Surface Mount Technology (SMT) Market by Equipment (Placement, Inspection, Soldering, Screen Printing Equipment, Cleaning Equipment, Repair & Rework Equipment), Component, Service, End User and Geography - Global Forecast to 2028
Updated on : October 18, 2023
The global surface mount technology market size is projected to grow from USD 5.8 billion in 2023 to reach USD 8.4 billion by 2028; it is expected to grow at a CAGR of 7.8% during the forecast period. Factors such as the high investment cost of machinery for setting up production units and the high frequency and need for thermal management act as restraints for the market's growth.
Surface Mount Technology (SMT) Market Forecast to 2028
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Surface Mount Technology Market Dynamics:
Driver: Increased demand for miniaturized consumer electronics components
The consumer electronics industry is evolving, with innovations and technologies coming up constantly, such as fingerprint sensors in mobiles and smart televisions, offering consumers advanced features. The growing need for miniaturized products has led to the development of smaller electronic components that occupy less area. This is possible when the hardware components of the devices, such as PCB, are small in size and can run smoothly while being integrated with several components. The SMT helps use and assemble much smaller components, facilitating a smaller, portable, and lightweight electronic device. Smaller and thinner consumer electronics devices can be developed using SMT. It optimally enables a compact assembly of components on a PCB using the available space. It also makes the device lightweight since it does not have extra wiring and soldering, unlike the traditional through-hole technology.
Restraint: Need for high-frequency applications and thermal management
Designing an electronic device is a complicated process as many factors need to be considered while designing any electronic circuit, especially in SMT. The factors that need to be considered while designing the device include high-frequency applications and thermal management and stress on PCB due to coefficient of thermal expansion (CTE) mismatch. The CTE helps to understand how the object's size would change with temperature change. Additionally, the factors that must be considered when designing for high-frequency applications, such as telecommunications and consumer electronics, include the impedance of the package signal lines, cross-talk noise between these lines, and inductance interconnects on the PCB. With the increasing chip power used in electronic circuits using SMT, managing its thermal requirements with limited space inside the system poses a challenge. All factors together restrain the growth of the surface mount technology (SMT) market.
Opportunity: Advent of self-monitoring, analysis, and reporting technology (SMART)
The emergence of self-monitoring, analysis, and reporting technology (SMART) has revolutionized the technological landscape. SMART is slowly witnessing widespread adoption, from smart devices such as smartphones, smartwatches, and laptops to even broader applications in smart homes and factories. The need to mount and inspect all the components quickly and reliably has fueled the demand for SMT equipment. The SMT equipment plays a vital role in mounting and inspecting compact PCBs.
Challenge: Challenges in repair and rework of surface mount technology (SMT)-manufactured printed circuit boards (PCBs
The SMT-manufactured PCBs have revolutionized electronics manufacturing owing to the ease of construction and higher component density, which enables more components to be placed in a smaller area, thereby miniaturizing the electronic device. These SMT-manufactured devices are smaller, have more features, and are less expensive. However, this high density of components creates a challenge for repairing and reworking the PCB boards in case of any failure. Conventional soldering techniques are rendered useless for reworking on the board, and specialized techniques are needed to be used for rework, such as non-contact methods, to avoid additional damage to the assembly. These are combined with either computer controls or precise microscopes to guarantee accuracy but lead to greater cost and complexity in the process. Thus, this factor poses a major challenge for SMT repair or rework on an electronic device manufactured using this technology is highly complicated.
Inspection equipment is expected to grow with the highest CAGR during the forecast period
The inspection segment is expected to grow with the highest CAGR of the surface mount technology industry during the forecast period. The SMT inspection equipment market is driven by improving product technology, responsiveness, reliability, and quality of the inspection. The increasing need for this equipment in telecommunication, automotive, consumer electronics, and computing and storage is expected to drive its demand during the forecast period.
Telecommunications to account for a significant market share of the surface mount technology (SMT) market during the forecast period
The telecommunications segment is expected to have a significant market size in the end-user industry segment during the forecast period. The rising demand for wireless networks in high-performance computing and telecommunications applications is driving the need for surface mount technology (SMT) for the fast functioning of networks and achieving a high level of accuracy. The US is the major contributor for the telecommunications industry owing to the presence of major players present in the country.
Asia Pacific to have the largest market share in the surface mount technology (SMT) market during the forecast period
Asia Pacific led the surface mount technology market globally during the forecast period. China and Japan are some of the major countries contributing toward the growth of the surface mount technology market in this region. An increase in manufacturing activities, combined with the region's emergence as a cost-effective production hub, is expected to drive the SMT market in the region. With many new electronics manufacturing projects planned in the region, Asia Pacific is expected to remain a high-growth market for SMT equipment.
Surface Mount Technology (SMT) Market by Region
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Top Surface Mount Technology Companies - Key Market Players:
The Surface Mount Technology companies such as Fuji Corporation (Japan), Mycronic AB (Sweden), Nordson Corporation (US), KLA Corporation (US), Yamaha Motor (Japan), Juki Corporation (Japan), Viscom AG (Germany),Hitachi High-Technologies Corporation (Japan), ASM Assembly Systems (Germany), and Saki Corporation (Japan) are some key players operating in the market.
Surface Mount Technology Market Report Scope :
Report Metric |
Details |
Estimated Market Size | USD 5.8 billion in 2023 |
Projected Market Size | USD 8.4 billion by 2028 |
Growth Rate | CAGR of 7.8% |
Market size available for years |
2019–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
USD Million & Billion |
Segments covered |
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Regions covered |
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Companies covered |
Fuji Corporation (Japan), Mycronic AB (Sweden), Nordson Corporation (US), Viscom AG (Germany), KLA Corporation (US), Juki Corporation (Japan), Hitachi High-Technologies Corporation (Japan), ASM Assembly Systems (Germany), Yamaha Motor (Japan), and Saki Corporation (Japan) are among the key players operating in the surface mount technology (SMT) market. |
Surface Mount Technology (SMT) Market Highlights
This research report categorizes the surface mount technology (SMT) market based on Equipment, Component, Service, End User Industry and Region
Segment |
Subsegment |
By Equipment |
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By Component |
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By Service |
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By End User Industry |
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By Region |
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Recent Developments in Surface Mount Technology Industry
- In February 2023, Yamaha Motors launched a new YRM20DL surface mounter, a premium high-efficiency modular that achieves improved actual and per-unit-area productivity with a high-rigidity dual-lane conveyor, further reducing transport losses.
- In December 2022, Mycronic AB received an order for a Prexision 800 Evo mask writer for display applications from an existing customer in Asia. Delivery of the system is planned for the second quarter of 2024.
Frequently Asked Questions (FAQ):
What are the key strategies adopted by key companies in the surface mount technology (SMT) market?
Product launch, acquisition, and collaboration have been and continue to be some of the major strategies adopted by the key players to grow in the surface mount technology (SMT) market.
What region is expected to dominate the surface mount technology (SMT) market?
Asia Pacific region will dominate the surface mount technology (SMT) market.
What end-user is projected to dominate the surface mount technology (SMT) market?
Consumer electronics is expected to dominate the surface mount technology (SMT) market.
What equipment is expected to dominate the surface mount technology (SMT) market?
Placement equipment is expected to have the largest market size during the forecast period.
Who are the major companies in the surface mount technology (SMT) market?
Fuji Corporation (Japan), Mycronic AB (Sweden), Nordson Corporation (US), KLA Corporation (US), and Yamaha Motor (Japan).
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The study involved four major activities in estimating the current size of the surface mount technology (SMT) market. Exhaustive secondary research was done to collect information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were employed to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information important for this study. These secondary sources include surface mount technology journals and magazines, annual reports, press releases, and investor presentations of companies; white papers; certified publications and articles from recognized authors; and directories and databases such as Factiva, Hoovers, and OneSource.
Primary Research
In the primary research process, various primary sources from both supply and demand sides have been interviewed to obtain qualitative and quantitative information important for this report. The primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related executives from key companies and organizations operating in the surface mount technology (SMT) market. After complete market engineering (including calculations regarding market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information as well as to verify and validate the critical numbers arrived at.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the surface mount technology (SMT) market and other dependent submarkets listed in this report.
- Key players in the industry and markets have been identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Surface Mount Technology (Smt) Market: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the global market has been split into several segments and subsegments.To complete the overall market engineering process and arrive at exact statistics for all segments and subsegments, market breakdown and data triangulation procedures have been employed wherever applicable. The data has been triangulated by studying various factors and trends identified from both demand and supply sides.
Market Definition
Surface mount technology (SMT) is a method of assembling electrical components on the surface of printed circuit boards (PCB) instead of inserting them through holes drilled on the PCB. The circuit thus assembled is known as a surface mount device (SMD) and the special components that are mounted on these devices are known as surface mount components (SMCs). SMCs are smaller in size than their through-hole counterparts, since these devices have eliminated the need for leads to connect to the PCB.
Key Stakeholders
- Integrated circuit designers
- Original equipment manufacturers (OEMs)
- Product manufacturers
- Semiconductor product designers and fabricators
- Surface mount component and device distributors and providers
- Raw material and manufacturing equipment suppliers
Report Objectives
The following are the primary objectives of the study.
- To define, describe, and forecast the surface mount technology market size, by equipment, and end-user industry, in terms of value(USD million) & volume(million units)
- To describe the services and components related to surface mount technology
- To forecast the market size, in terms of value, for segments with respect to four main regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW)
- To provide detailed information regarding the major drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the market
- To provide a detailed Porter’s five forces analysis of the surface mount technology market
- To provide an overall view of the global market through illustrative segmentations, analyses, and market size estimations of the major geographic segments
- To analyze the competitive intelligence of players based on company profiles, key player strategies, and game-changing developments such as product launches and acquisitions
- To strategically analyze the micromarkets1 with respect to the individual growth trends, prospects, and contribution to the total market
- To analyze strategic developments such as joint ventures, mergers and acquisitions, product developments, and R&D in the surface mount technology market
- To analyze the probable impact of the recession on the market in the future
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Surface Mount Technology (SMT) Market