global surface mount technology (smt) placement equipment market

Global Surface Mount Technology (SMT) Placement Equipment Market( ) q p

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August 2011

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Table of Contents

Research Methodology 18

Market Segments 19

Definitions 20-21

M k t O i 22Market Overview 22

Overview 23

Market Engineering Measurement Analysis 24

Competitive Factors 25-26

Evolution of SMT Placement Equipment Market 27

New Growth Opportunities 28

Evolution in Manufacturing Process 29

Evolving Customer Needs 30

SMT Placement Equipment Market 31

Impact Mapping of Key Industry Challenges 32

Industry Challenges 33-38

Market Drivers 39-52

Market Restraints 53-56

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Revenue Forecast 57

Table of Contents

Unit Shipments Forecast 58

Used Equipment Market 59-60

Impact of Top Vertical Markets—Demand Analysis 61

Vertical Market Analysis 62-63

Percentage of Revenue by Geographic Region 64

Americas 65-66

Western Europe 67-68

Central and Eastern Europe 69-70

China 71-72

Rest of Asia 73-74

Rest of World 75-76

Pricing Trends 77-78g

Distribution Analysis 79

Competitive Structure 80

Market Share Analysis 81-82

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Market Share Analysis 81 82

Market Ranking Analysis—by Geography 83

Table of Contents (Contd….)

Growth Excellence Matrix 84

Low Speed Placement Equipment Market 85


Revenue Forecast Analysis 87

Unit Shipments Forecast Analysis 88

Revenue Forecast by Geography 89

Americas 90-91


Central and Eastern Europe 94-95p

China 96-97

Rest-of-Asia 98-99

Rest-of-World 100-101 Rest of World 100 101

Market Share Analysis 102

Medium Speed Placement Equipment Market 103


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Revenue Forecast Analysis 105




Americas 108-109



China 114-115

Rest-of-Asia 116-117

Rest-of-World 118-119

Market Share Analysis 120y

High Speed Placement Equipment Market 121


Revenue Forecast Analysis 123 Revenue Forecast Analysis 123



Americas 126 127

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Americas 126-127




China 132-133

Rest-of-Asia 134-135

Rest-of-World 136-137

Market Share Analysis 138

Future Outlook 139

Conclusion 140

DSD Tables 141

Semiconductor Market and Semiconductor Equipment Market 142q p

Printed Circuit Board Sales 143

Electronic Components Contribution to Electronics Industry 144-145

Medical and Industrial Equipment Contribution to Electronics Industry 146-147 Medical and Industrial Equipment Contribution to Electronics Industry 146-147

Telecommunications Contribution to Electronics Industry 148-149

Consumer Electronics Contribution to Electronics Industry 150-151

About Frost & Sullivan 152 156

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About Frost & Sullivan 152-156

Research Methodology

Study Period: 2007-2017

Base Year: 2010

Forecast Period: 2011-2017

Research Methodology

o Primary researchy

o Frost & Sullivan published research services

o Decision Support Databases

P i t d t bo Proprietary databases

o Secondary research

o Company presentations

o Webcasts

o Annual reports

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Market SegmentsSurface Mount Technology (SMT) Placement Equipment Market: Market Segments (Global), 2010

Segmentation Based on Geographic Regions

Segmentation Based on Geographic Regions

Vertical Market SegmentationVertical Market Segmentation

Global Surface Mount Technology (SMT)

Placement Equipment

Geographic Regions

• Americas• Western Europe• Central and Eastern Europe

Geographic Regions

• Americas• Western Europe• Central and Eastern Europe

• Consumer Electronics• Telecommunication• Computing and Storage• Automotive

• Consumer Electronics• Telecommunication• Computing and Storage• AutomotivePlacement Equipment

Market• Central and Eastern Europe• China• Rest of Asia• Rest of World

• Central and Eastern Europe• China• Rest of Asia• Rest of World

• Automotive• Others (Medical, Aerospace

and Defense (A&D), Industrial, and Renewable Energy)

• Automotive• Others (Medical, Aerospace

and Defense (A&D), Industrial, and Renewable Energy)

Product SegmentationProduct Segmentation

Medium-Speed Placement Equipment


High-Speed Placement Equipment


Low-Speed Placement Equipment


Product SegmentationProduct Segmentation

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Source: Frost & Sullivan analysis.

Overview• The SMT placement market is rebounding from the recent economic downturn. The market is now trending as it was prior to

the economic downturn in 2009. The market earned a revenue of $3,550.5 million in 2010. The compound annual growth rate (CAGR) is expected to be 8.8 percent during the forecast period and generate $6.395.6 million by 2017.

• The increasing global manufacturing capacity available funds to purchase equipment and new product enhancements and• The increasing global manufacturing capacity, available funds to purchase equipment, and new product enhancements and features are key drivers for this growth. The other drivers for increased demand are flexibility, speed, and improved accuracy of placing components.

• The market is also returning to pre-2008 capacity utilization levels, when the capacity rates were 90 percent to 95 percent for several companies Depending on utilization and maintenance levels customers are achieving a positive return onseveral companies. Depending on utilization and maintenance levels, customers are achieving a positive return on investment (ROI) within one to two years, thus increasing demand for SMT placement equipment.

• The SMT placement equipment market is benefiting from an increased focus on product innovation and component miniaturization for smart phones and tablets. Equipment manufacturers are strengthening their product portfolios with strong

l dd d ff i d ft l ti t l ll i d tvalue-added offerings and software solutions to place smaller sized components.

• Customers are stringent with their service requirements. Maximizing output with minimum equipment cost and reduced machine downtime has become the norm in the industry. The need for immediate service response, diagnostics, and availability of parts will continue to play a crucial role in determining the competitive advantage for companies that participate in the SMT placement equipment market.

• The SMT placement equipment market is expected to remain competitive. While price sensitivity should heighten, the demand for high-end equipment and technology innovation is anticipated to offset the impact of price pressures to a small degree.

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• Strategic alliances and mergers and acquisitions will be on the rise as equipment manufacturers compete. Equipment manufacturers will broaden their product portfolios to elevate their market presence.

Competitive FactorsSMT Placement Equipment Market: Competitive Factors (Global), 2010

Long-term Commitment

Flexibility

Price

Competitive Factors

Accuracy and Throughput

Brand Image and Customer Loyalty Factors ThroughputCustomer Loyalty

Product InnovationService Integration Capability

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Competitive Factors (continued)




Total Points =

15.0

SMT Placement Equipment Market: Dashboard Summary of Key Competitive Factors (Global), 2010

EquipmentEquipment Equipment

Flexibility Low High Low High Low High 12.5

Price Low High1 52 3 4

Low High

1 52 3 4

Low High

1 52 3 4

13.0

I t ti

Flexibility g1 52 3 4

o g1 52 3 4

g1 52 3 4

12.5

Product Innovation Low High

1 52 3 4Low High

1 52 3 4Low High

1 52 3 412.5

Integration Capability

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

12.0

Long-term Commitment

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

10.0

Brand Image and CustomerLoyalty

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

9.0

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Low HighKey : Source: Frost & Sullivan analysis.

Impact Mapping of Key Industry Challenges

Very Certain

SMT Placement Equipment Market: Mapping of Key Industry Challenges (Global), 2011-2017

I i titi i l

Decreasing component sizesHigh-performance metrics

Unimportant Critical

Increasing competitive rivalry

Strong customer loyalty

Integration issues

Very Uncertain

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Market Drivers

1-2yrs 3-4yrs 5-7yrs

ImpactDriver

SMT Placement Equipment Market: Market Drivers (World), 2011-2017


Demand for smartphones and tablets spurring sales

Ease of manufacturing flexibility

Proliferation of smaller components

Increasing investments from contract manufacturers

Increasing adoption of hybrid and electric cars

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Impact: Very High High Medium LowImpact: Very High High Medium Low Source: Frost & Sullivan analysis.

Market Drivers

Impact

SMT Placement Equipment Market: Market Drivers (World), 2011-2017


Impact

Driver

Manufacturing expansion in emerging geographies

Improved efficiency and monitoring capacity

Growth of LED market boosting demand

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Impact: Very High High Medium LowImpact: Very High High Medium Low Source: Frost & Sullivan analysis.

Market Restraints

SMT Placement Equipment Market: Market Restraints (World), 2011-2017


ImpactRestraint

Long product lifecycle

High premium price delays adoption

Strong demand for used equipment market

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Source: Frost & Sullivan analysis.Impact: Very High High Medium LowImpact: Very High High Medium Low

New Growth Opportunities

Increased adoption of wireless

products in the connected home

SMT Placement Equipment Market: New Growth Opportunities (Global), 2010-2017

Rising integration of biometrics and

security in consumer devices

connected home

Increasing

consumer devicesIncreasing

demand for OLED displays and

interconnection in medical sector

Growing f f

gconnected devices in vehiclesRising adoption of

LED in lighting, lower power consumption

proliferation of 3-D TVs

p

2010–2013 2014–2017

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Revenue Forecast

SMT Placement Equipment Market: Revenue Forecast (World), 2007-2017

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Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.

Percentage of Revenue by Geographic Region

SMT Placement Equipment Market: Percentage of Revenue by Geographic Region (World), 2007-2017

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Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Others Includes: medical, A&D, industrial, and renewable energy

Used Equipment Market

SMT Placement Equipment Market: Used Equipment Market (World), 2010

SMT Placement Equipment Market: Used Equipment Market (World), 2017

Used Equipment

Market24.5%

Used Equipment

Market26.5%

New Equipment

75.5%New

Equipment 73.5%

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Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.

Market Drivers (continued)w

th

SMT Placement Equipment Market: Key Vertical Market Trends (Global), 2010

Hig

h G

row

> 15

.0%

Mobile PhonesConsumer El t i

Automotive

Mobile Phones and Tablets

Electronics

owth

Rat

e

Gro

wth

0.0%

Automotive

Gro

Low

G<

10

Low High

A&D

Medical

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Potential Potential


Market Potential

Impact of Top Vertical Markets—Demand Analysis

High Impact High Growth Impact

SMT Placement Equipment Market: Impact of Top Vertical Markets (World), 2010 and 2017

TelecomCAGR 9.8%

OthersCAGR 9.3%

AutomotiveComputing and Storage

MediumGrowthImpact

ProjectedImpact on SMT

Placement Equipment

Market

CAGR 8.3%

Consumer ElectronicsCAGR 8.0%

CAGR 8.1%

a et

LowGrowthImpact

Low Impact

Ti P i d2010 2017

Impact

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Time Period

Source: Frost & Sullivan analysis.Note: The CAGRs listed above represent growth of the SMT Placement equipment market in specified verticals. Others includes: medical, A&D, industrial, and renewable energy

Future Outlook

• Smartphones, consumer electronics, and automotive markets will be key growth drivers for the SMT placement equipment market in the short-term. SMT placement equipment manufacturers will continue to carve greater penetration within niche markets—such as medical A&D and industrial—

SMT Placement Equipment Market: Future Outlook (World), 2010

continue to carve greater penetration within niche markets such as medical, A&D, and industrialthat can provide them with a greater profit margin.

• Price and functionality will determine future purchasing decisions.

S k t t i t hi ith

Growth Opportunities

Seek strategic partnerships with:• Other SMT equipment manufacturers, including placement, screen printers, etc.• Technology enablers and software vendors

Focus on enhanced ROI for customers:• Cost-effective solutions• Enhanced and flexible placement machines • Increased flexible feeder concept

North America and Western Europe will continue to lead the demand for high-end ,fully-automated, low speed placement equipment. BRIC countries will provide the fastest growth rates, albeit at a lower price point for medi m and high speed placement eq ipment

• Increased placement speed

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price point for medium and high speed placement equipment.


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