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The surface mount technology (SMT) market is expected to be worth $4.73 billion by 2020 at an estimated CAGR of 9.84%, mainly driven by the increasing electronic manufacturing activity, rising demand miniaturization of components, and growth in consumer electronics, according to a new report by industry analyst MarketsandMarkets.
The SMT placement equipment segment accounted for the largest market share of around 46% in 2014. This market is expected to grow at a CAGR of 8.97% between 2015 and 2020. SMT placement equipment represents the largest product market driven by the miniaturization trend, which has resulted in need for higher accuracy in the placement of semiconductor active components such as transistors and diodes among others. Moreover, the surface mount technology market for placement equipment is benefiting from rise in product innovation and component miniaturization for smartphones and tablets.
Meanwhile, the market for inspection equipment is expected to grow at a CAGR of 12.76% between 2015 and 2020, mainly due to an increase in use of small-sized components and optoelectronics, which would force the electronics assemblers to invest in inspection equipment during the forecast period.
APAC to lead market
The SMT market in the Asia Pacific accounted for the largest share of around 52% in 2014 and is expected to grow at a high CAGR of 11% between 2015 and 2020. An increase in manufacturing activities combined with the region's emergence as a cost-effective production hub is expected to drive the surface mount technology market in this region.