Global Vapor Deposition Market - 2021-2028
The vapor deposition market size was worth US$ XX billion in 2020 and is estimated to reach US$ XX billion by 2028, growing at a CAGR of XX % during the forecast period (2020-2028).
Vapor deposition is a coating technique for condensing materials in a vapor state through condensation, chemical reaction and conversion to deposit thin films on different substrates. The vapor deposition technique is divided into three major types: physical (PVD), chemical (CVD) and hybrid physical-chemical vapor deposition methods. Physical vapor deposition is a line-of-sight coating process used for thin coatings and sharp edges and chemical vapor deposition is used for thicker coatings to protect against heat. PVD is typically applied to finishing tools, whereas CVD proves best for roughing. It is widely used in numerous industries for coatings including transportation & energy, medical devices, luxury goods, home product, consumer electronics, sports equipment and others.
The global vapor deposition market growth is driven by increasing demand from consumer electronics sector, demand for wear-resistant and biocompatible thin-film coatings and replacement for electroplating and metal deposition techniques.
Increasing demand from consumer electronics sector
The increasing demand from consumer electronics sector had gained the market demand for the vapor deposition market. The growing need for light-emitting diode (LED) in remote-control circuits, residential lighting, automotive head/tail lights, traffic signals, mobile/tablet/computer/TV displays, horticultural lamps are driving the market growth.
Vapor deposition techniques have been used by various renowned brands such as Apple, recently launched iPhone 12 pro, it has used a physical vapor deposition process for edge coating. Also, the new gold color edition uses a special high-power, impulse magnetron sputtering process that lays down the coating in a super-dense pattern, allowing it to be tough and super bright with a molecular structure. Moreover, vapor deposition was also used in the earlier models for the space gray and gold finishes of the iPhone X, XS, and 11 Pro.
Hight capital investment and the need for skilled labours
The vapor deposition market is impacted by high capital costs and the need for skilled labours. The high capital cost in physical vapor deposition is due to the need for complex machines and skilled operators. Also, the operating rate of physical vapor deposition is relatively slower than others. However, vapor deposition coating is still considered an effective way of enhancing a surface's strength and durability.
In addition, the coating parts require electroplated layers for maximum corrosion protection, which is difficult to achieve. These are some of the major factors responsible for restraining market growth. Although, with upcoming modifications and increasing R&D in the field, the market is expected to overcome the associated restraints.
COVID-19 Impact Analysis
Due to the pandemic, stakeholders across the vapor deposition industry have seen a notable impact as all the manufacturing industries were closed. The vapor deposition market suffered a decline due to reduced demand in automotive, construction, electronics and other related sectors. The vapor deposition industry was hindered with halts and supply chain disruption due to restrictions imposed by the government. In contrast, certain industries had a positive impact on the market growth, such as there was surge in demand for antimicrobial coatings in the healthcare and food industries.
However, the market is expected to recover in upcoming years with recovery in industries like automotive and construction industries are expected to work with higher production and recover all the losses by 2023, creating opportunities for vapor deposition demand and resulting in market growth.
By process, the vapor deposition market is classified into chemical vapor deposition, physical vapor deposition and hybrid physical-chemical vapor deposition techniques.
The chemical type vapor deposition market is expected to grow at the fastest CAGR during the forecast period (2021-2028)
The chemical type vapor deposition is expected to hold the largest market for vapor deposition market is the forecast due to the following advantages: low-temperature growth process, fast deposition rate, good step coverage, used in a variety of base materials including glass, ceramics, metals and metal alloys,can coat precision surfaces and remains bonded in high-stress environments.
Chemical vapor deposition is widely used in materials-processing technology; it has vital applications in solid thin-film coatings to surfaces in the semiconductor industry. CVD products can be found in numerous applications ranging from wear components, machine tools, analytical flow path components, instrumentation and other areas demanding high-performance thin films. According to the Semiconductor Industry Association Worldwide, sales of semiconductors reached $439 billion in 2020 with an increase of 6.5% and are expected to grow by 8.4 percent increase in 2021. Emerging applications in complex semiconductor thin films such as producing gallium arsenide or gallium nitride for catering to the need of semiconductor industries are expected to further boost the chemical vapor deposition market globally.
North America region holds the largest market for the global vapor deposition globally
North America region holds the largest market share for the vapor deposition market globally and is expected to continue its dominance in the forecast period with leading semiconductor production in the region. According to the International Semiconductor Association, U.S. contributes almost 47% share for semiconductors in the global market share, owing to higher demand for vapor deposition techniques.
The leading market players in the region are incorporating significant developments in the region. For example, in 2020- Advanced Energy introduced Ascent MS multi-output power supply system for enabling the lowest system and infrastructure costs in the industry for solar photovoltaic plasma-enhanced chemical vapor deposition systems.
Also, in 2019- Applied Materials has opened its Materials Engineering Technology Accelerator (META Center) and launched the Endura CloverTM MRAM PVD platform in the META Center. The vapor deposition techniques have also been used in various famous monuments such as PVD coloured stainless steel has been used as exterior cladding for buildings in the Vessel sculpture, a visitor attraction in New York City.
The vapor deposition market is moderately competitive with the local player’s presence, followed by the global companies who contribute to the major share in the market growth. In addition, some of the key players contributing to the growth of the market are Praxair S.T. Technology, TSI, CVD Equipment Corporation, Veeco Instruments Inc., Vapor Tech, Silicon Valley Microelectronics, Angstrom Engineering Inc., Singulus Technologies AG, Intevac, ArcelorMittal, Denton Vacuum, Applied Materials, Inc and others. The major players are adopting various new strategies to dominate the market, such as launching new products, acquisitions and collaborations, which are contributing to the growth of the vapor deposition market globally.
Veeco Instruments Inc.
Overview: Veeco Instruments Inc. is U.S. based company, is a leading market manufacturer for high-tech microelectronics devices, including semiconductors, photonics, MEMS, display technologies and power devices.
Product Portfolio: The Company manufactures a variety of products including physical vapor deposition systems, MBE technologies, wet processing systems, lithography systems, MOCVD systems, lithography systems and various others.
Key Development: In 2020, Veeco Instruments Inc. launched the Lumina Metal Organic Chemical Vapor Deposition (MOCVD) platform for performance photonics applications.
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