Surface Mount Technology Market

Surface Mount Technology Market Overview

The global surface technology market is anticipated to grow at a robust CAGR of around 8% between 2022 and 2032. With rising production and sales of electronic products, the overall demand is forecast to increase at a substantial pace over the forecast period.

Surface mount technology is a modern method of mounting or attaching electrical components directly onto the surface of printed circuit board (PCB).

Traditionally, electrical components were fitted by using through-hole technology construction method. However, with the passage of time, surface mount technology began replacing the through-hole technology method as it allows for increased manufacturing automation which enhances the quality and reduces costs.

Today, most of the electronic hardware parts are being manufactured by using surface mount technology. Industries are rapidly shifting their preference from through-hole technology to surface mount technology due to its various advantages such as smaller components, higher component density, superior mechanical performance and simple and faster automated assembly

Surface mount technology allows for more components to fit on a given area of board and significantly reduces the overall manufacturing costs.

Amid rising trend of miniaturization of electronic components and growing focus on reducing defects in electronic devices, demand for surface mount technology is slated to increase at a significant pace during the forecast period.

Which are Some Prominent Drivers Spearheading Surface mount technology Market Growth?

Exponential growth of electronic industry, miniaturization of modern electronic components, increasing use of flexible printed circuit boards, and growing popularity of electric vehicles are some of the major factors driving the growth of surface mount technology.

The electronics sector is one of the largest and fastest growing sectors in the world which makes a significant contribution to the global economy. Factors such as population explosion, increasing disposable income and rapid urbanization have generated so much demand for electronic devices that it is impossible to fulfill it without using advanced mass manufacturing techniques.

Surface mount technology is currently the most commonly used method for assembling and manufacturing electronic components on account of its effectiveness, better efficiency and cost faster nature. It uses relatively different soldering equipment and approaches that facilitate better electrical conductivity and reliability.

Components like passive surface mount devices, transistor & diodes, and integrated circuits are gaining wider popularity in the electronics industry. Applications of these components provide better mechanical efficiency under extreme conditions of vibration and shock.

With rapid digitalization and increasing penetration of automation, demand for miniaturized electronic components is gaining momentum. Manufacturers are increasingly utilizing technologies like SMT to produce smaller and compact electronic components. This will continue to act as a catalyst for the expansion of surface mount technology market over the forecast period.

The increasing production and sales of electric vehicles is creating lucrative growth opportunities for surface mount technology market and the trend is likely to continue in the future. Most of the electronic components that find their use in electric vehicles are being manufactured by surface mount technology.

Spurred by the aforementioned factors, demand for surface mount technology is forecast to increase at 8% CAGR between 2022 and 2032.

What are the Challenges Faced by the Surface mount technology Industry?

Although surface mount technology has become a highly adopted method in electronics industry, there are still some factors that are challenging the growth of SMT market.

One of the major factors that is restraining the growth of surface mount technology market is the high cost of surface mount equipment system. Moreover, SMT is not suitable for large high-power parts, which is also limiting its adoption.

What Makes Asia Pacific a Prominent Market for Surface Mount Technology?

As per Future Market Insights, Asia Pacific spearheaded by China, is expected to grow rapidly during the forecast period, owing to the robust expansion of electronics industry, rapid industrialization, surging population, booming economy, presence of leading SMT giants, and rising trend of miniaturization.

China has the world’s largest electronics industry in the world. The country produces and exports large quantities of electronic products. Majority of electronics manufacturers based in China are employing SMT for mass production of electronic devices. Driven by this, the country is witnessing huge demand for surface mount technology. Moreover, growing penetration of fast internet and increasing sales of electric vehicles is positively impacting the SMT market in the country.

Similarly, rising demand for consumer electronics across countries like India and South Korea is projected to generate demand for surface mount technology during the forecast period.

Nikhil Kaitwade

Principal Consultant

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How is Europe Contributing to Growth of the Surface Mount Technology Market?

According to Future Market Insights, Europe is expected to provide immense growth opportunities for surface mount technology manufacturers, owing to the rising trend of miniaturization of electronic components and electrification of vehicles.

Countries such as the U.K, Poland, Belgium, are generating high demand for surface mount technology, due to rapid digitalization and flourishing electronics industry. Electronic device manufacturers across these countries are extensively utilizing SMT to facilitate the production of products.

Rising demand for electronic products ranging from smartphones and medical devices to wearables, laptops, computers and other consumer appliances will further expand the size of the Europe surface mount technology market in the future.

Market Competition

Some of the key participants present in the global surface mount technology market include ASM Assembly Systems GmbH & Co. KG, CyberOptics, FUJI MACHINE MFG.CO., LTD., Juki Corporation, Hitachi High Technologies Corporation, Nikon Metrology NV Tioga Limited, Allen Organ Company LLC, Omron Corporation, Panasonic Corporation, Universal Instruments Corporation and KOHYOUNG TECHNOLOGY Inc.

Amid intensifying competition, key market players are focusing on research and development activities for introducing innovative technologies with efficient and cost-effective features. Besides this, they are establishing their bases in attractive regions of Asia, Africa and the Middle East.

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Report Scope

Key Segments Profiled in the Surface mount technology Industry Survey

By Component:

• Passive Surface Mount Devices
• Transistor & Diodes,
• Integrated Circuits

By Equipment:

• Inspection Equipment
• Cleaning Equipment,
• Placement Equipment
• Soldering Equipment
• Screen Print Equipment
• Repair and Rework Equipment

By Application:

• Consumer Appliances
• Medical
• Telecommunication
• Automotive
• Aerospace & Defense
• Industrial Sectors

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa