Semiconductor Manufacturing Equipment Market Trends

Growth Drivers

Growing Trend of Electric and Hybrid Vehicles – Manufacturers of electric and hybrid vehicles use semiconductors for various parts and components of the vehicles such as sensors and microcontrollers. Thus, the emergence of electric and hybrid mobility along with the requirement for AI-based automotive systems is estimated to generate favorable opportunities for market expansion. The International Energy Agency (IEA) stated the global sales of electric cars in 2021 soared up to 6.6 million, bringing the total number of electric cars on the road to 16.5â€¯million.
Emergence of 5G Technology and IoT Devices – Penetration of the 5G network has increased wireless communication, ultra-fast speeds, low latency, and high reliability of IoT (Internet of Things), augmented reality, mission-critical services, cloud solutions, and others. This factor is anticipated to favor the growth of the semiconductor manufacturing equipment market in the upcoming years for the smooth functioning of the devices and networks. The number of 5G subscriptions around the world is estimated to reach 6 billion by 2027.
Increased Demand for Semiconductors – Almost every electronic including computers, laptops, mobile phones, tablets, televisions, video games, kitchen appliances, and others includes semiconductors. This factor is anticipated to expel the semiconductor manufacturing equipment market value in the forecasted timeline. In 2022, global semiconductor sales reached around USD 620 billion.
Rise in Digital Supply Chain – A digitalized supply chain uses data analytics and digital technologies that smoothens the process and improves performance through the use of semiconductor which subsequently helps in semiconductor manufacturing equipment market expansion in the future.

Challenges

Rising Complexity of Patterns and Functional Defeats in Semiconductor Chips – The production process of semiconductors requires a highly clean room and equipment as even one tiny dust particle can hamper the overall semiconductor manufacturing setup. Also, the reduced size and increased complexity of semiconductor chips have resulted in the complexity of the design. This factor is anticipated to hinder market growth in the forecast period.
Lack of Skilled Workforce Around the World
Disruption in Supply Chains

Semiconductor Manufacturing Equipment Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~7%
Base Year Market Size (2022)	~ USD 95 Billion
Forecast Year Market Size (2035)	~ USD 160 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)

Frequently Asked Questions (FAQ)

The growth of the semiconductor industry and the rising trend of health wearables are estimated to majorly boost the market growth.

The market size of semiconductor manufacturing equipment is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 â€“ 2035.

The major players in the market are Applied Materials, Inc., Advantest Corporation, Tokyo Electron Limited, Lam Research Corporation, ASML, KLA Corporation, SCREEN Semiconductor Solutions Co., Ltd. (Dainippon Screen Mfg. Co., Ltd.), Teradyne, Inc., Hitachi, Ltd., Onto Innovation Inc., and other key players.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by equipment, product, dimension, supply chain participant, and by region.

The front-end equipment segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Rising concern regarding the complexity of patterns in semiconductor chips along with the lack of skilled workforce and the disruption in supply chains are estimated to be the growth-hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Semiconductor Manufacturing Equipment Market Trends