Surface Mount Technology Market Size & Share 2023 to 2032
Market Size by Component (Active, Passive, Electrochemical), by Equipment (Inspection, Placement, Soldering, Screen Printing, Cleaning, Repair & Rework), by End Use (Consumer Electronics, Automotive, A&D, Industrial).
Report ID: GMI6028
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Published Date: June 2023
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Surface Mount Technology Market Size
Surface Mount Technology (SMT) Market size was valued at over USD 5.8 billion in 2022 and is anticipated to grow at a CAGR of over 8% between 2023 and 2032 owing to the expanding industrial and manufacturing sectors. The demand for smaller & lighter electronic devices, such as smartphones, wearables, and IoT devices, is augmenting the need for miniaturized electronic components and high-density PCB assemblies. SMT enables the placement of tiny surface mount components, thereby contributing to the trend of miniaturization.
Surface Mount Technology Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The surface mount technology market refers to the industry & market ecosystem that revolves around the assembly of electronic components on Printed Circuit Boards (PCBs) using surface mount technology.
High equipment costs can hinder market growth. SMT equipment, such as nesting machines and stencil printers, can be expensive to purchase & maintain. The high cost of such equipment can limit the ability of small businesses or those with limited budgets to adopt this technology.
COVID-19 Impact
The COVID-19 pandemic had a significant impact on the surface mount technology (SMT) market. The pandemic caused fluctuations in demand for electronic products. While some sectors experienced increased demand for products like medical devices, communication equipment, and home office setups, other sectors such as automotive and consumer electronics faced a decline in demand. These demand fluctuations impacted the SMT industry, leading to changes in production volumes and capacity utilization.
Surface Mount Technology Market Trends
The proliferation of IoT devices and wearable technology is driving the demand for SMT in various ways. IoT devices & technologies with lightweight & compact designs can be easily integrated into various products, offering a greater user experience. SMT places small & lightweight components directly on the PCB surface, thereby increasing space efficiency and reducing overall equipment consumption. IoT devices & wearables often require the integration of many sensors, microcontrollers, wireless communication modules, and other components on a single PCB. SMT allows for high-density integration, enabling manufacturers to fit more work into smaller packages. The demand for IoT devices and wearable technology is expected to continue growing owing to technological advancements, rising consumer adoption, and industry-specific applications. As a result, the reliance on SMT for efficient & compact PCB assembly will remain a significant market trend.
Surface Mount Technology Market Analysis
Based on component, the surface mount technology market is segmented into active, passive, and electrochemical. The passive component segment held a share of around 55% in 2022 and is expected to grow at a lucrative pace through 2032. Passive electronic components do not require an external power source to function and are essential for the proper functioning of electronic circuits. These components include resistors, capacitors, inductors, and filters. Inductors are passive devices that are used to store energy in a magnetic field. They are used in applications such as power conversion, filtering, and Electro-Magnetic Interference (EMI). Surface mount inductors offer compact size, high inductance, and low resistance for integration with PCBs.
Based on end use, the surface mount technology market is segmented into consumer electronics, automotive, pharmaceuticals & medical devices, telecommunication, aerospace & defense, and industrial. The automotive segment is expected to grow rapidly share is anticipated to register a CAGR of 11% till 2032. The rising integration of electronics into automotive applications can be attributed to the increased demand for safety, connectivity, infotainment systems, and electric vehicles. The product is equipped with an advanced infotainment system that combines navigation, multimedia, connectivity, and communication. SMT components including microprocessors, memory chips, display modules, audio amplifiers, and wireless modules are required for system assembly. The transition to electric vehicles has created a new market for SMT products. Automotive electronics, such as battery management systems, electric motors, engine controllers, and charging equipment, must have high-power & high-performance electronics. SMT assembly enables the integration of these components into complex EV systems.
Asia Pacific is the dominant region in the global surface mount technology market with a share of over 35% in 2022. The region is a significant market for Surface Mount Technology (SMT) due to its strong presence in the electronics manufacturing industry. Countries including China, Japan, South Korea, and Taiwan have become global powerhouses. These countries have a strong ecosystem of electronics companies, suppliers, and contractors that use SMT extensively for PCB assembly. The high demand for smartphones, tablets, TVs, game consoles, and other electronic devices can be attributed to the rising middle-class population and disposable incomes. SMT technology enables these electronic components to be produced efficiently & economically. Governments in the Asia Pacific region often provide support and incentives along with implementing preferential policies to stimulate the production of energy products. These plans encourage investments in SMT technology and support the overall SMT market growth.
Surface Mount Technology Market Share
Some of the major players operating in the surface mount technology market are :
These players focus on strategic partnerships and new products launches & commercialization for market expansion. Furthermore, they are also heavily investing in research to introduce innovative services and garner maximum revenue in the market.
Surface Mount Technology (SMT) Industry News:
The Surface Mount Technology (SMT) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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By Component
By Equipment
By End Use
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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