Vapor Deposition Market Analysis

Vapor Deposition Market Overview

Vapor Deposition Market Size was valued at USD 2.94 billion in 2023. The Vapor Deposition industry is projected to grow from USD 3.20 billion in 2024 to USD 5.69 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.45% during the forecast period (2024-2032). 

Gallium Semiconductor introduced the GTH2e-2425300P ISM CW amplifier in 2023, a 2.4-2.5GHz, 300W pre-matched discrete GaN-on-SiC High Electron Mobility Transistor (HEMT) that improves efficiency for a variety of industrial, scientific, and medical (ISM) applications, such as semiconductor plasma sources and microwave plasma chemical vapor deposition (MPCVD) equipment for synthetic diamond production.

COVID-19 Analysis

In response to the COVID-19 outbreak and the resultant lockdown, vendor had to temporarily suspend production, in line with lower product demand, disruptions in supply chain, and the need to maintain the safety of employees amidst the escalating SARS-CoV-2 cases. In the US, Germany, France, Spain and Italy, the demand for vapor deposition has declined post-pandemic. As a result, reputed vendors are trying to revive their operations by bolstering their supply chains and explore ways to deal with the challenges brought by the novel coronavirus.

Competitive Landscape

Players Enter Joint Ventures to Gain a Higher Customer Base

Several firms are responsible for vapor deposition market growth, given their involvement in extensive R&D (research and development) activities coupled with acquisitions and mergers with other manufacturers as well as distributors to bolster their geographical presence. Most of the companies hold a substantial vapor deposition market share and are striving to expand their customer base by entering joint ventures with other vendors.

Plasma-Therm is a well-known leader in the vapor deposition industry, and a key innovator of advanced plasma-processing technologies. Plasma-Therm's strong presence in the market is backed by over 40 years of focus on product innovation, customer support, low cost of ownership and reliability. Plasma-Therm products are widely used in large-scale manufacturing as well as research institutions, securing the company’s reputation in the global market.

List of Key Companies Covered in this Report

• Oerlikon Balzers Coating AG


• ULVAC Technologies Inc.


• Applied Materials Inc.


• IHI Ionbond AG


• ASM International N.V


• JUSUNG ENGINEERING Co., Ltd.


• LAM RESEARCH CORPORATION


• Kurt J. Lesker


• Plasma-Therm LLC.


• Aurora Scientific Corp.

Market Dynamics

Drivers

Rapidly Surging Demand for Electronic Devices to Benefit the Market

The vapor deposition market growth is primarily bolstered by the strict environmental norms and regulations that restrict the deployment of Cr6 and the escalating use of several electronic devices. Robust demand for medical equipment and devices, portable home appliances, electronic devices, equipment and tools also give a solid boost to the market growth.

The medical sector has emerged as a promising end-user in the global vapor deposition market, as it is fast adopting new and advanced technologies for combating the ever-rising number of diseases as well as complex disorders. Another potential end-use industry is automotive, where demand for lightweight materials is significantly high owing to the need to cut down CO2 emissions and fuel consumption. As a result, the demand for aluminum, carbon-reinforced plastic materials and magnesium has grown in the industry. However, these materials tend to stick to the cutting tool, which leads to reduced lifespan. To deal with these issues, the automotive industry has been adopting coating materials that have low coefficient of friction such as vapor deposition, which has translated into an impressive market growth.

Opportunities

Asia Pacific to Offer Lucrative Opportunities

A highly developed electronics manufacturing sector across Taiwan, South Korea and China will offer a host of lucrative opportunities to global players. Fast economic growth, surge in urbanization and mushrooming electronic manufacturing hub all encourage market growth in these countries. Vietnam, India, the Philippines and Indonesia, in view of the presence of thriving consumer electronics sector, also present significant opportunities to VD technology manufacturers.

Restraints

High Costs of Installing VD Technology to Restrain Growth

High capital investments required for using vapor deposition technology could hinder the market expansion rate in the oncoming period.

Challenges

Strict Regulations across Countries to Challenge Growth

Stringent regulations pertaining to the F-gas emissions due to the use of a few precursors can be a significant challenge for leading manufacturers in the global market.  

Segment Overview

PVD Segment to Dominate the Global Market

Some of the processes considered in the report are physical vapor deposition (PVD) as well as chemical vapor deposition (CVD). Physical vapor deposition coating has gained considerable traction in the global market, as it helps enhance the product’s appearance as well as durability and also instills its base material with extra functions. Additionally, physical VD does not require any process medium, making it an eco-friendly coating process that has extensive application in a broad range of consumer and industrial components.

Applications in Microelectronics to Escalate Rapidly

Some of the key application areas of vapor deposition are cutting tool, microelectronics, decorative coatings and medical devices & equipment, among others. Mounting demand for microelectronics-based consumer goods can mean higher use of vapor deposition in the semiconductor industry. Therefore, the microelectronics segment can take the lead in the coming years.

 Product Demand to Rise Significantly in Medical End-Use Industry

The significant end-use industries in the market are medical, automotive, aerospace, metal, electrical & electronics, and others.  The demand for vapor deposition in the medical industry is quite robust, on account of the soaring demand for bio-compatible and wear-resistant thin-film coatings. Vapor deposition coating is utilized in several medical devices, such as stents, orthopedic plants, medical pressure sensors, pacemakers, dental instruments, surgical instruments and orthodontic appliances.

Regional Analysis

Asia Pacific Showcases Impressive Growth

The highest growth has been demonstrated by the Asia Pacific market, with its position further cemented by the rapid expansion of several end-use industries such as electronics, aerospace, automotive, defense, electrical and construction. China is one of the largest markets for vapor deposition, not only in the region but across the globe. In APAC, the demand for superior quality medical coating materials has escalated rapidly due to the frequent innovations in technology along with the surge in healthcare spending. This factor is bound to work in favor of the vapor deposition market in the region. Apart from this, the amplified demand for DRAM and flash memory in the communication and consumer goods applications in South Korea, India and China can also foster the vapor deposition market demand in the following years. Therefore, MRFR expects the Asia Pacific market to advance at the fastest rate of 7.39% during the review period.

North America to Emerge as a Strong Contender

North America is the second biggest market and could touch USD 14,552.40 million by 2023-end. Extensive regulatory framework supporting domestic private spending in Mexico has been favorable for the semiconductor industry, which has led to higher demand for vapor deposition. In North America, considerable spending on R&D activities by affluent medical device developers in the United States is also anticipated to bolster the vapor deposition market size in the region.

Germany to Generate Highest Revenue in Europe

Europe remains another prominent market, having captured a share of 18.93% in 2017. Germany can possibly take the lead in the European market in the near future, thanks to the accelerated demand for vapor deposition in the automotive industry. Demand for advanced metal-cutting technologies is strong in Germany, since it offers complex shaping, precise dimensional accuracy and surface texture to finished goods that are utilized in manufacturing of components in several industries.

Recent Developments

• March 2020 – Hevel Group, which is an exclusive producer of vertical integrated solar energy modules in Russia, has expanded its heterojunction solar cells and modules production plant to 340 MW of capacity from the earlier 260 MW. The reason behind increasing the production capacity by the company was mainly on account of installation of additional equipment for plasma-enhanced chemical vapor deposition.

Report Overview

Segmentation Table

By Process

• chemical vapor deposition (CVD)


• physical vapor deposition (PVD)

By Application

• microelectronics


• cutting tool


• medical devices & equipment


• decorative coatings

By End-Use

• electrical & electronics


• automotive


• aerospace


• metal industry


• medical