July 21, 2024

Increasing Demand for Thin Films in Microelectronics to Boost the Growth of Physical Vapor Deposition Market

Physical Vapor Deposition is a vacuum coating process used to deposit thin films by the condensation of a vaporized form of the material onto various type of substrates. In the PVD process, the material to be deposited is vaporized by different deposition techniques such as sputtering, evaporation, and arc vaporization. The main advantages of PVD coatings are its ability to coat intricate parts uniformly and create ultra-hard thin films. PVD coatings are used in various applications such as microelectronics, data storage, cutting tools, medical equipment, decorative applications and solar products.

The global Physical Vapor Deposition Market is estimated to be valued at US$ 18.9 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the physical vapor deposition market is significant increase in demand for PVD coatings from the microelectronics industry. The continuous miniaturization of electronic components has increased the demand for PVD coatings for various applications such as wear and corrosion resistant coatings on machine components, decorative coatings, and tribological coatings. PVD coatings are used extensively in the fabrication of various microelectronics components including semiconductors, flat panel displays, and data storage devices owing to its ability to deposit ultra-thin and uniform films. Increasing adoption of PVD coatings by medical device manufacturers is also expected to drive the market growth over the forecast period.

Porter’s Analysis

  • Threat of new entrants: The physical vapor deposition market requires high initial investment for setting up manufacturing plants and R&D facilities which pose entry barriers for new players.
  • Bargaining power of buyers: The market has a fragmented customer base with no single customer accounting for major share. Hence bargaining power of buyers is moderate.
  • Bargaining power of suppliers: The suppliers of raw materials such as sputtering targets and evaporation materials have limited bargaining power due to availability of substitute materials.
  • Threat of new substitutes: There exists a threat from new thin film deposition techniques such as atomic layer deposition and chemical vapor deposition which can be used for certain applications.
  • Competitive rivalry: The market is consolidated with few global players having major share.

Key Takeaways

The global physical vapor deposition market is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period 2023 to 2030, due to increasing demand for PVD coatings in microelectronics and automotive industries. The market size for 2023 is estimated to be US$ 18.9 Bn.

North America dominates the physical vapor deposition market globally, owing to high demand from semiconductor industry in the region. Asia Pacific physical vapor deposition market is expected to exhibit fastest growth during the forecast period with China, Japan, India being the major markets.

Key players operating in the physical vapor deposition market are Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG. The market is dominated by few global players with others having comparatively low market share.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it