SMT Equipment Market Key Players and Opportunities by 2031

The SMT Equipment market size is expected to reach US$ 10.19 billion by 2031 from US$ 6.38 billion in 2023. The market is estimated to record a CAGR of 6.0% from 2023 to 2031. The evolution of 3D packaging and Through Silicon Via (TSV) Technologies is likely to remain a key market trend in the coming years.

SMT Equipment Market Analysis

Electronic devices are getting smaller and more complicated, with ever-shrinking components. SMT equipment is required to handle these tiny components with high precision and speed during assembly processes. The growing consumer electronic industry and miniaturization of electronic products are driving the market. Increasing need for environment-friendly electronic components and growing industrial automation are expected to create growth opportunities for the market.

SMT Equipment Market Overview

Surface mount technology (SMT) equipment are used for inspection equipment, placement equipment, soldering equipment, screen printing equipment, cleaning equipment, and other tasks. SMT is a method for mounting electrical components on the surface of a printed circuit board (PCB). This technology has grown in popularity over time due to its several benefits, including reduced component sizes, higher component density, and increased manufacturing efficiency. It improves electrical performance by shortening the connection routes between components. This results in lower parasitic capacitance and inductance, which improves signal integrity and overall system reliability.

SMT Equipment Market: Strategic Insights

SMT Equipment Market Drivers and Opportunities

Growing Consumer Electronics Industry

Surface mount technology (SMT) has revolutionized electronic assembly, enabling the development of compact designs with higher assembly density, improved performance, and reduced costs. SMT's automated assembly processes reduce labor costs and increase production efficiency. The smaller form factor reduces material costs, making consumer electronics such as televisions and gaming consoles more affordable and accessible. Further, consumers globally are increasingly seeking more powerful and feature-laden devices. Consumer electronics such as smartphones, laptops, tablets, cameras, wearables, and home automation are adopted globally. Smartphones have become an integral part of the lifestyle. With the rising adoption of smartphones, there is a rise in smartphone penetration across the globe. According to the GSMA report, by the end of 2021, smartphones accounted for 83% of mobile connections in North America, with 30 million new smartphone connections expected by 2025.

Smart electronic devices have also gained popularity. For instance, in February 2023, in the Indian market, the shipping of wearable devices, such as fitness-tracking bands, smartwatches, and true-wireless earbuds, achieved a significant milestone by surpassing 100 million devices in a single calendar year. This accomplishment was accompanied by an impressive year-on-year shipment growth rate of 46.2% for the segment. PCBs are widely used in consumer electronics and other electronics; they connect electronic components and are an integral part of the electronics. The growing demand for consumer electronics needs surface mount technology (SMT) equipment where electronic components are directly applied to the surface of a printed circuit board (PCB). This method enables automated production to conduct a more extensive assembly, creating a fully functional circuit board. Thus, the growing consumer electronics industry drives the SMT equipment market.

Increasing Need for Environment-Friendly Electronic Components

One of the most significant environmental initiatives in SMT assembly is the transition to lead-free soldering. Traditional solder alloys containing lead pose significant health and environmental risks due to their toxicity. To mitigate these risks, the electronics industry has widely adopted lead-free solder alloys, such as tin-silver-copper (SAC) and tin-copper (SnCu), which are more environmentally friendly and comply with various global regulations. There are various government laws and regulations regarding restricting the use of certain hazardous substances in electrical and electronic equipment. For example, the RoHS directive by the European Union restricts the use of ten substances: lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) and polybrominated diphenyl ethers (PBDE), butyl benzyl phthalate (BBP), bis(2-ethylhexyl) phthalate (DEHP), dibutyl phthalate (DBP), and diisobutyl phthalate (DIBP).

SMT Equipment Market Report Segmentation Analysis

Key segments that contributed to the derivation of the SMT Equipment market analysis are component, equipment type, and end user.

• Based on component, the market is divided into passive component and active component. The active component segment held a larger share of the SMT equipment market in 2023.
• In terms of equipment type, the market is divided into inspection equipment, placement equipment, soldering equipment, screen printing equipment, cleaning equipment, and others. The placement equipment segment held the largest share of the SMT equipment market in 2023.
• Based on end user, the market is segmented into consumer electronics, telecommunication, aerospace and defense, automotive, industrial, and others. The consumer electronics segment held the largest share of the SMT equipment market in 2023.

SMT Equipment Market Share Analysis by Geography

• The SMT equipment market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia Pacific dominated the market in 2023, followed by North America and Europe.
• The rapid expansion of the electronics business has increased the global demand for SMT equipment. This is driven by the rising demand for 3G and 4G telecom networks, consumer electronics, LED and CFL lighting, LCD/LED monitors and televisions, and other products in the computers, communications, and consumer electronics industries. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, passed in August 2022, authorized subsidies and tax advantages to encourage the development of sophisticated semiconductors in the US. This was followed by broad limitations on the export of chip manufacturing technology to China. The CHIPS and Science Act incentivizes Taiwanese, Korean, and American companies to establish factories in the US. As a result, in April 2024, the US Department of Commerce and TSMC Arizona signed a non-binding preliminary memorandum of terms (PMT) for up to US$ 6.6 billion in direct funding under the CHIPS and Science Act. TSMC also announced plans to build a third fab at TSMC Arizona to meet strong customer demand, leveraging the most advanced semiconductor process technology in the US.

SMT Equipment Market Regional Insights

The regional trends and factors influencing the SMT Equipment Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses SMT Equipment Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

SMT Equipment Market Report Scope

SMT Equipment Market Players Density: Understanding Its Impact on Business Dynamics

The SMT Equipment Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

SMT Equipment Market News and Recent Developments

The SMT equipment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the SMT equipment market are listed below:

• Saki Corporation announced the addition of a new 3D X-ray Automated Inspection System (3D-AXI) to its popular 3Xi-M110 range, bringing further improvements in cycle time and inspection accuracy. The newly developed 3Xi-M110 V3 delivers an impressive 50% cycle-time reduction. Saki's Planar CT technology used in the 3Xi-M110 detects solder joint defects and microstructure abnormalities in high-density PCBs. The automated X-ray inspection system utilizes Real 3D volumetric inspection to clearly identify voids in multi-layer solder, THT assembly BGA head-in-pillow issues, and defective parts based on fillet position and other factors.

(Source: Saki Corporation, Press Release, January 2023)

• KLA Corporation and imec announced the intention to establish the Semiconductor Talent and Automotive Research (STAR) initiative, focusing on developing the talent base and infrastructure necessary to accelerate advanced semiconductor applications for electrification and autonomous mobility and move the automotive industry forward. The initiative builds on over 25 years of collaboration between imec and KLA. This initiative is designed to connect automotive, semiconductor, and innovation research initiatives in Belgium, Michigan (US), and Japan. Each partner will bring relevant expertise to identify and manage programs aligned with the automotive industry and talent development and recruitment.

(Source: KLA Corporation, Press Release, May 2023)

SMT Equipment Market Report Coverage and Deliverables

The "SMT Equipment Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• SMT equipment market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• SMT equipment market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• SMT equipment market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the SMT equipment market
• Detailed company profiles