by Semiconductor equipment play a vital role in the manufacturing of microchips that are used in a wide range of electronic devices. The demand for semiconductor equipment has increased tremendously over the past few years owing to the rising consumption of smartphones, laptops, gaming consoles, and other consumer electronics. Semiconductor equipment such as deposition equipment, lithography equipment, etching equipment, and crystal growing equipment are used at various stages of wafer production to manufacture semiconductor devices of miniaturized sizes with higher performance capabilities.
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 key trends:
One of the key trends in the semiconductor equipment market is the shift towards extreme ultraviolet (EUV) lithography technology. EUV lithography equipment is capable of printing transistor patterns with dimensions of less than 10 nanometers. This technology allows for higher transistor density and more powerful microchips. Semiconductor manufacturers are heavily investing in EUV lithography tools in order to meet the demand for more powerful and energy-efficient computing devices. For instance, in 2023, market leaders such as ASML, Nikon, and Canon are expected to deliver over 100 EUV lithography machines to major chipmakers including Intel, Samsung, and TSMC. Another major trend is the growing adoption of equipment for compound semiconductors manufacturing which are ideal for high-power applications. Compound semiconductors such as gallium nitride (GaN) and silicon carbide (SiC) enable manufacturing of highly efficient power electronics for EVs and renewable energy systems. This is expected to open new growth avenues for semiconductor equipment vendors over the coming years.
Porter’s Analysis
- Threat of new entrants: The semiconductor equipment market requires significant upfront investments in R&D and manufacturing facilities which acts as a barrier for new companies.
- Bargaining power of buyers: Large semiconductor manufacturers have significant bargaining power over equipment suppliers due to their high purchase volume.
- Bargaining power of suppliers: The presence of few large global players like Applied Materials and Lam Research limits the bargaining power of suppliers in the market.
- Threat of new substitutes: There exists limited threat from new substitutes due to ongoing technological advancements and new applications that require constant updates in semiconductor equipment.
- Competitive rivalry: Being a highly concentrated market with few global players, the competitive rivalry is high in the semiconductor equipment market.
Key Takeaways
The Global Semiconductor Equipment Market Demand is expected to witness high growth over the forecast period.
Regionally, Asia Pacific dominates the market currently due to presence of leadings semiconductor manufacturers in countries like China, South Korea and Taiwan. The region is also expected to witness fastest growth through 2031.
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. Their focus on new product launches and expansions would aid the growth of semiconductor equipment market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
