Global Semiconductor Chemical Vapor Deposition (CVD) Equipment Market to Grow at a CAGR of 8.6% by 2031

Introduction

Chemical vapor deposition, sometimes known as CVD, is a vacuum deposition process typically used to make high-quality, high-performance solid materials. They are extensively utilized in the semiconductor sector to make thin sheets. Typically, these materials have a high purity level and are tougher than other materials. They are utilized in numerous applications, including electronics, catalysis, and coatings.

The growth of the semiconductor industry, the demand for electronics among the population, the investment in semiconductor equipment, the technological advancement and development of CVD equipment, and the increase in environmental regulations regarding Cr6 are the significant factors, among others driving the market growth of chemical vapor deposition (CVD) equipment. In addition, a rise in the demand for photovoltaic cells, an increase in the number of end-user industries in developing nations, and an increase in the market's research and development activities will generate new opportunities for the chemical vapor deposition (CVD) equipment market.

Market Dynamics

Increase In Demand For Microelectronics And Semiconductor Devices to Drive the Global Semiconductor Chemical Vapor Deposition (CVD) Equipment Market

Semiconductors are integrated into complex microelectronic circuits and provide cost-effective high-computing operations control, data processing, storage, input/output management, sensing, wireless connectivity, enhanced efficiency, and power management. Rapid innovation has allowed the semiconductor industry to produce exponentially more sophisticated devices at a lower price. In addition, dramatic changes in consumer behavior over the past year have shifted the world's emphasis toward technology. In reaction to pandemic-driven constraints, the demand for devices and infrastructure to enable the new work- and learn-from-home settings grew significantly.

Governments and business stakeholders closely monitor microelectronics developments because these technologies can potentially disrupt and propel the Internet of Things market. Due to the increased prevalence of virtual reality and augmented reality gadgets, R&D for microelectronics may increase in tandem with the looming bandwidth crisis.

Multiple Research Activities to Provide Opportunities for the Global Semiconductor Chemical Vapor Deposition (CVD) Equipment Market

The market is characterized by numerous research efforts, which motivates several vendors to invest in CVD. The direct synthesis of highly oriented monolayer graphene on sapphire wafer layers was recorded by Zhaolong Chen and an international research team in nanochemistry, intelligent materials, and physics from China, the United Kingdom, and Singapore in the December 2021 issue of Advances. By constructing a high-temperature electromagnetic induction CVD, the research team was able to achieve a development approach. This process yielded a graphene layer with dramatically improved carrier mobility and decreased sheet resistance.

In addition, Agnitron developed, in July 2020, a method for synthesizing the gallium oxide semiconductor by Metal-Organic Chemical Vapor Deposition utilizing the dual-use Agilis machine (MOCVD). In addition, the approach permits the substitution of other materials as required. All such research activities offer tremendous market expansion possibilities.

Regional Insights

By region, the global semiconductor chemical vapor deposition equipment market is segmented into North America, Europe, Asia Pacific, and the Rest Of The World. 

Asia-Pacific dominated the market share and is estimated to register a CAGR of 9.1% during the forecast period. Increasing demand for electric vehicles is anticipated to fuel the rapid rise of the APAC automotive semiconductor sector. Automobile manufacturers must continue inventing, building, and developing self-driving vehicles, attracting a substantial number of buyers in important automotive manufacturing nations. Due to its vast population, India has emerged as one of the fastest-growing economies in the world. According to forecasts, the market for automotive semiconductors in the country will expand substantially over the next few years. The automotive industry is supported by a robust semiconductor R&D infrastructure, creating new opportunities for the Indian semiconductor etch market in the following years.

North America is the second largest region. It is estimated to reach a predicted value of USD 3 billion by 2031, registering a CAGR of 6.9%. As trade tensions and national security concerns continue to escalate in the North American region, the United States is devising new methods to prevent slipping farther behind Korea, Taiwan, and China in chip manufacturing. North America's expanding electronics industry and semiconductor-based solutions are set to move the industry forward. Among other semiconductor categories, deposition equipment creates copper electrodes, High-K dielectric gate stacks, and copper barrier/seed layers. The increased demand for electronic components in the automotive industry is anticipated to increase semiconductor demand, which will significantly affect the chemical vapor deposition market. For decades, American companies have been at the forefront of inventing CPUs that power modern electronics. The United States semiconductor dominance is a fundamental contributor to the country's economic and technological success. The United States semiconductor industry has retained its global leadership in crucial future technologies like artificial intelligence (AI), quantum computing, and advanced wireless networks such as 5G. The rising demand for semiconductor chips will directly influence demand for CVD machines and equipment in the region due to the advancement of future technologies.

Europe is the third largest region. Europe is home to numerous big and medium-sized semiconductor enterprises, including Philips Semiconductor, STMicroelectronics, and Infineon Technologies, the continent's three largest semiconductor manufacturers. As global dependence on technology increases, the potential market for semiconductor manufacturers and merchants will continue to grow, as will the market for chemical vapor deposition in Europe. European Union is considering constructing an advanced semiconductor factory in Europe to reduce its reliance on the U.S. and Asia for technology at the core of its most important sectors. The EU investigates methods to manufacture semiconductors with features smaller than 10 nanometers and, eventually, 2 nanometers. The objective is to reduce reliance on countries like Taiwan for semiconductors that power 5G wireless systems, linked autos, and high-performance computing, among other applications. TSMC's most profitable customers, such as Apple, are headquartered in the United States, but its European customer base consists primarily of automakers purchasing less-advanced chips. Europe and the Middle East accounted for only 6% of TSMC's revenue in the first quarter of 2021, considerably surpassed by 67% of sales from North America and 17% from Asia Pacific. In addition, the market growth rate is anticipated to be impacted by the increasing investments in the country.

Key Highlights

• The global semiconductor chemical vapor deposition equipment market was 13 billion in 2022. It is estimated to reach a predicted value of USD 27 billion by 2031, registering a CAGR of 8.6% during the forecast period (2022-2031).
• By application, the global semiconductor chemical vapor deposition equipment market is segmented into Foundry, Integrated Device Manufacturer (IDM), and Memory Manufacturers. The Integrated Device Manufacturer (IDM) segment dominated the market and is estimated to register a CAGR of 9% during the forecast period. 

Competitive Players

1. Aixtron Se
2. Applied Materials, Inc
3. Asm International
4. CVD Equipment Corporation
5. Oxford Instruments Plc
6. Lam Research Corporation
7. Tokyo Electron Limited
8. Ulvac Inc
9. Veeco Instruments Inc

Recent Developments

• June 2024 - At the International Congress on Far-UVC Science and Technology 2024 (ICFUST) at St Andrews University in Scotland, Silanna UV introduced a 235nm quad high-power far-UVC LED. With a peak wavelength of 235 nm and a small LED package, the SF1-3M1FWL1 is a high-power, far-UVC emitting device that opens a wide range of new applications and potential markets.
• January 2024 - Together, scientists from Beijing Graphene Institute, Soochow University, and Xiamen Silan Advanced Compound Semiconductor Co., Ltd. developed an extensive review that offers a methodical overview of the development and potential applications of graphene as a buffer layer for nitride epitaxial growth.

Segmentation

1. By Application
   1. Foundry
   2. Integrated Device Manufacturer (idm)
   3. Memory Manufacturers
2. By Product Type
   1. Atmospheric-pressure chemical vapor deposition (AP CVD)
   2. Density-plasma chemical vapor deposition (DP CVD)
   3. Low-pressure chemical vapor deposition (LP CVD)
   4. Metal-organic chemical vapor phase deposition (MO CVD)