KEY MARKET OVERVIEW
The Global Semiconductor Manufacturing Equipment market was worth USD 88.3 billion in 2021. With a predicted CAGR of 9.11% between 2022 and 2029, the market is expected to increase from USD 101.6 billion in 2022 to USD 196.8 billion by 2029. Rising semiconductor demand in sectors like electronics, automobiles, and data processing are among the factors fueling this increase. The market is also growing as a result of the surge in electric car sales, which rose by 109% in 2021 compared to 2020. Rising semiconductor demand in sectors including electronics, transportation, and data processing are examples of growth. The market is also growing as a result of the boom in electric car sales, which increased by 109% in 2021 compared to 2020.
However, the market did witness a 6.4% decline in 2020 relative to 2019, a result of the global COVID-19 pandemic which reduced demand across regions.
Semiconductor manufacturing equipment is employed to produce various semiconductor components, such as wafers, IC chips, and circuits. This equipment is vital for consolidating semiconductor elements into a singular chip, a process becoming more prevalent due to consumer preferences for compact devices. The adoption of artificial intelligence (AI) in data centers, which require IC chips, further bolsters market growth.
IMPACT OF COVID-19
The global pandemic brought about a decline in manufacturing processes due to lockdowns. Many manufacturing activities were either partially or entirely halted during the initial two quarters of 2020, which had a negative impact on the market. However, after Q3 2020, the market began to recover, with an increasing demand for both front and back-end manufacturing equipment.
LATEST MARKET TRENDS
Leading players in the market are constantly innovating, with developments such as nano-imprinting, advanced lithography technology, and faster manufacturing speeds. New machines introduced into the market, like the MBE 6000 by Riber, are designed for enhanced production and accuracy. Recent technological enhancements, including AI and Industry 4.0, are being implemented to enhance production efficiency and profitability.
The market is observing heightened demand for semiconductor components in sectors such as electronics, home appliances, and electric vehicles. Moreover, increased automation in automotive sectors and the rise of 5G in telecommunications are spurring demand for semiconductor manufacturing machines. The global push for smart cities and homes is further fueling the market's expansion.
On the downside, the high cost of semiconductor manufacturing equipment, which requires significant capital investment, could stymie market growth. Fluctuations in machine prices, difficulties in raw material procurement, and disruptions due to the COVID-19 pandemic add to these challenges. Complexities in the semiconductor manufacturing process, which demand precision and high accuracy, further impede market expansion.
Challenges in Design Complexity The manufacture of semiconductors demands a pristine environment, with any contaminants, such as dust, potentially causing significant operational disruptions. These intricacies, coupled with supply chain delays resulting from manufacturing defects, can lead to considerable losses for vendors. Further complications arise from the multiple design patterns present on a chip, requiring utmost precision in data transfer. Additionally, the demand for varying sizes of SIC wafers complicates the lithography equipment's functioning. All these factors are poised to curb market growth.
- Equipment Type Perspective
- The market bifurcates into back-end and front-end equipment segments.
- The front-end equipment sector is projected to witness a robust CAGR of 10.0% during 2022-2029, primarily driven by prevalent demand for IC chips, logic circuits, and the contributions of leading market players.
- Back-end equipment is also set to see a notable growth trajectory, propelled by novel packaging solutions targeting the automotive and electronics sectors.
- Dimensional Insights
- Market categories include 2D, 2.5D, and 3D.
- The 3D category is poised to dominate, driven by its incorporation in devices like cell phones, digital cameras, and PDAs, delivering higher performance and efficiency.
- The 2D and 2.5D segments are also set for significant growth, supported by their enhanced functionalities, bandwidth, and efficiency in cost and time.
- Application Overview
- The market segments include semiconductor electronics manufacturing, semiconductor fabrication plant/foundry, and test home.
- The semiconductor fabrication plant/foundry segment is likely to reign supreme, fueled by the escalating demand from sectors like electronics, automotive, and medical devices.
- The semiconductor electronics manufacturing segment is also on the rise, driven by an increased emphasis on semiconductor testing and associated regulations.
- While the market spans regions like North America, Asia Pacific, Europe, the Middle East & Africa, and South America, Asia Pacific is set to take the lead, bolstered by the robust supply chains in countries like China, Japan, and Taiwan.
- China's stature as a hub for semiconductor equipment, paired with its robust automotive and infrastructure sectors, indicates significant growth potential.
- Europe and North America are also primed for substantial growth, thanks to favorable trade relations and the presence of industry giants, respectively. Investments, such as Germany's USD 3.39 billion infusion into a semiconductor plant, further emphasize Europe's growth prospects.
- Both the Middle East & Africa and South America regions are predicted to experience moderate growth, supported by rising consumer spending on electronic appliances.
Prominent Industry Participants Leading players are striving for a wider market footprint through strategies like product rollouts, mergers, and business expansions. Additionally, governments are stepping up their investments in semiconductor fabrication. For instance, in a move likely to bolster the industry, the Japanese government announced a substantial subsidy for semiconductor manufacturing in October 2021, further emphasizing the industry's growth prospects.
LIST OF KEY COMPANIES PROFILED:
- Applied Materials Inc (U.S.)
- Tokyo Electron Limited (Japan)
- Lam Research Corporation (U.S.)
- ASML (Netherlands)
- Dainippon Screen Group (Japan)
- KLA Corporation (Netherlands)
- Ferrotec Holdings Corporation (Japan)
- Hitachi High-Technologies Corporation (Japan)
- ASM International (U.S.)
- Canon Machinery Inc (Japan)
- May 2021 - Applied Materials Inc unveiled a cutting-edge optical semiconductor inspection device, harnessing Artificial Intelligence (AI) and Big Data capabilities. This equipment aids semiconductor production plants in autonomously scrutinizing chips and identifying crucial defects in IC chips, pivotal for electronic devices.
- December 2021 - A Hitachi subsidiary, Hitachi High-Tech Corporation, rolled out its state-of-the-art GS1000 electron beam area inspection apparatus. By integrating a common platform with rapid inspection systems that employ Scanning Electron Microscope (SEM), this machinery enhances the precision of semiconductor wafer outputs.
- November 2021 - In a strategic move to expand its product offerings across diverse sectors, Advantest Corporation integrated R&D Altanova Inc, specialists in discrete devices, silicon wafers, and substrates, into its fold.
- July 2021 - Tokyo Seimitsu Co Ltd introduced the innovative "SURFCOM NEX" contour assessment equipment. With superior attributes like enhanced efficiency, precision, and reliability, it delivers a performance rate that's 1.6 times more effective than traditional measuring tools.
- December 2020 - KLA Corporation unveiled its new series of wafer geometry instruments, including the SP7Xp wafer and PWG5TM. Tailored to mitigate manufacturing challenges in the creation of semiconductor chips and discrete devices, they play a pivotal role in the production of avant-garde logic circuits. These circuits find applications in sectors like automotive and electronics.
REPORT OVERVIEW This report delves deep into the global landscape, spotlighting pivotal regions and their roles in the market's trajectory. Offering a panoramic view of the industry dynamics, it investigates the rapid technological integrations occurring worldwide. Furthermore, it shines a light on primary market propellers and impediments, granting readers comprehensive market knowledge.
REPORT OUTLINE & CATEGORIZATION
2018 – 2029
2022 – 2029
2018 – 2020
Value (USD Billion)
By Equipment Type, Dimension, Application, and Region
By Equipment Type
Based on Dimension
Based on Application
COMMONLY REQUESTED INFORMATION
- What was the valuation of the global semiconductor manufacturing equipment market in 2021?
- What is the projected valuation of the semiconductor manufacturing equipment market by 2029?
- What growth rate is expected for the market in terms of CAGR?
- What is driving the growth of this market?
- Who are the leading players in this global market?
- Which segment, based on equipment type, is anticipated to register the highest growth rate?
- In terms of application, which segment is projected to grow at the highest CAGR?
- Which region is set to witness the most robust growth in the market?
What challenges or factors could hinder the market's progression?
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.