The electronics manufacturing landscape of the country is changing, with the local electronics output exceeding imports for the first time in 2016-17. It’s no surprise, therefore, that the demand for electronics manufacturing equipment is also on the rise.
Manufacturing equipment is crucial for ensuring the quality of any electronic device or component. In the course of the entire production cycle, an electronic device is handled by a range of manufacturing equipment. The ever increasing complexity of electronic assemblies and the miniaturisation of components have enhanced the demand for advanced and reliable manufacturing equipment.
As the PCBs and electronic components shrink in size, manufacturers face the challenge of accurately placing small components on miniaturised boards. Technological advancements, which are a necessity to meet the high performance expectations in the electronics field, combined with today’s high speed production, complete process automation and stringent quality control standards, are all driving up the demand for manufacturing equipment.
This study presents the growth opportunities and current trends in the Indian electronics manufacturing equipment industry with a special focus on surface mount technology (SMT) equipment.
According to a research report published by Markets and Markets, the global surface mount technology (SMT) market is expected to reach a turnover of US$ 5.42 billion by 2022, growing at a CAGR of 8.9 per cent between 2017 and 2022. The market’s growth will be primarily driven by higher demand for miniaturised consumer electronics products and the enhanced adoption of electric vehicles with advanced features for connectivity, entertainment and safety.
The Indian electronics manufacturing equipment market is bound to grow along with the electronics manufacturing sector in the country. India’s domestic electronics output was for the first time higher than its imports in 2016-17. According to government sources, the domestic production of electronic goods for 2016–17 stood at US$ 49.5 billion, higher than the US$ 43 billion spent on imports. This seems to be an early signal indicating that the ‘Make in India’ initiative is improving the state of domestic manufacturing. This, in turn, will drive the demand for manufacturing equipment. According to industry experts, the manufacturing equipment industry in India is worth approximately US$ 500 million, including imported and local machinery.
For India, industry experts believe that the Make in India campaign, key policy initiatives by the government, the country’s deep-rooted entrepreneurship spirit; and domestic demand for consumer electronics as well as for telecom equipment, automotive, aeronautics, defence and medical electronics verticals will fuel growth. Moreover, high efficiency manufacturing, based on Industry 4.0 and the concept of the Smart Factory, which is being adopted by electronics manufacturers to upgrade product lines, will also accelerate the pace of growth. Surface mount technology (SMT) will drive the advanced manufacturing equipment market too.
Electronics manufacturing services (EMS) providers need an increasing number of SMT equipment product lines in order to meet the demand from customers across different industry verticals. In addition, many original design manufacturers (ODM) have also set up manufacturing plants, and are not just designing equipment, in order to compete with EMS providers. This is driving the growth of the SMT equipment market.
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE