DUBLIN – The global surface mount technology market is projected to expand at a CAGR of 6.83% to reach a total market size of $5.24 billion by 2022, says Research and Markets.

The technology is increasingly being adopted as a result of reduced manufacturing costs, higher component density and simpler and faster automation, the research firm says.

The growing global electronics industry and increasing usage of flexible materials on printed circuit boards are factors driving surface mount technology market growth. Miniaturization of electronic components and focus on reducing defects are additional factors boosting demand for surface mount technology equipment. However, the high cost of SMT equipment will restraint the market growth during the forecast period, the firm says.

Under application segment, consumer electronics held the largest global market share in 2016 and will continue its dominance until the end of the forecast period. Demand has increased for smartphones, tablets, GPS navigation systems, and other electronic products globally. Miniaturization of components and technological development will further bolster the demand for surface mount technology equipment by enterprises operating in this segment.

Geographically, APAC region will dominate the global market until 2022, owing to growing consumer electronics and automotive industries in China, India and other economies.

Prominent market players include Hitachi, Juki, Fuji Machine Manufacturing, and ASM Assembly Systems, among others. The global SMT industry is competitive due to low product differentiation. Market players are adopting different growth strategies to expand their product portfolio and gain a larger market share, says the research firm.