The global Surface Mount Technology (SMT) carrier tape market was valued at USD 82.4 million in 2017. It is projected to expand at a CAGR of 7.2% during the forecast period of 2017 to 2025). Growing manufacturing activities in automotive, consumer electronics, industrial automation, and healthcare device industries are expected to boost the growth of this market. Furthermore, increasing automation in manufacturing processes is anticipated fuel the demand for SMT carrier tapes.
Global SMT carrier tapes market revenue, by region, 2015 - 2025 (USD Million)
Rising manufacturing of electronic devices and Electric Vehicles (EVs) in Asia-Pacific is fueling the electronic components industry growth. Furthermore, rapidly expanding telecommunication segment and increasing number of Internet users in India, China, Vietnam, and other Asian nations are anticipated to spur the demand for electronic devices and SMT carrier tapes.
Smart Homes and home automations are gaining popularity and shaping the electronics components market, particularly in North America and Europe regions. The Internet of Things (IoT) connected devices, such as smartphones, TVs, and air-conditioners, are boosting the electronics market. Moreover, growing popularity of smart street lights is fueling the demand for electronic circuits, which in turn, is likely to impel SMT carrier tape market over the forecast period.
Segmentation by Product
In 2017, plastic carrier tape segment held 59.73% of the global revenue share. Plastic carrier tapes are produced primarily from polymers including polystyrene and polycarbonate. Polystyrene carrier tapes are widely used material and offer a sufficient amount of protection. Moreover, they are cost-effective and available in conductive versions to protect electrostatic-sensitive components. Paper carrier tapes are cheaper then plastic products and offer basic protection for electronic components.
They are ideal for the components having thickness less than 0.9 mm and are mainly used for protecting devices from electrostatic discharge and moist environment. Polystyrene is expensive than paper and provides a superior protection as well. It is used for small and passive components, such as chip resistors, resistors, and capacitors, and does not require high level of protection during transport.
Segmentation by Application
• Consumer electronics
In 2017, consumer electronics was the largest segment and held 34.05% of the global revenue share. Increasing use of electronic appliances, such as induction cooker and washing machines, in developing countries including India, Brazil, and China is expected to boost the demand for passive components including resistor and capacitors, which in turn, is expected to propel SMT carrier tape market growth over the forthcoming years.
Healthcare is expected to register the fastest CAGR of 9.8% from 2017 to 2025. Increasing use of electro-mechanical devices for diagnosis, prevention, and treatment of cardiovascular, Central Nervous System (CNS), and stool management among other diseases and disorders, is expected to boost the demand for electric components and devices in healthcare industry.
Segmentation by Region
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa
Asia Pacific was the dominant regional market in 2017 and accounted for 53.97% of the total revenue share. Presence of a large number of SMT tape and electronic components manufactures is the key factor driving the regional market. The consumer electronics market in countries including China, India, Japan, Indonesia, and Malaysia has high penetration owing to the introduction of technological advanced products.
Furthermore, rapid urbanization and rising disposable income in the region is expected to drive the industry. North America is also estimated to have a steady growth. . Positive government initiatives in healthcare sector are expected to fuel the market for SMT carrier tapes in North America. For example, the Patient Protection and Affordable Care Act of 2010 provided easy access to healthcare services among the previously uninsured population.
Stringent policies of European Commission have pushed the OEMs and vehicle manufacturers to focus on clean energy. Furthermore, emerging technologies, such as Artificial Intelligence (AI), electrification of vehicles, and digitalization, provides opportunities to manufacturing segment. Thus, growing automotive manufacturing sector is projected to boost the carrier tapes market.
The global SMT carrier tape market is moving towards the fragmentation. 3M; Advantek, Inc.; Carrier Tech Precision Co., Ltd.; Taiwan Carrier Tape; Oji F-Tex Co., Ltd.; ITW ECPS; C-Pak Pte Ltd.; Laser Tek Taiwan Co., Ltd.; Nihon Matai Co., Ltd.; and Peak International, Ltd. are the prominent companies operating in the global market. Asian SMT carrier tape market is highly fragmented and has a strong presence of a number of local manufacturers. Most of the carrier tape manufacturers have located their manufacturing units in Taiwan, China, South Korea, Singapore, and Philippines, in the vicinity of electronic component manufacturers to maintain steady supply.
Research Support Specialist, USA