Global Demand for Semiconductor Machinery Manufacturing Expected to Grow from $121.5 Billion in 2024 to $223.8 Billion by 2029, According to Latest BCC Research Study
BOSTON, June 6, 2024 /PRNewswire/ — The semiconductor machinery sector stands at the center of technological advancement. These precise techniques make it possible to create the chips that power our connected world, from wafer production to testing and packaging.
“According to the latest BCC Research study, the demand for Semiconductor Machinery Manufacturing in global Markets is expected to grow from $121.5 billion in 2024 and is projected to reach $223.8 billion by the end of 2029, at a compound annual growth rate (CAGR) of 13.0% during the forecast period of 2024 to 2029.
This report presents a comprehensive overview of the global market for semiconductor machinery manufacturing, updating the previous edition from 2018. It uses 2023 as the base year to project market data for the forecast period from 2024 to 2029. Revenue forecasts are broken down by equipment type, application, and geographic region, encompassing North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The analysis includes insights into emerging technologies and the current competitive landscape, concluding with detailed profiles of the major players in the market.
Interesting Facts about the global market for semiconductor machinery manufacturing
In 2023, the wafer fabrication equipment segment dominated the global semiconductor machinery manufacturing market, accounting for over 80% of the share. This segment is projected to grow at a robust CAGR of 12.6% from 2024 to 2029, driven by its critical role in multiple manufacturing processes, including lithography, deposition, and etching. Logic and memory applications collectively held over 50% of the market share in 2023, fueled by the rising demand for advanced devices and the increasing complexity of manufacturing processes. The 3D IC segment is anticipated to experience significant growth, with a projected CAGR of 15.8% during the forecast period, as the industry shifts from 2D to 3D architectures to achieve better device miniaturization, efficiency, and power efficiency.
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The following factors drive the global market for semiconductor machinery manufacturing:
Growing Fabrication Equipment Spending Worldwide: The semiconductor manufacturing equipment market is expected to hit $223.8 billion by 2029, growing steadily. This growth is fueled by increased spending on research and development to create advanced fabrication equipment. The rising demand for consumer electronics like smartphones and tablets drives this market. Moreover, the shift towards electric vehicles, which use many semiconductors for various functions, further boosts spending on semiconductor machinery.
Growing Trend Toward Electrification of Automobiles and Industrial Equipment: The move towards electric and hybrid vehicles is a major driver for the semiconductor machinery market. Electric vehicles need more semiconductors than traditional cars for battery management and autonomous driving features. Similarly, industrial equipment is becoming more electrified, with smart factories and automation relying on semiconductors. This shift increases the demand for advanced semiconductor machinery.
Proliferation of Artificial Intelligence (AI), Internet of Things (IoT), 5G Networks, Smart Vehicles, and Augmented/Virtual Reality (AR/VR): The rapid growth of AI, IoT, 5G, smart vehicles, and AR/VR technologies are boosting the semiconductor machinery market. 5G networks require advanced semiconductors for faster and more reliable communication. IoT devices, which connect everything from homes to industrial sensors, need semiconductors for data processing and communication. AI applications require powerful chips, increasing the demand for semiconductor equipment. Smart vehicles use many semiconductors for safety and connectivity, and AR/VR technologies need high-performance chips for immersive experiences. This technological expansion drives the need for advanced semiconductor manufacturing equipment.
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Report Synopsis
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Report Metrics |
Details |
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Base year considered |
2023 |
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Forecast Period considered |
2024-2029 |
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Base year market size |
$116.4 billion |
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Market Size Forecast |
$223.8 billion |
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Growth rate |
CAGR of 13.0% for the forecast period of 2024-2029 |
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Segment Covered |
Equipment Type, Application, and Region |
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Regions covered |
North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
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Countries covered |
China, Taiwan, South Korea, Japan, U.S., Canada, Mexico, Germany, U.K., and France |
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Key Market Drivers |
• Growing Fabrication Equipment Spending Worldwide • Growing Trend Toward Electrification of Automobiles and Industrial Equipment • The Proliferation of Artificial Intelligence, the Internet of Things, 5G Networks, Smart Vehicles, and Augmented and Virtual Reality |
Segmentation Analysis:
- Equipment Types: Wafer Fabrication Equipment forms the cornerstone of semiconductor manufacturing, orchestrating processes like deposition, lithography, and etching vital for crafting integrated circuits. Testing Equipment ensures chip functionality and quality, upholding performance standards before market release. Assembly and Packaging Equipment delicately assembles semiconductor components into packages, pivotal for protection and electrical connectivity.
- Applications: Logic chips serve as computational engines, executing calculations and decision-making in electronic devices. Memory chips store and retrieve data, powering devices with storage capabilities like RAM and flash memory. Specialized chips, including microcontrollers and sensors, cater to diverse applications from embedded systems to precision sensing technologies.
- Regional Segmentation: In North America, the U.S. leads in semiconductor manufacturing, with Canada and Mexico contributing to research and assembly/testing respectively. Europe hosts leading equipment manufacturers in Germany and is active in R&D across the UK, France, and other regions. The Asia-Pacific region dominates global semiconductor production, led by China, Japan’s precision technology, South Korea’s memory dominance, and Taiwan’s foundries, with emerging players like India, Singapore, and Malaysia. South America, particularly Brazil, shows a growing semiconductor market, while the Middle East and Africa are establishing their semiconductor industries.
This global market for semiconductor machinery manufacturing Report contains comprehensive information and analysis covering the following key questions:
1. What is the projected market size and growth rate of the global markets for thin and ultrathin films?
The global market for semiconductor machinery manufacturing was valued at $116.4 billion in 2023 and will reach $223.8 billion by 2029, growing at a CAGR of 13.0% from 2024 to 2029.
2. What are the key factors driving the growth of global semiconductor machinery manufacturing?
The key factors driving the growth of global semiconductor machinery manufacturing include growing fabrication equipment spending worldwide, the growing trend toward electrification of automobiles and industrial equipment, the proliferation of artificial intelligence, the internet of things, 5g networks, smart vehicles, and augmented and virtual reality.
3. By application, which segment will dominate the market by the end of 2029?
By the end of 2029, the logic segment will continue to dominate the global market for semiconductor machinery manufacturing owing to the rising adoption of semiconductor equipment to manufacture logic chips. Also, the surge is fueled by the escalating manufacturing complexity in logic devices coupled with robust demand for semiconductors in areas such as cloud computing, artificial intelligence, 5G networks, and the Internet of Things.
4. Which region has the highest market share in global semiconductor machinery manufacturing?
Asia-Pacific holds the highest market share in global semiconductor machinery manufacturing. Asian countries, particularly countries such as China, Japan, Taiwan, and South Korea, is a global manufacturing hub. The region’s strong focus on semiconductor manufacturing has driven the adoption of t semiconductor manufacturing equipment. Moreover, demand is higher owing to the presence of many key players from the semiconductor machinery manufacturing marketplace.
Some of the Key Market Players Are:
- KLA CORP.
- KULICKE AND SOFFA INDUSTRIES INC.
- LAM RESEARCH CORP.
- NIKON CORP.
- SCREEN HOLDINGS CO. LTD.
- TOKYO ELECTRON LTD.
- DISCO CORP.
- ADVANTEST CORP.
- APPLIED MATERIALS INC.
- ASM INTERNATIONAL N.V.
- ASML
- CANON INC.
- ENTEGRIS INC.
- HITACHI LTD.
- TERADYNE INC.
Browse More Related Reports:
Global Markets, Technologies, and Materials for Thin and Ultrathin Films: This report offers a comprehensive overview of the global thin and ultrathin films market, analyzing current market trends and developments. It includes an updated review of various thin-film deposition technologies and materials used across different industries. Using 2022 as the base year, the report provides market estimates and revenue forecasts for the period from 2023 to 2028. The revenue forecasts are broken down by deposition technology, applications, materials, and geographic regions, including North America, Europe, Asia-Pacific, and the Rest of the World. The report also examines emerging technologies and the vendor landscape, concluding with profiles of the major market players.
Microelectromechanical Systems (MEMS) Technology: Current and Future Markets: This report provides a detailed overview of the global MEMS market, analyzing market trends with 2022 as the base year and offering estimated market data for 2023 through 2028. The revenue forecasts are segmented by device type (sensors and actuators), application (automotive, consumer electronics, defense/aerospace, industrial, life science, telecom/communications, and others), and region. Regional segmentation includes North America (U.S., Canada, Mexico), Europe (UK, France, Germany, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), and Rest of the World (Middle East, Africa, Latin America). Presented in a clear and simple format with tables and charts, the report examines the global and regional MEMS markets, explaining regional growth variations. It assesses the market from both manufacturers’ and consumers’ perspectives, discusses technical issues in MEMS technologies, and suggests solutions.
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