Semiconductor Equipment Market Research Report: By Type of Equipment (Wafer Processing, Assembly and Packaging, Test and Measurement, Cleaning and Etching), By Wafer Size (300mm, 200mm, 150mm), By Technology Generation (12nm and below, 16nm - 22nm, 32nm - 45nm, Mature), By Application (Memory, Logic, Analog, Discrete, RF Devices), By End Use (Foundries, IDMs, OSATs, Research and Development) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Global Semiconductor Equipment Market Overview

Semiconductor Equipment Market Size was estimated at 63.22 (USD Billion) in 2022. The Semiconductor Equipment Industry is expected to grow from 66.19(USD Billion) in 2023 to 100.0 (USD Billion) by 2032. The Semiconductor Equipment Market CAGR (growth rate) is expected to be around 4.69% during the forecast period (2024 - 2032).

Key Semiconductor Equipment Market Trends Highlighted

The growth of the semiconductor equipment market includes several essential drivers. Among them is the increasing technological uptake within different end-use industries, which require integrated circuits (ICs) and semiconductors, such as consumer electronics, automotive and telecommunication. Because of the technological growth in industries, there has been a rising need for high-power and less power-consuming devices, which is opening huge areas in the market for semiconductor equipment manufacturers.

As per the recent pattern, there has been a lot of demand for automation and improvement of processes in the market. Equipment manufacturers are embedding artificial intelligence (AI) and machine learning (ML) in specific products to maximize productivity while minimizing production costs. The more widely used advanced packaging technologies, such as fan-out wafer level packaging (FOWLP) and system-in-package (SiP), also boost the sale of such equipment.

Also, due to the rising intricacy in the designs of semiconductors and changing into an advanced node, equipment manufacturers have been pushing to come up with new innovative ideas and equipment. Advanced material ejection and euten-eye-lit-file equipment are some of the examples that fall under EUV lithography. By targeting these areas and responding to the changing needs of clients, manufacturers will be able to enjoy good prospects of growth in the semiconductor equipment market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Semiconductor Equipment Market Drivers

Rising Demand for Advanced Semiconductors

The increasing adoption of artificial intelligence (AI), machine learning (ML), and other data-intensive technologies is driving the demand for advanced semiconductors. These technologies require specialized equipment for manufacturing, leading to growth in the semiconductor equipment market. Moreover, the growing popularity of cloud computing, big data analytics, and the Internet of Things (IoT) is further fueling the need for high-performance semiconductors, which in turn is boosting the demand for advanced semiconductor equipment.The  Semiconductor Equipment Market Industry is expected to grow significantly over the forecast period, driven by increasing demand from various end-use industries such as consumer electronics, automotive, and industrial automation. The rising need for miniaturization and increased functionality in electronic devices is also contributing to the growth of the market. Furthermore, government initiatives and investments in research and development (R&D) activities related to semiconductor technologies are anticipated to provide impetus to market growth.

Government Initiatives and Support

Governments worldwide recognize the strategic importance of the semiconductor industry and implement supportive policies to encourage its growth. These initiatives include providing financial incentives, such as subsidies and tax breaks, to companies investing in semiconductor manufacturing and equipment. Additionally, governments are collaborating with industry leaders to establish research and development centers and promote innovation in the sector.Such supportive measures are expected to drive the growth of the  Semiconductor Equipment Market Industry.

Technological Advancements and Innovation

The semiconductor equipment market is undergoing constant changes as new technologies are implemented. With leading manufacturers investing heavily in creating more innovative and advanced equipment to sustain the continuous growth of the area, these changes place further emphasis on creating new products that can meet demands. Among the groundbreaking changes that constantly occur in the field of creating such equipment, there are the following ones: constant introduction of new materials, processes, and technologies in the creation of semiconductor manufacturing equipment; the implementation and expanded use of automation and artificial intelligence, both of which augment the productivity and efficiency of the equipment.As a result, these changes lead to further growth in the semiconductor equipment market.

Semiconductor Equipment Market Segment Insights

Semiconductor Equipment Market Type of Equipment Insights

The Semiconductor Equipment Market is segmented by type of equipment into Wafer Processing, Assembly and Packaging, Test and Measurement, and Cleaning and Etching. Wafer Processing is expected to be the largest market ly in 2024, followed by Assembly and Packaging. The growth of the Wafer Processing segment is due to the demand for advanced semiconductor devices, such as smartphones, laptops, and data centers. The Assembly and Packaging segment is also expected to witness substantial growth, which is mainly due to the increasing adoption of advanced packaging technologies, such as fan-out wafer-level packaging and system-in-package.The Test and Measurement segment is expected to have a moderate growth rate in this market, which is due to the need for a semiconductor device to be tested rigorously in order to understand its reliability and performance. Components in the Cleaning and Etching segment are expected to witness slow growth, which is due to the increasing use of advanced cleaning and etching methods such as atomic layer deposition and chemical vapor deposition. In conclusion, the demand for advanced processing units and the use of advanced processing techniques are likely to propel the overall  Semiconductor Equipment Market to grow substantially over the next five years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Semiconductor Equipment Market Wafer Size Insights

The Semiconductor Equipment Market is segmented by Wafer Size into 300mm, 200mm, and 150mm. In 2023, the 300mm segment held the largest market share of 60%, followed by the 200mm segment with 25%, and the 150mm segment with 15%. The growth of the 300mm segment is attributed to the increasing demand for advanced semiconductor devices, such as those used in smartphones, tablets, and high-performance computing applications. The 200mm segment is expected to grow at a steady pace due to the continued demand for mature semiconductor devices, such as those used in automotive and industrial applications.The 150mm segment is expected to decline in market share due to the increasing adoption of larger wafer sizes.

Semiconductor Equipment Market Technology Generation Insights

The Technology Generation segment of the  Semiconductor Equipment Market is expected to exhibit significant growth in the coming years, driven by the increasing demand for advanced semiconductor devices. The 12nm and below technology node is expected to account for the largest share of the market, with a growing number of applications in high-performance computing, artificial intelligence, and automotive electronics. The 16nm - 22nm and 32nm - 45nm technology nodes are also expected to experience steady growth, driven by demand from the mobile and consumer electronics sectors.Mature technology nodes, such as those above 45nm, are expected to continue to be used in low-power and cost-sensitive applications. Overall, the Technology Generation segment of the Semiconductor Equipment Market is expected to grow at a CAGR of around 5% during the forecast period.

Semiconductor Equipment Market Application Insights

The Semiconductor Equipment Market is segmented by Application into Memory, Logic, Analog, Discrete, and RF Devices. The Memory segment held the largest market share in 2023, with a revenue of USD 26.55 billion, and is projected to grow at a CAGR of 4.2% from 2024 to 2032. The Logic segment is expected to grow at a CAGR of 4.5% during the forecast period. The Analog segment is expected to grow at a CAGR of 4.7%, while the Discrete segment is expected to grow at a CAGR of 4.9%. The RF Devices segment is projected to grow at the highest CAGR of 5.1% during the forecast period.The growth of the Semiconductor Equipment Market is attributed to the increasing demand for semiconductors in various end-use industries, such as consumer electronics, automotive, and industrial. The market is also driven by the growing adoption of advanced technologies, such as artificial intelligence (AI) and machine learning (ML).

Semiconductor Equipment Market End Use Insights

The Semiconductor Equipment Market segmentation by End Use includes Foundries, IDMs, OSATs, and Research and Development. Foundries held the largest market share in 2023, and this trend is expected to continue during the forecast period. Foundries are specialized in manufacturing semiconductor wafers for other companies, and they play a critical role in the semiconductor supply chain. IDMs (Integrated Device Manufacturers) design, manufacture, and sell their own semiconductor products. They are expected to witness steady growth during the forecast period.OSATs (Outsourced Semiconductor Assembly and Test) provide semiconductor packaging and testing services to other companies. They are expected to grow at a moderate pace during the forecast period. Research and Development is expected to witness significant growth during the forecast period, driven by increasing investments in semiconductor technology development.

Semiconductor Equipment Market Regional Insights

The regional landscape of the  Semiconductor Equipment Market showcases distinct market dynamics across key regions. North America holds a dominant position, capturing a significant share of the market, driven by the presence of leading semiconductor companies, advanced infrastructure, and favorable government policies. Europe follows closely, exhibiting steady growth supported by established semiconductor clusters and research institutions. APAC, led by China, South Korea, and Taiwan, has emerged as a major growth engine, fueled by rising demand for consumer electronics, automotive, and industrial applications.South America and MEA represent emerging markets with untapped potential, offering opportunities for market expansion.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Semiconductor Equipment Market Key Players And Competitive Insights

The key players in the Semiconductor Equipment Market industry are focusing on developing innovative technologies to meet the rising demand for semiconductors. Leading Semiconductor Equipment Market sectors are focusing on investments in research and development to lead over their counterparts. The semiconductor equipment market industry is witnessing a surge in demand due to the penetration of semiconductors across applications. Applied Materials, ASML, and Tokyo Electron are recognized in the competitive landscape as the key players in the Semiconductor Equipment Market.Applied Materials is the market leader in manufacturing semiconductor equipment. The company's product offerings include deposition systems, etch systems and ion implantation systems. Applied Materials, headquartered in the U.S., has a presence and caters to a wide range of customers. Applied Materials is significantly known for its innovative products and its high focus on the customers. The strong position of Applied Materials is due to a large number of customers across geographies. Hence, the increasing demand for semiconductors is expected to benefit Applied Materials.

Tokyo Electron is another key player in the Semiconductor Equipment Market. The company's notable product offerings include lithography systems, etching systems, and deposition systems. Tokyo Electron has a strong presence across Asia-Pacific and is expanding its operations to other geographical regions. The company is significantly known for the delivery of high-quality products and good customer support. Tokyo Electron is a key player in the semiconductor equipment market, and it is expected to gain benefits due to the increasing demand for semiconductors across applications.

Key Companies in the Semiconductor Equipment Market Include

• BASF


• Advantest


• Tokyo Electron


• Applied Materials


• SCREEN Holdings


• ASML


• DuPont de Nemours


• ShinEtsu Chemical


• Daido Steel


• Merck


• KLA Corporation


• Nikon


• Sumco Corporation


• Lam Research


• JSR Corporation

Semiconductor Equipment Market Industry Developments

The  Semiconductor Equipment Market is projected to reach USD 100.0 billion by 2032, exhibiting a CAGR of 4.69% during the forecast period (2024-2032). The growth of the market is attributed to the increasing demand for semiconductors in various end-use industries such as consumer electronics, automotive, and industrial. The rising adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) is also driving the demand for semiconductor equipment.Recent developments in the market include the launch of new products by key players such as Applied Materials, ASML, and Tokyo Electron. These companies are investing heavily in research and development to enhance the performance and efficiency of their equipment. Additionally, the growing trend of outsourcing semiconductor manufacturing is expected to create opportunities for equipment suppliers in the coming years.

Semiconductor Equipment Market Segmentation Insights

Semiconductor Equipment Market Type of Equipment Outlook

• Wafer Processing


• Assembly and Packaging


• Test and Measurement


• Cleaning and Etching

Semiconductor Equipment Market Wafer Size Outlook

• 300mm


• 200mm


• 150mm

Semiconductor Equipment Market Technology Generation Outlook

• 12nm and below


• 16nm - 22nm


• 32nm - 45nm


• Mature

Semiconductor Equipment Market Application Outlook

• Memory


• Logic


• Analog


• Discrete


• RF Devices

Semiconductor Equipment Market End Use Outlook

• Foundries


• IDMs


• OSATs


• Research and Development

Semiconductor Equipment Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa