The global semiconductor manufacturing equipment market size is anticipated to expand to USD 165.5 Billion by 2030 at an 11.1% CAGR over the forecast period. It is a constantly expanding and highly competitive industry that offers equipment and tools for the production of semiconductors. This includes the high-speed manufacturing equipment required to advance our technologies. The escalating global reliance on electronic devices has primarily been attributed to the growth within the semiconductor and semiconductor manufacturing equipment industry. Rapid growth and innovation in the industry as technologies such as 5G and AI Factors such as factory expansion, R&D expenditure, and geopolitical considerations are becoming increasingly significant in determining this growth.
The global semiconductor manufacturing equipment industry is mainly driven by technological advancement over the years and increasing demand for semiconductors in almost all electronics products. The rising demand for semiconductors in the electric vehicle industry has surged the global semiconductor market, which in turn has boosted the entire semiconductor manufacturing equipment industry. Similarly, consumer electronics have always played a major role in driving the semiconductor market. The rising disposable income around the globe coupled with rapid urbanization stands at the forefront of ever-surging demand for consumer electronics. The semiconductors are heavily used in basic consumer electronics such as smartphones, laptops, tablets, and wearables and have, therefore, boosted its global demand. Such use of semiconductors in basic consumer electronics has propelled the investments by manufacturers in semiconductor manufacturing equipment to meet the production demand of the electronics market. Moreover, the advent of technologies such as 5G, AI, and the Internet of Things (IoT) has brought unprecedented demand for technologically advanced semiconductors. There has been heavy and continuous research and development going on for semiconductor materials, and designs that are smaller, faster, and more powerful. This has led to the development of sophisticated manufacturing tools that are used in etching and testing the semiconductors needed to produce the intricate components that power our modern electronics.
The semiconductor manufacturing industry has adopted the principle of Industry 4.0 intricately. There is a widespread integration of IoT technologies in the manufacturing processes of semiconductors. There are now small factories with connected production lines to develop precise advanced semiconductors and to match the high demand from the electronics industry. This has provided a great opportunity for the semiconductor manufacturing equipment market to surge in the upcoming years. Moreover, government-backed initiatives around the globe for domestic semiconductor production are set to provide new opportunities for the semiconductor manufacturing equipment market. However, heavy R&D expenses, geopolitical uncertainties, and sustainability challenges are the major restraints for the entire semiconductor manufacturing equipment market. Moreover, the lack of skilled workforce for semiconductor facilities worldwide persists as another major challenge for the semiconductor manufacturing equipment market.
Impact of COVID-19
The COVID-19 pandemic had a profound impact on the global semiconductor manufacturing equipment industry. It disrupted supply chains, causing production delays and workforce constraints. The production capacities were mainly strained as the global supply chain was heavily affected and was not able to meet the global demand from the electronics industry. This in turn slowed the semiconductor equipment manufacturing market as well. However, the production strategies post-pandemic were revaluated and the use of IoT technologies was emphasized. Now, as the industry recovers from the pandemic, the investments in semiconductor manufacturing equipment have accelerated to meet the high demand for advanced electronic components.
Segmentation
The global semiconductor manufacturing equipment market is segmented based on process, dimension, and application. The process segment is further segmented into front-end and back-end. The front-end segment accounted for a share of 71.5% market share in 2022. The dimension segment can be segregated as 2D, 2.5D, and 3D. Based on application, the semiconductor manufacturing equipment market is segmented into semiconductor electronics manufacturing, semiconductor fabrication plant/foundry, and testing & inspection. The semiconductor fabrication plant/foundry segment had the highest market share of 45.5% in 2022.
Regional Analysis
The Asia Pacific led the global semiconductor manufacturing equipment market in 2022 with a 67.8% market share. China, Taiwan, India, and Japan are the major countries with a large number of semiconductor and electronics manufacturers. This has surged the demand for semiconductor manufacturing equipment in the region. The presence of major industry players such as TSMC, Samsung Electronics, and SK Hynix. Notably, countries like China, Japan, and South Korea are the major regions for the dominance of the region in the market.
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Competitive Analysis
The global semiconductor equipment market is extremely competitive, with numerous players competing for market share which are both public and privately held. Some of the most prominent players in the semiconductor manufacturing equipment industry are Tokyo Electron Limited, ASML, K.L.A. Corporation., Plasma-Therm, Lam Research Corporation, Advantest Corporation, Veeco Instruments Inc., Canon Machinery Inc., Nordson Corporation, SCREEN Semiconductor Solutions Co. Ltd, Hitachi High-Tech Corporation, Advanced Dicing Technologies, among others. The strategic collaborations with research institutions by these firms provide avenues for innovation and overall market expansion of semiconductor manufacturing equipment.
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The global semiconductor manufacturing equipment market is segmented as follows:
By Process (Revenue: USD Billion, 2018 – 2030)
● Front-End
● Back-End
By Dimension (Revenue: USD Billion, 2018 – 2030)
● 2D
● 2.5D
● 3D
By Application (Revenue: USD Billion, 2018 – 2030)
● Semiconductor Electronics Manufacturing
● Semiconductor Fabrication Plant/Foundry
● Testing & Application
By Region (Revenue: USD Billion, 2018 – 2030)
● North America
o U.S.
o Canada
o Mexico
● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe
● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific
● Latin America
o Brazil
o Argentina
o Rest of Latin America
● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa
Frequently Asked Questions (FAQs)
The global market for semiconductor manufacturing equipment is expected to reach USD 165.5 Billion in 2030 growing at a CAGR of 11.1%.
The major players in the global semiconductor manufacturing equipment market are Tokyo Electron Limited, ASML, K.L.A. Corporation., Plasma-Therm, Lam Research Corporation, Advantest Corporation, Veeco Instruments Inc., Canon Machinery Inc., Nordson Corporation, SCREEN Semiconductor Solutions Co. Ltd, Hitachi High-Tech Corporation, Advanced Dicing Technologies, among others.
The global semiconductor manufacturing equipment market is projected to grow at a CAGR of 11.1% between 2023 and 2030.
The escalating global reliance on electronic devices has primarily been attributed to the growth within the semiconductor and semiconductor manufacturing equipment industry. Rapid growth and innovation in the industry as technologies such as 5G and AI Factors such as factory expansion, R&D expenditure, and geopolitical considerations are becoming increasingly significant in determining thie growth of global semiconductor manufacturing industry.
Asia Pacific was the leading regional segment of the semiconductor manufacturing equipment market in 2022.
