Market Size of Surface Mount Technology Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 6.14 Billion |
Market Size (2029) | USD 8.87 Billion |
CAGR (2024 - 2029) | 7.60 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Surface Mount Technology (SMT) Market Analysis
The Surface Mount Technology Market size is estimated at USD 6.14 billion in 2024, and is expected to reach USD 8.87 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).
Surface mount technology (SMT) is a method for constructing electronic circuits in which the components are mounted directly onto the surface of printed circuit boards (PCBs). This contrasts with older through-hole technology, where components are inserted into holes drilled into the PCB. Components used in SMT, known as SMDs, have small metal tabs or end caps that can be soldered directly onto the PCB surface. This allows for using smaller, lighter, and more components on a single PCB.
• After the effect of the pandemic, the market for laptops and servers is witnessing a surge in demand. According to the India Electronics and Semiconductor Association (IESA), more data is stored on the cloud as work-from-home increases and more collaboration tools are deployed. A surge in demand is witnessed in the server, data centers, and computing segments. US-based Micron Technology also reported a more robust demand from data centers due to the remote-work economy, increased gaming, and e-commerce activity. Additionally, as per Cloudscene, as of March 2024, there are 5,381 data centers in the United States, the most of any country worldwide. A further 521 are in Germany, while 514 are in the United Kingdom.
• Miniaturization of electronic components has made it possible to build small portable and handheld computer devices that can be carried anywhere. As a result, smaller, lighter devices with high processing capacity are available on the market. They are becoming more wearable since components can be easily embedded (for example, in clothing bags) and carried for long periods. Components are shrinking, putting new demands on the design of the PCBs they are mounted on. NCAB Group is firmly committed to IPC's efforts in defining standards for ultra-dense Ultra HDI PCBs and anticipates being able to provide them to clients in 2023.
• Surface mount technology (SMT) has emerged as a pivotal element in modern electronics manufacturing, eclipsing traditional through-hole methods with its myriad benefits. A standout advantage of SMT lies in its drastic reduction of necessary PCB drilling. Manufacturers slash both time and costs by sidestepping the drilling process, a notable boon for intricate, high-density boards. This shift streamlines production and trims labor and material expenses, bolstering the overall cost-effectiveness of the manufacturing process.
• Surface mount technology has revolutionized the electronics manufacturing industry by enabling the production of smaller, more efficient, and cost-effective electronic devices. However, despite its numerous advantages, SMT is unsuitable for all applications. SMT is unsuitable for high-power and high-voltage components, such as transformers and power circuitry. These components generate heat and carry high electric loads, which SMT is not designed to handle effectively.
• According to the US Congressional Budget Office, defense spending in the United States is predicted to increase yearly until 2033. Defense outlays in the United States amounted to USD 746 billion in 2023. The forecast predicts an increase in defense outlays up to USD 1.1 trillion in 2033.
Surface Mount Technology (SMT) Industry Segmentation
Surface Mount Technology (SMT) is utilized in the electronic assembly to mount electronic components to the printed circuit board's (PCB) surface instead of inserting components through holes as with conventional assembly. SMT was developed to significantly reduce manufacturing costs and make more efficient use of PCB space.
The SMT market is segmented by component (passive components (resistors, capacitors), active components (transistors, integrated circuits), end-user industry (consumer electronics, automotive, industrial electronics, aerospace and defense, healthcare, and other end-user industries), and by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The report offers value terms in USD for the above-mentioned segments.
By Component | ||||
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By End-user Industry | |
Consumer Electronics | |
Automotive | |
Industrial Electronics | |
Aerospace and Defense | |
Healthcare | |
Other End-user Industries |
By Geography*** | |
North America | |
Europe | |
Asia | |
Australia and New Zealand | |
Latin America | |
Middle East and Africa |
Surface Mount Technology Market Size Summary
The Surface Mount Technology (SMT) market is poised for significant growth, driven by its pivotal role in modern electronics manufacturing. SMT, which involves mounting components directly onto the surface of printed circuit boards, offers numerous advantages over traditional through-hole methods, such as reduced drilling needs and enhanced cost-effectiveness. This technology has become essential in various sectors, including automotive and consumer electronics, due to its ability to produce smaller, lighter, and more efficient devices. The automotive industry, in particular, benefits from SMT's precision and reliability in assembling complex electronic systems like advanced driver-assistance systems and engine control units. As the demand for miniaturized and high-performance electronic devices continues to rise, SMT's importance in facilitating these advancements is increasingly recognized.
The market landscape is characterized by a mix of global players and smaller enterprises, with key companies like Fuji Corporation, Yamaha Motor Co. Ltd, and Panasonic Corporation leading the charge. These companies are actively engaging in partnerships and acquisitions to enhance their offerings and maintain a competitive edge. The Asia-Pacific region, especially countries like Japan, China, and South Korea, serves as a hub for SMT due to its robust manufacturing infrastructure and skilled workforce. The region's growth is further supported by government initiatives aimed at increasing local value addition in electronics manufacturing. As industries continue to adopt SMT for its efficiency and cost benefits, the market is expected to expand, driven by innovations and technological advancements in electronic assembly.
Surface Mount Technology Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitutes
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1.3.5 Intensity of Competitive Rivalry
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1.4 Impact of COVID-19 on the Surface Mount Technology Market
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 Passive Components
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2.1.1.1 Resistors
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2.1.1.2 Capacitors
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2.1.2 Active Components
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2.1.2.1 Transistors
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2.1.2.2 Integrated Circuits
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2.2 By End-user Industry
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2.2.1 Consumer Electronics
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2.2.2 Automotive
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2.2.3 Industrial Electronics
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2.2.4 Aerospace and Defense
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2.2.5 Healthcare
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2.2.6 Other End-user Industries
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2.3 By Geography***
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia
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2.3.4 Australia and New Zealand
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2.3.5 Latin America
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2.3.6 Middle East and Africa
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Surface Mount Technology Market Size FAQs
How big is the Surface Mount Technology Market?
The Surface Mount Technology Market size is expected to reach USD 6.14 billion in 2024 and grow at a CAGR of 7.60% to reach USD 8.87 billion by 2029.
What is the current Surface Mount Technology Market size?
In 2024, the Surface Mount Technology Market size is expected to reach USD 6.14 billion.