The surface mount technology (SMT) equipment market has been forecast to reach a global value of $5.3 billion by 2018, driven by the recovery in the electronics and semiconductor industries, new product innovations, and the growing need to upgrade older production lines.
The SMT equipment market continues to derive demand from major downstream industry segments including telecommunications, computing and consumer appliances, which are the most prolific users of PCBs.
However, the market in recent years has been gaining significant opportunities in other industries such as automotive electronics, medical device electronics, defence and aerospace electronic equipment, and industrial equipment among others.
SMT is a method for producing electronic circuits in which the components are mounted or placed directly onto the surface of printed circuit boards (PCBs).
In the industry it has largely replaced the through-hole technology construction method of fitting components with wire leads into holes in the circuit board.
With end-use markets for SMT equipment shifting focus from defect detection to defect prevention, SMT equipment manufacturers are turning towards diversification of product offerings.
Growing demand for high-quality SMT equipment from contract and OEM manufacturers is poised to benefit the market. In addition, rising demand for light emitting diodes (LED) technology is fuelling demand for SMT equipment.
According to a recent market report, 'Surface Mount Technology (SMT) Equipment: A Global Strategic Business Report,' Asia-Pacific represents the single largest market worldwide. With the robust pace of industrialisation, infrastructure development and GDP growth, the region offers bright growth prospects.
Latin America, trailing with a forecast compound annual growth rate (CAGR) of 7.2% over the next five years, is projected to emerge as the fastest growing market.
While growth in the SMT equipment market in Europe continues to remain subdued amidst volatile economic conditions, long term prospects remain positive with the EU gearing up to revive its position in the hardware and manufacturing industry and supporting innovative start-ups and electronics manufacturing clusters in the region.
For more information on the SMT equipment market, see the latest research: SMT Equipment Market
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