The thin film semiconductor deposition market is projected to grow at a compound annual growth rate (CAGR) of 12.38% during the forecast period.
Thin film deposition is the technology of creating and depositing thin film coatings, ranging from a few nanometers to about 100 micrometers in thickness, or the equivalent of a few atoms, onto a substrate material or a previously deposited coating to form layers.
This thin-film semiconductor deposition technology can be applied in various industries, including the manufacturing and production of optoelectronics, solid-state devices, and medical products. It includes medical implants, microanalysis and microscopy sample slides, precision optics, compound semiconductors, optical filters, LED displays, fiber lasers, semiconductor lasers, and consumer electronics.
What are the Thin Film Semiconductor Deposition Market Drivers?
- Rising demand from various end-use industries is increasing the market growth
The growing use of thin-film semiconductor deposition in various industries and advancements in thin-film deposition technology will drive its growth during the forecast period. The application of thin film deposition has surged with the rising demand for flexible electronics and thin-film solar panels. Moreover, the application of thin-film semiconductors is vast, as they are used in solar panels, DRAMs, and microprocessors. The growing demand for sensors in smartphones, household appliances, aircraft, and the automotive industries is expected to create numerous growth opportunities for thin film deposition in the upcoming years.
For instance, First Solar, a leading global provider of comprehensive PV solar solutions, has signed up for “Make in India” with 3.3 GW manufacturing facilities in India, increasing the supply of thin-film semiconductors, as they are known for not using crystalline silicon (c-Si) semiconductor. This project will enhance the use of thin-film semiconductor deposition and will lead to the overall growth of this market in the upcoming years
- Increasing use of thin film over traditional silicon is also boosting the market growth
One of the major reasons for the growth of this industry is the use of thin films over conventional silicon, as conventional silicon has been lower in price and has higher efficiency. However, certain studies have shown that thin films have a greater efficiency compared to traditional silicon. Additionally, thin film has a flexible structure, requires less space, and is lightweight, which gives it an edge over conventional silicon. The impending need for circuit miniaturization and low power consumption is a major factor driving growth in key sectors of the industry.
- Expanding electric vehicles is predicted to propel the market expansion.
The need for advanced semiconductor components, which require thin film deposition, is being driven by the shift toward electric vehicles (EVs). For motor control, battery management, and energy efficiency, electric vehicles (EVs) rely on power electronics, which require small, high-performance semiconductors to be produced using thin film deposition technologies. This trend is accelerating as governments worldwide call for cleaner modes of transportation and automobile manufacturers expand their EV offerings.
Thin Film Semiconductor Deposition Market Restraints:
- High investment costs may hamper the overall market growth.
The initial investment required for setting up a manufacturing facility for thin-film semiconductor deposition is high, which restricts new entrants from entering the industry and hampers its growth. The cost-driving factors of components used in thin film deposition include sputtering systems, evaporation systems, and pulse laser deposition (PLD) systems. Additionally, the increasing cost of raw materials has acted as a barrier to the industry's growth.
Thin Film Semiconductor Deposition Market Geographical Analysis
- North America is witnessing exponential growth during the forecast period.
Some key drivers have fueled the market’s growth in North America. Several leading technology firms and research institutions that drive advancements in semiconductor fabrication are headquartered in the United States. Such organizations are constantly exploring new materials and deposition techniques, thanks to extensive investments in research and development, enhancing the applications and functionality of thin films across a range of industries, including electronics, medical, and aerospace.
Thin Film Semiconductor Deposition Market Key Launches
- In July 2024, Forge Nano, Inc., an atomic layer deposition solution provider, announced the completion of a new semiconductor cleanroom. Forge Nano can meet the increasing demand for equipment from the semiconductor industry by producing multiple commercial TEPHRA™ ALD cluster tools in its 2,000-square-foot cleanroom.
Thin Film Semiconductor Deposition Market Segmentation:
- By Technology
- Chemical Vapor Deposition (CVD)
- Physical Vapor Deposition (PVD)
- Others
- By Applications
- DRAMs
- Solar Panels
- Microprocessors
- Wearable Technologies
- Others
- By Industry
- Communication and Technology
- Consumer Electronics
- Energy and Power
- Aerospace and Defense
- Automotive
- Others
- By Geography
- Americas
- US
- Europe, the Middle East, and Africa
- Germany
- Netherlands
- Others
- Asia Pacific
- China
- Japan
- Taiwan
- South Korea
- Others
- Americas
Table of Contents
Companies Mentioned
- Hitachi Kokusai Electric Inc.
- Tokyo Electron
- Shin-Etsu Chemical Co.
- Applied Materials Inc.
- Lam Research
- Aixtron
- CVD Equipment Corporation
- Veeco Instruments Inc.
