DUBLIN – The 2016 global surface mount technology equipment market is estimated at $3.26 billion and is expected to reach $6.21 billion by 2023, growing at a CAGR of 9.6%, according to Research and Markets.

Factors such as rising acceptance of electric vehicles, growing demand for LED lighting, rising use of flexible material PCBs and rising use of flex circuits in electronic devices are factors propelling market growth, says the research firm.

In addition, government initiatives and application of equipment across a number of end-user industries are anticipated to provide growth opportunities for the market. However, high investment cost of machinery for setting up production units and high cost of equipment are hindering market growth.

Placement equipment is anticipated to hold the majority share in the overall market during the forecast period. Growth for this segment is mainly driven by the need for higher accuracy, product miniaturization, improved speed, and flexibility, says Research and Markets.

By application, consumer electronics holds the largest market share, which can be attributed to the growing miniaturization of electronic devices.

Asia Pacific is expected to dominate the global market during the forecast period.