Photolithography Equipment Market Size, Share & Trends Analysis Report By Process (Ultraviolet UV, Deep Ultraviolet), By Light Source (Mercury Lamp, Fluorine Laser), By Wave Length, By End-users, By Region, And Segment Forecasts, 2023 - 2030

Photolithography Equipment Market Trends

The global photolithography equipment market size was estimated at USD 11.16 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030. The growth of the market is propelled by several key factors, including a strong demand for compact electronic devices, the expanding adoption of the Internet of Things (IoT), and the ongoing development of the semiconductor industry. The primary cause behind the decline in the growth rate is the widespread implementation of partial or complete lockdowns in multiple countries worldwide. These lockdown measures have disrupted global supply chains, leading to a decrease in the demand for various consumer electronics. Therefore, the reduced demand for wafers had a negative impact on the market during the pandemic.

One of the primary drivers of the market is the continuous technological progress within the semiconductor industry. In addition, there is a notable increase in the desire for 5G-enabled devices, aimed at enhancing global connectivity solutions. This surge in demand, coupled with the expansion of 5G infrastructure and data center facilities, is fueling the market's growth.

The increasing utilization of integrated circuits (ICs) in a wide range of applications such as automobiles, medical devices, consumer electronics, military and defense equipment, aircraft, and smart appliances is exerting a favorable impact on the market. Moreover, prominent market participants are directing their efforts toward enhancing precision and production capacity while concurrently reducing manufacturing and overhead expenses. These industry leaders are also making significant investments in research and development (R&D) initiatives to enhance the photolithography process, which is expected to enhance their overall sales and profitability.

The market's growth has been driven by consumer preferences for smaller, faster, and more powerful gadgets. The increasing adoption of cutting-edge technologies such as artificial intelligence, cloud computing, and 5G networks has led to a heightened need for advanced photolithography equipment to produce high-performance semiconductors. Furthermore, the market is additionally spurred by the expansion of industries like telecommunications, healthcare, and automotive, all of which require enhanced photolithography machinery.

The increasing complexity and power demands of emerging technologies are propelling the demand for advanced photolithography equipment. In addition, strategic partnerships, mergers, and acquisitions among leading market participants provide companies with opportunities to expand their market footprint and enhance their technological capabilities. Manufacturers of photolithography equipment can capitalize on these openings to enter new markets and enhance their competitiveness.

Process Insights

Based on process, the ultraviolet UV process segment dominated the market with the largest market share of 46.5%, in terms of revenue, in 2022. Shrinking feature sizes on semiconductor devices demand higher-resolution lithography techniques. UV photolithography is capable of achieving the necessary resolution for advanced nodes, although extreme ultraviolet (EUV) lithography is increasingly being used for even smaller feature sizes. Many semiconductor manufacturing facilities have significant investments in UV photolithography equipment and processes. Transitioning to new technologies like EUV can be costly and complex, so there is a preference to optimize existing UV systems where possible.

The demand for Extreme Ultraviolet (EUV) is anticipated to grow at a lucrative CAGR over the forecast period. EUV lithography is an advanced photolithography process used in the semiconductor manufacturing industry. It is a cutting-edge technology designed to overcome the limitations of traditional optical lithography processes, particularly when it comes to producing smaller and more densely packed features on semiconductor wafers. The ever-growing consumer demand for smaller, more powerful electronic devices, such as smartphones, tablets, and wearable technology, drives the need for advanced lithography techniques like EUV.

Light Source Insights

Based on light source, the mercury lamp segment is anticipated to register a lucrative CAGR from 2023-2030. Mercury lamps are a cost-effective light source for photolithography equipment compared to more advanced alternatives like lasers or extreme ultraviolet (EUV) sources. This cost-efficiency makes them attractive for applications where high-resolution lithography is not critical.

Fluorine lasers can help reduce or eliminate the need for complex multi-patterning techniques, streamlining the semiconductor manufacturing process and potentially reducing production costs. The adoption of fluorine laser light sources, particularly excimer lasers, in the market, is driven by their precise wavelength characteristics, high energy output, suitability for advanced nodes, and potential to reduce manufacturing complexities and defects. These factors make fluorine lasers a critical component of semiconductor lithography equipment, especially for advanced semiconductor nodes.

Wave Length Insights

In terms of wave length, the use of photolithography equipment with wavelengths in the range of 370nm to 270nm (deep ultraviolet, or DUV) is driven by several factors such as smaller feature sizes. Shorter wavelengths, such as those in the DUV range, enable the production of semiconductor devices with smaller feature sizes. This is essential for keeping up with Moore's Law and the demand for increasingly compact and powerful electronic devices.

The shorter wavelengths found in this range are integral to advanced photolithography methods such as extreme ultraviolet (EUV) lithography. EUV lithography has gained significant traction in recent years due to its capability to manufacture cutting-edge semiconductor devices with smaller features and enhanced resolution. As manufacturers strive to meet the requirements of state-of-the-art semiconductor fabrication processes, there is a growing demand for equipment that operates within this specific wavelength range.

End-users Insights

In terms of end-users, the Integrated Device Manufacturer (IDMs) segment held the largest share of 56.80% in 2022. The IDMs constantly seek technological advancements to maintain a competitive edge in semiconductor manufacturing. They invest in cutting-edge photolithography equipment to produce smaller, more powerful, and energy-efficient semiconductor devices. Maintaining high product quality and reliability is critical for IDMs, particularly in industries like automotive, aerospace, and medical devices. Advanced photolithography equipment helps ensure consistent and reliable manufacturing processes.

The foundries segment continually invests in advanced photolithography equipment to meet the increasing demand for smaller, more powerful, and energy-efficient semiconductor devices. Staying at the forefront of technology is essential for competitiveness. As demand for semiconductor manufacturing grows, foundries need the capability to scale up production quickly. Scalable photolithography equipment is vital for accommodating increasing production volumes.

Regional Insights

The Asia Pacific led the market and held a revenue share of 68.0% in 2022. Asia Pacific is a global leader in semiconductor manufacturing, with countries like Taiwan, South Korea, and China hosting some of the world's largest semiconductor foundries and manufacturers. The demand for photolithography equipment is driven by the need for cutting-edge technology to produce advanced semiconductors. In addition, the Asia Pacific region is a leader in advanced packaging technologies, including fan-out wafer-level packaging (FOWLP) and 2.5D/3D packaging. These advanced packaging solutions require precise photolithography equipment for patterning and interconnection.

The North America region hosts high-tech manufacturing sectors, including aerospace, defense, healthcare, and telecommunications. These industries demand high-performance semiconductor components, increasing the need for advanced photolithography equipment. Moreover, the growth of data centers and cloud computing facilities in North America necessitates high-performance semiconductors. Photolithography equipment is crucial for producing the advanced chips used in data processing and storage.

Europe is actively involved in the development and adoption of emerging technologies, including artificial intelligence (AI), 5G communication, autonomous vehicles, and quantum computing. These technologies rely on advanced semiconductor components, boosting the demand for precise photolithography processes. Furthermore, Europe has a strong focus on research and development in semiconductor technology. Research institutions, universities, and companies in the region drive innovation in semiconductor design and manufacturing, contributing to the need for state-of-the-art photolithography equipment.

Key Companies & Market Share Insights

The market is highly fragmented, with numerous small-to-large manufacturers and suppliers competing for market share. This fragmentation offers a wide selection of equipment, and customization choices to buyers while catering to specific industry needs. To meet the rising demand from a diverse range of industries, the market players are pursuing business growth through strategies such as mergers and acquisitions, the establishment of new manufacturing facilities, and geographic expansion initiatives.

For instance, in 2022, Nikon Corporation introduced a highly compact machine vision camera called Lu Fact, aimed at accelerating digital transformation (DX) in manufacturing facilities. Some prominent players in the global photolithography equipment market include:

• ASML

• Shanghai Nikon Precision Machinery Co., Ltd. 

• Canon Optical Equipment (Shanghai) Co., Ltd. 

• Veeco Instruments Inc.,

• Conax Technologies

• TSMC

• Nikon Corporation

• SUSS Microtec SE

• Holmarc Opto-Mechatronics (P) Ltd

• KLA Corporation

Photolithography Equipment Market Report Scope

Global Photolithography Equipment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global photolithography equipment market report based on process, light source, wave length, end-users, and region:

• Process Outlook (Revenue, USD Million, 2018 - 2030)

  • Ultraviolet UV

  • Deep Ultraviolet (DUV)

  • Extreme Ultraviolet (EUV)

  • Others

• Light Source Outlook (Revenue, USD Million, 2018 - 2030)

  • Mercury Lamp

  • Fluorine Laser

  • Excimer Laser

  • Others

• Wave Length Outlook (Revenue, USD Million, 2018 - 2030)

  • 370nm -270nm

  • 270nm - 170nm

  • 70nm - 1nm

• End-users Outlook (Revenue, USD Million, 2018 - 2030)

  • Integrated Device Manufacturer (IDMs)

  • Foundries

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

  • U.S.

  • Canada

  • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Netherlands

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

  • Latin America

  • Brazil

  • MEA

    • Israel

    • South Africa