Growth in End-user Sectors Boosts Demand in the European SMT Placement Equipment Market

Frost: The development 2009 of high-growth end-user industries is opening up lucrative opportunities in the European surface mount technology (SMT) placement equipment market. Industries such as telecommunications, automotive and medical electronics are developing at an accelerating rate, thereby hiking demand for SMT placement equipment.) European Surface Mount Technology (SMT) Placement Equipment Market, reveals that revenues in this industry totalled $368.5 million in 2005 and is estimated to reach $550.5 million in 2012.

Fast-moving commercial markets, which demand a succession of sophisticated high-technology products, are dominating the electronics manufacturing scene today, This trend is compelling manufacturers to keep pace with the continuous miniaturisation and convergence of different technologies by developing increasingly flexible, modular SMT placement equipment.

For instance, mobile phones, once considered a luxury, are now becoming a commodity and converging with consumer electronics devices. Mass production of these multi-function products requires highly sophisticated, flexible and high-speed manufacturing equipment. In addition, the use of wireless technology in medical devices is growing rapidly, resulting in heightened demand for specialised SMT placement equipment. Also, the increased complexity of printed circuit boards (PCB) due to the miniaturisation trend across multiple industries is further boosting demand levels.

With a large number of central and eastern European countries recently joining the European Union, the SMT placement equipment market is experiencing significant new growth opportunities. Countries such as Romania, Estonia, the Czech Republic and Hungary are emerging as attractive low-cost manufacturing locations for the top Global electronics manufacturing service (EMS) providers, all of whom have set up production facilities in the region. This trend is expanding the demand for new SMT production equipment.

Despite such promising prospects, the cyclical nature of SMT equipment sales as well as the high cost associated with operation and maintenance can inhibit new equipment purchases. Many SMT placement equipment manufacturers have experienced financial losses and inventory build-ups with their product ranges in the past, not only due to the economic downturn, but also due to changing market requirements and the high price of new equipment.

Since the economic downturn of 2001, price has become a major concern for original equipment manufacturers (OEMs) and EMS providers. As a result, alternative business strategies focused on maintaining position rather than on increasing market share are being developed by manufacturers.

European Surface Mount Technology (SMT) Placement Equipment Market

Publ 20060330