by The semiconductor equipment market has gained significant traction over the past decade, owing to advancements in electronics manufacturing technologies. Semiconductor equipment such as oxidation systems, implant machines, wafer fabrication equipment are essential to produce complex chips and components. With the ongoing digitization trends across industries, the demand for electronic devices and components has increased exponentially globally. This, in turn, has paved the way for market participants to introduce advanced semiconductor fabrication tools and machinery that can handle larger wafer sizes and manufacturing processes.
The Global semiconductor equipment market is estimated to be valued at US$ 95.97 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the semiconductor equipment market are Northrop Grumman Corporation, BAE Systems, Lockheed Martin Corporation, Clearpath Robotics Inc., John Bean Technologies Corporation, ECA Group, Israel Aerospace Industries Ltd., Endeavor (Now a part of FLIR system), Harris Corporation, and General Dynamics. The companies are investing heavily in R&D to develop next-gen equipment with improved production throughput and integrated advanced technologies.
The Semiconductor Equipment Market Demand provides lucrative opportunities for equipment manufacturers with capabilities around miniaturization, big data integration, and automation. Adoption of IoT and emerging technologies such as AI, ML is expected to boost demand for more powerful and efficient chips. This will drive semiconductor companies to invest in advanced fabrication tools to meet performance requirements.
Globally, the semiconductor industry is still in the growth phase, with many countries announcing plans to set up local chip manufacturing facilities. This provides a massive opportunity for equipment providers to expand globally and cater to the demands of the local markets. Countries like India, Singapore, European nations have come up with attractive incentive schemes and policies to boost domestic semiconductor manufacturing.
Market Drivers
The increasing need for advanced automation in the semiconductor manufacturing process is a key growth Semiconductor Equipment Market Advanced robotics and automated tools can improve efficiency, reduce defects, and help produce larger volumes of chips within a constrained timeframe. They also allow seamless integration of various production steps. With rapid technology changes, demand for sophisticated chips is rising exponentially. This has encouraged equipment manufacturers to focus on developing smart, digital, and automated semiconductor fabrication tools.
PEST Analysis
Political: Global semiconductor equipment market is driven by supportive government policies and initiatives to promote advancement of semiconductor technology and manufacturing. Many governments provide funding and subsidies to encourage domestic production.
Economic: Growth in semiconductor equipment market is driven by strong demand from end-use industries like electronics, automotive and healthcare. Semiconductors are integral components across various industries boosting investments in equipment manufacturing.
Social: Increasing demand for electronic devices globally and digitization trends result in higher adoption of advanced semiconductors across consumer products. Rapid urbanization and changing lifestyles drive demand for technologically advanced products using latest semiconductors.
Technological: Continuous advancement in semiconductor manufacturing processes like FinFET technology and 3D chip stacking enables higher transistor density and performance. Emerging technologies like IoT, AI and 5G network also accelerate innovation in semiconductor equipment to manufacture more powerful and efficient chips.
The Asia Pacific region accounts for the largest share of the global semiconductor equipment market due to presence of several wafer fabrication facilities and semiconductor manufacturing hubs in countries like China, Taiwan, South Korea and Japan. China dominates the APAC market owing to government subsidies and initiatives to develop domestic chip industry. North America is the second largest regional market led by U.S. based companies innovating new semiconductor technologies and equipment. The equipment market in Europe is concentrated in countries like Germany, Netherlands and United Kingdom. However, the semiconductor equipment market is projected to witness fastest growth in the Middle East and Africa region over the forecast period owing to increasing investments in domestic semiconductor industries. Development of indigenous fabs and outsourcing of foundry services to manufacturers in countries like Israel and South Africa are major drivers of equipment demand.
Some key focus areas for expansion in the global semiconductor equipment market include development of EUV lithography machines, new materials and processes for next generation nodes below 7 nm, metrology and inspection solutions for advanced packaging technologies and equipment enabling wider commercialization of technologies like memory stacking and 3D NAND
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
