Between 2023 and 2028, the surface mount technology (SMT) equipment market is projected to grow by $2.55 billion, with a compound annual growth rate of 7.72%. Growth in the electronics market is driven by several factors, including the miniaturization of components, enabling the development of smaller and more powerful devices. The increasing prevalence of IoT devices and wearable technology is also driving market growth, as these devices require advanced electronics for connectivity and functionality. Furthermore, the increasing use of 3G, 4G, and 5G networks is driving demand for electronics that support wireless communication, such as smartphones and IoT devices. It also includes an in-depth analysis of drivers, trends, and challenges. Additionally, the report includes historical market data from 2018 to 2022.

　　 Market Segmentation

　　 By End-User

　　The market share of the telecommunications sector is expected to grow significantly during the forecast period. The growth of the telecommunications industry is driving the demand for advanced technologies, such as SMT equipment, involved in the manufacturing of various network and telecommunication products. Factors such as the need for miniaturization and faster time-to-market (TTM) are driving the demand for SMT equipment to meet high-speed placement requirements.

　　The telecommunications industry is the larger segment, valued at $1.53 billion in 2018. Participants in the telecommunications industry are expected to continuously adapt their products based on changes in industry standards related to design and manufacturability. 0402 packaging has become the standard component size for this industry. With rapid changes in design, participants are expected to increasingly opt for surface mount technology (SMT) equipment for high-speed component placement. The growing demand for high-end PCBs that can withstand extreme weather conditions is expected to be a major market driver. Therefore, these factors are expected to drive the growth of this segment, thereby driving market growth during the forecast period.

　　 By Type Segmentation

　　SMT mounting equipment is used to pick and place semiconductors and active and passive components on PCBs. SMT mounting offers several advantages, such as efficient placement of small components and reduced undesirable electrical effects (such as inductance and stray capacitance). As end-users across various industries opt for more flexible production processes and focus on improving operational performance, the SMT mounting equipment segment is expected to gain traction. Another major factor expected to drive market growth during the forecast period is the advent of data analytics and the Internet of Things (IoT) to improve remote monitoring and preventive maintenance services. These factors are expected to drive global market growth during the forecast period.

　　Regional Overview

　　The Asia Pacific region is expected to contribute 41% to the growth of the global market during the forecast period. Countries such as China, South Korea, Japan, India, and Taiwan are expected to drive the demand for surface mount technology (SMT) equipment due to their strong industrial influence and mature semiconductor manufacturing sectors. Future growth in key markets may stem from a close focus on application markets such as automotive, electrical and electronics, and renewable energy. China and Japan are among the manufacturing powerhouses, driving the need for flexible automation among manufacturers, primarily in the electronics and appliances, semiconductor, and automotive industries.

　　Furthermore, the Chinese market is experiencing rapid growth due to government initiatives in areas such as factory automation, industrial robots, and artificial intelligence (AI). China's "Made in China 2025" initiative, similar to Germany's "Industry 4.0" strategy, aims to develop technologies such as the Internet of Things, cloud computing, and big data analytics for use in conjunction with automated equipment. These factors are driving the demand for surface mount technology (SMT) equipment in the Asia Pacific region during the forecast period.

　　 Market Dynamics

　　The consumer electronics market continues its rapid expansion, driven by electronic device innovation fueled by Internet of Things (IoT) integration. PCB design plays a crucial role in enhancing the functionality and efficiency of PCBs (printed circuit boards) used across various industries, including the telecommunications sector. Advancements in IoT have revolutionized how electronic devices interact and communicate, requiring robust PCB designs to support seamless integration and functionality. The telecommunications industry benefits significantly from these developments, with PCBs forming the backbone infrastructure for IoT devices and networks. As the consumer electronics market evolves, PCB design continues to drive innovation by optimizing performance, reducing size, and improving energy efficiency in electronic devices. This synergy between IoT, PCB design, and the telecommunications industry highlights the interconnected nature of modern technology and its impact on global connectivity and communication systems.

　 　Key Market Drivers

　　Component miniaturization is significantly driving market growth. Another major driver for the market is the increasing emphasis on ensuring smaller footprints and lower cost per board. To meet market demands, the need for product approvals and timely product launches further fuels this trend. Manufacturers are also focusing on incorporating advanced technologies such as SM (surface mount) and SMT (surface mount technology) into smaller passive component assemblies, driving technological innovation in the industry. Furthermore, the growing demand for resistors, semiconductor packaging research, and semiconductor research is influenced by trends such as smartphone adoption rates and the need for strategic market growth analysis to optimize the value chain.

　　Furthermore, the miniaturization trend is expected to continue during the forecast period as players in the electronics industry increasingly focus on using smaller passive components with dimensions approaching 0.5 millimeters to reduce the size of the end product. However, with the increasing demand for higher assembly density, the need for advanced software and feeder technology is also expected to increase during the forecast period. This will add to the growth of the global market during the forecast period.

　　 Major Market Trends

　　The growth of the electronics industry has increased the demand for SMT equipment, which is an emerging trend impacting the market. With the increasing demand for electric vehicles, the sales and manufacturing of electric vehicles are also growing, providing promising growth opportunities for the market. Surface mount technology is used in the manufacturing of most electrical components used in electric vehicles due to its superior mechanical efficiency under shock and vibration. Utilizing conductive tracks and other features, the boards can mechanically support and electrically connect electronic components. With the advent of surface mount technology, PCB assembly is now done via solder joints, making it easier to remove spare parts and materials from the target part in case of failure.

　　Furthermore, most electronic products are expected to become more compact, and the demand for smaller devices is also increasing, which SMT makes possible. But even if these devices are not as bulky as older devices, the component density is much higher, and there are more connections per component. This means that electronic products can be more advanced and efficient than ever before while still maintaining a compact form factor, which has a positive impact on the growth of the surface mount technology equipment market. These factors are expected to drive market development during the forecast period.