Contract Manufacturing, New Components Drive Surface Mount Market

Despite an early-90s slowdown in capital equipment spending, sales are increasing in the surface mount technology (SMT) market, and this growth trend is expected to continue, according to a recent Frost & Sullivan report.The report projects that revenues in the world SMT manufacturing equipment market will grow from almost $3.

03/01/1998


Despite an early-90s slowdown in capital equipment spending, sales are increasing in the surface mount technology (SMT) market, and this growth trend is expected to continue, according to a recent Frost & Sullivan report.

The report projects that revenues in the world SMT manufacturing equipment market will grow from almost $3.3 billion in 1997 to over $8.8 billion in 2004. Trends in the SMT industry include: increased complexity and miniaturization of electronic components; faster assembly process and increased manufacturing of high quality; and more reliable electronics. Technologically, printed circuit board manufacturers are relying on information generated by automated inspection equipment software for process control, and more new components in the market are leading to heavy growth in fine-pitch and ball-grid-array equipment.

"The fastest growing geographic regions are North America and the Pacific Rim, and the contract manufacturing market and new components configuration is driving this growth," says Matt Saltz, Frost & Sullivan's SMT analyst.

Frost & Sullivan's study found several industry challenges in the two main customer segments in the SMT market: contract manufacturers and OEMs. These include increasing price competition due to contract manufacturers' squeezed profits, and their tighter control on capital investments, which is forcing equipment manufacturers to make improvements in the price/performance ratio of their machines. The report adds that contract manufacturing is exploding and new companies open daily. Contract manufacturers and the OEM market are also buying more fine-pitch equipment, since the industry is using more nonstandard components.

"Although many manufacturers are beginning to outsource their products, those that choose to continue to produce their own products must keep pace with the same trends that contract manufacturers are following," says Arne Johnsen-Sollos, Frost & Sullivan's SMT Analyst.





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me