The global surface mount switch market features a largely fragmented competitive landscape, wherein the top five companies accounted for nearly 46% of the overall market in 2015, observes a recent report by Research Report Insights (RRI). These top companies, namely Omron Corporation, NKK Switches Co. Ltd, E-Switch Inc., Grayhill Inc., and C&K Components, have adopted the course of strategies such as expansion of production units, product innovation, and acquisitions and mergers to stay ahead of the competition. 

Owing to the rapid development of the global surface mount switch market, a number of new players have forayed into the market by acquiring niche product manufacturers. A number of existing players have also entered into strategic collaborations or have acquired smaller firms to make the most of the existing growth opportunities and remain competitive in the market. This has enhanced the capital base for companies, enabling them to invest higher amounts in research and development activities and strengthen their hold on the market.

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Most of the key manufacturers of surface mount switches are located in Asia Pacific, North America, and Europe. This has limited the potential of the market from reaching regions such as Latin America and Africa. This could be a viable incremental growth opportunity for new entrants, especially in Latin America, wherein the flourishing telecommunication sector will lead to a vast rise in demand for a variety of electronics components in the next few years.

Growth in Key End-use Sectors to Keep Demand across Asia Pacific Strong 

According to RRI, the global surface mount switch market was valued at US$3360.0 mn in 2017 and is expected to reach US$5860.0 mn in terms of revenue by 2024, exhibiting at a CAGR of 8.2% By 2024. In terms of product type, the segment of ultra-miniature surface mount toggle switch presently constitutes the bulk of market’s overall revenue and is expected to exhibit strong growth over the forecast period as well. Geographically, due to strong growth in industries such as automotive, electronics, and telecommunication, the Asia Pacific market is expected to remain dominant throughout the forecast period.

Rising Demand for Electronics Goods to Help Market Retain Healthy Growth 

The vast rise in the global consumption of electronics goods such as smartphones, tablets, computers, and laptops has been one of the key drivers of the global surface mount switches and will continue to have a strong impact on the market’s future growth prospects. The electronics goods industry consumes vast volumes of electronics hardware that utilize the extensive usage of surface mount technology.

The use of surface mount switches instead of through-hole devices grants the hardware an improved level of mechanization and also significantly reduced the cost of manufacturing. The potential rise in adoption of surface mount switches across the electronics goods industry owing to these factors will have a significant positive impact on the overall development of the market in the next few years.

Higher Costs and Relative Unsuitability for Mechanical Stresses to Hinder Market Growth

On account of the small size, better performance, and cost effectiveness of surface mount switches, when the overall cost of the end-product is considered, have led to their increased usage across a number of application areas; analysts have estimated that surface mounted switches are replacing through-hole switches in about 90% of new-age electronic hardware.

However, surface mount switches are comparatively costlier than through-hole switches.  Also, surface mount switches face limited competency when subjected to special electrical, mechanical, and thermal conditions, making through-hole switches relevant to a wide range of applications and for a number of cost-sensitive end-product varieties. Moreover, electromechanical surface mount RF switches are known to have lower operating lifetimes than solid state switches.

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Key Takeaways;

• Ceaseless consumption of electronic goods stokes demand
• Advantages of surface mount switch to enhance mechanization of hardware and reduced cost of manufacturing boosts adoption.

The global surface mount switch market is segmented as follows;

Global Surface Mount Switch Market, By Type

• Ultra-Miniature Surface Mount Pushbutton Switch
• Ultra-Miniature Surface Mount Toggle Switch

Global Surface Mount Switch Market, By Application

• Industrial Control
• Medical
• Aerospace and Defense
• Others

Global Surface Mount Switch Market, By Geography

• North America

  • The U.S.
  • Canada
  • Mexico

• Europe

  • The U.K.
  • Italy
  • Germany
  • France
  • Rest of Europe

• Asia Pacific

  • India
  • China
  • Japan
  • Rest of Asia Pacific

• Latin America

  • Brazil
  • Argentina
  • Rest of Latin America

• Middle East and Africa (MEA)

Research Report Insights

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