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The semiconductor equipment market share is expected to increase by USD 42.88 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8%.
This market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. The market report also offers information on several market vendors, including Advanced Dicing Technologies, Advantest Corp., Applied Materials Inc., ASM International NV, ASML Holding NV, Daifuku Co. Ltd., EV Group, Evatec AG, Hitachi Ltd., KLA Corp., Lam Research Corp., Modutek Corp., Nikon Corp., Nordson Corp., Nova Measuring Instruments Ltd., Onto Innovation Inc., Screen Holdings Co. Ltd., Teradyne Inc., Tokyo Electron Ltd., and Veeco Instruments Inc. among others.
This report extensively covers semiconductor equipment market segmentations by the following:
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"The presence of a majority of prominent semiconductor foundries will facilitate the photosensitive semiconductor device market growth in APAC over the forecast period."
Based on our research output, there has been a positive impact on the market growth during and post-COVID-19 era. The growing investments in fabrication facilities is notably driving the market growth, although factors such as the cyclical nature of the semiconductor industry may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the semiconductor equipment industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Semiconductor Equipment Market Driver
One of the key factors driving growth in the market is the growing investments in fabrication facilities. Memory manufacturers such as Samsung Electronics, Western Digital, Micron Technology, Toshiba, SK Hynix, and Intel are investing in new fabrication facilities to increase their production capacity for staying competitive in the market. The rising demand for semiconductor chips has created an opportunity to expand the product portfolio for supply chain members, such as chip makers, equipment manufacturers, and material suppliers. This is driving investments in fabrication facilities. The growing investments by manufacturers in production facilities will increase the production of semiconductor chips. This is expected to positively drive the demand for semiconductor equipment, as OEMs are increasingly focusing on releasing semiconductor chips for consumer electronics products.
Key Semiconductor Equipment Market Trend
The increase in the number of chip fabrication (fabs) worldwide is a market trend that is expected to have a positive impact in the coming years. The increase in the sales of consumer electronic devices, such as smartphones, hybrid PCs, wearables, and video game consoles, is supporting the growth of the semiconductor market. The semiconductor industry is focusing on the expansion of fabs by increasing its capital spending. A large part of the investment will be used for the manufacture of memory and logic devices, depending on the demand pattern. The increase in the number of fabs will have a high impact on the market, including wafer-level manufacturing equipment, die-level packaging, assembly manufacturing equipment, and test equipment markets. With top firms shifting their focus toward developing the latest technologies, there has been an increased need for new fabs to meet these advances.
Key Semiconductor Equipment Market Challenge
The cyclical nature of the semiconductor industry will be a major challenge for the market during the forecast period. The cyclical nature of the semiconductor industry affects the operating costs of vendors due to severe downturns. Risks such as low demand, overcapacity, and price wars outline the dynamics of the market in the cyclical period. The capital expenditure undertaken by semiconductor equipment providers increases the operational expenditure. This compels semiconductor device manufacturers to reduce production, thereby impacting the demand for semiconductor equipment. This period also resulted in reduced purchases, delays in delivery, or canceled orders. Thus, reduced sales, delays in revenue recognition, and excess inventory hamper the market during this period. Besides, the price wars because of poor demand affect the gross margins of vendors.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global semiconductor equipment market as a part of the global electronic equipment and instruments market within the overall electronics market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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91% of the market's growth will originate from APAC during the forecast period. China, Taiwan, South Korea, and Japan are the key markets for semiconductor equipment in APAC. Market growth in this region will be faster than the market growth in other regions.
The high concentration of foundries, semiconductor wafer manufacturers, semiconductor memory device manufacturers, and IDM will facilitate the market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The threat of COVID-19 led to the imposition of complete lockdowns across countries in the region in 2020. Several countries, such as China, India, Japan, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines, declared a partial or total lockdown. The market for semiconductor equipment grew at a moderate pace in 2021 and is expected to remain the same during the forecast period due to the reopening of semiconductor manufacturing units.
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The market share growth by the OSAT segment will be significant during the forecast period. The number of OSAT companies in APAC, especially China, is growing at a considerable pace. Packaging assembly and test are the largest of China's semiconductor manufacturing activities due to the availability of cash by converting assets, which ensures strong financial backing. This enables them to have adequate funds for capacity expansions. Government support for the development of the semiconductor industry in major countries in APAC, such as South Korea, Japan, and China, is propelling the growth of these facilities.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment.
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Semiconductor Equipment Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
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Market growth 2022-2026 |
$42.88 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
7.0 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 91% |
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Key consumer countries |
US, China, Taiwan, South Korea, and Japan |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Advanced Dicing Technologies, Advantest Corp., Applied Materials Inc., ASM International NV, ASML Holding NV, Daifuku Co. Ltd., EV Group, Evatec AG, Hitachi Ltd., KLA Corp., Lam Research Corp., Modutek Corp., Nikon Corp., Nordson Corp., Nova Measuring Instruments Ltd., Onto Innovation Inc., Screen Holdings Co. Ltd., Teradyne Inc., Tokyo Electron Ltd., and Veeco Instruments Inc. |
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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, and Market condition analysis for the forecast period. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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