Surface Mount Technology Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Passive Components, Active Components), By End-User Industry (Consumer Electronics, Automotive, Industrial Electronics, Aerospace & Defense, Healthcare, Other), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.14 Billion
CAGR (2026-2031)	8.16%
Fastest Growing Segment	Automotive
Largest Market	Asia Pacific
Market Size (2031)	USD 13.03 Billion

Market Overview

The Global Surface Mount Technology Market will grow from USD 8.14 Billion in 2025 to USD 13.03 Billion by 2031 at a 8.16% CAGR. Surface Mount Technology is defined as a manufacturing method wherein electronic components are mounted directly onto the surface of printed circuit boards to achieve high connection density and efficient automated assembly. The global market is primarily supported by the functional necessity for miniaturization in handheld consumer electronics and the critical integration of control systems within the electric vehicle sector. These structural drivers create a sustained requirement for high precision assembly lines that differs fundamentally from transient technology trends.

However, the sector confronts a significant challenge regarding the prohibitive capital investment required for advanced placement and inspection machinery which restricts the scalability of smaller manufacturers. This financial bottleneck is particularly acute given the surging volume of components that requires processing. According to the Semiconductor Industry Association, in 2024, global monthly semiconductor sales reached 56.9 billion dollars in October. This figure underscores the immense throughput pressure placed on surface mount facilities to maintain capacity amidst rising equipment costs.

Key Market Drivers

The rapid electrification of the automotive industry is fundamentally restructuring the surface mount technology sector, shifting the focus from standard consumer boards to high-reliability, high-density interconnects required for electric vehicles (EVs). Modern EVs rely heavily on complex printed circuit board assemblies (PCBAs) for battery management systems, advanced driver-assistance systems (ADAS), and power inverters, all of which demand precise placement of miniaturized components to withstand harsh operating environments. This transition necessitates SMT equipment capable of handling heavier substrates and ensuring zero-defect soldering for safety-critical applications. According to the International Energy Agency, May 2024, in the 'Global EV Outlook 2024', global electric car sales are projected to reach 17 million units in 2024, a volume that directly translates into a surge in demand for automotive-grade electronic assembly lines.

The expansion of 5G and telecommunication infrastructure serves as a parallel catalyst, necessitating the deployment of densely packed circuit boards that can operate at higher frequencies. This driver pushes the market toward advanced placement systems capable of handling smaller component packages, such as 0201 and 01005 chips, which are essential for the massive MIMO arrays found in base stations and 5G-enabled handsets. The scale of this infrastructure rollout creates immense recurring demand for SMT assembly capacity. According to Ericsson, June 2024, in the 'Ericsson Mobility Report', almost 600 million new 5G subscriptions are expected in 2024, fueling a continuous need for network hardware and device production. This sector-specific growth contributes to a broader manufacturing upswing; according to World Semiconductor Trade Statistics, June 2024, the global semiconductor market is projected to achieve a 16.0 percent growth in 2024, indicating a robust trajectory for the component volumes that SMT providers must process.

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Key Market Challenges

The prohibitive capital investment required for advanced placement and inspection machinery stands as a critical barrier hampering the growth of the Global Surface Mount Technology Market. As the industry faces pressure to produce increasingly miniaturized and complex electronic assemblies, the necessity for high-precision, automated equipment becomes absolute. However, the substantial costs associated with acquiring and maintaining this state-of-the-art machinery create a severe financial bottleneck, particularly for small-to-medium-sized manufacturers. These smaller entities often lack the liquidity to upgrade their production lines, preventing them from scaling operations to meet the surging volume demands of sectors like consumer electronics and electric vehicles.

This lack of scalability limits the market's overall throughput capacity, causing production delays and restricting the industry's ability to capitalize on rising demand. The impact of these financial and operational constraints is evident in recent output metrics which show a contraction in delivery volumes despite high orders. According to IPC, in September 2024, North American PCB shipments decreased 24.1 percent compared to the same month of the previous year. This significant drop in shipments highlights how the inability to affordably scale production infrastructure directly impedes the market's trajectory, converting potential growth opportunities into unfulfilled backlog.

Key Market Trends

The adoption of Industry 4.0 and smart factory architectures is reshaping surface mount technology by integrating data-driven intelligence into production workflows. Manufacturers are increasingly transitioning from isolated machines to fully connected ecosystems where equipment communicates in real-time to optimize throughput. This shift involves the deployment of digital twins and advanced analytics to simulate production scenarios and predict operational bottlenecks before they occur. The scale of this digital transformation is evident in the strategic priorities of major industrial players. According to Siemens, May 2024, in the 'Digitalization Gains: Manufacturers Forge Ahead with Digital Transformation' report, digitalization is either already operational or being implemented by about 80 percent of survey participants for supply chain optimization and production efficiency.

Simultaneously, the widespread implementation of 3D Automated Optical Inspection (AOI) has become a critical standard for ensuring quality in complex electronic assemblies. As component densities increase, traditional 2D inspection methods fail to accurately detect volumetric defects such as lifted leads or coplanarity issues, necessitating the depth perception provided by 3D systems. This technology is now indispensable for maintaining zero-defect rates in high-reliability sectors, driving substantial investment in advanced verification hardware. This trend is reflected in the financial performance of key equipment providers; according to Viscom AG, March 2024, in the 'Annual Report 2023', revenue from inspection systems increased significantly by 12.6 percent to 118.8 million euros, underscoring the consistently high demand for precision quality control solutions.

Segmental Insights

The Automotive segment currently represents the fastest-growing category in the Global Surface Mount Technology Market, driven by the rapid electrification of vehicles and the widespread integration of Advanced Driver Assistance Systems. Manufacturers are increasingly relying on surface mount assembly to produce the compact electronic control units required for modern vehicle architecture. This trend is further accelerated by safety mandates from regulatory bodies such as the European Commission, which enforce the installation of active safety features in new automobiles. Consequently, the demand for high-density electronic assemblies continues to surge as automakers strive to meet these rigorous operational and regulatory standards.

Regional Insights

Asia Pacific stands as the dominant region in the Global Surface Mount Technology Market, primarily due to its established position as the central hub for global electronics manufacturing. Countries such as China, Japan, South Korea, and Taiwan possess extensive industrial infrastructure for producing consumer electronics, automotive systems, and telecommunications hardware. This market leadership is reinforced by the dense concentration of major Electronics Manufacturing Services (EMS) providers and Original Equipment Manufacturers (OEMs), which creates a highly integrated and efficient supply chain. Consequently, the region benefits from massive production volumes and sustained local demand, cementing its role as the primary driver of market activity.

Recent Developments

• In January 2025, Juki launched the RS-2, a fast smart modular mounter that achieved industry-leading placement speeds within the single-head mounter class. This new machine was engineered to reach a placement speed of 50,000 chips per hour, significantly boosting productivity for high-speed production segments of the global surface mount technology market. The development of this advanced mounter reflected the company's ongoing focus on responding to the evolving demands of electronics manufacturing. By combining high speed with versatility, the new platform provided manufacturers with a robust solution for optimizing their assembly processes.
• In October 2024, Yamaha Motor launched the YRM-D, a next-generation high-speed dispenser designed to enhance production lines within the global surface mount technology market. This new equipment achieved both a compact footprint and industry-leading dispensing performance, offering significant improvements in ease of use for operators. The dispenser was developed to support high-speed inline electronic assembly and integrate seamlessly with the company's intelligent factory software. This launch underscored the manufacturer's strategy to provide a total solution for smart manufacturing, addressing production line issues by delivering equipment that minimizes defects and supports autonomous operations.
• In April 2024, Panasonic Connect North America showcased its latest automated manufacturing solution, the NPM-GH Pick-and-Place machine, at a major industry exposition for the surface mount technology market. This robotic addition to the company's smart factory lineup was designed to enable manufacturers to run operations with increased efficiency and reliability. The machine features industry-leading mounting accuracy and utilizes a smaller, lighter mounting head to achieve high-level productivity. By implementing such automated solutions, the company aims to help customers create fully connected factory floors, maximize overall equipment effectiveness, and address challenges related to labor shortages.
• In March 2024, Hanwha Precision Machinery received a notable industry award for its XM520 High-Speed Dual Lane Chip Mounter, marking a significant achievement in the global surface mount technology market. The equipment was recognized for setting a new standard of flexibility in both surface mount and through-hole technology production. Designed to excel in a wide range of manufacturing scenarios, the machine offers compatibility with various production environments and is capable of handling extra-large board applications. This recognition highlighted the company's commitment to delivering exceptional performance in high-speed component placement, ensuring optimal throughput for electronics manufacturers.

Key Market Players

• Samsung Electronics Co., Ltd.
• Murata Manufacturing Co., Ltd.
• Taiyo Yuden Co., Ltd.
• Yageo Corporation
• Vishay Intertechnology, Inc.
• KYOCERA AVX Components Corporation
• TE Connectivity Ltd.
• Intel Corporation
• Texas Instruments Incorporated
• Analog Devices, Inc.
• ROHM Co., Ltd
• Panasonic Corporation

By Component	By End-User Industry	By Region
Passive Components Active Components	Consumer Electronics Automotive Industrial Electronics Aerospace & Defense Healthcare Other	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Surface Mount Technology Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Surface Mount Technology Market, By Component:

• Passive Components
• Active Components

• Surface Mount Technology Market, By End-User Industry:

• Consumer Electronics
• Automotive
• Industrial Electronics
• Aerospace & Defense
• Healthcare
• Other

• Surface Mount Technology Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE