Semiconductor equipment is used in the manufacturing process of semiconductors including deposition, etching, and cleaning. Semiconductor devices are vital components in modern electronics used for diverse functions ranging from computing, communications, to industrial devices. With the rise of technologies like artificial intelligence (AI) and Internet of Things (IoT) that require high-powered semiconductors, the demand for semiconductor equipment is increasing substantially.
The global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The semiconductor equipment market is being driven by advancements in AI and IoT technologies that require increasingly powerful semiconductors. Semiconductors capable of handling AI workloads need higher processing power, memory, and advanced packaging technologies. This is propelling semiconductor equipment manufacturers to develop new deposition, lithography, and etching tools that can manufacture sophisticated AI chips within the size and power constraints. With the proliferation of IoT devices, the demand for advanced microcontroller units (MCUs) is growing exponentially. Semiconductor equipment players are focusing on developing new tools optimized for high-volume MCU manufacturing to meet this demand.
Strength: The semiconductor equipment market has significant long-term growth driven by increased global demand for semiconductors. Emerging technologies such as 5G, IoT, AI and Big Data are positively influencing the market.
Weakness: The market is capital intensive in nature and requires large investments in R&D from market players. Supply chain disruptions and geopolitical factors introduce risks and uncertainties.
Opportunity: Growth avenues exist in developing regions as the adoption of semiconductor manufacturing technology increases. Opportunities are also present in growth areas like autonomous vehicles, medical electronics and cloud computing.
Threats: Trade tensions between global economies can potentially impact export/import of equipment. Furthermore, rapid changes in technology standards pose challenges for equipment designed for older nodes.
The Global Semiconductor Equipment Market Analysis is expected to grow from US$ 83.3 Bn in 2023 to US$ 139.9 Bn by 2030, expanding at a CAGR of 6.0% during the forecast period.
Regional Analysis: The market is dominated by North America currently, attributed to presence of large fabs and semiconductor players in the region. However, Asia Pacific region is anticipated to witness high growth owing to burgeoning semiconductor manufacturing activity in China, South Korea, Taiwan and other developing Asian countries.
Key players operating in the semiconductor equipment market are Keysight Technologies, Fluke Corporation, Rohde & Schwarz, Yokogawa Electric Corporation, Agilent Technologies, Anritsu Corporation, Tektronix, EXFO Inc., B&K Precision Corporation, Hioki E.E. Corporation, Chauvin Arnoux Group, AMETEK, Inc., National Instruments Corporation, Gossen Metrawatt, Keithley Instruments. These companies are focusing on developing technologically advanced and customized semiconductor fabrication equipment to cater to the evolving industry requirements.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it