Physical Vapor Deposition (Pvd) Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Germany, Japan, UK - Size and Forecast 2024-2028

Physical Vapor Deposition Equipment Market Size 2024-2028 

The physical vapor deposition equipment market size is estimated to grow by USD 4.53 billion at a CAGR of 11% between 2023 and 2028. Market expansion depends on several factors, including the increasing appetite for electronic devices, the burgeoning automotive sector, and a rise in investments in the aerospace industry. These elements underscore a growing demand for technology and innovation across various sectors, driving the need for advanced materials and components. The electronic devices sector is experiencing a surge in demand, fueling the growth of the market. Similarly, the automotive industry's expansion is driving the need for new technologies and materials. The aerospace sector is also witnessing increased investment, further boosting market growth. These trends indicate a growing reliance on advanced materials and technologies across industries, driving the market's expansion.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

By Type

The market share growth of the sputtering deposition segment will be significant during the forecast period. Sputtering is a type of PVD process used to deposit thin films onto a substrate. Sputtering deposition requires specialized PVD equipment such as a vacuum chamber, target, process control system, etc. The process control system is used to monitor and control the deposition process. This includes controlling parameters such as the vacuum level and temperature that affect the quality of the film.

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The sputtering deposition segment was valued at USD 2.63 billion in 2018. Manufacturers can achieve precise control over the film quality, thickness, and composition, using sputtering equipment which will enable them to produce high-quality products with consistent performance during the forecast period.

By Region

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APAC is estimated to contribute 45% 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.

The market in the Asia Pacific (APAC) region is expected to grow rapidly due to the increasing demand from various industries, including electronics, automotive, aerospace, and medical. The growth of the PVD equipment market in the APAC region is driven by factors such as the growing demand for electronic devices, expansion of the automotive industry, increase in investment in the aerospace industry, and growing demand for medical devices. Such developments are expected to drive the growth of the market in the region during the forecast period.

Market Dynamics and Customer Landscape

The market is characterized by its crucial role in the production of integrated circuits and microelectronic devices. This market is currently in a growth stage, driven by the increasing demand for semiconductor wafers with anti-reflective coatings for applications like solar panels. PVD equipment utilizes techniques such as sputter deposition and arc deposition under specific vacuum conditions to apply coatings on substrates, enhancing their surface properties at the atomic level. These coatings find applications in various industries, including tool and die coatings for transportation and back contacts for solar panels. Both inorganic substrates and organic substrates can benefit from PVD technology, ensuring its continued relevance despite market fluctuations. Our researchers analyzed the data with 2023 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 Market Driver

The growing demand for electronic devices is notably driving market growth. PVD equipment is used in the production of smartphones, laptops, and other consumer electronics. An increase in the demand for these electronic components has led to an increase in the use of PVD equipment. Additionally, the increasing miniaturization of electronic components and the need for high-performance and durable products are also driving the demand for PVD equipment.

PVD technology allows manufacturers to deposit thin film coatings on electronic components, improving their durability, functionality, and performance. With the increasing popularity of smartphones and the demand for high-performance and durable devices, manufacturers are shifting to PVD technology to deposit thin film coatings on electronic components such as display panels, touch panels, and others. The growing demand for electronic devices globally is a key driver of the PVD equipment market during the forecast period.

Significant Market Trend

Increased automation is the key trend in market growth. Automation has made the process more efficient, consistent, and reliable, reducing the need for manual intervention and increasing production rates. Automated PVD systems are used to perform depositions with greater accuracy and repeatability, resulting in improved film quality.

Automation has made it possible to monitor and control various aspects of the deposition process, such as temperature, pressure, and gas flow, in real-time. This allows for greater control over the process and helps in ensuring consistent results. Automated PVD systems also offer benefits in terms of operator safety and convenience. By reducing the need for manual intervention, automated PVD systems can minimize exposure to hazardous materials and reduce the risk of operator error. Thus, this trend is expected to have a significant impact on the global PVD equipment market during the forecast period.

Major Market Challenge

High capital costs associated with PVD equipment is the major challenge impeding the market growth. Small enterprises have limited budgets and may not be able to afford the initial purchase cost and set-up cost as the investment required is huge. Additionally, the specialized nature of the equipment and the need for trained personnel to operate and maintain it can be challenging.

Another challenge is the need for ongoing maintenance and replacement of parts, which can add to the overall cost of using PVD equipment. The high cost of consumables, such as the targets used in the deposition process, can also be a challenge. However, despite these challenges, many companies find that the benefits of PVD, such as improved film quality, increased efficiency, and reduced waste, make it a valuable investment in the long run. By carefully considering the cost and benefits, companies can make informed decisions about whether or not to adopt PVD technology. Such factors are expected to hinder the growth of the global PVD equipment market during the forecast period.

Key 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.

Market Customer Landscape

Who are the Major Market Companies?

Companies 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.

Aja International Inc. - The company offers physical vapor deposition PVD equipment such as ATC Orion Series Sputtering Systems, ATC Flagship Series Sputtering Systems, and ATC-B Series Batch Coating Systems as its key offerings. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Buhler AG
• HEF
• IHI Corp.
• Intevac Inc.
• KDF Technologies LLC
• Kurt J Lesker Co.
• Mustang Vacuum Systems Inc.
• NAURA Technology Group Co. Ltd.
• OC Oerlikon Corp. AG
• Richter Precision Inc.
• Semicore Equipment Inc.
• Singulus Technologies AG
• Tokyo Electron Ltd.
• Ulvac Inc.
• Veeco Instruments Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook 
  • Sputtering deposition
  • Evaporation deposition

• Application Outlook 
  • Microelectronics
  • Medical devices and equipment
  • Solar products
  • Others

• Region Outlook
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is experiencing significant growth driven by diverse applications across industries such as healthcare, automotive, semiconductor manufacturing, renewable energy, and more. PVD processes, like chromium plating and antimicrobial coatings, are crucial for enhancing wear resistance and corrosion protection in orthopedic implants, surgical instruments, and automotive components. The market landscape depends on Hexavalent chromium, Pacemakers, Inorcoat, Intaglio printing plates, Wafer, Ventilators, Nucleic acid detectors, Mask machines, Temperature measurement equipment, Patient monitors, Medical tourism, Chrome plating, Disposable income, Semiconductors, Medicaid spending.  As aging populations increase healthcare expenditure, PVD-coated orthodontic and dental instruments play a vital role in maintaining patient health. In semiconductor manufacturing, PVD technology is integral to producing silicon wafers and memory chips used in electronic devices. Solar photovoltaic cells benefit from PVD coating services to improve efficiency in converting sunlight into electricity.

The market's expansion is also supported by innovations in PVD equipment for multifunctional coatings and aesthetic finishes, meeting regulatory requirements for medical devices and automotive applications. Deposition processes like arc vapor deposition and thin-film deposition ensure precise coating materials application, enhancing product durability and performance. In response to global demand, manufacturers are focusing on integrated service solutions and managed services for PVD equipment. This includes overlay DDI services for host-connected applications, ensuring seamless operation and version control across software components. As industries seek sustainable solutions, PVD technology continues to evolve, supporting advancements in renewable energy and reducing reliance on fossil fuels. Overall, the PVD equipment market is poised for further growth, driven by its indispensable role in modern manufacturing and technological advancements across various sectors.

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What are the Key Data Covered in this market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market research and growth across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and market growth and trends of market companies

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