Physical vapor deposition (PVD) is a versatile process used to deposit thin films of desired material onto a substrate to enhance its functional properties. It involves vaporizing, transporting, and condensing a material deposited onto a substrate in a vacuum chamber. The process finds wide ranging applications in the fabrication of data storage disks, architectural and decorative coatings, tools and cutting dies, mechanical parts, and electronics parts due to its ability to deposit thin films with tight control over composition and thickness. The global physical vapor deposition market is estimated to be valued at US$ 18.09 Billion 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.
Physical vapor deposition is used in the fabrication process of microelectronics and semiconductors components offering enhanced control over deposition. PVD plays a vital role in the shrinking of electronic devices by enabling deposition of atomically-thin layers. It is also used in applications such as hard coatings on cutting tools, architectural coatings and decorative coatings owing to its ability to impart properties such as hardness, heat resistance and oxidation resistance. Increasing applications of PVD coatings in automotive components and architectural applications is expected to propel market growth over the forecast period. The demand is further expected to surge with the evolution of technologies such as 5G networks and artificial intelligence which will require more sophisticated semiconductor chips and components.
Market key trends:
The physical vapor deposition market is witnessing increasing adoption of multi-target PVD systems which allow for simultaneous deposition of multiple thin film layers to achieve desired material properties. These systems provide enhanced productivity by reducing process times. Emergence of industry 4.0 is also driving demand for smart and connected PVD equipment integrated with advanced process monitoring and control capabilities for improved performance and quality. Commercialization of atomic layer deposition (ALD) integrated PVD systemscombining ALD and PVD in a single platform is expected to further accelerate market growth by enabling fabrication of next-generation miniaturized devices with ultra-thin film applications.
Threat of new entrants: The high capital costs and technical expertise required to manufacture PVD equipment pose a significant barrier to entry. Bargaining power of buyers: The physical vapor deposition market has many buyers from industries like microelectronics, data storage, cutting tools, and medical equipment industry. This increases the bargaining power of buyers. Bargaining power of suppliers: Key raw materials for PVD coatings include metals and gases. As supplies are easily available, bargaining power of suppliers remains low. Threat of new substitutes: There exists limited threat from substitutes as PVD coatings offer unparalleled properties like wear resistance, corrosion protection and visual appearance that cannot be replicated easily. Competitive rivalry: Being a fragmented market, rivalry among existing players is high to gain higher market share. Players compete on parameters like process innovation, quality, and price.
The global physical vapor deposition market is expected to witness high growth.
Regional analysis: Asia Pacific physical vapor deposition market is projected to grow at the fastest pace during the forecast period. Growing electronics and automotive industries in China, South Korea, Japan and Taiwan will drive the regional market. The availability of relatively cheaper labor and raw materials makes Asia Pacific an attractive investment destination for key PVD players.
Key players: 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. Players are focusing on new product launches and expansion strategies to reinforce their market position.