Surface Mount Technology (SMT) Market Size, Share, Trends

Updated on : October 22, 2024

Surface Mount Technology Market Size & Share

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; growing at a CAGR of 7.8% during the forecast period 2023 to 2028. 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 Size & Forecast to 2028

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Surface Mount Technology Market Trends :

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.

Surface Mount Technology Market Size Regional Analysis

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 share 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 size 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 Trends 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 :

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

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):

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