ATOMIC LAYER DEPOSITION MARKET ANALYSIS

The global atomic layer deposition Market was valued at US$ 2.03 Bn in 2023, exhibiting a CAGR of 13.1% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 4.81 Bn by 2030.

Atomic layer deposition (ALD) is a thin film coating technique that deposits a film one atomic layer at a time on a component or system in a controlled manner. Traditional thin film technologies such as chemical vapor deposition (CVD), spin coating, and physical vapor deposition (PVD) cannot function in nanometer-scale deposits; this process has been used in the semiconductor industry.

 Covid-19 Impact on Global Atomic Layer Deposition Market 

The global economy has been affected by the coronavirus pandemic as governments across the globe imposed lockdown measures to curb people’s movement. Due to these lockdowns, industrial activities were halted, and international travel was halted. These measures had a significant took on almost all industrial sectors. Factories and manufacturing facilities also faced supply chain breakdowns and labor shortages. The COVID-19 pandemic continues to wreak havoc on the supply chain of the atomic layer deposition industry. Various countries and sub-regions such as the U.S., Germany, France, China, India, Japan, South Korea, Taiwan, and ASEAN are prominent markets in terms of both production and consumption of atomic layer deposition. These countries are heavily impacted by COVID-19. The pandemic has slowed the atomic layer deposition manufacturing projects due to labour shortages and disruptions in the supply of raw materials. Due to such interruptions to global trade, the projects under construction were delayed, resulting in higher capital expenditure (CAPEX), which in turn halted the supply of atomic layer deposition.  

Global Atomic Layer Deposition Market - Drivers

• Rising adoption of electronics and semiconductor solutions: Rising adoption of electronics and semiconductor solutions across the globe acts as one of the major factors driving the growth of the global atomic layer deposition market. Various deposition instruments are used in the manufacturing of semiconductors, such as copper electrodes, high-K dielectric gate stacks, and copper barrier or seed layers. For instance, according to data published by India's national Investment Promotion and Facilitation Agency in March 2022, which comes under the Union Ministry of Commerce and Industry, India’s domestic production in electronics has increased from US$ 29 billion in 2014-15 to US$ 67 billion in 2020-21.
• Rising green energy sources coupled with growth of solar power industry: Increasing concerns for global warming and climate change have encouraged governments around the globe to move towards renewable and  green energy sources. Hence, growing adoption of renewable energy is expected to drive the global atomic layer deposition market’s growth. For instance, according to the Center for Climate and Energy Solutions (C2ES) report published in July 2021, an independent, nonpartisan, non-profit organization, renewable energy is the fastest-growing energy source in the U.S., increasing 42% from 2010 to 2020 (up 90% from 2000 to 2020).

Figure 1: Global Atomic Layer Deposition Market , By Product, 2023

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Global Atomic Layer Deposition Market - Restraints

• High investment required for research & development: The high investment required for research and development is expected to obstruct the global atomic layer deposition market’s growth over the forecast period. Moreover, the process of ALD is gradual, and this is known to be its major limitation.

Global Atomic Layer Deposition Market - Segmentation

Among product, theluminium oxide segment accounted for the highest market share of 33% in the global atomic layer deposition market in 2022. The use of atomic layer deposition to create aluminium oxide thin films aids in the encapsulation of organic light emitting devices, or OLEDs. The growing demand for OLEDs from the electronic industry has propelled the segment's growth.

Global Atomic Layer Deposition Market - Opportunities

• Major players in this market focus on expanding their manufacturing facilities: Major players in this market focus on expanding their manufacturing facilities, investments, infrastructural development, and integration opportunities across the value chain. With these strategies, atomic layer deposition equipment companies cater to increasing demand, ensure competitive effectiveness, develop innovative products and technologies, reduce production costs, and expand their customer base. In February 2020, to enable high-performance photonics devices, a suite of Lumina Metal-organic chemical vapour deposition (MOCVD) devices was introduced by Veeco Instruments.

Figure 2: Global Atomic Layer Deposition Market , By Product, 2023

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Global Atomic Layer Deposition Market - Trends

 The semiconductor and electronics industries are expected to drive demand

The semiconductor and electronics industries are expected to drive demand for atomic layer deposition technology. While the semiconductor industry is expected to have a direct impact on the technology's development, any increase in the electronics industry will help the technology advance. As a result, the atomic layer deposition market is expected to grow in the forecast period.

Global Atomic Layer Deposition Market - Regional Insights

Among regions, Asia Pacific held a dominant position in the global atomic layer deposition market in 2022, accounting for 67% market share in terms of revenue, followed by North America and Europe. Due to the increasing semiconductor and medical equipment industry

Global Atomic Layer Deposition Market - Key Developments

• In October 2022, Samco, a global manufacturer of etching, deposition, and surface treatment processing equipment for the semiconductor and related industries and academic facilities, launched the new Plasma Enhanced Atomic Layer Deposition (PEALD) system, the “AD-800LP”. The main target of the system is gate oxide film deposition for next-generation power devices made of silicon carbide (SiC) and gallium nitride (GaN) materials, which will play an essential role in carbon neutrality.
• In June 2022, Picosun Oy was acquired by Applied Materials, Inc., a leading US-based semiconductor equipment company.This is the largest exit in CapMan’s operating history, measured by the portfolio company’s exit value. Picosun provides global industries with the most advanced ALD (Atomic Layer Deposition) thin film coating solutions. Picosun’s ALD solutions enable a technological leap into the future with turn-key production processes and unmatched, pioneering expertise in the field – dating back to the invention of the technology itself.
• In June 2022, SPARC, a new deposition technology for advanced logic and DRAM, was introduced by Lam Research Corporation. With its SPARC technology, Lam produces homogenous, strong low-k films that comply with features both in terms of composition and thickness. The delicate SPARC film is applied without the use of direct plasma, which may harm the delicate equipment underneath.
• In June 2022, Applied Materials completed its acquisition of Picosun. This will help broaden the company’s portfolio of specialty chips.

Global Atomic Layer Deposition Market - Key Players

Key players operating in the global atomic layer deposition market include ALD Nano Solutions, Inc., Applied Materials, Inc., ASM International, Beneq, Denton Vacuum, Hitachi, Kurt J. Lesker Company, Lam Research Corporation, Tokyo Electron, and Wonik IPS

*Definition: Atomic layer deposition (ALD) is a thin film coating technique that deposits a film one atomic layer at a time on a component or system in a controlled manner. Traditional thin film technologies such as chemical vapour deposition (CVD), spin coating, and physical vapour deposition (PVD) cannot function in nanometer-scale deposits; this process has been used in the semiconductor industry.