Exploring the Vapor Deposition Market: Trends, Forecasts, and Strategic Insights

Market Overview

The vapor deposition industry produced revenue of USD 48.2 billion in 2024, and it is estimated to experience a CAGR of 9.9% during the projection period, to attain USD 85.1 billion by the end of the decade. 

This has mainly led to the expansion of the semiconductor industry and the growth of the electronics and solar power industries, which are all rising significantly for the semiconductors used in cars. Besides, the medical devices industry is yet to space with the reasons of the LED and other consumer goods market. However, environmental directives keep developing as well.

As the ushering of the new technological era, the ever-growing semiconductor industry is the arrow at the quiver that will propel the vapor deposit industry growth. Semiconductors and their capabilities form the critical pillar of the flourishing medical devices, Automotive, and consumer electronics sectors, hence, smart cities can remain a reality. Accordingly, further semiconductor growth and innovative processes will automatically lead to a wider acceptance of better wafer fabrication techniques.

The next development in the semiconductor industry will come as an outcome of an increasingly built data-driven way of life, and better access to artificial intelligence techniques, the Internet of Things, and 5G. Also, ICs help formalize R&D processes to do a better job for guys in the actual industry by making products more efficient and sophisticated in devices. Strategically placed ICs allow to production devices of lightweight, high-performance, and overall smart. There has been a great expansion in the electronics sector which has affected the revenue industry in the semiconductor sector over the last few years.

Key Insights

• In 2023, the chemical vapor deposition category had a substantial industry share of 70% and is projected to uphold supremacy.
• Fast improvements in CVD technology are propelling its acceptance throughout numerous applications, with a robust emphasis on the semiconductor & electronics industry.
• Increased usage of CVD is observed in industries like aerospace and medical devices due to its capability to deposit various metal precursors, dielectric compounds, and silicon precursors.
• On the one hand, a physical vapor deposition (PVD) is predicted to show a higher growth rate with a CAGR of 10% over the forecast period.
• PVD (physical vapor deposition) processes are the most widespread for coating tools and parts, thus increasing their functionality and aesthetics.
• The increased uptake of PVD technology in the semiconductor and consumer electronics sectors provides the market for equipment and coating materials vendors.
• PVD technique involves the utilization of coatings for spectacles, self-cleaning and tinted windows, display devices, electronic chips, communication equipment, and solar panels.
• In 2023, the equipment & film coating category had a substantial revenue share of 30% and is estimated to preserve dominance.
• This dominance can be credited to the growing need for finishing on semiconductor substrates.
• The growth in demand for these coatings is driven by their ability to enhance the appearance and durability of semiconductor substrates.
• Additionally, vapor deposition coatings offer protection from various environmental factors, contributing to their widespread adoption in the industry.
• In 2023, the APAC region accounted for around 60% of the vapor deposition industry and is poised for robust development with a strong CAGR over the estimated period.
• The scale of manufacturing activities in automobile, semiconductor, and solar PV module industries in this region has a considerable contribution to its market leadership.
• The intense growth in the electronic and electrical industry, especially in microelectronics and displays of smartphones, TVs, and PCs, outweighs the prospects of market development.
• Government programs that are tailored to the manufacture of sophisticated electronic components at home are meant to leverage costly imports which in turn will increase local markets.

Source: P&S Intelligence