KSA Surface Mount Technology Market Outlook to 2030

KSA Surface Mount Technology Market Overview

• In 2023, the KSA Surface Mount Technology (SMT) market reached a significant valuation of USD 351.25 million, driven primarily by the rapid growth in the electronics manufacturing sector. This growth is attributed to increased demand for consumer electronics, automotive electronics, and telecommunications equipment.
• KSA Surface Mount Technology Market is dominated by several key players, including Panasonic Corporation, Fuji Corporation, and ASM Assembly Systems. These companies have established a strong presence in the market through their comprehensive product offerings and robust distribution networks.
• In 2023, Fuji Corporation announced the launch of its new NXT III series, a high-speed, high-precision placement machine, in the KSA market. The NXT III is modular, allowing for flexibility in production and compatibility with existing NXT II components, which facilitates easier upgrades for manufacturers.
• Riyadh and Jeddah are the dominant cities in the KSA SMT market, primarily due to their advanced infrastructure and concentration of electronics manufacturing companies. Riyadh, being the capital city has a robust industrial base and is a hub for technological innovation.

KSA Surface Mount Technology Market Segmentation

The KSA Surface Mount Technology Market can be segmented based on several factors:

By Equipment: KSA Surface Mount Technology Market is segmented by equipment type into placement equipment, soldering equipment, inspection equipment, and cleaning equipment. In 2023, placement equipment dominated the market due to its critical role in accurately placing components on PCBs. The demand for placement equipment is driven by the growing complexity and miniaturization of electronic components, which require precise handling and placement.

By Application: KSA Surface Mount Technology Market Segmentation by Application into Consumer Electronics, Automotive, Telecommunications & Industrial. In 2023, consumer electronics emerges as the most dominant sub-segment driven by the high demand for smartphones, tablets, and other personal devices. The increasing trend towards smart homes and wearable technology also contributes to the dominance of this segment.

By Region: KSA Surface Mount Technology Market is segmented by region into North, South, East, and West. In 2023, the Northern region, particularly Riyadh, holds the largest market share due to the concentration of manufacturing facilities and technological infrastructure. The government's focus on developing the Northern region as a technology hub has also contributed to its market dominance.

KSA Surface Mount Technology Market Competitive Landscape

• Panasonic Corporation: In 2024, Panasonic Connect, a division of Panasonic, recently announced the availability of its new NPM-GH Pick-and-Place machine, the latest addition to its autonomous factory lineup in the G Series of smart factory solutions. This robotic surface-mount technology can reach speeds of 51,000 chips per hour with ±15 μm accuracy.
• ASM Assembly Solutions: In 2024, ASM Assembly Systems opened a new office building and innovation center in Singapore. The innovation center will serve as a hub for showcasing ASM's latest technologies and solutions, facilitating collaboration and development in the electronics manufacturing sector. 

KSA Surface Mount Technology Industry Analysis

KSA Surface Mount Technology Market Growth Drivers:

• Increase in Electronics Manufacturing: Saudi Arabia saw a significant boost in its electronics manufacturing sector. This growth is largely driven by increased demand for consumer electronics, particularly smartphones and tablets, which utilize SMT components. In 2024, there are 33.5 million smartphone users in the country, thereby leading to increasing demand for surface mount technology.
• Expansion of Renewable Energy Projects: The KSA government's focus on renewable energy, especially solar power, has led to a surge in demand for SMT components used in photovoltaic (PV) systems. In June 2024, Saudi Arabia signed power purchase agreements (PPAs) for three new solar photovoltaic (PV) projects with a total capacity of 5,500 MW.
• Advancements in Automotive Electronics: The automotive industry in Saudi Arabia is increasingly integrating advanced electronics for vehicle safety, infotainment, and energy management systems. Rising interest in technologies like Electronic Control Units (ECUs), which manage various vehicle functions, and advanced sensors that ensure performance and safety in the challenging desert climate of Saudi Arabia.

 KSA Surface Mount Technology Market Challenges:

• Supply Chain Disruptions: Surface Mount Technology Market in KSA faces challenges related to global supply chain disruptions, which have affected the availability of critical components such as semiconductors and raw materials. The geopolitical tensions and the COVID-19 pandemic have exacerbated these issues, making it difficult for manufacturers to maintain production schedules and meet market demand.
• High Initial Investment Costs: Setting up a state-of-the-art SMT production line can cost upwards of SAR 20 million, which is a significant barrier for small and medium-sized enterprises (SMEs) in Saudi Arabia. This challenge is compounded by the need for continuous upgrades to keep pace with technological advancements, further increasing the financial burden on companies.

KSA Surface Mount Technology Market Government Initiatives:

• Digital Transformation and Innovation Program (2023): The Saudi Arabian government has launched the Digital Transformation and Innovation Program to upgrade the country's technological infrastructure and encourage the adoption of advanced manufacturing technologies, including SMT. The government is making significant investments in key areas such as AI, IoT, cybersecurity, and big data analytics, with spending in these fields projected to surpass $574 million in 2023.
• National Industrial Development and Logistics Program (NIDLP) (2019): In 2024, the program allocated SAR 15 billion to support the establishment of new industrial parks and the expansion of existing facilities. This funding aims to attract foreign investment and enhance local manufacturing capabilities, including the SMT market.

KSA Surface Mount Technology Future Market Outlook

By 2028, the KSA SMT market is expected to witness significant growth, driven by ongoing technological advancements and increasing investments in the electronics sector. The market is likely to see further integration of AI and IoT technologies in SMT equipment, enhancing production efficiency and quality control.

Future Trends

• Expansion of the Automotive Electronics Sector: The Kingdom's push towards diversifying its economy includes the development of a domestic automotive industry, with a focus on electric vehicles (EVs) and autonomous driving technologies. This will lead to increased demand for SMT components, as vehicles become more reliant on electronic systems for safety, entertainment, and connectivity.
• Advancements in 5G Technology: The rollout of 5G networks in Saudi Arabia is anticipated to accelerate the growth of the SMT market, as the demand for advanced telecommunications equipment surges. 5G technology requires highly sophisticated electronic components, which are typically produced using SMT. By 2028, the widespread adoption of 5G is expected to drive significant investments in the telecommunications infrastructure, benefiting the SMT sector.