices. Furthermore, the region has a significant presence of key end-use industries such as consumer electronics, automotive, and healthcare, which are major users of SMT technology.
Asia Pacific region is expected to be the fastest growing region with a healthy CAGR over the study period. The "Made in China 2025" initiative and Japan's "Society 5.0" initiative are both aimed at promoting advanced manufacturing technologies, including SMT. The initiatives aim to modernize the manufacturing sector and make it more efficient and productive. This, in turn, is expected to boost the demand for SMT in the region.
Competitive Insight
Some of the major players operating in the global market include ASM Pacific Technology, Seika Corporation, Panasonic, Nordson Corporation, Cognex Corporation, Fuji Machine Manufacturing, Teradyne, Mycronic, Kulicke & Soffa Industries, and Neoden SMT.
Recent Developments
- In October 2022, Keystone Technologies introduced its ultra-thin surface mounting threads in new variants, metric & inch variants.
Surface Mount Technology Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 5.28 billion |
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Revenue forecast in 2032 |
USD 10.00 billion |
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CAGR |
8.30% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2032 |
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Segments covered |
By Equipment, By Service, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
ASM Pacific Technology, Seika Corporation, Panasonic, Nordson Corporation, Cognex Corporation, Fuji Machine Manufacturing, Teradyne, Mycronic, Kulicke & Soffa Industries, and Neoden SMT. |
The analysis of surface mount technology market extends to a comprehensive market forecast up to 2032, coupled with a retrospective examination. Avail yourself of a complimentary PDF download to sample this in-depth industry analysis.
FAQ's
The surface mount technology market report covering key segments are equipment, service, application, and region.
Surface Mount Technology Market Size Worth $10.00 Billion By 2032.
The global surface mount technology market is expected to grow at a CAGR of 8.3% during the forecast period.
North America is leading the global market.
key driving factors in surface mount technology market are Increasing usage of flexible materials printed circuit boards.
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