December 9, 2023

Global Semiconductor Manufacturing Equipment Market Forecast: A Surge in Growth and Trends

The global semiconductor manufacturing equipment market is on the cusp of significant growth, fueled by a multitude of factors outlined in a recent market analysis report. This robust expansion is driven by increasing demand for consumer electronics, advancements in technology, and the rise of key sectors such as 5G, IoT, connected cars, and data-driven businesses.

Expanding Consumer Electronics Demand

One of the primary drivers of this growth is the ever-increasing demand for consumer electronics. As consumer electronics become more sophisticated, the need for intricate semiconductor components grows exponentially. Technological breakthroughs, coupled with the adoption of cutting-edge technologies like blockchain and Artificial Intelligence (AI), are further propelling this market expansion. The emergence of ultra-violet lithography technology is also bolstering the market for equipment used in semiconductor fabrication.

Additionally, the proliferation of smartphones and wearable technology is contributing significantly to this market’s growth. In 2021 alone, a staggering 127.5 million smartwatches were sold worldwide, with 42.4 million shipped in the last quarter.

Rise in Semiconductor Sector

The semiconductor sector is poised for rapid expansion, primarily due to the surging sales of consumer and mobile electronics. Emerging technologies such as IoT, connected devices, ultra-high-definition (UHD) TVs, automation in automobiles, and hybrid laptops are driving the demand for semiconductor wafers. Furthermore, the increasing adoption of hybrid and electric vehicles is a significant trend boosting the market for equipment used in semiconductor fabrication. In 2021, electric vehicle (EV) sales reached a record high of 6.9 million globally, representing a 107% increase from the previous year.

5G Deployment and Larger Wafer Sizes

The rollout of 5G technology is a major catalyst for the market’s growth. Recent data indicates that 430 million new global 5G connections were added between Q2 2021 and Q2 2022, enabling innovations like augmented reality, mission-critical services, fixed wireless access, and IoT. Additionally, the need for larger wafer sizes to support ultra-large-scale integration technologies is driving growth in semiconductor manufacturing equipment. The industry’s progressive transitions, such as downsizing nodes and wafer sizes, are contributing to this expansion.

Impact of COVID-19

While the COVID-19 pandemic initially had a negative impact on the semiconductor manufacturing equipment market in 2020 and the first half of 2021 due to disruptions in supply networks and manufacturing processes, the latter part of 2022 witnessed a resurgence. Production volumes increased, and the demand for consumer electronics and hybrid electric vehicles surged, positioning the market for front-end equipment, back-end equipment, and fab facility equipment for substantial growth.

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Rising Applications in IoT, Connected Cars, and Data Business

Semiconductor applications are expanding, especially in connected and autonomous vehicles, which is expected to boost market revenue for semiconductor manufacturing equipment. The growth of deep learning chips within the semiconductor sector is also directly impacting market growth.

Need for Semiconductor Manufacturing Facilities

Front-end semiconductor production facilities, or fabs, are operating at high capacity due to rising demand for semiconductors. To meet this demand, the industry is rapidly expanding fab capacity utilization. The launch of 19 new high-volume fabs in 2021 and the expected construction of another 10 high-volume fabs in 2022 indicate significant opportunities for semiconductor manufacturing equipment market participants.

Challenges and Opportunities

The semiconductor manufacturing process requires a clean environment, and even small dust particles can disrupt the manufacturing process. The increasing complexity of semiconductor devices, along with the reduction in node size, necessitates new semiconductor manufacturing machinery, creating opportunities for the market.

Front-end Equipment Dominance

The front-end equipment segment is expected to dominate the market, driven by key players offering these systems. The lithography sub-segment, in particular, is poised to maintain its dominance due to intensive R&D in this area.

3D Technology on the Rise

The 3D category is expected to exhibit the fastest growth in the semiconductor manufacturing equipment market. Technological developments in 3D integrated circuits (IC) are enhancing performance and solving traditional scaling issues, leading to increased adoption of 3D ICs in semiconductor manufacturing.

Asia Pacific Leads

Currently, Asia Pacific holds the largest share in the global semiconductor manufacturing equipment market. China and Taiwan are key contributors to this growth, with significant semiconductor manufacturing equipment vendors headquartered in these regions. China’s emphasis on technological leadership and economic growth in the semiconductor sector is expected to lead to further growth. Taiwan is also experiencing robust demand for chips used in automobiles and high-performance computing devices.

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Rapid Growth in Europe

Europe is anticipated to grow at the fastest rate during the forecast period, driven by increased investments in semiconductor equipment production and favorable trade relations with other countries.

Competitive Landscape

Key players in the global semiconductor manufacturing equipment market include Applied Materials Inc., Tokyo Electron Limited, Lam Research Corporation, ASML, KLA Corporation, Dainippon Screen Group, Hitachi High Technologies Corporation, ASM International, Ferrotec Holdings Corporation, and Canon Machinery Inc.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad