Semiconductor Manufacturing Equipment Market size is projected to reach USD 160 Billion by the end of 2035, growing at a CAGR of 7% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of semiconductor manufacturing equipment was around USD 95 Billion. The surging demand for miniature devices along with other consumer electronics is anticipated to bolster the market expansion during the assessment period as the design of I.C. of electronics is getting complicated and requires semiconductors. The revenue generated by the global consumer electronics industry is anticipated to increase to USD 2 trillion by 2030 from USD 1 trillion in 2022, with a growth rate of 9%.
One of the major applications of sophisticated and miniaturized semiconductors is in everyday use electronics such as smartphones, laptops, television, and other wearable devices such as smartwatches and fitness bands. Thus, the penetration of smart devices is anticipated to boost the development of global semiconductor manufacturing equipment in the next few years.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 95 Billion |
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Forecast Year Market Size (2035) |
~ USD 160 Billion |
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Regional Scope |
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Equipment (Front-End Equipment, Back-End Equipment, Fab Facility Equipment)
The front-end equipment segment in the semiconductor manufacturing equipment market is anticipated to generate the largest revenue share by the end of 2035 and holds 41% share, owing to its high demand from the fabrication facilities which helps in exposing critical layers of wafers which results in reduced manufacturing costs of semiconductor devices. In addition, key players operating in the market along with some other regulatory bodies are funding the development of innovative front-end equipment.
Dimension (2D, 2.5D, 3D)
The 3D segment is set to hold 46% share of the semiconductor manufacturing equipment market through the forecasted timeframe. The primary reason for segment size expansion is the rising pressure on chipmakers to meet the surging demand for chipsets, IC manufacturers are focusing on the development of advanced chip packaging technologies such as 3D ICs. 3D dimension of semiconductors is also good at creating wafers that help the manufacturers develop memory storage devices and reduce footprint.
Our in-depth analysis of the global market includes the following segments:
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Equipment |
Front-End Equipment
Back-End Equipment
Fab Facility Equipment
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Product |
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Dimension |
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Supply Chain Participant |
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APAC Market Analysis
The Asia Pacific semiconductor manufacturing equipment market is projected to be the largest with a share of about 35% by the end of the forecast period owing to the presence of a large number of semiconductor and electronics manufacturers in the region. Furthermore, the high utilization rate of smart devices and electronics primarily in countries such as China, India, Taiwan, and Japan has surged the demand for semiconductor manufacturing equipment. As per data by the India Brand Equity Foundation, by the end of 2025, the Indian electronics manufacturing industry is estimated to reach USD 520 billion.
North American Market Forecast
The North American semiconductor manufacturing equipment market is set to hold 24% of the revenue share by the end of the projected timeframe. The rapid growth of the semiconductor sector in the region along with the escalation in the usage of 5G, Internet of Things, AI, big data, cloud, and others. The United States semiconductor industry contributed USD 240 billion to the country’s gross domestic product (GDP) in 2020.
Author Credits: Abhishek Verma, Hetal Singh
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