SMT market to reach USD$16.8 billion by 2034 – FMI

The surface mount technology (SMT) market is projected to experience significant growth over the next decade, driven by advancements across various industries such as electronics, healthcare, telecommunications, and automotive sectors.

According to a recent report by Future Market Insights, the SMT market is expected to grow at a compound annual growth rate (CAGR) of 12.7% from 2024 to 2034. The market size is anticipated to expand from USD $5.1 billion in 2024 to surpass USD $16.8 billion by 2034.

SMT has become increasingly critical in the development of smaller and more powerful electronic devices. As consumer preferences lean towards portability and convenience, there is a growing demand for compact devices with multiple features. SMT facilitates the placement of tiny components in close proximity on printed circuit boards (PCBs), enabling the creation of multifunctional and high-performance devices. This miniaturisation trend is prevalent not only in consumer electronics but also in industries like aerospace and defence, where space and weight constraints are pivotal.

The healthcare sector is also witnessing a rapid adoption of electronic devices for monitoring, diagnostics, and treatment. Wearable health devices, portable monitors, and implantable medical equipment all rely on compact and reliable electronics. SMT is integral in manufacturing these devices, allowing for the precise placement of components and continued miniaturisation. This, coupled with increasing regulations and standards aimed at ensuring device reliability, drives further market growth.

The global rollout of 5G technology is another significant factor contributing to the SMT market expansion. The telecommunications industry requires sophisticated electronic components to handle higher data speeds and frequencies. SMT is essential for producing compact and efficient circuit boards necessary for 5G infrastructure, including base stations, routers, and switches. As 5G networks expand, the demand for advanced electronic assemblies will continue to grow.

In the automotive industry, modern vehicles are becoming increasingly reliant on advanced electronics for functionalities ranging from safety systems like Advanced Driver Assistance Systems (ADAS) to infotainment and connectivity solutions. The shift towards electric and autonomous vehicles heightens the need for sophisticated electronic components. SMT plays a crucial role in manufacturing high-density and reliable electronic assemblies that can withstand harsh automotive environments, thereby driving significant growth in the SMT market.

The report highlights several other factors driving SMT market growth, including the evolution of the consumer electronics industry and the emergence of advanced packaging technologies. Consumer electronics continue to evolve with a focus on more features, better performance, and innovative designs. SMT supports this evolution by enabling the integration of complex circuits and multiple components into smaller, more efficient packages. Advanced packaging technologies such as System-in-Package (SiP) and 3D packaging offer benefits in size reduction and performance enhancement, fuelling SMT adoption across high-performance computing and consumer electronics applications.

The integration of artificial intelligence (AI) and machine learning (ML) into SMT manufacturing processes is also transforming the industry. AI and ML enhance production efficiency by optimising machine operations, reducing defects, and predicting maintenance needs. Technologies such as AI-driven inspection systems and machine learning algorithms are being utilised to ensure higher yields, lower costs, and improved product quality.

However, the SMT market faces challenges such as managing heat dissipation in densely packed electronic assemblies, integrating advanced technologies like AI, IoT, and 5G, and complying with environmental regulations. Addressing these challenges requires significant investment and technical expertise.

Regionally, China is a major player in the SMT market, driven by its vast manufacturing capabilities and government support. Initiatives such as the "Made in China 2025" plan and investments in research and development bolster the SMT market in China. In the United States, emerging technologies like electric vehicles, renewable energy, and advanced medical devices drive demand for SMT components. India’s rapidly growing middle class and government incentives also contribute to the SMT market's expansion.

The SMT market remains highly competitive, with global leaders like ASM Assembly Systems and Panasonic, along with regional players and niche providers. The competition is further intensified by suppliers of materials, software, and emerging technologies. Recent developments include the launch of new SMT facilities and machines aimed at improving efficiency and meeting the rising demand.