SMT Industry Market Status and Development Trend Forecast Analysis.

SMT placement machines, also known as “placement machines” or “surface mount systems,” are core equipment in surface mount technology production lines. SMT is currently a popular technology and process in the electronics assembly industry. According to a report released by a well-known market research institution, the global SMT assembly equipment market is expected to grow by US$600 million between 2021 and 2025, with the market growing at a compound annual growth rate of 6% by 2024. Based on an analysis of each region and its contribution to the global market, data estimates that China, the United States, Germany, Japan, and the United Kingdom will remain the leading markets for SMT assembly equipment. By 2024, niche markets such as consumer electronics, automotive, and communications are expected to become one of the main drivers of the market, with significant implications for end-users. In this chapter we want to discuss some insights about the development progression of SMT pick and place machines not only in Chinese market but global market.

First, we want to introduce the analysis of the development of Chinese SMT placement machine industry. Surface mounters have a wide range of applications, high technical content, and can drive the development of related basic industries such as precision machinery manufacturing, high-precision sensing, high-performance motor manufacturing, image processing, and software. Since the early 1990s, domestic enterprises and institutions have been continuously attempting to localize surface mounters. With the further improvement of production technology, China’s professional surface mounters equipment manufacturers are rapidly emerging. In 2020, China imported 18,000 automatic SMT placement machines, representing a year-on-year increase of 34%; China exported 17,000 automatic SMT placement machines, marking a year-on-year decrease of 87%.

From a regional distribution perspective, the Pearl River Delta region continues to dominate, accounting for over 62% of the market, followed by the Yangtze River Delta region, which accounts for approximately 21%, and then various electronics companies and research institutions across other provinces in China, which account for approximately 20% of market demand. In previous years, domestic SMT placement machine products were primarily low-tech LED placement machines. As Chinese companies increasingly develop various high-speed, high-precision SMT placement machine products, the application areas for domestically produced SMT placement machines are expanding, and production volumes continue to grow. In 2021, China’s SMT placement machine production volume was approximately 44,781 units, while the demand for SMT placement machines was 49,568 units. The quality of domestically produced placement machines is continuously improving, and they offer a price advantage compared to imported products. Combined with the sustained growth in export demand, it is anticipated that China’s placement machine production volume will continue to increase in the future. A prime example is our company, Nectec, which has independently developed high-precision, high-speed SMT placement machines. It is projected that by 2027, China’s SMT placement machine production will exceed 100,000 units. The downstream enterprises of the SMT electronic industrial equipment manufacturing industry primarily include color television display manufacturers, mobile phone manufacturers, and computer manufacturers. As the downstream industries continue to develop rapidly, the demand for SMT manufacturing equipment, including placement machines, will also grow rapidly. It is projected that by 2027, China’s demand for SMT placement machines will reach 114,000 units. 

Second, let‘s move onto the discussion of future technological trends in the SMT equipment industry. The new technological revolution and cost pressures have given rise to automated, intelligent, and flexible manufacturing, as well as integrated systems for assembly, logistics, packaging, and testing (MES). SMT equipment has improved automation levels in the electronics industry through technological advances, enabling reduced labor requirements, lower labor costs, increased individual output, and maintained competitiveness. Here, we summarize several characteristics that are essential for the development of this industry. First and foremost is high precision and flexibility: intensifying industry competition, increasingly shorter new product launch cycles, and stricter environmental requirements. We should align with the trends toward low cost and miniaturization, placing higher demands on electronic manufacturing equipment. Electronic devices are evolving toward higher precision, faster speeds, greater ease of use, enhanced environmental friendliness, and increased flexibility. We can also enable the pick-and-place head to automatically switch between functions, allowing it to perform dispensing, printing, and feedback detection. This will enhance the stability of placement accuracy and significantly improve compatibility and flexibility between components and substrates; The second point is high-speed and miniaturization: The gradual development of SMT has brought about the benefits of high efficiency, low power consumption, minimal space requirements, and low costs. In the future, there will be an increasing demand for high-speed, multi-functional pick-and-place machines that offer both high efficiency and multi-functionality. Production models with multiple tracks and workstations can achieve a production rate of approximately 100,000 CPH.

Currently, Nectec’s top-of-the-line NT-LS9 Dual Nozzle Holder Linear Motor Ultra-High-Speed Wireless LED SMT machine can achieve a maximum theoretical placement speed of 500,000 CPH, far exceeding this expectation. This is also the product we at Nectec are most proud of, representing the culmination of years of research and development efforts and expertise; The third point is the trend toward the integration of semiconductor packaging and SMT: As electronic products become increasingly smaller in size, more diverse in functionality, and more precise in component design, the integration of semiconductor packaging and surface mount technology has become an inevitable trend. Semiconductor manufacturers have begun to adopt high-speed surface mount technology, while surface mount production lines have also incorporated some semiconductor applications, blurring the traditional boundaries between technological domains. This convergence of technologies has also led to the development of numerous products that have been well-received by the market. POP process technology and sandwich process technology are now widely used in high-end smart products.

To conclude, the trend toward integrating semiconductor packaging and surface mount technology is driven by the demand for higher performance, miniaturization, and cost efficiency in electronics manufacturing. Advanced packaging technologies like fan-out wafer-level packaging and system-in-package are merging with SMT processes to enable smaller, faster, and more reliable devices. This integration reduces interconnect lengths, improves thermal and electrical performance, and streamlines production, making it essential for applications in 5G, IoT, and AI. As a result, combining semiconductor packaging with SMT enhances scalability and meets the growing need for compact, high-functionality electronic systems.