Packaging Assembly Equipment Market Analysis

Packaging and Assembly Equipment Market Overview

Global Packaging and Assembly Equipment Market Size was valued at USD 10.5 Billion in 2022. The packaging and assembly equipment market industry is projected to grow from USD 12.02 Billion in 2023 to USD 35.517 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.50% during the forecast period (2023 - 2032).  The electronics industry's growing need for semiconductor packaging and assembly equipment due to the proliferation of electronic gadgets and their applications is one of the main market drivers driving the market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Packaging and Assembly Equipment Market Trends

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  Growing need from semiconductors sector is driving the market growth

  
  

The market for packaging and assembly equipment is expanding due in large part to the growing demand for semiconductors. Numerous electronic products, such as computers, tablets, smartphones, cars, and data centers, depend on semiconductors as vital parts. The increasing popularity of these gadgets is pushing up demand for semiconductors and, consequently, for the tools required to package and assemble them. Furthermore, as integrated circuits become more complicated and semiconductor devices continue to shrink in size, more advanced packaging and assembly methods are required. As a result, sophisticated packaging techniques that call for specialized tools have been developed, such chip-on-wafer (COB) packaging and fan-out wafer-level packaging (FO-WLP). Moreover, the need for semiconductors is also being driven by the introduction of new technologies like artificial intelligence (AI), 5G, and the Internet of Things (IoT). These technologies depend on cutting-edge semiconductors, which call for intricate assembly and packaging procedures.

Technological advances represent a significant trend that is gaining increasing traction in the packaging assembly and equipment market. Major companies in the market are focusing on introducing new technology to enhance packaging usage, such as compound equipment. In January 2022, a variety of integrated equipment was introduced by Shengmei Semiconductor equipment (Shanghai) Co., Ltd., a China-based provider of wafer process solutions for semiconductor foreground and advanced wafer-level packing (WLP) applications, to facilitate the manufacturing. The product range for compound semiconductor wet processes includes equipment for gluing, developing, photoresist de-gluing, wet etching, cleaning, and metal plating. When using wafers with notches or flat edges, these products work automatically. Thus, driving the packaging and assembly equipment market revenue.

Packaging and Assembly Equipment Market Segment Insights

Packaging and Assembly Equipment Application Insights

The global packaging and assembly equipment market segmentation, based on application includes Consumer Electronics, Healthcare Devices, Automotive, Enterprise Storage, Other Applications. The consumer electronics segment dominated the market. In the packaging and assembly equipment market, consumer electronics pertains to gear that is intended to package and assemble electronic products like tablets, smartphones, and other gadgets in an efficient manner. For the electronics industry's stringent standards, this equipment guarantees accurate assembly, testing, and packing. Innovations in this field are generally driven by the need for sophisticated packaging solutions.

Packaging and Assembly Equipment End-user Insights

The global packaging and assembly equipment market segmentation, based on end-user, includes OSATs and IDMs. The OSATs category generated the most income. The need for this market is being driven by factors such as the rise in power device shipments, an increase in packages found in smartphones, and the presence of electronic content in cars.

Figure 1: Global Packaging and Assembly Equipment Market, by End-user, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Packaging and Assembly Equipment Type Insights

The global packaging and assembly equipment market segmentation, based on type includes Plating Equipment, Inspection and Dicing Equipment, Wire Bonding Equipment, Die-Bonding Equipment. The plating equipment segment dominated the market. The variables that have contributed to the acceptability of the packaging equipment segment include the growing manufacturing of electronic devices, including computers, laptops, and mobile phones; growing shipment activities; and rising OSAT and IDM.

Packaging and Assembly Equipment Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American packaging and assembly equipment market area will dominate this market due to the increasing demand from end-use sectors such medical devices, computers & laptops (desktops/notebooks), consumer electronics (televisions), and communications equipment (cellular phones). In order to create a unique market positioning and serve a wide range of customers, players in the space are placing a strong emphasis on expanding their product offerings. This aspect has prompted businesses to introduce innovative equipment in an effort to boost packing area productivity.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GLOBAL PACKAGING AND ASSEMBLY EQUIPMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe packaging and assembly equipment market accounts for the second-largest market share due to the pharmaceutical industry's expanding exports. The nation's excellent production capabilities and technological improvements enable it to supply the product in this region. In order to meet market demand, the country's need for packaging equipment will rise as product exports rise. Further, the German packaging and assembly equipment market held the largest market share, and the UK packaging and assembly equipment market was the fastest growing market in the European region

The Asia-Pacific Packaging and Assembly Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032. China's semiconductor industry is expanding. The packaging and assembly equipment industry is working to extend its operations in China, South Korea, and India in order to tap into new growth opportunities brought about by the growing popularity of tablets and wearable technology. Government support is expected to further stimulate the market in this region. Moreover, China’s packaging and assembly equipment market held the largest market share, and the Indian packaging and assembly equipment market was the fastest growing market in the Asia-Pacific region.

Packaging and Assembly Equipment Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the packaging and assembly equipment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, packaging and assembly equipment industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global packaging and assembly equipment industry to benefit clients and increase the market sector. In recent years, the packaging and assembly equipment industry has offered some of the most significant advantages to medicine. Major players in the packaging and assembly equipment market are attempting to increase market demand by investing in research and development operations includes

Semiconductor packaging, test solutions, and services are offered by Amkor Technology Inc. (Amkor). Wafer bump, back-grind, packaging, wafer probe, package design, drop shipment, system-level, and final test services are among the turnkey packaging and testing services provided by the company. It caters to original equipment manufacturers, contract foundries, fabless semiconductor businesses, and integrated device makers (IDMs). Applications for Amkor's products can be found in the internet of things, networking, consumer goods, automotive, communications, computer, and artificial intelligence sectors.

Wafer fabrication tools and services are produced and supplied by Lam Research Corp (Lam). The business creates, produces, reconditions, sells, and maintains semiconductor processing systems used in integrated circuit production. It provides wet processing, plasma etching, and thin film deposition technologies and products. Transducers and sensors, memory, patterning, packaging, interconnect, discrete and power devices, analog and mixed signals, and transistor solutions are all offered by the company. Micro-electromechanical systems, dynamic random-access memory, semiconductor foundries, memory and integrated device manufacturers, power semiconductor, and radio frequency devices are just a few of the markets it supports.

Key Companies in the packaging and assembly equipment market include

• Amkor Technology


• Tokyo Electron Limited


• Lam Research Corporation


• ASML Holding N.V


• Applied Materials


• KLA-Tencor


• Hitachi High-Technologies Corporation


• Advantest, Screen Holdings Co. Ltd.


• Teradyne Inc.

Packaging and Assembly Equipment Industry Developments

December 2021: Semiconductor Process Equipment Corporation (SPEC) was purchased by Yield Engineering Systems, Inc. (YES), a US-based manufacturing firm that specializes in delivering process equipment for semiconductor advanced packaging, for an unknown sum. Yes would be able to better serve markets involving high-performance computing (HPC), AI/ML, 5G, autonomous vehicles, augmented reality, and other computationally demanding technologies with this acquisition.

Packaging and Assembly Equipment Market Segmentation

Packaging and Assembly Equipment Application Outlook (USD Billion, 2018-2032)

• Consumer Electronics


• Healthcare Devices


• Automotive


• Enterprise Storage


• Other Applications

Packaging and Assembly Equipment End-User Outlook (USD Billion, 2018-2032)

• IDMs


• OSATs

Packaging and Assembly Equipment Type Outlook (USD Billion, 2018-2032)

• Plating Equipment


• Inspection and Dicing Equipment


• Wire Bonding Equipment


• Die-Bonding Equipment

Packaging and Assembly Equipment Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America