Semiconductor Capital Equipment Market Size & Share, by Type (Assembly Equipment, Automated Test Equipment, Wafer Level Manufacturing Equipment); Application (Foundries, Memory Manufacturers, Integrated Device Manufacturers); Industry Verticals (Consumer Electronics, Healthcare, Automotive, IT Telecommunication) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5322
  • Published Date: Oct 18, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Semiconductor Capital Equipment Market size is expected to cross USD 202 Billion by the end of 2036, witnessing around 8% CAGR during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of semiconductor capital equipment was over USD 82 Billion. The increasing demand for digitalization in different sectors of industry, and the use of the Internet of Things (IoT) for digital devices. Around the globe, there are over 13 billion connected Internet of Things devices. By 2030, an estimated 25.4 billion devices for the Internet of Things are expected. In 2020, the number of Internet of Things devices exceeds that of non-IoT devices. The number of active Internet of Things platforms is over 400.

In addition, a major opportunity for semiconductor capital equipment manufacturers is expected to be provided by the rapid growth of the consumer electronics market. In order to satisfy the growing demand of this expanding market, it is important for chip manufacturers to have high quality equipment.


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Semiconductor Capital Equipment Sector: Growth Drivers and Challenges

Growth Drivers

  • Emergence of 5G Technology– The Internet of Things, augmented reality, mission-critical services, cloud solutions, and others have benefited from the deployment of 5G networks, which have increased wireless communication, ultrafast speeds, low latency, and high reliability. This is expected to support the growth of the semiconductor capital equipment market over the next few years, with a view to ensuring that equipment and networks operate smoothly. It is estimated that by 2027, the number of 5G subscriptions worldwide will reach 6 billion.
  • Growing Trend of Electric and Hybrid Vehicles– Semiconductors are used for different parts and car components, e.g. sensors and microcontrollers, by the vehicle manufacturers of electrical and hybrid vehicles. Therefore, it is estimated that favorable opportunities for market expansion are created by the emergence of electric and hybrid mobility in combination with a requirement to use AI-based automotive systems. The International Energy Agency IEA announced that global sales for electric cars in 2021 have increased to 6.6 million, which means the overall number of electric vehicles on the road now stands at 16.5 million.
  • Increased Demand for Semiconductors – semiconductors are part of almost every electronic component including computers, laptops, mobile phones, tablets, TVs, video games, cooking appliances and so on. The value of the semiconductor capital equipment market is projected to be reduced as a result of this factor. The global sales of semiconductors reached approximately USD 620 billion in 2022.
  • Increasing Trend Towards Miniaturization- Semiconductor producers are being driven by a trend towards miniaturization and enhanced functionality in electronic devices. They're taking advantage of the latest techniques for manufacturing and are looking into innovative capital equipment.

Challenges

  • Shortage of skilled and trained personnel- The main challenge faced by the semiconductor manufacturing sector is a lack of skilled and trained personnel. The retirement of the baby boomers has left a hole in embedded knowledge. The number of experienced personnel available was therefore not sufficient. Baby boomers' retirement and global economic growth have been the main reasons for widening this gap. In the production and operation of complex machines, employees in the semiconductor manufacturing sector do not have any knowledge or skills. Due to the gradual decline of technical training programs in schools, they do not possess essential skills and knowledge in fields such as engineering, mathematics, science, or technology.
  • The market for semiconductor capital equipment is particularly affected by the high starting costs of setting up and installation, as a result of constraints on production machine manufacturers and installations.
  • The demand for equipment varies due to the variability of the characteristics of the semiconductor industry.

Semiconductor Capital Equipment Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 8%

Base Year Market Size (2023)

 ~ USD 82 Billion

Forecast Year Market Size (2036)

 ~ USD 202 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Semiconductor Capital Equipment Segmentation

Type (Assembly Equipment, Automated Test Equipment, Wafer Level Manufacturing Equipment)

The wafer level manufacturing equipment segment is expected to account for 40% share of the global semiconductor capital equipment market during the forecast period. The major factor which is expected to drive demand for semiconductor capital equipment over the coming years is the cost-effectiveness of wafer level production equipment. Moreover, a number of advantages are offered by this approach compared with traditional methods, such as a reduction in costs and increased production efficiency. The increasing number of semiconductor producers using the wafer level manufacturing process, which is leading to increased demand for equipment manufactured in this process. In the following years, it is planned that this trend towards higher level wafer production will continue. Global sales of semiconductors exceeded USD 619.00 billion in 2022, and have risen more than 30% over the past two years.

Industry Verticals (Consumer Electronics, Healthcare, Automotive, IT Telecommunication)

Semiconductor capital equipment market from the consumer electronics segment is projected to have largest revenue share of about 48% by the end of 2036. Semiconductor capital equipment sales have grown due to the increasing demand for consumer electronics such as mobile phones, laptops and other devices. This equipment is intended to produce semiconductors which are extremely small electronic components and have wide application in a variety of consumer electronics. The equipment to make the parts that are going in them is increasingly needed, driven by growing demand for mobile phones. It is thus that, by ensuring the continued supply of those essential components to meet increasing demand, investment and innovation in the semiconductor industry has driven this trend.

Our in-depth analysis of the global market includes the following segments:

                                                           Type  

  • Assembly Equipment
  • Automated Test Equipment
  • Wafer Level Manufacturing Equipment

                                                     Application

  • Foundries
  • Memory Manufacturers
  • Integrated Device Manufacturer

                                                Industry Verticals

  • Consumer Electronics
  • Healthcare
  • Automotive
  • IT Telecommunication

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Semiconductor Capital Equipment Industry - Regional Synopsis

APAC Market Forecast

Semiconductor capital equipment market is projected to hold 34% of the revenue share by 2036. The demand for chip production equipment in the region can be increased by the growing domestic market for semiconductors and other devices. Manufacturers are gaining an opportunity to increase their production capacity in view of increasing demand for smartphones in region. The adoption rate of mobile phones in the Asia Pacific region reached 76 per cent by 2022, which represented a slight increase from 64 per cent in 2019. In Asia, more than 90 per cent of smartphones are expected to be adopted by 2030. The companies will also be able to develop themselves as leading players in the electronics sector, due to a growing national market. This can provide a favorable feedback loop that leads to additional demand for semiconductor capital equipment in region, thereby leading to increased investment in this industry and domestic market growth.

North American Market Statistics

The semiconductor capital equipment market in North America is predicted to hold second largest share of about 28% by the end of 2036.  The demand for capital equipment in the field of semiconductors is being driven by the deployment of 5G technology. A large number of semiconductors like microchips and transistors are required for the 5G technology to work. This has led to a significant increase in investment in the production of these components. New opportunities for development in advanced technology like autonomous cars, VR (Virtual Reality) and the Internet of Things have opened up due to 5G's increased adoption which means even more semiconductors and capital equipment is needed.

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Companies Dominating the Semiconductor Capital Equipment Landscape

top-features-companies
    • KLA Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Advanced Micro Fabrication Equipment Inc.
    • ASML Holding
    • Lam Research Corporation
    • ASM Pacific Technology
    • Kulicke & Soffa Industries Inc.
    • Applied Materials
    • Vicky Electrical Contractors India Pvt. Ltd.
    • Voltabox AG
    • Planar Systems Inc.

In the News

  • ASML welcomed employees, local public officials and the media to the opening celebration of its new campus in Silicon Valley, California. The 212,573-square-foot facility includes a Class 1000 cleanroom, lab space and collaboration areas to advance ASML’s holistic lithography portfolio – hardware, software and services used to generate circuit patterns on silicon in high-volume production of microchips.
  • KLA Corporation today announced the official opening of its second U.S. headquarters, a $200 million facility in Ann Arbor, Michigan. Following its 2018 announcement to invest and break ground in Ann Arbor, KLA opens its new campus with a locally-based leadership team and more than 300 employees, with plans for an additional 300 hires over the next 12 to 18 months.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5322
  • Published Date: Oct 18, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for 5G technology and electric vehicles are the major factors driving the growth of the semiconductor capital equipment market.

The market size of semiconductor capital equipment is anticipated to attain a CAGR of 8% during the forecast period, i.e., 2024-2036.

The major players in the market are Advanced Micro Fabrication Equipment Inc., ASML Holding, Lam Research Corporation, ASM Pacific Technology, Kulicke & Soffa Industries Inc., Applied Materials, Vicky Electrical Contractors India Pvt. Ltd., Voltabox AG, and others.

The wafer level manufacturing equipment segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Semiconductor Capital Equipment Market Report Scope
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