Surface Mount Technology Market Size (2024 - 2029)

Surface Mount Technology (SMT) Market Analysis

The Surface Mount Technology Market size is estimated at USD 6.14 billion in 2024, and is expected to reach USD 8.87 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).

Surface mount technology (SMT) is a method for constructing electronic circuits in which the components are mounted directly onto the surface of printed circuit boards (PCBs). This contrasts with older through-hole technology, where components are inserted into holes drilled into the PCB. Components used in SMT, known as SMDs, have small metal tabs or end caps that can be soldered directly onto the PCB surface. This allows for using smaller, lighter, and more components on a single PCB.

• After the effect of the pandemic, the market for laptops and servers is witnessing a surge in demand. According to the India Electronics and Semiconductor Association (IESA), more data is stored on the cloud as work-from-home increases and more collaboration tools are deployed. A surge in demand is witnessed in the server, data centers, and computing segments. US-based Micron Technology also reported a more robust demand from data centers due to the remote-work economy, increased gaming, and e-commerce activity. Additionally, as per Cloudscene, as of March 2024, there are 5,381 data centers in the United States, the most of any country worldwide. A further 521 are in Germany, while 514 are in the United Kingdom.

• Miniaturization of electronic components has made it possible to build small portable and handheld computer devices that can be carried anywhere. As a result, smaller, lighter devices with high processing capacity are available on the market. They are becoming more wearable since components can be easily embedded (for example, in clothing bags) and carried for long periods. Components are shrinking, putting new demands on the design of the PCBs they are mounted on. NCAB Group is firmly committed to IPC's efforts in defining standards for ultra-dense Ultra HDI PCBs and anticipates being able to provide them to clients in 2023.

• Surface mount technology (SMT) has emerged as a pivotal element in modern electronics manufacturing, eclipsing traditional through-hole methods with its myriad benefits. A standout advantage of SMT lies in its drastic reduction of necessary PCB drilling. Manufacturers slash both time and costs by sidestepping the drilling process, a notable boon for intricate, high-density boards. This shift streamlines production and trims labor and material expenses, bolstering the overall cost-effectiveness of the manufacturing process.

• Surface mount technology has revolutionized the electronics manufacturing industry by enabling the production of smaller, more efficient, and cost-effective electronic devices. However, despite its numerous advantages, SMT is unsuitable for all applications. SMT is unsuitable for high-power and high-voltage components, such as transformers and power circuitry. These components generate heat and carry high electric loads, which SMT is not designed to handle effectively.

• According to the US Congressional Budget Office, defense spending in the United States is predicted to increase yearly until 2033. Defense outlays in the United States amounted to USD 746 billion in 2023. The forecast predicts an increase in defense outlays up to USD 1.1 trillion in 2033.

Surface Mount Technology (SMT) Industry Segmentation

Surface Mount Technology (SMT) is utilized in the electronic assembly to mount electronic components to the printed circuit board's (PCB) surface instead of inserting components through holes as with conventional assembly. SMT was developed to significantly reduce manufacturing costs and make more efficient use of PCB space.

The SMT market is segmented by component (passive components (resistors, capacitors), active components (transistors, integrated circuits), end-user industry (consumer electronics, automotive, industrial electronics, aerospace and defense, healthcare, and other end-user industries), and by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The report offers value terms in USD for the above-mentioned segments.