Worldwide wave soldering overview

EMS providers and OEM board level assemblers have an increasing number of procurement options to choose from when selecting a wave solder equipment supplier.  As the effects of globalization continue, the competitive landscape is changing as a number of formerly geographic focused wave solder equipment suppliers enter the international capital equipment supply chain.

This influx of new suppliers upon the global scene presents new opportunities, while at the same time challenging the equipment selection process.  Knowing the capabilities of these new equipment suppliers is more critical than ever when making an equipment evaluation decision. 

It is important for end-users to be aware of all available wave solder supplier offerings and their ability of meeting end-user requirements.  The task of identifying key characteristics of wave solder machines and how the various suppliers differ has increased with this greater variety of available suppliers.

Market Forces
Overall the worldwide wave soldering equipment market is projected to grow in the foreseeable future beyond its present estimated annual sales volume of $235 million.  This trend is due to several factors.  Wave soldering continues to be used as a cost-effective mass soldering method for many printed circuit board assembly applications.  Capacity expansion in Asia is being driven by the compounding effect of China's sustained growth in gross domestic product (GDP) and its corresponding upsurge in equipment buying power.  Meanwhile, incremental replacement of existing wave machines continues throughout the world as lead-free conversion is implemented in compliance with global RoHS requirements.

Market data reveals the Asia Pacific region currently is, and will remain, the dominant leader in the deployment of wave soldering equipment.  Future growth opportunities of wave soldering equipment for the region will remain ahead of global averages, although price point competition will remain fierce from Asian-based equipment suppliers.

Not surprising, lead-free conversion is being implemented on a cyclical basis across the respective geographic regions of Asia Pacific, Europe and North America.  The vast majority of Asia Pacific based EMS, OEM and ODM board level assemblers have established volume production lead-free processing.  This is based in large part on Asia's reliance on consumer and computer products influenced by the 1998 Japanese Electronic Industry and Technology Association (JEITA) voluntary roadmap and China's 2005 Regulation for Pollution Control of Electronics Products (RPCEP) directive.  Europe on the other hand, despite being the epicenter of the RoHS and WEEE directives, together with North America continue to play catch-up, finding themselves increasingly behind the projected worldwide lead-free utilization curve.

Replacement of wave soldering equipment in Asia in the run-up to lead-free peaked ahead of other regions because of the strong influence of the JEITA roadmap.  Peak periods of equipment replacement throughout Europe and North America will continue to lag behind that of Asia as many board level assemblers implement lead-free over a broader timeframe.

While current refinements in wave soldering equipment focus primarily on addressing the transition to lead-free from tin-lead processing, changes in through-hole component technology will require a comprehensive review of technology gaps.  Principle among these is decreasing through-hole component pin-pitch.  Several market trends and emerging technologies have been detected in wave soldering equipment including interchangeable solder alloy capability, alternative solder pump technologies and decreasing system price points.

Global Perspective
Key characteristics of wave soldering systems differ demographically by end-user application with Asian-based suppliers specifically offering machines tailored to the unique requirements of the high-volume, low-mix Asian market.  Some Asian built wave soldering systems tend to lack in process control and traceability capability relative to equipment offered by traditional Western manufacturers.  This is adequate for the requirements of the majority of the Asian electronics production environment, but can be potentially ill-suited for the European and North American markets.  Conversely, European and North American equipment suppliers offer systems focused on the requirements of high-mix, low volume manufacturing and new product introduction market with typically higher price points.

The majority of Asian-based wave soldering suppliers often relegate after-sales support to the party who imports and sells their equipment in the world outside of Asia (WOA).  This reliance on third-party agents for local service and support can potentially lead to a negative perception of Asian-based suppliers in the WOA.  Creating, modifying and re-writing software, as well as developing support documentation such as operating manuals, service manuals and maintenance procedures in local languages is a major undertaking.  Often this is the responsibility of the importing broker or third-party agent including issues such as CE, UL or CSA compliance.

It is further projected that Asian-based wave soldering suppliers will increasingly turn their attention to the WOA as the rate of lead-free implementation moderates in the Asian market.

Equipment Selection
With an increasing array of wave soldering equipment suppliers, it is extremely important for users to know the relevance of wave solder equipment supplier offerings and capabilities with respect to meeting end-user market requirements.  ITM Marketing has recently published a report entitled "Worldwide Wave Soldering Market Study" that is available to members of the electronics assembly industry.  This study helps identify the principle characteristics of wave solder machines and how the respective suppliers differ in terms of key specifications, features and capabilities.

This study provides a comprehensive analysis of the wave soldering equipment market from both an equipment supplier and end-user perspective.  It is based on extensive research, including in-depth first person interviews and real-world consulting practice.  The study offers valuable information including market drivers, competitive equipment metrics, price/performance benchmarks, supplier perception ratings and verbatim response based on equipment supplier and end-user interviews.

Knowing the position of the major equipment suppliers is critical when making an impartial and unbiased equipment evaluation decision.  The information contained in this report provides valuable insight for EMS and OEM engineering management and procurement personnel alike.  Equipment suppliers can benefit from the neutral and objective view into end-user requirements offered by this report.  Encompassing more than 75 pages and containing over four dozen tables and graphs, the study can be obtained by contacting ITM Marketing at the information given below.

Bob Klenke is managing director of ITM Marketing, a full service marketing communications and market research firm offering comprehensive technical marketing and business development services to companies within the electronics assembly industry.  ITM market research determines what, why and how a target audience buys a product or service and is essential in planning future business goals.  ITM conducts independent and objective research to find answers to the motivation and thought process behind the buying practices, needs and desires of board level electronic assembly end-users.  For more information, contact ITM Marketing at (262) 376-0717, bob_klenke@ITMmarketing.net.