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The wire bonder equipment market is estimated to grow at a CAGR of 3.3% between 2022 and 2027. The size of the market is forecast to increase by USD 219.24 million. The growth of the market depends on several factors, including the rising electronics products across the world, the rising electronic content in automobiles, and the increase in the number of OSAT vendors.
This report extensively covers market segmentation by product (ball bonders, stud-bump bonders, and wedge bonders), end-user (OSAT and IDM), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global wire bonder equipment market as a part of the global industrial machinery market. The parent, the global industrial machinery market, covers companies engaged in manufacturing industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increase in the number of OSAT vendors is notably driving the market growth, although factors such as the shortage of skilled and trained personnel may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Wire Bonder Equipment Market Driver
The increase in the number of OSAT vendors is the key factor driving the global wire bonder equipment market growth. The number of OSATs in APAC, especially China, is growing at a considerable pace due to their strong liquidity and financial backing. This allows OSATs to have ample capital to undertake R & D as well as capacity expansion. Semiconductor manufacturers also receive a significant amount of governmental support and backing for developing the industry. Major countries from APAC, such as South Korea, China, and Japan, undertake such investments propelling the growth of these facilities.
The easy availability of capital will boost the development of these companies while ensuring scale and technical competence through acquisitions. The increase in the number of OSATS signifies that most companies in the semiconductor market are resorting to the fabless model. This increases the orders received for packaging by these OSATs, who now must increase their production capacities. This is expected to generate significant demand during the forecast period.
Significant Wire Bonder Equipment Market Trend
The increasing popularity of flip-chip bonding technology is the primary trend in the global wire bonder equipment market growth. The use of flip-chip technology for carrying out the packaging of semiconductor devices has been witnessing growth since the last decade.
This technology is an alternative to the legacy wire bonding technique and is expected to slowly take over the wire bonding's share in the market. Therefore, the rising trend in the adoption of flip-chip bonding technology is expected to negatively impact the market during the forecast period.
Major Wire Bonder Equipment Market Challenge
Shortage of skilled and trained personnel is a major challenge to the global wire bonder equipment market growth. A major issue faced by the semiconductor manufacturing sector is the lack of skilled and trained personnel with respect to manufacturing and operating these complex machines. The major reasons for the widening of this gap are the retirement of the baby boomers and the growing global economic expansion. In addition, there has been a loss of embedded knowledge due to the retirement of the baby boomers, which has also created a gap in the number of experienced people available. In addition, the younger generation has an inclination toward the service industry.
Furthermore, there is a lack of basic skills and knowledge in the fields of engineering, mathematics, science, and technology nowadays due to the gradual decline in technical education programs in schools. This has impacted the manufacturing sector significantly and will likely hinder the growth of the semiconductor market to a certain extent, thereby affecting the sales of capital equipment, such as wire bonder equipment, during the forecast period.
Key Wire Bonder Equipment Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Wire Bonder Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
asmpt.com - The company offers wire bonder equipment such as eagle 60 wire bonder.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the ball bonders segment will be significant during the forecast period. Ball bonding is usually carried out using joining methods such as thermocompression and thermo-sonic bonding. The thermocompression method uses pressure and temperatures of 150C and above to generate an intermetallic bond. Thermo-sonic bonding uses a combination of heat and ultrasonic energy to form the intermetallic bond.
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The ball bonders segment was valued at USD 927.35 million in 2017 and continue to grow by 2021. Ball bonder equipment can achieve faster speeds that are capable of bonding more than 5-12 wires per second. Gold, copper, and palladium-coated wires are usually used in this wire bonding process. This technology is ideal for carrying out bonding applications for fine-pitch applications in the range of 40 microns or less. The method is used for applications such as ball grid array (BGA), small outline package (SOP), quad flat package (QFP), and multi-chip modules (MCM) hybrids, as well as for wafer-level bumping. All these factors are expected to propel the demand for ball bonder equipment for ball bonding, leveraging the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 84% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC dominates the market due to the presence of several major OSATs, such as ASE and STATS ChipPAC. These packaging and assembly vendors are making significant investments to revamp their production lines with respect to the latest technological developments in packaging technology. This is expected to generate demand for new wire bonder equipment in the market. Taiwan and China are hubs for semiconductor device manufacturing, which further propels the demand for assembly and packaging equipment in the region.
The outbreak of COVID-19 adversely affected the operations of various end-user industries, including the electronics industry, in APAC in 2020. However, the lockdown restrictions were lifted in the first half of 2021 owing to the initiation of vaccination drives, which resulted in the resumption of operations in end-user industries. Therefore, although the regional semiconductor industry witnessed a downturn in 2020 due to the pandemic, the developments in the industry, such as the setting up of new semiconductor manufacturing facilities, are anticipated to drive the growth of the wire bonder equipment market in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Ball bonders, Stud-bump bonders, and Wedge bonders), End-user (OSAT and IDM), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Wire Bonder Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.3% |
Market growth 2023-2027 |
USD 219.24 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.1 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 84% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accelonix Ltd., ASM Pacific Technology Ltd., BE Semiconductor Industries NV, Bergen Group, Cirexx International, Corintech Ltd., DIAS Automation HK Ltd., F & K DELVOTEC Bondtechnik GmbH, F & S BONDTEC Semiconductor GmbH, Hesse GmbH, HYBOND Inc., Kulicke and Soffa Industries Inc., Micro Point Pro Ltd., Palomar Technologies Inc., Powertech Technology Inc., Toray Industries Inc., TPT Wirebonder GmbH and Co. KG, Ultrasonic Engineering Co. Ltd, WestBond Inc., and Yamaha Motor Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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