Surface Mount Technology Market Report Scope & Overview:

The Surface Mount Technology Market was valued at USD 5.6 Billion in 2023 and is expected to reach USD 10.2 Billion by 2032, growing at a CAGR of 6.83% from 2024-2032.

In 2023, SMT equipment production volumes varied across regions, with North America leading due to advanced electronics manufacturing, followed by Asia-Pacific and Europe. PCB design trends continue to evolve, emphasizing miniaturization, High-Density Interconnect, and AI-driven automation for enhanced efficiency. SMT assembly line capacity utilization remained strong, fueled by rising consumer electronics demand, though supply chain disruptions posed challenges. Supply chain metrics highlight extended lead times for key SMT components, reliance on Asian suppliers, and geopolitical factors affecting material availability and logistics. The report also explores emerging SMT technologies, advancements in 3D packaging, AI-driven defect detection, and the role of Industry 4.0 in automation and operational efficiency.

Market Dynamics

Drivers

• The rising adoption of compact consumer electronics, IoT devices, and advanced automotive electronics is driving SMT demand, enabling high-density PCB designs and efficient manufacturing.

Surface Mount Technology is gaining traction due to the increasing adoption of compact, high-performance consumer electronics, wearables, and IoT devices. PCB manufacturers are also utilizing advanced SMT equipment, as high-density, tight-tolerance PCB designs are necessary, driven by the trend for miniaturization. Further, with the integration of miniaturized and high-density electronic components in the telecommunication, automotive, and healthcare sectors, this process is expected to grow even more. The increasing rollout of 5G infrastructure and AI-enabled devices further increases demand for cost-effective and reliable SMT solutions, facilitating the seamless manufacture of high-performance electronics with advanced capabilities in smaller and smaller form factors.

Restraints

• SMT requires significant capital investment in advanced machinery, skilled labor, and complex transition from through-hole technology, posing challenges for SMEs.

SMT adoption needs quite a lot of capital investment in high placements, reflow ovens, and automated inspection systems. SMEs often struggle with high initial and maintenance costs incurred in establishing SMT assembly lines. Moreover, the use of SMT requires labor and experience, as it contains complex soldering, component placement, and thermal management processes. The complexity of migration from traditional through-hole technology to SMT is also a hurdle for manufacturers to overcome in some regions and industries, which can hinder wide adoption.

Opportunities

• AI-powered inspection, smart automation, and 3D packaging innovations are enhancing SMT efficiency, improving quality control, and reducing operational costs.

The combination of artificial intelligence with Industry 4.0 technologies is providing new possibilities for process optimization and quality control in SMT. AI-backed inspection system provides agility in identifying defects which reduces error rates and optimizes production. Automation using Industry 4.0 such as smart robotics and digital twins promotes greater precision and enables real-time monitoring in SMT assembly. Besides, increased applications of 3D packaging and flexible PCBs are exposing new dimensions of SMT applications, enabling manufacturers to cater to the evolving demands of the industry. These new technologies provide SMT players with a substantial amount of growth opportunities to improve productivity and lower operating costs.

Challenges

• Global supply chain constraints, raw material shortages, and geopolitical tensions are impacting SMT component availability, leading to increased costs and extended lead times.

The SMT market continues to be hampered by global supply chain disruptions, shortages of raw materials, and geopolitical tensions. The dependence on Asian suppliers for major parts such as solder paste, pick-and-place machines, and semiconductor chips has resulted in supply ambiguities, longer lead times, and varying costs. There are also strict environmental regulations and trade restrictions associated with the supply of raw materials needed for SMTs. To tackle such challenges and to continue smooth SMT operations, manufacturers need to adopt flexible supply chain strategies, diversify sources of supply, and invest in localized production capabilities.

Segment Analysis

By Equipment

In 2023, the placement segment dominated the market and accounted for a significant revenue share in 2023. The increasing demand for enhancing product technology, reliability, reactivity, and inspection proficiency is attributed to this dominance. In addition, an increase in demand for this equipment in telecommunications, automotive, consumer electronics, computing, and storage is expected to drive segment growth during the forecast period.

The inspection equipment segment is projected to grow at the fastest CAGR during the forecast period. Inspection equipment is used to inspect the manufacturing process to see if there are any errors such as incorrect or absence of placement of components, solder defects, and any other defect that can lead to the nonfunction of the device. Automated inspection equipment is becoming increasingly popular among manufacturers as it enhances the production process, lower cost, and greater product quality consistency. AI and ML technologies incorporated into inspection equipment allow the machines to auto-tune to optimize performance, resulting in even greater accuracy and speed.

By Service

The Design Segment dominated the market and held the largest market share of 37% in the overall market in the year 2023. Key factors responsible for the growth of this segment include the rising demand for PCB design, electronic circuit design, and design for manufacturing services for consumer electronics. Besides, the cost-optimized design services providers enable manufacturers to bring down the total manufacturing cost, enhancing overall profitability through design optimization. Also, designing includes planning or layout of the printed circuit board of the electronic device.

The supply chain services segment is expected to grow at the fastest CAGR during the forecast period. Supply chain services include several service activities; they are: sourcing & procurement, inventory management, logistics & transportation, warehousing & distribution. The first stage in the supply chain process is component sourcing — which refers to how to find the best components from manufacturers and distributors.

By Application

The consumer electronics segment dominated the market and accounted for a significant revenue share in 2023, Due to its advantages over traditional through-hole technology including smaller form factors, quicker production times, and higher efficiency, SMT is widely used in consumer electronics manufacturing. SMT is also widely adopted in mobile device manufacturing, smart wearables, TVs, gaming consoles, and home appliances.

The industry segment is expected to register the fastest CAGR during the forecast period. SMT is used to fabricate automation equipment, medical equipment, power electronics, and photovoltaic systems for example robots, and control systems. SMT components are well suited to these applications due to their small size and high performance. Additionally, the demand for high-performance electronics is gaining traction in a wide range of industrial applications such as automotive control systems, industrial sensors, and communication devices.

Regional Analysis

In 2023,  North America dominated the market and accounted for 33% of revenue share. The North American surface mount technology manufacturing market is expected to account for a significant SMT share owing to the presence of well-known surface mount technology providers in the region responsible for significant SMT demand including (but not limited) to CyberOptics, Naprotek, LLC., Teradyne, Inc. and others. Mergers and acquisitions and launching new products are targeted for strategic growth by the key players.

The Asia Pacific region is expected to register the fastest CAGR over the forecast period. This is attributed to the heightened demand for 5G networks and the increased wireless communication standards demand for SMT in the telecommunications sector in this region. Moreover, the market growth is also favouring supportive government policies.

Key Players

The major key players along with their products are

• ASMPT Limited – SIPLACE TX Placement System

• Fuji Corporation – AIMEX IIIc Pick-and-Place Machine

• Panasonic Corporation – NPM-W2 SMT Placement Machine

• Yamaha Motor Co., Ltd. – YSM20R High-Speed Modular Mounter

• Mycronic AB – MY300 Pick-and-Place System

• Juki Corporation – RS-1R Smart Modular Mounter

• Hanwha Precision Machinery – HM520 High-Speed Chip Mounter

• Nordson Corporation – ASYMTEK Select Coat SL-940 Conformal Coating System

• Viscom AG – S3088 ultra gold 3D AOI System

• Kurtz Ersa GmbH – HOTFLOW 3 Reflow Soldering System

• EKRA Automatisierungssysteme GmbH – X5 Professional Screen Printer

• Rehm Thermal Systems GmbH – VisionXP+ Vacuum Reflow Oven

• ITW EAE (Electrovert) – Aquastorm 200 In-Line Cleaning System

• Europlacer – iineo+ II Pick-and-Place Machine

• Manncorp – MC-400 Automatic Pick-and-Place Machine

Recent Developments

• April 2024 Mycronic received an order for a Prexision 800 Evo mask writer for display applications from an existing customer in Asia, with delivery planned for the second quarter of 2024. 

• October 2024 Keystone expanded its product portfolio by launching ultra-flat surface mount thread inserts, now available in both metric and inch-threaded versions.