Technological Innovations in Electronics to Drive the Growth of Surface Mount Technology Market in the Coming Years

With the increasing demand for electronic circuits across industries such as consumer electronics, telecommunication, automotive, aeronautics, and healthcare and innovations in technology, the demand for surface mount technology has also witnessed an increase over the past decade.

The global surface mount technology market is expected to be valued at USD 5.42 Billion by 2022, growing at a CAGR of 8.9% during the forecast period from 2017 to 2022.

Based on equipment, placement equipment is expected to account for the majority share of the market in 2017, owing to the rising need for higher accuracy, miniaturization of the product, enhanced speed, and flexibility. However, the market for inspection equipment is projected to grow at the highest CAGR over the forecast period. This growth can be attributed to its ability to improve product technology, responsiveness, reliability, and quality of inspection, and growing need in telecom, automotive, consumer electronics, and computing & storage.

Among application, the consumer electronics industry is estimated to be the dominant market as well as witness the highest growth over the forecast period, the reason being the increasing miniaturization of electronic devices, which is leading to the manufacturing of compact, multifunctional, and power-efficient electronic devices. The automotive industry is likely to witness the second-highest growth between 2017 and 2022, owing to the rise in demand for luxury vehicles, sports utility vehicles, and technologically advanced vehicles, which has led to an increase in the usage of electric components.

Geographical growth scenario of the SMT market

Among regions, the market in Asia-Pacific held the largest share, and is also expected to grow at the highest rate over the forecast period. This growth is mainly due to the rising demand for mobile phones, LCD/LED television sets, and other consumer electronics. Growing trend of miniaturization, need for higher production speed, and continuous introduction of new products is further driving this market towards growth. Following this, the market in North America is expected to hold the second-highest share of the market, owing to the increased demand for mobile and inter-connected devices in this region.

Factors driving and restraining the market growth

The growth of the worldwide market for surface mount technology is being majorly influenced by the following factors:

  • Rising adoption of electric vehicles
  • Increasing demand for miniaturization in consumer electronics products

Additionally, increasing integration of biometrics and security in consumer electronics devices and medical devices and growing demand for LED lighting is expected to offer ample growth opportunities for this market.

On the flip side, high investment cost of machinery for setting up of production units and the high frequency and need for thermal management are the major factors that are likely to act as deterrents for the growth of this market. Moreover, emerging of new assembly techniques, and repair, rework, and reliability for SMT-manufactured PCBs are the key challenges being encountered by the players in this market.

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Key players and sustainability strategies adopted by them

The major players operating in the global market for surface mount technology comprise ASM Assembly Systems GmbH & Co. KG (Germany), CyberOptics Corporation (U.S.), Electro Scientific Industries Inc. (Oregon), Fuji Machine Manufacturing Co., Ltd.(Japan), Hitachi High-Technologies Corporation (Japan), Juki Corporation (Japan), Mycronic AB (Sweden), Nordson Corporation (U.S.), Orbotech Ltd. (Israel), and Viscom AG (Germany). These companies are increasingly focusing on strategies such as contracts, agreements, and partnerships in order to expand their geographical presence as well as their business across the globe.

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