Surface Mount Technology Market

Surface Mount Technology Market Overview

The surface mount technology market revenue assumed by the end of 2021 was US$ 4.6 Bn. The surface mount technology market is expected to reach US$ 15.5 Bn by 2032, as it is estimated to grow at a CAGR of 11.8 % for 2022-2032.

Surface mount technology refers to when an electrical component is directly mounted or attached to the top surface of a printed circuit board (PCB). It differs from the standard soldering-through-hole approach. It uses somewhat distinct soldering equipment and techniques that enable greater electrical conductivity and dependability than the thru-hole method. Surface mount technology allows more components to fit on a given area of printed circuit board while dramatically lowering total production costs.

Surface mount technology accounts for nearly 33% of the global PCB assembly market.

2017-2021 Surface Mount Technology Market Demand Outlook Compared to 2022-2032 Forecast

The surface mount technology market is assumed to grow at a CAGR of 11.8% for the forecast period.

Because of its numerous advantages, such as fewer components, better component density, improved mechanical performance, and easier and faster automated assembly, industries are increasingly transferring their preference from through-hole technology to surface mount technology.

Adoption of 5G networks opens up new opportunities for software developers to create applications that are faster and provide a better user experience.

Prominent Factors like Electronic and Automobile Sector Driving Surface Mount Technology Market

Exponential expansion in the electronics sector, miniaturisation of current electronic components, increased usage of flexible printed circuit boards, and the growing popularity of electric cars are some of the primary drivers driving the rise of surface mount technology.

With fast digitization and increased automation penetration, demand for tiny electrical components is expanding. Manufacturers are increasingly adopting this technology to make smaller and more compact electronic components.

The increase in demand for electric vehicle adoption leads to increased production and sales of electric cars, offering attractive development prospects for this market because the majority of electrical components used in electric vehicles are made using surface-mount technology because it provides better mechanical efficiency under shock and vibration.

Sudip Saha

Principal Consultant

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Regional Analysis

East Asia was the region estimated to hold the largest market share in 2021 of 24.5%, and North America is estimated to be the fastest-growing region for the surface mount technology market.

East Asia dominates the market for surface mount technology because of fast industrialization, a growing population, a thriving economy, the existence of leading SMT players, and the rising trend of miniaturization. The countries in this region produce and export a large amount of electrical goods. The majority of electronics firms use surface mount technology for the mass manufacturing of electrical gadgets.

In North America, because of growing digitization and an expanding electronics industry, demand is increasing. With rising demand for electronic items ranging from smartphones, medical devices, and devices to wearables, laptops, PCs, and other consumer appliances, electronic device makers throughout the region are increasingly relying on SMT to streamline manufacturing.

Due to these reasons, North America is estimated to be a fast-growing market with a CAGR of 10.1% for the forecast period.

Country wise insights

China Has Emerged as a Prominent Market for Surface Mount Technology

China is one of the world's major consumers, exporters, and manufacturers of mobile phones. The majority of Chinese electronics manufacturers use SMT to mass produce electronic devices. Driven by this, the country is seeing huge demand for surface-mount technology. In addition, the increasing penetration of technology adoption and the increasing sales of electric vehicles are positively impacting the domestic SMT market.

Due to these reasons, China is estimated to have a larger market share of 18.4% in 2021.

Technological Advancements Leads to Promising Future of Surface Mount Technology in US

The United States is one of the countries with the most rapid and early adoption of technology in the world. The rise in wireless communication standards and growing demand for 5G networks are driving the demand for SMT in the telecommunications sector in this region. The automotive sector also offers electric vehicles with new technologies and innovations through mergers, acquisitions, and partnerships with various leading companies in the SMT industry.

For these reasons, the US is estimated to grow at a CAGR of 10.4% for the forecast period.

Adoption and Transaction of Consumer Electronics Led to Drive the Growth of Surface Mount Technology in India

India is leading the world in technology adoption, providing a better platform for manufacturers and industrialists, increasing demand for 3G and 4G networks, and increasing the adoption of electric vehicles. Apart from exports, India is also beginning to manufacture technologies such as SMT to produce smaller and more compact electronic components. It acted as a catalyst for the expansion of the surface mount technology market in India.

For these reasons, India is estimated to grow at a CAGR of 12.1% for the forecast period.

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Category wise Insights

Why Rework and Repair Equipment Having Largest Market Share in Surface Mount Technology?

Circuit boards that mechanically support and electrically connect electronic components using conductive tracks and other features. Earlier PCBs were made by a process that fixed the component and made it very difficult to disassemble, but now, with Surface Mount Technology technology, PCB assembly is done by solder joints, so spare parts and materials are easier to remove from the target parts if the chance for failure occurs. As a result, rework and repair equipment will have the largest market share in surface mount technologies in 2021, accounting for 36.8%.

Why are Consumer Electronics Estimated to Grow at the Fastest Rate?

The consumer electronics application segment holds the largest market share due to the high level of development that reduces the size and weight of consumer electronics through the application of surface mount technology. Surface-mount components are smaller, thinner, and lighter than through-hole technology products.

Due to these factors, consumer electronics were estimated to have a larger market share of 27.1% in 2021.

Competitive Landscape

Global players in the Surface Mount Technology market include FUJI MACHINE MFG.CO., LTD, Juki Corporation, Corporation, Nikon Metrology NV, Tioga Limited, Hitachi High Technologies, Orbotech Ltd, Allen Organ Company LLC and Nordson Corporation.

• In November 2022, Cicor strengthened its presence in Germany by acquiring the Phoenix Mecano Digital Tunisie and Phoenix Mecano Digital Elektronik.
• In October 2022, Snaptron announced the development of its first surface-mount metal dome. The dome could be soldered on the PCBs without affecting performance. The domes could be easily mounted on the PCBs with the use of SMTs to automate the process. The SMD domes can act as an alternative to tact switches.

Scope of report

Surface Mount Technology Market by Category

By Equipment:

• Inspection Equipment
• Placement Equipment
• Soldering Equipment
• Screen Printing Equipment
• Cleaning Equipment
• Rework and Repair Equipment

By Application:

• Consumer Electronics
• Telecommunications
• Aerospace & Defense
• Automotive
• Medical
• Industrial
• Energy & Power Systems

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa