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MOUNTAIN VIEW, CA – With denser and more complicated assemblies necessitating automated inspection processes, the surface mount technology inspection market rebounded from the slowdown, with a growth rate of 6.9% in 2010, according to Frost & Sullivan.

The market earned revenues of $922.8 million last year, and is expected to grow at a CAGR of 8.9% to reach $1.68 billion in 2017.

In the next seven years, segments likely to gain the most are AOI equipment and x-ray inspection solutions, the firm says.

"The AOI equipment system will get a leg up from machine vision-based algorithms that are relatively flexible, easy to program, and capable of better detection with less false call rates," says analyst Lavanya Rammohan.

New inspection equipment should be able to handle component miniaturization, which is a driver of SMT inspection equipment.

The equipment market is expected to witness a spate of strategic alliances and mergers and acquisitions, says Frost.