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The Sputtering Equipment Market is forecast to increase by USD 428.7 million, at a CAGR of 4.11% between 2023 and 2028. The market's growth relies on several key factors. These include the increasing prevalence of data centers and the rising demand for FOWLP (Fan-Out Wafer Level Packaging). Notably, the expansion of piezoelectric MEMS (Microelectromechanical Systems) plays a significant role in driving market growth. However, challenges such as the declining demand for CDs, DVDs, and Blu-ray discs may pose obstacles to this growth trajectory. Despite these challenges, the market demonstrates resilience and adaptability, spurred by ongoing technological advancements and shifting consumer preferences. This report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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The market share growth by the reactive sputtering segment will be significant during the forecast period. Sputtering is the thin-film deposition manufacturing process for the semiconductor and storage device industries. When using magnetron sputtering deposition, electrons are trapped over the negatively charged target material so they cannot attack the substrate. This allows for quicker deposition rates. Circular and rectangular cathode/target forms are the most prevalent in magnetron sputtering. Larger size in-line systems, where substrates scan linearly past the targets on some sort of a conveyor belt or carrier, are where rectangular magnetrons are most frequently used. More frequently, circular sputtering magnetrons are seen in single-wafer stations or smaller confocal batch systems.
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The reactive sputtering segment was valued at USD 697.40 million in 2018. The growth of the market is driven by investments in increasing fab capacity and R and D by the companies operating in the semiconductor industry. Investments in the market are focused on developing new technologies, advanced manufacturing techniques, fabrication plants for large wafer sizes, packaging techniques, and large-scale integrations. Compound semiconductors are increasingly preferred for wide bandgap power devices compared with silicon. Power devices use solid-state electronic devices for the conversion, control, and processing of electricity and electric power. Such factors are increasing demand for the magnetron sputtering segment, which, in turn, will drive the growth of the market during the forecast period.
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APAC is estimated to contribute 79% 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 major reason for the dominance of APAC is the presence of major consumer electronics manufacturers, automotive manufacturers, and solar cell manufacturers in the region. Countries such as China, South Korea, and Japan are the leading producers of consumer electronic devices. Some of the major companies in the region include LG Electronics, Lenovo, SAMSUNG, Sony, TOSHIBA, Xiaomi, and Huawei Technologies. The automotive manufacturers in the region include Toyota Motor, Nissan Motor, and Mitsubishi Motors. The abundant availability of raw materials and the low establishment and labor costs have helped companies set up their production centers in the region. The region has the presence of many OEMs. Thus, the region accounts for most of the orders of the equipment used for manufacturing semiconductor devices, including solar cells and storage devices. Hence, such factors are driving the market in APAC during the forecast period.
The Market is witnessing significant growth due to the increasing demand for Physical Vapor Deposition (PVD) and Chemical Vapor Deposition (CVD) technologies in various industries. PVD, a type of PVD process known as Sputtering, is extensively used in the production of Micro electromechanical systems (MEMS), sensors for healthcare applications, and in-line sputtering systems for integrated circuit manufacturing and wafer fabrication. The electronics industry is a major consumer of sputtering equipment for the deposition of high purity films on electrical devices such as logic chips and convolutional neural networks used in Artificial Intelligence (AI) applications. The semiconductor industry also utilizes sputtering equipment for the production of nanoscope components in the manufacturing of smartphones, tablets, and other electronic devices. Aerospace is another significant end-user industry for sputtering equipment, where it is used for coating various components with high-performance films for improved durability and functionality. Additionally, the growing adoption of Virtual Reality (VR) and Gaming technologies is driving the demand for sputtering equipment in the production of high deposition rates and high-purity films for these applications. In conclusion, the Market is expected to continue its growth trajectory due to the increasing demand from various end-user industries such as electronics, healthcare, aerospace, and emerging technologies like AI, VR, and Gaming.
The growth of piezoelectric MEMS is the key factor driving global market growth. These MEMS, essential for various applications across electronics, automotive, aerospace, healthcare, and consumer electronics industries, are crafted using piezoelectric materials and manufactured through processes like wafer fabrication and integrated circuit manufacturing. With a surge in demand for nanoscopic components driven by the trend of miniaturization, the importance of thin film piezoelectric MEMS has escalated. These components offer superior performance, leveraging large linear forces and fast actuation at lower operating voltages, thereby enhancing accuracy and reducing voltage burden on integrated control electronics. Consequently, complexities within MEMS are minimized.
Moreover, these advancements have paved the way for a myriad of applications, including MEMS sensors and actuators for diverse electronic devices, vehicles, aerospace equipment, and medical tools. One significant driver for the adoption of thin film piezoelectric MEMS is the emergence of micromachined piezoelectric devices, offering groundbreaking opportunities at the micron level. For example, micromachined piezoelectric biosensors and transducers hold promise for revolutionizing healthcare diagnostics, enabling precise 3D ultrasound imaging of vascular systems. Hence, such factors are driving the market during the forecast period.
The growing demand for IoT devices is the primary trend in the global market. There is a tectonic shift in the semiconductor industry due to the exponential growth of the Internet of Things (IoT) market. Without semiconductor sensor technology, the existence of IoT cannot be imagined. Hence, the role of semiconductor inspection systems became more crucial to produce sensors of extreme quality. IoT technology enables the connected device to use sensors and actuators to collect, record, and transmit data to other computing devices on a real-time basis.
Moreover, the IoT enables the transfer of data over a network without the need for any human-to-human or human-to-computer interaction. The developments in telecommunication standards, such as 3G/4G/5G and wired communication standards, have accelerated the adoption of IoT devices. This will accelerate the development of multifunctional ICs compatible with all the networking standards and support higher bandwidth applications, resulting in an increasing demand for the equipment. Thus, the demand for the equipment will rise with the growing adoption of IoT devices during the forecast period.
The declining demand for CDs, DVDs, and Blu-ray discs is a major challenge to the global market growth. The equipment is used for the deposition of semi-transparent thin films of metal such as aluminum or gold during the fabrication of CDs, DVDs, and Blu-ray discs. Market companies use magnetron sputter for thin film deposition on CDs, DVDs, and Blu-ray discs. In this process, magnets are used behind the negative cathode to trap electrons over the negatively charged target material, thereby allowing for faster deposition rates. However, with the decrease in the demand for CDs, DVDs, and Blu-ray discs, the market is witnessing a slowdown in demand for magnetron sputtering, which is hindering the growth of the global market.
However, the decrease in the demand for CDs, DVDs, and Blu-ray discs is due to the proliferation of online streaming platforms, such as Netflix, Hulu, and Amazon Prime Video. Furthermore, with the increased popularity of cloud storage, people have shifted from physical media storage devices such as CDs and DVDs. The rising adoption of mobile computing devices such as smartphones and tablets has resulted in increasing online media consumption as these devices are portable. In addition, the easy availability of Internet services makes these devices a preferred choice for music streaming on the go. All these factors are leading to declining demand for CDs, DVDs, and Blu-ray discs, thereby negatively affecting the growth of the market during the forecast period.
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
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.
Angstrom Sciences - The company offers ONYX magnetron sputtering cathodes with complex multi-cathode cluster assemblies designed for system upgrades and retrofit applications. Also, under this segment, the company is involved in offering the supply of advanced magnetrons and refined materials for plasma vapor deposition with high-quality thin films.
This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The Market is witnessing significant advancements driven by Artificial Intelligence and Magnetron sputtering technology in Physical vapor deposition (PVD) methods. Industries such as electronics applications, solar energy, and display technologies are benefiting from innovations in Plasma control technologies and semiconductor applications. As demand grows for 5G networks and autonomous vehicles, electric vehicles are also leveraging thin film technology and renewable energy applications like thin-film solar cells. Challenges include the high initial cost and complexity of operation, amidst ongoing technical developments and global economic conditions influencing market dynamics. Environmental rules and competitive pressures are driving the need for energy-efficient coatings and sustainable materials in ornamental finishes and wear-resistant coatings. The market is navigating supply chain disruptions and exploring alternative technologies while ensuring protection of intellectual property across technology types and substrate types like metal, glass, ceramic, and plastic substrates used in flat panel displays, medical equipment, lenses, and mirrors.
The market encompasses a wide range of applications, from Micro Electromechanical Systems (MEMS) and sensors in healthcare to integrated circuit manufacturing and wafer fabrication in the electronics industry. In the realm of electronics, PVD plays a vital role in depositing high-quality thin films for electrical devices, including logic and artificial intelligence components. The market landscape depends on the Micro electromechanical system, memory segment, Architectural logicinmemory architecture, Perpendicular Nano Magnetic Logic, Next-generation manufacturing methods, FPNV Positioning Matrix, Business Strategy, Pathfinder, Customer Base, Competitive Nature, Fragmentation dominance, Amalgamation traits. These films are essential for the production of advanced electrical devices, such as convolutional neural networks used in smartphones and tablets. The semiconductor sector, driven by the increasing demand for high-performance components, is a significant contributor to the market. The aerospace industry also utilizes PVD technology for coating various components, while virtual reality and gaming industries leverage it for producing high-purity films. The market for PVD equipment is fragmented, with several players competing in the niche. Businesses are focusing on product satisfaction and the forefront of technology to gain a competitive edge. In-line sputtering systems and high deposition rates are key trends in the market, with package testing plants and supply chain optimization also playing important roles. Amalgamation and accumulation of traits from various industries are driving the growth of this market, making it a vital sector for the future.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.11% |
Market growth 2024-2028 |
USD 428.7 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.89 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 79% |
Key countries |
China, Taiwan, Japan, US, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Angstrom Science Inc., Applied Materials Inc., Buhler AG, Canon Inc., Denton Vacuum, Guangdong HuiCheng Vacuum Technology Co. Ltd., Impact Coatings AB, Intevac Inc., IZOVAC PHOTONICS, Kobe Steel Ltd., KOLZER SRL, Kurt J Lesker Co., OC Oerlikon Corp. AG, Semicore Equipment Inc., Singulus Technologies AG, Tokyo Electron Ltd., Ulvac Inc., Vacuum Techniques Pvt. Ltd., Veeco Instruments Inc., and Vergason Technology Inc. |
Market dynamics |
Parent market analysis, market research report , Market forecasting , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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