Frost: Increasing Electronic, Productivity Demands to Boost Wave Soldering Equipment Market in N. America
November 7, 2006 // Published as a news service by IHS
With industries such as telecommunications, computing and automobiles increasingly thriving, the demand for wave soldering equipment has also grown.
According to Frost & Sullivan, the need for higher productivity and faster turnaround time is providing a much-needed boost to the wave soldering equipment market in North America.
New analysis from Frost & Sullivan of the North American wave soldering equipment market found earned revenues of $25.3M in 2005, with estimates to reach $41.2M in 2012.
Original equipment manufacturers (OEMs) of wave soldering equipment, contract manufacturers (CMs) and electronic manufacturing service (EMS) providers are exploring methods to enhance productivity of their manufacturing processes.
Analysts said in order to handle multiple components with varying sizes and packaging, they need equipment that is compatible with varying customer requirements and technology.
"Wave soldering equipment, with their high level of automation, can fulfill the growing need for high productivity at high throughputs by offering optimum machine performance with desired flexibility," said Frost & Sullivan research analyst Deepa Mathew.
Analysts said wave soldering equipment manufacturers made significant changes in product design and process capabilities to keep pace with the requirements of present-day technology. Features that optimize the soldering process, and that guarantee improved process control, higher throughput, low down time and minimal floor space use while increasing productivity are some of the desired criteria of customers looking to invest in soldering equipment.
Increased investment in new lead-free compatible equipment can continue to drive wave soldering equipment sales. Analysts said adherence to the regulations of the Restriction of Hazardous Substances (RoHS), which calls for elimination of lead and other environmentally-hazardous substances from the solder paste, has essentially boosted demand for new equipment compatible with revised materials and process variables.
Conversion to a compatible wave soldering machine is not an option but a necessity owing to the highly corrosive properties of lead-free solder, analysts said. Equipment vendors are focusing on helping customers transition to lead-free solder paste and satisfy RoHS guidelines.
"The increased use of alternative soldering techniques and surface mount devices are challenging the wave soldering equipment market," said Mathew. "However, the continuing presence of through-hole components and mixed technology boards is sustaining it."
The market continues to expand as assemblers upgrade to compatible machines to prevent solder leakage. Analysts said this is due to increased amounts of tin in different variations of acceptable lead-free compatible solder paste, leading to wide-scale destruction of the stainless steel solder pot. This has resulted in increased demand and sales of new wave soldering equipment.
Analysts said low conversion costs encourage many end-users to consider retrofitting as an option, creating a possible threat to the wave soldering equipment market. Retrofitting involves coating the solder pot surface with chemically inert materials, such as titanium that is highly resistant to corrosion.
IHS electronics & telecom standards subscriptions can save you money!
The possibility of scratching this coating, or creating subsequent damage, calls for more sophisticated and expensive cleaning methods. Equipment manufacturers are likely to gain by focusing on support services and warranties that are part of the sale of new wave soldering machines.
Source: Frost & Sullivan.