Semiconductor equipment plays a vital role in the manufacture of integrated circuits that are used across various industries including electronics, automotive, medical, communication and many more. Semiconductor equipment consists of test and measurement equipment, deposition equipment, etching and stripping equipment, ion implantation equipment, thermal processing equipment and lithography equipment used at various stages of IC manufacturing process.Rising demand for consumer electronic devices such as smartphones, laptops, wearables and other electronic gadgets has been a major growth driver for semiconductor equipment market. With technological advancements such as 5G connectivity, Internet of Things(IoT), electric vehicles and hybrid/electric vehicles gaining traction, the need for semiconductors has increased substantially. The global semiconductor equipment market is driven by the requirement of high performance semiconductors across these growing application areas.
The global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 6.0% 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 semiconductor equipment market is the transition towards new device architectures with advanced technology nodes of 7nm and below. Leading foundries are pushing the boundaries of processing technologies to manufacture chips with finer geometries, faster speeds and lower power consumption. This has necessitated equipment manufacturers to develop new toolsets and capabilities matching the evolving needs of chipmakers. Another notable trend is the rising R&D investments towards developing Extreme Ultraviolet (EUV) lithography systems, as EUV lithography has emerged as the most viable candidate for high resolution lithography below 7nm node sizes. Equipment players are focusing their capabilities to enable volume manufacturing using EUV lithography.
Threat of new entrants: Entry into the semiconductor equipment market requires significant capital investment for research and development, along with established distribution networks. This poses high barriers for new players.
Bargaining power of buyers: Large semiconductor manufacturers hold significant bargaining power over equipment suppliers due to their high purchasing volume and ability to choose between various established suppliers.
Bargaining power of suppliers: Suppliers of specialty components for manufacturing equipment possess some bargaining power due to their technical expertise. However, equipment makers have alternative sourcing options to overcome supplier dominance.
Threat of new substitutes: There are limited substitute options for semiconductor manufacturing equipment as customers require dedicated solutions depending on their manufacturing processes.
Competitive rivalry: Being a highly concentrated industry, rivalry is intense among the major players like Keysight Technologies, Fluke Corporation, Rohde & Schwarz etc. to gain market share through innovation and product differentiation.
The Global Semiconductor Equipment Market Analysis is expected to witness high growth over the forecast period supported by increasing demand for semiconductor chips across industries.
Regional analysis: Asia Pacific dominates the global market with the largest share currently due to robust semiconductor industries in nations like China, Taiwan and South Korea. Countries in this region are further expanding capacities to boost domestic manufacturing.
Key players: Key players operating in the semiconductor equipment market include Keysight Technologies, Fluke Corporation, Rohde & Schwarz, Yokogawa Electric Corporation, Agilent Technologies, Anritsu Corporation, Tektronix, EXFO Inc., B&K Precision Corporation, Hioki E.E. Corporation, Chauvin Arnoux Group, AMETEK, Inc., National Instruments Corporation, Gossen Metrawatt and Keithley Instruments. These players are focusing on product innovation and geographical expansion to increase market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it