Asia Pacific Chemical Vapor Deposition Market Size, Share & Trends Analysis Report By Category (CVD Equipment, CVD Materials, CVD Services), By Application (Data Storage, Solar Products), By Country, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The Asia Pacific chemical vapor deposition market was valued at USD 11.6 billion in 2023 and is projected to grow at a CAGR of 9.4% from 2024 to 2030. This growth can be attributed to the increasing demand for high-performance and efficient products in various industries such as electronics, automotive, and aerospace. The rapid industrialization and technological advancements in these sectors have led to an increased demand for chemical vapor deposition services.

The growing focus on research and development activities in the field of material science and the rising investments in the semiconductor industry are also contributing to the market growth. The market’s expansion is further propelled by the increasing adoption of chemical vapor deposition for the production of solar cells due to its ability to improve the efficiency of energy conversion. Thus, these factors collectively contribute to the robust growth of the Asia Pacific chemical vapor deposition market.

Regulations play a crucial role in shaping the landscape of the Asia Pacific chemical vapor deposition market. For example, the stringent environmental regulation concerning the emission of F-gases has led to a shift towards more environmentally friendly practices and the development of alternative technologies.

The revision of the minimum requirements for toxicological data and eco-toxicological data by the Ministry of Environmental Protection (MEP) in China has made the data requirements more scientific and normative, impacting the operations of companies in the chemical vapor deposition market. These regulatory changes are expected to continue shaping the growth and development of the Asia Pacific chemical vapor deposition market in the coming years.

Market Concentration & Characteristics

The Asia Pacific region, especially China and South Korea, dominates the global CVD market. Renowned as a manufacturing hub, the region specializes in electronics, semiconductors, and photovoltaics. Key end-use sectors like semiconductors, medical equipment, data storage, and solar devices are propelling this regional market.

Regulations play a crucial role in shaping the landscape of the CVD sector. The stringent regulations concerning environmental hazards, such as overuse of Cr6 releases toxic & corrosive gases throughout production, are expected to hamper the CVD market growth.

PVD processes, particularly sputtering, pose a direct competition to CVD. With factors such as advancements in sputtering techniques, material diversity, and cost-effectiveness, sputtering continues to be a predominant manufacturing method. The CVD market must continuously innovate and differentiate its offerings to maintain a competitive edge.

Category Insights

CVD Equipment holds the largest market share in terms of revenue, accounting for 65% of the total market in 2023. The across-the-board usage of CVD equipment in industries such as semiconductors, electronics, and solar panels is the main reason behind its dominance. The high demand for these products, especially in developing countries like China and India, has significantly contributed to the growth of this segment. The CVD equipment segment's considerable share also indicates the essential role of this technology in modern manufacturing and production processes, where it is used to produce high-quality and high-performance materials.

On the other hand, CVD Services is projected to experience the fastest growth in terms of revenue, with a CAGR of 10.1% from 2024 to 2030. This rapid growth can be attributed to the increasing need for specialized services to operate, maintain, and optimize CVD equipment. As the technology becomes more complex and its applications more diverse, the demand for expert services to ensure efficient and effective operation is expected to rise. Furthermore, the trend towards outsourcing non-core activities, such as equipment maintenance and optimization, is likely to fuel the growth of this segment.

Application Insights

Semiconductor & microelectronics holds the largest market share, accounting for 60% of the total market in 2023 in terms of revenue. This dominance can be attributed to the extensive use of CVD in the production of semiconductors and microelectronics. The Asia Pacific region, home to several global leaders in the semiconductor industry, heavily relies on CVD processes for the fabrication of integrated circuits, memory chips, and other microelectronic components. The high demand for these products, particularly in technologically advanced economies such as South Korea, Japan, and China, has significantly contributed to the growth of this segment.

On the other hand, the medical equipment segment is projected to experience the fastest growth in terms of revenue, from 2024 to 2030. This rapid growth can be attributed to the increasing use of CVD in the medical industry for the production of high-quality, biocompatible materials used in various medical devices and implants. As the healthcare sector continues to advance and the demand for more sophisticated medical equipment rises, the application of CVD in this field is expected to grow significantly.

Country Insights

China Chemical Vapor Deposition Market Trends

The China chemical vapor deposition market accounted for 25% of the total market in 2023 in terms of revenue. This dominance can be attributed to the extensive use of CVD in various industries, including semiconductors, electronics, and solar panels, which are thriving in China. The high demand for these products, coupled with the rapid industrialization and technological advancements in the country, has significantly contributed to the growth of this segment. Furthermore, China is also the fastest-growing market in the Asia Pacific region, indicating a robust and expanding CVD market.

South Korea Chemical Vapor Deposition Market Trends

The South Korea chemical vapor deposition market is expected to be the second-fastest growing country in 2023 in terms of revenue. This rapid growth can be attributed to the strong presence of the semiconductor and electronics industries in South Korea, which heavily rely on CVD processes. The country’s commitment to technological innovation and the development of advanced materials is expected to fuel the growth of the CVD market.

Key Asia Pacific Chemical Vapor Deposition Company Insights

The CVD industry in Asia Pacific has several major companies that have advanced technologies, extensive product portfolios, and robust distribution networks and hold significant market shares. However, the market is not overly concentrated, as numerous small and medium-sized enterprises (SMEs) contribute to the market dynamics.

Some key players operating in this market include Applied Materials Inc., Tokyo Electron Limited, and Lam Research Corporation:

• Applied Materials Inc. is a major company in engineering solutions for the semiconductor industry. A range of services, including chemical vapor deposition (CVD), plasma-enhanced chemical vapor deposition (PECVD), electrochemical deposition (ECD), ultraviolet thermal processing (UVTP), and resist strip and surface preparation, as well as synergy cleaning products, are in the company’s portfolio.

• Tokyo Electron Limited has a diverse range of semiconductor production equipment (SPE) that covers principal chip manufacturing processes, supplying systems to semiconductor manufacturers. 

Recent Developments

• In February 2024, Applied Materials Inc. invested in VVDN Technologies, a company based in India that specializes in electronics product design, software, and manufacturing. This investment will help the company to develop the global semiconductor and electronics manufacturing ecosystem.

• In June 2023, Applied Materials, Inc. announced its plans to establish a collaborative engineering center in India to develop and commercialize technologies for the semiconductor manufacturing industry.

• In March 2023, Tokyo Electron announced its plan to build a production facility in Japan to meet anticipated demand from the semiconductor industry.

Asia Pacific Chemical Vapor Deposition Market Report Scope

Asia Pacific Chemical Vapor Deposition Market Segmentation

This report forecasts revenue and volume growth and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific chemical vapor deposition market report based on category, application, and Country:

• Category Outlook (Revenue, USD Billion, 2018 - 2030)

  • CVD Equipment

  • CVD Materials

  • CVD Services

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Semiconductor & Microelectronics

  • Data Storage

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Other

• Country Outlook (Revenue, USD Billion, 2018 - 2030)

  • China

  • Japan

  • India

  • South Korea

  • Australia