EVAPORATION MATERIALS MARKET ANALYSIS

Evaporation Materials MarketSize and Trends

Global Evaporation Materials Market was valued at US$ 1,702.6 Mn in 2022, and is expected to exhibit a CAGR of 7.13% over the forecast period (2023-2030) and is expected to reach US$ 2,954.9 Mn by 2030. The increasing demand for evaporation materials in various applications such as electronics, optics, power and energy, and others is driving the market growth. Furthermore, the growing demand for miniaturization and higher efficiency in electronic devices is propelling the evaporation materials market forward.

Figure 1. Global Evaporation Materials Market, By Application, in 2022

Global Evaporation Materials Market: Growth Drivers

Technology benefits over sputtering targets are driving the market for evaporation materials

Materials provide very high purity coatings compared to evaporation because of the extreme vacuum conditions used during the process. Additionally, compared to sputtering targets, very high film deposition rates are achieved in evaporation materials. In addition, there is less substrate surface damage caused by impinging atoms as the film is shaped. Sputtering, on the other hand, causes more damage because it contains high energy particles. Moreover, unintentional substrate heating is less common in evaporation materials. These application benefits of evaporation materials are propelling the global evaporation materials market growth. As opposed to sputtering, it should be noted that thermal evaporation is a more mature technology. Comparing it to sputtering technology, it is a more advanced technology with easy access to skilled and trained operators everywhere in the globe. Additionally, the market for evaporation materials is anticipated to be strongly driven by the numerous applications of thermal evaporation in terms of coating numerous material types for standard coating applications. As a result, evaporation materials have been in high demand for a variety of applications across numerous industries.

Government support for solar energy initiatives

Governments in various countries, including China and India, have been seen to promote the use of renewable energy. Solar panels, which harness solar energy, are an important adoption. Solar panel manufacturers have a high demand for evaporation materials.

The expansion of the solar energy industry, fueled by government initiatives, is expected to accelerate the growth rate of the global evaporation materials market. The consistent increase in demand for thin film solar panels is also a major driving factor in solar energy applications.

Global Evaporation Materials Market: Market Segmentation

On the basis of application, in 2022, electronics segment has accounted the largest market share of 48% in terms of value, followed by power & energy and others respectively. Due to this, there is a growing need for evaporation materials in the production of semiconductors, chips, and circuit boards. Evaporation is crucial for the production of integrated circuits because it helps electronic devices become thinner and lighter, which reduces their weight and ultimately lowers their energy consumption. Additionally, these products are applied to flexible substrates or printed circuit boards during the assembly or packaging process, where they help prevent moisture from penetrating between layers and increase the durability and dependability of the product over its lifetime.

The power & energy segment by application is expected to grow at the fastest Y-o-Y rate during the forecast period. Over the forecast period, the electronics application segment is expected to be the most appealing in terms of incremental opportunity factor.

Global Evaporation Materials Market: Market Restraints

Fluctuating cost of evaporation materials & difficulties in evaporation rate control of finished products

Issues associated with the evaporation materials such as difficulties in evaporation rate control of finished products is projected to restrict the market growth of evaporation materials. The quality of evaporation material coatings completely depends on the evaporation rates of materials that need to be controlled carefully in order to produce efficiency in coatings. Therefore, such issues are expected to hinder the market growth of evaporation materials.

The fluctuating cost of evaporation materials as compared to those of materials used in other vapor deposition technology is expected to hinder the market growth. Many industries are looking for alternative applications for promoting sustainable profitability. This the factor will impact the market growth negatively to some extent over the forecast period.

Figure 2. Global Evaporation Materials Market, By Region, 2022