The global surface mount technology (SMT) equipment market was valued at US$ 5.7 billion in 2022 and is projected to reach US$ 9.1 billion by 2031, expanding at a CAGR of 5.9% from 2023 to 2031. The exponential growth of the electronics industry and the increasing demand for smaller, lighter, and high-performing devices are fueling market expansion.

The SMT equipment market is witnessing steady growth as electronics manufacturers embrace automation to reduce costs, improve efficiency, and enhance product reliability. The shift toward miniaturization of electronic devices is a key driver, as SMT enables more components to be packed in a smaller footprint while ensuring high performance. Demand is further supported by the rise of consumer electronics, medical devices, and automotive electronics, where SMT plays a critical role in producing compact, efficient, and durable products.

At the same time, sustainability initiatives in the electronics industry, including halogen-free and lead-free soldering, are pushing manufacturers to innovate and adopt advanced SMT equipment. This trend is likely to open significant opportunities for market players in the near future.

Market Introduction

Unlike traditional through-hole technology, SMT relies on components with smaller or no leads mounted directly onto PCBs through processes such as reflow soldering. This approach offers multiple advantages, including improved electrical performance, shorter signal paths, enhanced structural integrity, and reduced assembly time.

SMT has become the standard for high-volume manufacturing in consumer electronics, automotive, aerospace, and industrial applications. Its ability to integrate high-density components efficiently is reshaping modern electronics manufacturing. However, challenges such as high machinery investment costs, thermal management needs, and PCB stress due to coefficient of thermal expansion mismatches could restrain adoption in certain segments.

Key Market Drivers

1. Miniaturization of Devices – Rising demand for space-efficient designs in smartphones, wearables, medical equipment, and automotive systems is driving SMT adoption.
2. Manufacturing Efficiency – Automated SMT processes reduce production costs, improve accuracy, and enable high-volume scalability.
3. Consumer Electronics Demand – The growing popularity of advanced features such as fingerprint sensors, smart TVs, and IoT devices continues to expand SMT usage.
4. Flexible PCBs – Increasing adoption of flexible circuit boards in compact devices further enhances SMT market potential.

Regional Insights

• Asia Pacific dominated the SMT equipment market in 2022, led by strong manufacturing bases in China, Japan, South Korea, and Taiwan. Vietnam is also emerging as a key electronics hub, particularly in smartphone production.
• Europe is witnessing growth through policies like the Electric Vehicles Initiative (EVI), which is accelerating the adoption of SMT in automotive electronics.
• North America benefits from strong collaboration between academia and industry, particularly in high-density and high-frequency SMT applications.

Competitive Landscape

The SMT equipment market is consolidated, with leading companies focusing on product innovation, acquisitions, and partnerships. Key players include Yamaha Motor Co., Ltd., Panasonic Corporation, Omron Corporation, Fuji Machine Mfg. Co., Ltd., Hitachi Ltd., ASML Holding N.V., Nordson Corporation, Mycronic AB, and Juki Corporation.

Recent developments highlight the pace of innovation: in February 2023, Yamaha Motors introduced the YRM20DL surface mounter, a premium modular system with high efficiency, while Mycronic AB secured major orders for its Prexision 800 Evo mask writer in 2022.

Conclusion

The global SMT equipment market is on a steady upward trajectory, supported by rising demand for compact electronics, growing adoption of flexible PCBs, and advances in automated manufacturing. While high setup costs and thermal management challenges remain, the outlook for 2031 indicates sustained growth opportunities driven by consumer electronics, automotive innovation, and next-gen semiconductor integration.