The Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Semiconductor equipment refers to tools required for various processes involved in manufacturing semiconductor devices. These include lithography equipment for circuit patterning, etching and deposition equipment for adding or removing material layers, process diagnostic and contamination equipment, and wafer-level packaging and assembly equipment. Semiconductor equipment help produce ICs with higher integration levels and smaller feature sizes enabling improved functionalities in various end-use products.
Market key trends:
The semiconductor equipment market is expected to witness high growth owing to the trend of advanced manufacturing and processing technologies. Semiconductor equipment manufacturers are focusing on developing more advanced technology tools to enable manufacturing of integrated circuits using smaller transistors and complex 3D architectures. This allows producing chips with higher capabilities while consuming less power. For instance, chipmakers are increasingly adopting Extreme Ultraviolet (EUV) lithography technology which uses shorter wavelength light source for silicon chip manufacturing. EUV lithography helps enhance chip density and performance by enabling finer resolution. The need for such advanced technologies across foundries and IDMs for developing next-generation chips will propel the demand for semiconductor equipment over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the requirement of high capital and technological investments in equipment and R&D.
Bargaining power of buyers: The bargaining power of buyers is high due to large number of global semiconductor equipment manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of alternative raw material suppliers globally.
Threat of new substitutes: Competitive rivalry is intense due to continuous technological advancements.
Competitive rivalry: fierce due to continuous technological innovations.
SWOT Analysis
Strength: Growing semiconductor market worldwide and increasing demand for advanced chips from industries such as consumer electronics, automotive. Adoption of advanced technologies such as AI, big data, cloud computing.
Weakness: High Research and development costs, requirement of continuous technological upgradation, vulnerable to business cycles. Dependence on limited number of global customers including IDMs.
Opportunity: Emerging trends in electronics such as IoT, autonomous vehicles, 5G, data centers are expected to boost demand. Expanding into new application areas offer lucrative opportunities.
Threats: Trade tensions between major countries, geopolitical issues can disrupt supply chain. Intense competition from global and regional players.
Key Takeaways
The Global Semiconductor Equipment Market Size is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for chips from consumer electronics and automotive industries. The market size for 2023 is US$ 83.3 Bn.
Regional analysis North America dominates the global market currently owing to presence of majority of semiconductor equipment manufacturers and vendors in the region. APAC is expected to grow at fastest pace over the forecast period supported by rising electronics production in China, Taiwan, South Korea and investments in setting up fabs.
Key players operating in the semiconductor equipment market are Applied Materials, Inc., ASML Holding, Canon, Tokyo Electron, Lam Research, KLA-Tencor, Dainippon Screen, Advantest, Teradyne, and Hitachi High-Technologies. Key players are focusing on developing next generation equipment through continuous technological innovations to gain competitive edge in the market.
