CHEMICAL VAPOR DEPOSITION MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
Global chemical vapor deposition market is estimated to be valued at USD 24.27 Bn in 2024 and is expected to reach USD 44.66 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.
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Global chemical vapor deposition market is driven by growing demand for chemical vapor deposition equipment across various industries like electronics, machinery, and medical devices. Technological advancements are enabling higher process through put and uniform coatings at nano-scale levels. Key players such as Applied Materials, Inc., Lam Research Corporation and other are investing in Research and Development R&D to develop new deposition materials and reduce cost of ownership. The use of CVD for applications like solar panels and smart devices will boost the demand for chemical vapor deposition equipment. However, availability of alternative deposition techniques may hamper the market growth to some extent during the forecast years.
Increasing demand for advanced semiconductor devices
The ubiquitous presence of electronic devices in our lives has meant that the demand for more advanced and powerful semiconductor chips is ever increasing. In applications ranging from smartphones to artificial intelligence, there is a constant push for higher performance and lower power consumption from semiconductors. This is driving semiconductor manufactures to integrate more components on a single chip by using techniques like 3D stacking. However, shrinking transistor sizes and integrating diverse functionalities on a chip comes with its own set of challenges. Reliability, yield and precise deposition of various thin films have become critical to successfully manufacture advanced logic and memory chips.
Chemical vapor deposition (CVD) is one of the primary deposition techniques used during the fabrication of semiconductors. It allows for the homogeneous deposition of uniform thin films on wafers through chemical reactions between vapor phase chemicals and the substrate surface. Advancements like plasma enhanced CVD (PECVD) have enabled the industry to deposit films with angstrom level thickness control at high speeds. As chips integrate more functions with each new generation, conventional deposition processes are finding it harder to meet requirements. This is spurring increased adoption of atomic layer deposition (ALD), a variant of CVD, which can precisely deposit monolayers of materials. Further, 3D architectures require conformal, seamless thin film coverage over high aspect ratio structures which traditional CVD struggles with. Next generation deposition technologies like spatial ALD try to overcome this by independently dosing precursor gases at different locations on the substrate.
The transition to ever smaller transistor features called for in Moore’s law also demands tighter control over film properties and composition at the atomic scale. Variations in materials parameters across the wafer can hamper device performance and yield. Advanced metrology integrated into deposition tools helps achieve greater uniformity and repeatability by giving real time feedback. The demand for more powerful logic and memory chips in applications driving our increasingly digital lives relies on continued advancement of the underlying semiconductor technology. This puts CVD and its variants at the center of enabling the next technology nodes, driving continued growth.
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Growth in the Renewable Energy Sector, Particularly Solar Energy
There is a growing global momentum towards developing sustainable energy sources to replace fossil fuels and reduce carbon footprint. Among the various renewables, solar energy is leading this shift with rapidly falling costs and rising installations worldwide. For instance, according to data from the International Energy Agency in 2023, the renewable energy supply from sources such as solar, wind, hydro, geothermal, and ocean energy increased by nearly 8% in 2022. This growth contributed to a rise in the share of renewable energy in the total global energy supply, which climbed by approximately 0.4 percentage points to reach 5.5%. This upward trend highlights the expanding role of renewable energy in the global energy landscape and underscores the ongoing transition toward more sustainable energy sources. However, increased harnessing of solar power also depends on advancement of the technologies and materials that go into making solar panels more efficient, durable and economical.
A key process in the manufacturing of crystalline silicon solar cells is chemical vapor deposition (CVD). It is used to deposit films of silicon, silicides and oxides on silicon wafers that form the core p-n junctions and passivation layers. As the solar industry aims for higher conversion efficiencies above 25%, precision in CVD film properties and interfaces becomes important. At the same time, industrial scale production requires deposition systems with high throughput and reproducibility. CVD manufacturers are addressing this through innovations like larger reactors, novel gas delivery systems and advanced process control. Meanwhile, solar cell designs are diversifying into new materials like perovskites as well as concentrating multiple p-n junctions in a single cell. CVD variants like ALD play a role here by enabling nano-scale depositions needed for these next generation designs.
In addition, photovoltaic modules also require anti-reflection coatings, conductors, encapsulants and glass substrates, some or all of which may employ CVD during their production. Furthermore, energy storage solutions, another critical area for transition to renewables, utilizes CVD deposited thin films in applications like batteries and hydrogen fuel cells. As solar, wind and other sustainable resources are being rapidly scaled up globally to play a bigger role in our energy mix, they will propel the continued growth and development of the chemical vapor deposition industry to support their manufacturing and long-term reliability needs.
Key Takeaways from Analyst:
Global chemical vapor deposition market is poised to grow substantially over the next decade driven by the rising demand for integrated circuits from the semiconductor and electronics industries. CVD is increasingly becoming the preferred deposition technique over other methods due to its ability to provide high-quality and precise thin film coatings. The development of new advanced materials like graphene which requires highly uniform thin films will further propel the demand for CVD.
However, stringent environmental regulations around hazardous gases like dichlorosilane used in the CVD process can restrain the market growth. High initial investment and maintenance costs of CVD equipment also remains a major challenge. Nonetheless, emerging technologies like 3D printing and 5G networks will open up new revenue streams for CVD manufacturers. The North America region, currently dominates the global CVD market owing to presence of large fabs and outsourced foundries while Asia Pacific is fasting growing region in the market. Moving forward, North America is expected attract significant investments as companies try to shorten supply chains and onshore more production.
Market Challenge - High equipment costs associated with CVD processes
One of the major challenges faced by the global chemical vapor deposition market is the high equipment costs associated with CVD processes. CVD requires specialized high-vacuum deposition chambers, heated susceptors, sophisticated gas delivery systems, and process control instrumentation. All of this specialized equipment comes at a high price tag. Additionally, frequent maintenance and replaced of parts is also needed for optimized performance of CVD equipment. This increases the operating expenses over time. The significant capital investment required for installing CVD systems acts as a barrier, especially for small manufacturing units and startups. The high equipment and maintenance costs ultimately increases the per-unit production cost of CVD films and coatings. This pricing factor poses challenges in implementing CVD for mass manufacturing and attracting price-sensitive customers. CVD equipment vendors need to focus on developing innovative reactor designs and integrated systems that can lower the purchase and operational costs to help improve the affordability of CVD technology and growth of the market.
Market Opportunity - Development of innovative CVD materials and technologies
The development of innovative new materials and continuous advancement in CVD technologies present significant opportunities for future growth of the global CVD market. CVD allows for customization of material properties at the nano-scale and deposition of multi-layer thin films. Extensive R&D is ongoing to expand the portfolio of CVD materials beyond the mainstream silicon, ceramics and metals. Novel materials such as graphene and 2D chalcogenides deposited using CVD show promise for a wide range of applications. Advancement in precursors and precursor delivery technologies improve film deposition control at the atomic level. Furthermore, new reactor designs with improved thermal budget and compatibility with large-area or 3D substrates expand the CVD application scope. Continued innovation in CVD processes, such as remote or spatial ALD, open up new avenues for cost reductions. The emerging applications of CVD films in advanced electronics, renewable energy, protective coatings and biomaterials point towards substantial future demands. This provides ample opportunities for CVD vendors to strengthen their market position.
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Insights by technology: Plasma-enhanced Chemical Vapor Deposition (PECVD) Drives the Technology Segment Growth
In terms of technology, the plasma-enhanced chemical vapor deposition (PECVD) segment is estimated to contribute the highest market share of 38.8% in 2024, owing to its unique advantages over competing deposition techniques. PECVD allows for more precise control of film thickness and uniformity during the deposition process. Unique capabilities for depositing films at lower temperatures are especially valuable for applications involving heat-sensitive materials. The ability to create conformal coatings on complex three-dimensional substrates makes PECVD well-suited for integrated circuit manufacturing where film deposition must occur in high-aspect ratio trenches and holes.
PECVD also allows for higher deposition rates compared to other low-pressure techniques like LPCVD, enabling more rapid manufacturing throughput. Using plasma to activate reactant gases provides more flexible chemistry for a broader range of deposited materials. In particular, PECVD excels at depositing dielectric films like silicon dioxide and silicon nitride used in various semiconductor and micro-electromechanical systems applications. Advancements in plasma source design have further increased the technique's throughput and uniformity for these critical insulating layers.
The control and flexibility afforded by the PECVD process have cemented its role for multiple critical steps in nanofabrication workflows. As integrated circuits and other devices continue to miniaturize with more layers and 3D architectures, the advantages of highly conformal and customizable thin film deposition will be in greater demand. Meanwhile, PECVD equipment suppliers continue enhancing plasma uniformity and multi-wafer capabilities to support rising production needs. These factors help explain PECVD's dominance in the chemical vapor deposition market technology segment.
Insights by application: Semiconductors Drive the Application Segment Growth
In terms of application, the semiconductors segment is estimated to contribute the highest market share of 37.7% in 2024, due to the central role of chemical vapor deposition in the semiconductor manufacturing industry. CVD is used for depositing numerous functional thin films during the fabrication of integrated circuits, memory chips, and other devices.
Some of the most common CVD applications in semiconductor processing include depositing conducting films like tungsten, aluminum, and copper used for transistors, wires, and other conductive elements. CVD also excels at dielectric films deposition, with silicon oxide and nitride being workhorse materials for insulation and passivation layers. Meanwhile, developing new electric device architectures requires CVD to deposit novel materials like high-k dielectrics for advanced CMOS gate oxides.
The complexity and layer counts of modern semiconductor designs drive extensive use of CVD. Transistor gate lengths shrinking below 10 nanometers in cutting-edge nodes mean that precise thin film deposition is essential. Applications will also grow through developing new device types like memory, sensors, and Internet of Things chips that utilize nanotechnology. The industry's continued progression toward 3D chip architectures like FinFETs also depends on CVD to deposit intricate stacked and embedded layers. No other fabrication technique rivals CVD's balance of high quality films, production scalability, and materials flexibility needed for advanced sector demand. This entrenched user base solidifies Semiconductors contribution as the dominant application segment.
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North America has established itself as one of the dominant regions in the global chemical vapor deposition market. The region is expected to hold 40.4% of the market share in 2024. The U.S., in particular, has a strong foothold in the market attributable to several industry players based in the country. Leading semiconductor manufacturers, such as Intel, Qualcomm, and Micron, have their manufacturing facilities set up in the U.S. to effectively cater to strong local demand from various end-use industries. Additionally, the region enjoys a strong presence of CVD equipment manufacturers led by companies like Applied Materials, Lam Research, and Tokyo Electron.
The presence of a robust semiconductor industry and continuing investments by chipmakers have kept North America at the forefront of CVD technology development and adoption. Original equipment manufacturers regularly upgrade their production lines to transition to smaller node sizes, necessitating advanced CVD processes. This ensures steady demand for CVD services and equipment from the industrial segment. The region is also prominent in the areas of solar cell manufacturing and coating applications, further augmenting market revenues.
The Asia Pacific region has emerged as the fastest growing market for chemical vapor deposition. Countries like China, Japan, South Korea and Taiwan have become major production hubs for semiconductors and electronics over the past decade. This industry shift to Asia has driven vast infrastructure developments and increased procurement of CVD equipment and services by local manufacturers. China, in specific, stands out due to emphasis on building a self-reliant semiconductor supply chain through initiatives like Made in China 2025.
Meanwhile, India is also witnessing a gradual expansion of its electronics and automotive industries which bodes well for the region's long-term CVD prospects. According to data from Invest India released in 2023, India produced a total of 28.43 million vehicles in the fiscal year 2023-2024, establishing itself as the third-largest automobile market in the world in terms of sales. This significant production volume underscores India's growing prominence in the global automotive industry and reflects the increasing demand for vehicles within the country. The availability of cheap labor and supportive government policies have prompted key global players to set up additional fabs and expand existing capacities across Asia Pacific. This ensures there is no dearth of opportunities for CVD companies looking to establish local supply chains and customer support centers in these high-growth Asian markets. The region's prices are also competitive owing to economies of scale benefits and substantial local manufacturing capabilities.
Chemical Vapor Deposition Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 24.27 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 9.1% | 2031 Value Projection: | US$ 44.66 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Applied Materials, Inc., Lam Research Corporation, Tokyo Electron Limited, ASM International N.V., Veeco Instruments Inc., Oxford Instruments plc, Novellus Systems, Inc., Korean Semiconductor Industry Association, CVD Equipment Corporation, SENTECH Instruments GmbH, Linde plc, Merck KGaA, Entegris, Inc., Air Products and Chemicals, Inc., MKS Instruments, Inc., Fujimi Incorporated, Celeroton AG, NexGen Power Systems, Buehler Limited, and Plasma-Therm LLC |
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| Restraints & Challenges: |
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*Definition: The global chemical vapor deposition market refers to the market for chemical vapor deposition (CVD) technology and services across the world. CVD involves depositing thin films or layers of material onto substrates using chemical reactions that occur on the surface of the substrates. It finds applications in the electronics, data storage, optics, solar energy, and optoelectronics industries for manufacturing semiconductors, silicon wafers, and other devices and components.
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About Author
Vidyesh Swar
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
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