Physical Vapor Deposition Market To Reach $5.0 Billion By 2030

Physical Vapor Deposition Market Growth & Trends

The global physical vapor deposition market size is anticipated to reach USD 5.0 billion by 2030, growing at a CAGR of 7.6% during the forecast period, according to a new report by Grand View Research, Inc. The increasing growth in the semiconductor & electronics industry, coupled with rising demand for physical vapor deposition (PVD) in the medical sector is expected to propel the market growth over the forecast period.

According to Semiconductor Industry Association 2023 report, the sale of semiconductors increased from USD 9.54 billion in May 2023 to USD 9.94 in June 2023 in the Americas, whereas the sale of semiconductors in Europe increased from USD 4.67 billion in May 2023 to USD 4.68 billion in June 2023, which shows an increase of 4.2% and 0.1%, respectively. As per the World Semiconductor Trade Statistics (WSTS) and Semiconductor Industry Association, 2023, Asia Pacific dominated the regional semiconductor market with 61.7% in 2022, whereas Japan held 7.9% of the global semiconductor market.

The demand for semiconductors is increasing significantly worldwide. This is because the design of integrated circuits (ICs) is becoming increasingly complicated and advanced for enhanced services in electronic devices, resulting in the consumption of a large number of semiconductors. The semiconductors help minimize the production cost of ICs, reduce the time required for their mass production, and enhance the value of final products in terms of operations. PVD equipment is used in semiconductor fabrication for the deposition of thin film on semiconductor substrates. The rising demand for semiconductor fabrication is likely to increase the demand for PVD services over the forecast period.

Moreover, the rise in the global demand for consumer electronics can be attributed to the increasing per capita disposable income and high demand for advanced electronics. The surging adoption of electronic products for workplaces, daily use, and entertainment is expected to increase the global demand for semiconductors. This is expected to drive the demand for PVD equipment and services for the semiconductor fabrication process.

PVD is one of the most appropriate technologies for providing a wear-resistant, hard coating on medical devices and surgical instruments. Surgical tool ranges from traditional scalpels, and saws to horning tools; motorized drills, and retractors are coated with titanium nitride and aluminum titanium nitride to improve the sharpness and durability of the tools. Dental and orthopedic implants, biomaterials, and Bio-MEMS make use of thin-film coatings in order to improve the performance of the product. These aforementioned factors are expected to propel the demand for PVD in the coming years.

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Physical Vapor Deposition Market Report Highlights

• Sputter deposition dominated the product segment with a 47.6% revenue share in 2023. Sputtering can be used for the deposition of various metallic films on wafers, including aluminum, gold, platinum, aluminum alloys, and tungsten, among others

• The arc vapor deposition product segment is expected to showcase significant growth over the forecast period. Arc vapor deposition achieves high deposition rates, making it a rapid and efficient process for coating substrates with thin films. This is beneficial for industries where high throughput and productivity are essential

• The semiconductor & electronics application segment held the largest revenue share of 40.3% in 2023. PVD plays a crucial role in the semiconductor & electronics industry by providing a precise and controlled method for depositing thin films on semiconductor wafers and electronic components. In semiconductor manufacturing, PVD is extensively utilized to deposit metal films for interconnects, barrier layers to prevent material diffusion, and dielectric coatings for insulation

• The solar products application segment is expected to showcase significant growth over the forecast period. PVD is instrumental in the solar industry for enhancing the performance and durability of various solar products. Thin-film solar cells, a key component in solar panels, benefit from PVD processes, such as sputtering, to deposit semiconductor layers with precise thickness and composition

• Asia Pacific dominated the physical vapor deposition industry and accounted for 43.1% of the revenue share in 2023 owing to the extensive manufacturing of automotive components, semiconductor and electronic products, and solar cells in the region. Moreover, rising industrialization and increasing investments are likely to fuel market growth

• In February 2024, Oerlikon Group’s brand for thin film surface solutions, BALINIT ALCRONA EVO, launched the third generation of its PVD coatings. These coatings have been significantly improved and offer over 30% longer service life than the previous version. Additionally, the enhanced wear resistance of BALINIT ALCRONA EVO decreases the amount of material removed during reconditioning, allowing for more regrinding cycles per tool

Physical Vapor Deposition Market Segmentation

Grand View Research has segmented the global physical vapor deposition market based on product, application, and region:

Physical Vapor Deposition Product Outlook (Revenue, USD Million, 2018 - 2030)

• Thermal Evaporation

• Sputter Deposition

• Arc Vapor Deposition

Physical Vapor Deposition Application Outlook (Revenue, USD Million, 2018 - 2030)

• Semiconductor & Electronics

• Solar Products

• Cutting Tools

• Medical Equipment

• Other

Physical Vapor Deposition Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

• Asia Pacific

  • China

  • Japan

  • Australia

  • India

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • UAE

List of Key Players in the Physical Vapor Deposition Market

• Oerlikon Group

• Angstrom Engineering Inc.

• Kurt J. Lesker Company

• Voestalpine AG

• NISSIN ELECTRIC Co., Ltd

• IHI Corporation

• HEF Groupe

• Kobe Steel Ltd.

• Lafer S.p.A.

• Inorcoat