by Semiconductor equipment includes devices, tools, and systems used to manufacture devices like integrated circuits, memory chips and sensors. The semiconductor industry designs and manufactures these tiny silicon chips which act as the ‘brains’ behind numerous electronic devices. Semiconductor equipment are used in various fabrication processes like lithography, etching, thermal diffusion, ion implantation and thin-film deposition to precisely engineer semiconductors at the nanoscale. As semiconductor technology powers almost all modern electronic products like smartphones, computers, internet of things devices and automobiles, the semiconductor industry is experiencing steady growth globally. This growth is creating immense demand for semiconductor equipment to ramp up production volumes.
The global semiconductor equipment market is estimated to be valued at US$ 95.97 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Semiconductor Industry (refered from heading) – As mentioned earlier, semiconductors have become integral to numerous industries and emerging technologies. The automobile industry for instance is heavily investing in developing electric and autonomous vehicles which rely on large number of microchips for functions like battery management, infotainment systems, autonomous driving features etc. Similarly, technologies like 5G networks, artificial intelligence, virtual/augmented reality and internet of things are driving demand for more powerful and smarter semiconductors. This sustained growth of end use industries is propelling the global semiconductor industry which in turn is fueling demand for advanced semiconductor manufacturing equipment.
Advancements in Semiconductor Fabrication Processes – Continuous technological innovations are helping semiconductor equipment manufacturers build tools with improved resolution, throughput and reliability. Developments like EUV lithography, 3D chip stacking, advanced metrology systems and new deposition techniques are allowing fabrication of smaller, more powerful and energy efficient chips. Semiconductor foundries are aggressively investing in next generation tools to maintain their process technology leadership. This upgradation cycle among foundries represents a key driver for the semiconductor equipment market.
Segment Analysis
The semiconductor equipment market is primarily segmented into Wafer Manufacturing Equipment, Assembly & Packaging Equipment, Test Equipment and Others. Among these, Wafer Manufacturing Equipment dominates the market with over 40% share owing to continuous rise in demand for silicon wafers across industries. Wafer manufacturing equipment including wafer processing equipment like CMP equipment, deposition equipment, lithography equipment etc. see high demand as microchips require silicon wafers as raw material.
PEST Analysis
- Political: The governments across regions are introducing various initiatives and policies to boost local semiconductor industries. For instance, the US and EU governments are investing heavily to reduce dependence on Asian countries for chip manufacturing.
- Economic: The global economy’s dependence on semiconductors makes the market favorable despite economic challenges. The increasing digitization across industries will drive more demand.
- Social: Population growth and rapid urbanization are boosting demand for electronics. Social media usage and video streaming also fuel the need for more advanced chips in devices.
- Technological: Advances in 5G networks, AI, IoT, autonomous vehicles etc are driving innovation in chip design. Miniaturization of chips through developments like extreme ultraviolet (EUV) lithography also propels the equipment market.
Key Takeaways
The Global Semiconductor Equipment Market Size is expected to witness high growth at a CAGR of 12% during the forecast period of 2024 to 2031.
Regional analysis shows that Asia Pacific dominates with over 50% share led by countries like China, Taiwan, South Korea and Japan having a strong presence of chip manufacturers. North America and Europe are other major regions driven by growing fabless chip design companies.
Key players operating in the semiconductor equipment market are Northrop Grumman Corporation, BAE Systems, Lockheed Martin Corporation, Clearpath Robotics Inc., John Bean Technologies Corporation, ECA Group, Israel Aerospace Industries Ltd., Endeavor (Now a part of FLIR system), Harris Corporation, and General Dynamics. The market is consolidated with top players focusing on developing technically advanced equipment needed for the latest nodes. Strategic partnerships between foundries and equipment manufacturers also propels innovation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
