Photolithography Equipment Global Market Report 2024

The photolithography equipment market size has grown rapidly in recent years. It will grow from $11.42 billion in 2023 to $12.61 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The growth observed in the historical period can be attributed to various factors, including the growth in the semiconductor industry, advancements in resolution enhancement techniques, the evolution of integrated circuits (ICs), the demand for high-speed computing, and advances in materials science.

The photolithography equipment market size is expected to see strong growth in the next few years. It will grow to $18.05 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The anticipated growth in the forecast period can be attributed to factors such as the expansion of 5G technology, the rise of quantum computing, the proliferation of IoT devices, more efficient energy storage solutions, and advancements in flexible electronics. Major trends expected in the forecast period encompass the adoption of wafer-level packaging, the use of maskless lithography, the implementation of 3D semiconductor stacking, directed self-assembly (DSA) techniques, and the continued application of extreme ultraviolet (EUV) lithography in photolithography equipment.

The projected increase in demand for the Internet of Things (IoT) is anticipated to drive the growth of the photolithography equipment market in the future. The Internet of Things (IoT) is a networked system that interconnects computers, digital and mechanical devices, and individuals with unique identifiers (UIDs), allowing data transfer without direct human involvement. By integrating IoT technology into photolithography equipment, manufacturers can achieve real-time monitoring, predictive maintenance, and data-driven optimization. This incorporation facilitates improved process management, reduced downtime, and enhanced overall equipment performance. For instance, as of September 2022, nearly 60% of cellular IoT connections are predicted to be broadband IoT by the end of 2028, with 4G being the dominant connectivity. Globally, there were 13.2 billion IoT connections in 2022, and a substantial growth rate, reaching 34.7 billion connections, is expected by 2028. This surge in IoT demand is set to propel the photolithography equipment market.

The ongoing expansion of the semiconductor industry is also poised to contribute to the growth of the photolithography equipment market. The semiconductor industry plays a crucial role in the design and fabrication of semiconductors and related devices such as integrated circuits. Photolithography equipment is instrumental in creating intricate circuit patterns on semiconductor wafers, which are pivotal in the production of integrated circuits. This technology ensures the fabrication of semiconductor devices with precise dimensions and optimal performance characteristics. Recent data from November 2023 indicates a 1.9% increase in global semiconductor sales for September 2023 compared to the previous month. The overall sales of semiconductors totaled $134.7 billion in the third quarter of 2023, reflecting a 6.3% increase from the second quarter. The robust growth in the semiconductor industry is a key driver for the photolithography equipment market.

Leading companies in the photolithography equipment market are prioritizing the development of advanced systems, such as immersion lithography systems, to address challenges in 3D semiconductor manufacturing and gain a competitive advantage. Immersion lithography systems involve the use of a liquid, typically water, as an optical medium during exposure between the projection lens and the wafer. For example, Nikon Corporation launched the NSR-S636E ArF immersion scanner in December 2023, offering superior overlay accuracy and ultra-high throughput for critical layers in semiconductor manufacturing. This system's enhanced features, including the inline Alignment Station (iAS) for advanced wafer measurement and correction, cater to the complexities of 3D semiconductor device manufacturing.

Prominent companies operating in the photolithography equipment market are focusing on delivering high-resolution single exposure solutions to meet the escalating demand for smaller semiconductor node sizes and increased chip manufacturing efficiency. These solutions leverage innovative technologies to capture detailed images in a single exposure with enhanced precision. Canon Inc., in March 2023, introduced the FPA-5550iX i-line stepper semiconductor lithography system, designed specifically for front-end processes. This system achieves a substantial exposure field measuring 50 x 50 mm with an exceptional resolution of 0.5 micrometers, catering to the demand for advanced semiconductor manufacturing efficiency.

In June 2022, Diodes Incorporated acquired ON Semiconductor Corp.'s wafer fabrication facility and activities in South Portland, Maine. This strategic move is part of a multi-year wafer supply arrangement, allowing Diodes to continue producing ON Semiconductor's products while the latter completes the transition of manufacturing to its other facilities. ON Semiconductor Corp. is a semiconductor company based in the United States, actively involved in the design, production, and supply of photolithographic equipment and techniques.

Major companies operating in the photolithography equipment market report are Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Canon Inc., Applied Materials Inc., ASML Holding NV, ZEISS Group, KLA Corporation, Nikon Corporation, JEOL Ltd., Onto Innovation Inc., Vecco Instruments Inc., NuFlare Technology Inc., EV Group, NIL Technology ApS, Holmarc Opto-Mechatronics Pvt Ltd., Orthogonal Inc., Microfab Service GmbH, microfab Service GmbH, S-Cubed Inc., Eulitha AG, Eulitha AG, Osiris International GmbH, Rudolph Technology & Associates, Shanghai Micro Electronics Equipment (Group) Co. Ltd. (SMEE), Orthogonal Inc.

North America was the largest region in the photolithography equipment market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the photolithography equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the photolithography equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of photolithography equipment include deep ultraviolet (DUV), extreme ultraviolet (EUV), I-line, krypton fluoride (KRF), argon fluoride (ARF) dry, and others. Deep ultraviolet (DUV) photolithography involves using controlled 254–193 nm light to define a pattern in a thin photosensitive polymer layer (photoresist). The resulting polymer pattern can then be transferred into or onto the underlying substrate through processes such as etching, deposition, or implantation. DUV photolithography equipment is available in various wavelengths, such as 370 nm–270 nm, 270 nm–170 nm, and 70 nm–1 nm, and utilizes various light sources, including mercury lamps, fluorine lasers, excimer lasers, and laser-produced plasma. These tools are utilized for both front-end and back-end processes and find application in integrated device manufacturers (IDMs) and foundries.

The photolithography equipment market research report is one of a series of new reports that provides photolithography equipment market statistics, including photolithography equipment industry global market size, regional shares, competitors with a photolithography equipment market share, detailed photolithography equipment market segments, market trends and opportunities, and any further data you may need to thrive in the photolithography equipment industry. This photolithography equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The photolithography equipment market consists of sales of mask aligners, steppers, direct writing tools, and wafer inspection tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.