The Global Semiconductor Production Equipment Market size is expected to reach $153.8 billion by 2028, rising at a market growth of 9.2% CAGR during the forecast period.
Semiconductor production equipment is used to manufacture memory chips, semiconductor circuits, and other components. The ability of free electrons to easily move between atoms in semiconductors allows the free flow of electricity through them. This ability makes semiconductors ideal for designing and developing compounds like wafers, integrated circuits, diodes, etc., used in many electronic devices and systems.
The semiconductor industry is expanding quickly, which is helping to boost sales of modern semiconductor production equipment and propel the market upward. Consumers' rising desire for electronic gadgets drives the demand for chips, which is anticipated to indirectly raise the requirement for semiconductor production equipment. The demand for consumer electronics is rising globally, which can be linked to the growing necessity for user-friendly electronic products as well as the expanding residential sector. For example, MEMS, optoelectronics, and MOEMS devices are used in the mass manufacturing of electronic items, including wearables, smartphones, and white goods.
Due to the delicate nature of semiconductor processing, precise supervision of automated steps, including cutting, drying, washing, etching, and assembly, as well as total control over working parameters like temperature and humidity, are required. A solution for improved control of these parameters, along with other automated processes, and the environment where semiconductors are made, is provided by semiconductor production equipment. Semiconductor production equipment provides numerous advantages like improved production, greater output & dependability, fewer production & design errors, decreased process & equipment downtime, and enhanced workplace security.
The pandemic had a negative impact on the semiconductor production equipment market. During the COVID-19 pandemic, the electronics industry suffered adversely, as the pandemic also created a significant shortage in the semiconductor supply chain. Due to the COVID-19 lockdown, numerous semiconductor sector components could not be produced, which led to a shortage of semiconductors worldwide. In addition, end-users of semiconductors originally cut back on their production equipment purchases due to the recession. After the decline in cases, several businesses have displayed considerable indications of recovery.
The increasing demand for semiconductor chips from producers of consumer electronics, medical devices, and sensor systems is driving the rise of the semiconductor business. Since more people are using consumer electronics like cell phones, laptops, televisions, and other devices, the industry is growing. The need for production equipment is expected to rise because semiconductors are crucial to many sectors related to consumer electronic products, including telecommunications, information technology, machine automation, power & solar photovoltaic, and others. Rising digital content and improved connectivity, as well as mobility in the coming years, will further promote market expansion.
The automotive industry continues to be a significant source of demand as well as a source of potential for semiconductor vendors, despite recent recessions and demand variations. Trends like the rise in demand for autonomous & electric vehicles and the increasing number of semiconductor components per vehicle are key motivators for semiconductor manufacturers. As more semiconductor components, such as sensors, microcontrollers, and radar chips, are utilized in automobiles, the market for semiconductor production equipment expands.
The supply chain for the semiconductor production equipment market has a large number of participants. However, the coronavirus pandemic significantly hindered the market's supply chain. The locations of semiconductor production plants must be in tidy areas. Moreover, there should be no flaws in the equipment supplied for making semiconductors. Most importantly, semiconductor equipment is expensive and requires a significant upfront investment. Machine price volatility is anticipated to impede market expansion.
On the basis of dimension, the semiconductor production equipment market is fragmented into 2 dimension, 2.5 dimension, and 3 dimension. The 2 dimension segment acquired a substantial revenue share in the semiconductor production equipment market in 2021. The 2 dimension semiconductors allow reduced length as well as reusability, which further reduces time and system cost. This aspect is causing the segment for equipment used in 2D semiconductor fabrication to grow more quickly.
Based on supply chain process, the semiconductor production equipment market is categorized into IDM, OSAT, and foundry. The OSAT segment procured a considerable growth rate in the semiconductor production equipment market in 2021. OSAT (Outsourced semiconductor assembly and test) companies provide test services as well as third-party IC packaging. These companies’ test and package silicon products made by foundries before putting them on the market.
On the basis of product type, the semiconductor production equipment market is divided into front-end equipment and back-end equipment. The front-end equipment segment acquired the largest revenue share in the semiconductor production equipment market in 2021. All of the manufacturing tools used to produce semiconductors are included in the front-end equipment. The rising demand for chips that are highly efficient and dense for use in IoT devices, CPUs, GPUs, and other devices is partially responsible for the expansion of the segment.
Based on function, the semiconductor production equipment market is segmented into integrated circuits and OSD. The integrated circuits (ICs) segment witnessed the maximum revenue share in the semiconductor production equipment market in 2021. An Integrated Device Manufacturer (IDM) oversees each step of the production and sales processes in the semiconductor industry. IDMs help reduce costs, maintain the optimum operation of manufacturing plants, and aid in the development of market strategies. These benefits of IDMs are attributed to the growth of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 83.8 Billion |
| Market size forecast in 2028 | USD 153.8 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 9.2% from 2022 to 2028 |
| Number of Pages | 255 |
| Number of Tables | 423 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Dimension, Supply Chain Process, Product Type, Function, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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On the basis of region, the semiconductor production equipment market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region recorded the largest revenue share in the semiconductor production equipment market in 2021. The region's sizable semiconductor industry, which benefits from the demand for semiconductors, is responsible for the segment's rise. This has a favorable impact on the prognosis for the market for semiconductor production equipment in the region.
Free Valuable Insights: Global Semiconductor Production Equipment Market size to reach USD 153.8 Billion by 2028
The major strategies followed by the market participants are Acquisition. Based on the Analysis presented in the Cardinal matrix; Applied Materials, Inc., ASML Holdings N.V., Lam Research Corporation and KLA Corporation are the forerunners in the Semiconductor Production Equipment Market. Companies such as Carl Zeiss AG, Teradyne, Inc. and Screen Holdings are some of the key innovators in Semiconductor Production Equipment Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Alsil Material, ASML Holdings N.V., SCREEN Holdings Co., Ltd., Teradyne, Inc., Applied Materials, Inc., Veeco Instruments, Inc., KLA Corporation, Nikon Corporation, Carl Zeiss AG, and Lam Research Corporation.
By Dimension
By Supply Chain Process
By Product Type
By Function
By Geography
The global Semiconductor Production Equipment Market size is expected to reach $153.8 billion by 2028.
Growing demand for consumer electronics worldwide are driving the market in coming years, however, High costs of machines and interruptions to the supply chain restraints the growth of the market.
Alsil Material, ASML Holdings N.V., SCREEN Holdings Co., Ltd., Teradyne, Inc., Applied Materials, Inc., Veeco Instruments, Inc., KLA Corporation, Nikon Corporation, Carl Zeiss AG, and Lam Research Corporation.
The IDM market acquired maximum revenue share in the Global Semiconductor Production Equipment Market by Supply Chain Process 2021, achieving a market value of $90 billion by 2028.
The Asia Pacific market dominated the Global Semiconductor Production Equipment Market by Region 2021, achieving a market value of $62.3 billion by 2028.
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