Semiconductor Manufacturing Equipment Market Size, Share & Trends Analysis Report By Process (Front-end, Back-end), By Dimension (2D, 2.5D, 3D), By Application, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global semiconductor manufacturing equipment market size was estimated at USD 103.1 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030. A surging demand for miniature devices, coupled with functionality improvements in electronic products such as smartphones, laptops, digital cameras, and others, is anticipated to boost market growth. The demand for semiconductors is growing steadily, as IC designs are getting complicated and more semiconductor products need to be implanted for manufacturing ICs. Semiconductors are deployed in I.C. development because they help minimize costs, reduce mass production times, and improve final product value regarding its operation.

The rise in demand for consumer electronic products can be ascribed to increasing disposable income across populations coupled with augmenting demand for advanced electronic products. Escalating adoption of electronic products in the workplace, in daily routine, and in entertainment, is expected to increase the demand for semiconductors during the projected years and support market growth.

The growth of semiconductor manufacturing equipment is anticipated to be supported by the evolution of cloud technology, the development of 5G networks, and rising demand for connected vehicles. In addition, individuals are ready to spend more on advanced gadgets to improve their living standards and electronic product experience.

Semiconductor manufacturing equipment manufacturers are adopting different business models that include a usage-based model, a subscription model, and an outcome-based model. These business models help increase the customer base as the cost of equipment is very high, and it is not feasible for a medium-scale organization to purchase new machinery. Therefore, equipment as a service model facilitates the company to produce semiconductors on a rental basis.

End-users of semiconductor manufacturing equipment are expected to bolster the market growth during projected years, as companies are increasing their production capacity of semiconductors. For instance, in March 2023, Samsung Electronics announced to invest USD 228 billion in an advanced semiconductor facility in South Korea. This kind of initiative by the companies is expected to augment the market growth during 2024 - 2030 years.

Growing demand for semiconductor solutions has been steadily increasing across various end-use industries. For instance, the proliferation of smartphones, tablets, smart TVs, and other consumer devices has driven the demand for more advanced and power-efficient semiconductor chips. Consumers expect better performance, longer battery life, and enhanced features, all of which require semiconductor innovation. These aforementioned factors are anticipated to propel the demand for semiconductor manufacturing equipment.

Industries are adopting automation and robotics for increased efficiency and productivity. These systems rely heavily on specialized semiconductors to control processes, monitor equipment, and ensure safety. These aforementioned factors are expected to drive the market growth. In summary, the synergy between 5G and IoT technologies has spurred the demand for semiconductor manufacturing equipment by necessitating more advanced, efficient, and numerous semiconductor components to power the evolving digital landscape.

Process Insights

Based on process, the front-end segment led the market and accounted for a revenue share of 73.4% in 2023. Furthermore, the front-end segment is expected to witness the fastest CAGR of 8.2% from 2024 to 2030. In wafer fabrication facilities, front-end equipment is anticipated to be in high demand.

The front-end process is also being adopted for silicon wafer manufacturing, photolithography, deposition, etching, ion implantation, mechanical polishing machines, and many others. Escalating demand for highly efficient and packed semiconductors for GPUs, IoT devices, CPUs, and other devices is primarily responsible for the progressive demand for front-end equipment.

The surging production of silicon wafers is owing to rapid digitalization and extensive application of the product in laptops, television, smartphones, and other electronic products. Silicon wafers are extensively used as semiconductors in manufacturing integrated circuits and electronics including numerous transistors and other critical components.

The back-end segment is expected to propel at a CAGR of 7.1% from 2024 to 2030. The segment is anticipated to observe progressive growth with the evolution of compact packaging solutions primarily for automotive and consumer electronic industries.

Dimension Insights

Based on dimension, the 2.5D segment led the market and accounted for a revenue share of 39.5% in 2023. Growth of the 2.5D segment is attributed to the number of benefits associated with the product, such as high chip functionalities, higher bandwidth, wider bandwidth, and minimal cost & time for wiring. In addition, growth in electronic devices and smart gadgets is resulting in the need for semiconductor fabrication facilities.

The market for 3D IC manufacturing is expected to progress at a CAGR of 10.5% from 2024 to 2030. A surge in demand for miniature portable devices like smartphones, tablets, etc., is expected to augment the product demand in the coming years.

The 2.5D is an interposer technology, and this semiconductor component finds applications where parameters such as low power and higher performance are a major concern. In addition, 2.5D architecture is primarily paired with high-bandwidth memory modules to improve the performance of the equipment. Traditional forms of semiconductors have become very complex, thus leading to an increased preference for 2.5D and 3D packaging architecture for high-chip functionality.

Application Insights

Based on application, the semiconductor fabrication plant/foundry segment led the market and accounted for a revenue share of 46.9% in 2023. Growth is significantly attributed to the expansion of industrial manufacturing over the forecast period. The growing population is creating an increased need for smartphones, laptops, smart home care products, wearables, and other innovative electronic products. Rising demand in turn is expected to boost the demand for semiconductor manufacturing equipment.

Manufacturing of semiconductor electronics is expected to expand rapidly due to increased awareness about testing semiconductors and their components. Furthermore, it is anticipated that strict government regulations governing the testing of electronic devices will favorably impact market expansion throughout the projected years.

The semiconductor fabrication plant/foundry segment is likely to grow at the fastest CAGR of 8.5% from 2024 to 2030. These equipment are majorly adopted at the fabrication site to assist the production of semiconductor products such as chips, image sensors, and memory. In addition, the electronics industry is observing progressive demand from consumer electronics, telecommunication, and computers. Hence, it is anticipated to drive the market growth during the projected years.

Regional Insights

Asia Pacific led the market and accounted for a revenue share of 68.4% in 2023. Asia Pacific has a large number of semiconductor, and electronic product manufacturers, primarily in countries such as China, India, Taiwan, and Japan. This has surged the demand for semiconductor manufacturing equipment in the region.

Taiwan is a major hub of semiconductor manufacturers and has a huge demand for applications in new technologies such as 5G, automotive, Internet of Things, AI, and big data. Furthermore, increased spending on new equipment for fabricating semiconductor products would lead to strong market growth.

Germany held the majority share of Europe’s semiconductor manufacturing equipment industry and is expected to propel at a CAGR of 8.1% in the coming years. Germany holds the fourth position globally in terms of manufacturing electronic products and is also a significant European market for semiconductor manufacturing equipment.

Key Companies & Market Share Insights

The semiconductor manufacturing equipment industry is characterized by intense competition owing to the presence of privately and publicly held companies. Key players include Applied Materials Inc.; Lam Research Corporation; KLA Corporation; ASML; Tokyo Electron Limited; Advantest Corporation; SCREEN Semiconductor Solutions Co., Ltd.; Cohu, Inc.; ACM Research Inc.; Nordson Corporation; and Tokyo Seimitsu Co., Ltd.

Semiconductor manufacturing equipment manufacturers adopt several strategies including mergers, joint ventures, acquisitions, new product developments, and regional diversification to progress their market penetration and fulfill the changing technological demand. For instance, in March 2023, Tokyo Electron announced the construction of a new production facility at the company's Tohoku Office. This production house would be built to meet up with the surging demand for semiconductors globally.

Semiconductor Manufacturing Equipment Market Report Scope

Global Semiconductor Manufacturing Equipment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels 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 global semiconductor manufacturing equipment market report based on process, dimension, application, and region:

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

  • Front-end

    • Deposition

      • ALD (Atomic Layer Deposition)

      • CVD (Chemical Vapor Deposition)

      • Others

    • Lithography

      • DUV

      • EUV

    • Etch

      • Plasma Etch System

      • Gas Chemical Etch System

    • Cleaning

      • Single Wafer Cleaning System

      • Scrubber System

      • Single Wafer Cryokinetic Cleaning System

      • Batch Spray Cleaning System

      • Others

    • Testing

      • Multi-cell Test System

      • Wafer/Dicing Frame Prober

      • Others

  • Back-end

    • Packaging

    • Testing

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

  • 2D

  • 2.5D

  • 3D

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

  • Semiconductor Electronics Manufacturing

  • Semiconductor Fabrication Plant/Foundry

  • Testing & Inspection

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • UK

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Malaysia

    • Taiwan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Israel

    • South Africa