by The semiconductor equipment market comprises manufacturing equipment and process tools that are utilized in the fabrication of semiconductor devices. With miniaturization of electronic devices and increasing demand for powerful yet energy-efficient chips across industries like automotive, consumer electronics and data centers, new generations of semiconductor fabrication technologies are being developed. Equipment used for lithography, etching, thin film deposition and metrology play a vital role in semiconductor manufacturing.
The Global Semiconductor Equipment Market is estimated to be valued at US$ 95.97 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the semiconductor equipment 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 key players are focusing on developing innovative chip design technologies like EUV lithography, multi-beam lithography and directed self-assembly to enable manufacturing of more powerful yet compact Semiconductor Equipment Market Demand The growing demand for autonomous vehicles and IoT devices is prompting manufacturing of specialized chips for applications in ADAS, infotainment and connectivity. This is opening up opportunities for equipment manufacturers to supply tools customized for fabrication of such application-specific chips. Advancements like multi-beam inspection, in-situ metrology and hybrid metrology are helping improve process control and yield in semiconductor fabrication.
Market Drivers
The key driver for the semiconductor equipment market is the rising demand for semiconductors from a wide range of industries like consumer electronics, automotive, data centers, communication equipment and others. Miniaturization of chips and transition to more advanced process nodes below 7nm is prompting semiconductor manufacturers to invest heavily in latest fabrication tools and technologies. Continued digitization of economies, proliferation of connected devices and rising adoption of advanced technologies like AI, 5G, autonomous vehicles and IoT are fueling worldwide semiconductor consumption. This in turn is driving the need for more semiconductor manufacturing capacity and thereby boosting procurement of semiconductor equipment.
Current Challenges in Semiconductor Equipment Market
The Semiconductor Equipment Market is facing several challenges currently which are hampering its growth. Rapid changes in technology has reduced the lifecycle of equipment. Frequent upgradation has increased R&D and maintenance costs significantly for manufacturers. Supply chain disruptions due to COVID-19 pandemic affected the availability of raw materials and components. Rise in geopolitical tensions between major countries have impacted global trade. Talent crunch is another issue as it is difficult to recruit and retain skilled workforce. Strict environmental norms have increased compliance burden on companies.
SWOT ANALYSIS
Strength: Growing demand for semiconductors from various end-use industries like automotive, consumer electronics provides ample opportunities.
Weakness: High initial investment and long replacement cycles increases risk for equipment vendors.
Opportunity: Emerging technologies such as AI, IoT, 5G adoption will propel growth in the long run.
Threats: Threat from used and refurbished equipment market which offers equipment at lower costs.
Geographical Regions
In terms of value, the semiconductor equipment market is highly concentrated in Asia Pacific region primarily due to presence of large semiconductor fabrication facilities in countries like Taiwan, South Korea, China and Japan. North America is another major region driven by demanding aerospace and defense sectors in the US.
The semiconductor equipment market is expected to witness fastest growth in Asia Pacific region during the forecast period supported by ongoing expansion of foundries and fabs. Rising investments in this sector by China to reduce reliance on imports will drive the region’s market. Government incentives and subsidies are encouraging more semiconductor manufacturing units to set up facilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
