SAN JOSE, CA – The global market for surface mount technology equipment is projected to reach $5.3 billion by 2018, driven by recovery in electronics and semiconductor industries, new products, and the growing need to upgrade older production lines, says Global Industry Analysts.

The firm’s new report says Asia-Pacific represents the largest market worldwide, while Latin America is projected to emerge as the fastest growing marking, with a CAGR of 7.2% from 2010 to 2018.

SMT placement equipment represents the largest product segment within the SMT equipment market. Though product miniaturization is the most significant factor contributing to the resurgence in the SMT placement equipment segment, the need for higher accuracy placement equipment, improved speed and flexibility also play roles in driving growth, says the research firm.

In the SMT inspection systems market, AXI equipment and AOI equipment are expected to gain traction over next few years. AXI equipment is expected to gain from the integration of computer tomography and intuitive programming. AOI equipment is projected to benefit from machine vision-based algorithms that feature easy programming capability, flexibility, and enhanced ability to detect faults with few false call rates.

While growth in the SMT equipment market in Europe continues to remain subdued amid volatile economic conditions, long term prospects remain positive, with the EU gearing up to revive its position in the hardware and manufacturing industry and supporting startups and electronics manufacturing clusters in the region, says the research firm.

The SMT equipment market continues to derive demand from telecommunications, computing and consumer appliances. The market has been gaining opportunities in automotive electronics, medical device electronics, defense and aerospace electronic equipment, and industrial equipment as well.

Growing demand for high-quality SMT equipment from contract and OEM manufacturers is poised to benefit the market, says the firm. In addition, rising demand for LED technology is fuelling demand for SMT equipment. Driven by the growing popularity of LEDs, SMT equipment manufacturers are ramping up their production capacity to address demand from commercial and consumer electronics sectors.

Additionally, miniaturization of components is spurring the need for SMT placement and inspection equipment. Eliminating rework, improving manufacturing processes, reducing associated costs, increasing yield and enhancing margins represent benefits driving adoption of SMT inspection equipment.

Increased integration of power electronics is generating demand for SMT equipment in the automobile industry, says the research firm.

Some major players in the market include ASM Assembly Systems, Assembléon Netherlands, Conceptronic, CyberOptics, Fuji Machine Manufacturing Co., Heller Industries, Juki Automation Systems, Koh Young Technology, Panasonic, Saki Corp., and Universal Instruments, says Global Industry Analysts.