Surface Mount Technology (SMT) Equipment Market - Forecasts from 2023 to 2028

The surface mount technology (SMT) equipment market is expected to grow at a CAGR of 6.64% from an initial value of US$8,734.778 million in 2021 to reach US$13,702.120 million in 2028.

Surface mount technology equipment refers to the instruments and tools used in the process of a particular type of assembly of components in an electronic device. The use of surface mount technology equipment enables the placement of components of electronic and electrical gadgets on a printed circuit board. They are used for screen-printing, soldering, inspection, placement, cleaning, repair, and rework processes involved in the manufacture of surface-mounted components. Due to the speed and efficiency of SMT equipment, it is being widely adopted in the manufacturing procedure of various sectors such as consumer electronics, telecommunication, transportation, and others. The application of surface mount technology equipment in these sectors has resulted in the possibility of manufacturing highly complex electric circuits into tiny sizes through the process of automation. As a result of this, the surface mount technology equipment market is expected to witness a market expansion over the forecast period.

Market Drivers

The convenient sizing and cost reduction of surface mount components

The components of electrical devices that are manufactured using surface mount technology equipment are smaller in size as compared to traditional production methods. This feature of SMT equipment helps in the size reduction of electronic devices and gadgets. The automation of component manufacturing processes through the use of surface mount technology equipment has resulted in an overall increase in efficiency and productivity in the production operations of a lot of companies. The SMT components manufactured by using SMT equipment help the company in saving its expenses and generate larger economic profits in the mass production of its products. In addition to this, the companies can reduce the weight of their products and manufacture at a quicker speed in comparison with other traditional equipment. As the use of SMT technology equipment assists in the compact arrangement of a component, it helps the company cut down on its material and board costs. Therefore, the economic and commercial advantages associated with the application of SMT machinery in the production of microelectronic components shall act as a key force driving the surface market technology equipment toward expansion over the forecast period.

Enhancement of signal strength

As a result of the compact-sized manufacture of components through surface mount technology, the signal speed and strength in an electronic device are strengthened. This occurs as a result of the reduction in the length of signal pathways since additional components can be placed on the circuit board in a smaller space using SMT equipment. In addition to this, SMT equipment helps in eliminating the negative effects of RF signals. Therefore, the enhancement of signal strength owing to the use of SMT equipment is another key factor that is anticipated to result in the expansion of the SMT equipment market over the forecast period.

The lack of heat resistance in the soldering SMT equipment can slow down the expansion of the surface mount technology equipment.

The soldering equipment used in the surface mount process cannot resist heat and owing to this reason, SMT equipment is not used in the manufacturing of electrical circuits with high levels of thermal radiation and heat release. The heat waves generated in the operating and manufacturing processes have the potential to harm the solder connections in the surface mount components. In addition to this, the strength of solder joints in the surface mount components is questionable due to the low amount of solder material used in the production. Therefore, these concerns with the soldering equipment could restrain the growth of the SMT equipment market.

Market Developments:

• In February 2023, Anuvega Technologies Pvt Ltd. unveiled its new manufacturing unit primarily focusing on SMT machinery for turnkey production.
• In February 2023, Yamaha Motor Europe Company announced the addition of a new SMT tool, YRM20DL to its existing collection of surface mount technology equipment. The new tool is expected to provide higher accuracy and operating efficiency in its performance.
• In January 2023, Incap Corporation added a new SMT production range to its existing machinery at its Kuressaare factory in Estonia. This new addition will increase the manufacturing capacity by a large margin.

Asia Pacific region holds potential in the smart hospitals market and is expected to grow in the forecast period as APAC countries are experiencing significant growth in their telecommunications and consumer electronics industries. In the telecommunications sector, SMT equipment is used to manufacture the internal components of devices like smartphones, tablets, laptops, and desktop computers. The high level of manufacture and consumption of telecommunication and other electronic devices in the Asia Pacific countries has resulted in a large market size of the Asia Pacific surface mount technology equipment market. The high population size and the presence of leading smartphone manufacturing companies such as Samsung, Lenovo, Xiaomi, and Oppo result in high demand for SMT equipment in this region. Therefore, considering these factors it can be anticipated that the Asia Pacific SMT equipment market will experience further expansion to reach a larger market size over the forecast period.

Market Segmentation:

By Type

• Screen Print Equipment
• Automatic
• Semi-Automatic & Manual
• Soldering Equipment
• Reflow
• Wave
• Inspection Equipment
• SPI
• AOI
• Placement Equipment
• Sequential
• Parallel
• Cleaning Equipment
• Repair & Rework Equipment

By Industry Vertical

• Telecommunication
• Consumer Electronics
• Automotive
• Healthcare
• Others

By Geography

• Americas
• USA
• Others
• Europe Middle East and Africa
• United Kingdom
• Germany
• Others
• Asia Pacific
• China
• Japan
• Taiwan
• South Korea
• Others