SMT Roadmap - Impact of Lead Free on the Electronics Industry

Published by: Frost & Sullivan

Published: Jul. 20, 2004

Table of Contents

Abstract

Realizing the high toxicity level and harmful after-effects of lead electronics, manufacturers are shifting to lead-free products. Currently, lead-free assembly has a low penetration rate and accounts for less than five percent of all electronic systems. However, in many European countries, legislative measures have been passed to restrict its usage, and, with time, lead-free standards are expected to be globally adopted. Many leading companies have already set internal deadlines to transit to lead-free standards. As competition in the surface mount technology (SMT) equipment market continues to grow, suppliers are likely to be compelled to seek growth opportunities in the automotive, medical, and aerospace/defense end-user industries.

This research from evaluates the current and future prospects of lead-free electronic assemblies in the electronic industry, including SMT equipment suppliers, manufacturers of printed circuit board assemblies (PCBAs) and solder paste, and suppliers of electronic components and advanced electronic packaging. It provides a comprehensive insight into the drivers and restraints influencing the market and provides detailed competitive information to enable companies to boost their market shares. Detailed revenue forecasts and regional analysis give a clear idea of the expansion opportunities and marketing strategies that are likely to benefit the industry.

Companies Marketing "Green" Products Accelerate Lead-free Adoption

Consumers have shown a marked preference for environment-friendly products, and this is expected to encourage the uptake of lead-free solder paste. It has been estimated that lead dissolved in landfills can infiltrate the ground, contaminate drinking water, and thereby, pose a serious health threat. Enterprises demonstrating environmental concern are likely to hasten the move toward the adoption of lead-free products as a global standard.

Lead-free solder paste is not only technologically feasible, but, in most cases, it is as reliable as traditional eutectic lead-based solder paste. "The need for lead-free solder paste with high solder joint reliability and lower cost presents good market opportunities for existing and emerging participants," notes the analyst of this research. "SMT soldering equipment that can handle lower peak process temperature for lead-free soldering and reduce overall power consumption is likely to achieve higher penetration."

Growing Demand from Japan Expands Market

"Japan’s high corporate environmental consciousness has helped it to emerge as a pioneer in developing lead-free technologies," says the analyst. "Leading MNCs in the country are committed to attaining a 100 percent lead-free assembly by 2004-05."

The SMT soldering equipment market has shown steady growth despite the weakened demand and economic downturn. In particular, the soldering, inspection and rework, and repair market has exhibited a high potential for growth. Further, there has been increasing transition from eutectic tin-lead solder paste to lead-free solder paste, especially in Japan and Europe.

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