Global Physical Vapor Deposition Market to Grow at a CAGR of 5% During 2020 –2030

Introduction

PVD is a thin film deposition process that creates coatings of pure metals, alloys, and ceramics with thicknesses ranging from 1 to 10 m. Physical vapour deposition technology is a technique that involves evaporating and condensing the base material to generate a thin coating layer on an object. Raw material used in the PVD process includes titanium, titanium carbonitride, nitrogen, aluminum, and zirconium nitride. Coatings comprise ceramics or metals, usually nitrides, oxides, and carbides.

Following are the technologies used for PVD

• Thermal Evaporation
• Sputtering
• Ion Plating

The growth in the demand for medical devices in countries such as Germany, Italy, the UK, and France is, in turn, expected to drive the PVD market over the forecast period. Moreover, robust medical infrastructure, coupled with the presence of large pharmaceutical multinationals, is likely to spur the demand for medical devices in the market.

The significant market share is occupied by key players, including Veeco Instruments Inc., Applied Materials, Inc., and Angstrom Engineering Inc., among others. The competitors are experiencing rapid growth owing to the high market demand and huge investments in research and development.

Market Dynamics

The rise in Applications of Metal Substrates to Drive Physical Vapor Deposition Market

Metals are chemical elements found in nature and are often hard, shiny, and opaque, as well as have great electrical and thermal conductivity.PVD coating aids in the production of metal vapors (chromium, titanium, and aluminum), which are deposited as thin, strongly adherent pure metal or alloy coatings on the metal substrate. Most metals and alloy substrates can be coated with PVD coatings, while some materials require a base layer of chromium and nickel to improve corrosion resistance and endurance.

Metals and their alloys are used in practically every industry today, from construction to electronics, arms and ammunition, machinery and equipment, refractories, automobiles, jewelry, decorative items, medical devices, furniture, and safes and locks.

As a result of the wide range of metal substrate applications, there is a high demand for PVD coating on metal substrates.

Rise in Demand for Data StorageGenerate New Opportunities

The manufacturing of a magnetic disc, a crucial component of hard disc drives, is done by physical vapor deposition (sputtering). Data storage demand has increased due to increased digitalization and the introduction of big data, artificial intelligence, and the internet of things. PVD demand in data storage is predicted to increase due to the considerations mentioned earlier.

In recent decades, plating and other coating methods have been phased out in favor of more cost-effective and environmentally friendly thin film coating techniques. PVD services, which are used to provide efficient coatings for storage devices found in notebooks, desktops, laptops, mobile phones, and tablets, accounted for 23.6 percent of the global PVD market in 2019. To make a magnetic disc, physical vapor deposition (sputtering) is used.

Impact of COVID-19

In response to the COVID-19 pandemic, the governments of the affected countries restored social distancing and lockdowns, which impacted the global supply chains. Stringent measures have been taken by the governments to minimize the loss of life and cut down on the transmission of the virus. In addition, the pandemic resulted in a major economic crises across the globe.

Financial support by governments, concerted health policies, and vaccination campaigns are anticipated to boost the global GDP growth by 4.2% in 2021, post a decline of 4.2% in 2020. Deployment of vaccines at a faster rate is expected to boost confidence and support the pickup; however, problems in controlling the virus limited the market growth. The supply chains of essential components and finished products were severely disrupted by compulsory quarantines, lockdowns, and a lack of raw materials & labor. Restrictions in movements between countries and regions interrupted the connectivity between regional warehouses.

The COVID-19 pandemic has augmented the growth of PVD in the medical device industry on account of the increasing number of patients infected by the virus. The demand for testing kits and in-vitro diagnostic products during the pandemic has boosted the growth of the medical device industry. In line with the increased demand for the aforementioned products, various medical device manufacturers including Roche Diagnostics, Abbott Laboratories, and Thermo Fisher Scientific obtained Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for diagnostic tests to boost production for alleviating the testing kit shortages.

Regional Insights

The physical vapor deposition market is segmented into four regions: North America, Europe, Asia-Pacific, Middle East & Africa, and Central and South America.

Asia-Pacific is the fastest-growing physical vapor deposition market. The Asia-Pacific Physical Vapor Deposition market is predicted to be worth USD 15,226 million by 2030, growing at a 5% CAGR. Asia-Pacific dominated the global market. This is owing to the high demand for PVD coatings from solar PV and medical equipment production industries. Increasing the use of PVD coatings for automotive engine parts such as gears, piston pins, piston rings, and train valves in order to reduce engine wear & tear and enhance its performance is expected to stimulate the demand for PVD in the region over the forecast period.

In North America, the solar power generation industry is growing tremendously. The majority of the growth is attributed to the U.S., owing to various policies and initiatives to support solar power generation in terms of operations and price exemptions. The demand for physical vapor deposition (PVD) in the U.S. is majorly generated by the growing medical equipment industry owing to the rising elderly population in the country. The adoption of advanced PVD techniques such as magnetron sputtering is expected to positively impact market growth. Biocompatibility, optical clarity, and cost-effective production methods are expected to drive product demand in the medical device industry.

Key Highlights

• The physical vapor deposition market was valued at USD 19,448 million in 2021 and is anticipated to generate USD 30,525 million  by 2030. The market is expected to register growth at a CAGR of 5% during the assessment period. 
• Based on technology the thermal evaporation segment is expected to generate USD 13,774 million by 2030 at a CAGR of 4% 2030.
• By category, the physical vapor deposition (PVD) equipment segment is expected to generate USD 17,713 million at a CAGR of 4%by 2030.
• On the basis of application, the microelectronics segment was the highest contributor to the market and is estimated to reach USD 11,358 million by 2030, at a CAGR of 4.4%.   

Competitive Players

 

Recent Developments

Market News

• In May 2020, Impact Coatings AB established an agreement with NET-Dalian Nuohao Lianheng Electronic Technology Co. Ltd to provide service to coating system customers. NET would handle first-line support, maintenance, and distribution of consumables and spare parts for Impact coating’s customers in China. The agreement is expected to help Impact Coatings AB to expand their customer base in China for coating systems.
• In December 2019, Kurt J. Lesker Company allied with Hitachi High Technologies America, Inc to distribute its product PVD 75 and PVD 200 which is a thin film deposition system in Japan which allowed the company to expand into Japan.

Segmentation

Global Physical Vapor Deposition Market: Segmentation

By Technology

• Thermal Evaporation
• Sputtering
• Io Plating

By Category

• PVD Equipment
• PVD Materials
• PVD Services

By Application

• Microelectronics
• Data Storage
• Solar Products
• Cutting Tools
• Medical Equipment
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Central and South America
• Middle East & Africa