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Growth in Automation Industry Boosts SMT Odd Form Placement Market

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Growth in Automation Industry Boosts SMT Odd Form Placement Market

Mumbai, Maharashtra, India

Despite the popularity of surface mount devices on the circuit board, few components such as relays, connectors, and so on are still considered through-hole devices. The continuing presence of through-hole components and mixed technology boards drive an automated and accurate means of odd form assembly.

New analysis from Frost & Sullivan (http://www.frost.com), SMT Odd Form Placement Equipment Market, reveals that the market earned revenues of $50.8 million in 2006 and estimates to reach $73.5 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the SMT odd form placement equipment market, then send an e-mail to Ravinder Kaur / Nimisha Iyer, Corporate Communications, at ravinder.kaur@frost.com / niyer@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The adoption of an automated process during final assembly and end of line process has numerous advantages, the most important factor being cost," says Frost & Sullivan Research Analyst Deepa Mathew. "Assemblers in the west are compelled to adopt machines for odd form placement due to high labor wages, whereas in the east, odd form placement machines are witnessing adoption for their precision and higher throughput."

Final assembly is traditionally labor intensive and hence is subject to fluctuating labor rates across the world. Outsourcing and increased globalization of electronics assembly have resulted from lower labor charges in certain geographic regions. In addition, human errors lead to major defects in the final product, with additional efforts required to rectify them. As a result, these machines are gaining popularity owing to their accuracy. Assemblers are realizing the cost benefits of automating their end of line process due to significant cost savings achieved by avoiding rework and associated repair.

Price is a main competitive factor and vendors face extreme pressures regarding balancing out costs with machine performance. End users very often look for low-cost options causing equipment manufacturers to lower machine prices. Machines with odd form handling capabilities are highly priced depending on their inherent functionality. This deters wide adoption especially in regions where manual labor is a viable option. Moreover, custom tooling is mostly required based upon the end user requirements, which may be as high as the cost of the base platform itself.

"A significant factor restraining the market is the high price of these machines," explains Mathew. "Since EMS providers that form a majority of the customers operate under extremely low profit margins, they need to be aware of the cost savings before investing in new equipment."

Manufacturers should focus on support services and warranty that are part of the sale of odd form placement equipment. They need to investigate the reasons behind the manual process of back end assembly and educate the assembler on the tremendous cost savings in the long term. This is likely to boost sales of SMT equipment.

The SMT Odd Form Placement Equipment Market is part of the Surface Mount Technologies Growth Partnership Service, and it provides in-depth information about the odd form placement-equipment market in North America, Europe, and the Asia Pacific regions with complete analysis of key market drivers, challenges and restraints. In this study, Frost & Sullivan's expert analysts thoroughly examine the present scenario and the scope for improvement for the odd form placement-equipment market. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

SMT Odd Form Placement Equipment Market
N066-28

Ravinder Kaur, Corporate Communications - South Asia & Middle East, Frost & Sullivan, +91 (044) 4204 4515 ravinder.kaur@frost.com

Tori Foster, Corporate Communications - North America, Frost & Sullivan, +1 210 477 8448 tori.foster@frost.com

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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