Physical Vapor Deposition Market Report 2026

The physical vapor deposition market size has grown strongly in recent years. It will grow from $24.67 billion in 2025 to $26.65 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to advancements in vacuum coating technologies, growth of cutting tool manufacturing, increasing demand for durable surface coatings, rising adoption in electronics production, availability of high-performance coating materials.

The physical vapor deposition market size is expected to see strong growth in the next few years. It will grow to $36.95 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to increasing semiconductor fabrication investments, rising demand for advanced medical coatings, expansion of renewable energy applications, growing focus on sustainable coating processes, increasing integration of automated coating systems. Major trends in the forecast period include increasing adoption of advanced thin-film coatings, rising demand for wear-resistant surfaces, growing use in semiconductor manufacturing, expansion of pvd in medical devices, enhanced focus on high-precision coating processes.

The increasing demand in the semiconductor industry is expected to drive the growth of the physical vapor deposition (PVD) market. The semiconductor industry involves the design, manufacturing, and distribution of semiconductor devices such as integrated circuits and microchips. Physical vapor deposition is employed to create the thin metal wiring that connects components and transistors on semiconductors. For instance, in July 2025, according to the Semiconductor Industry Association (SIA), a US-based trade group, global semiconductor sales reached $630.5 billion in 2024, surpassing earlier projections and exceeding $600 billion for the first time, with growth in the Americas, China, and Asia Pacific/All Others, while Japan and Europe experienced slight declines. Therefore, the rising demand in the semiconductor industry is propelling the physical vapor deposition market.

Major companies in the PVD market are focusing on innovations such as inline sputtering systems to improve efficiency and cost-effectiveness. Inline sputtering systems enable precise deposition of thin films on substrates, ensuring uniform coating, reduced material consumption, and high adhesion - especially important for precious metals. For instance, in April 2024, SINGULUS TECHNOLOGIES, a Germany-based provider of thin-film coating and surface-treatment equipment, launched the GENERIS PVD inline sputtering system for producing bipolar plates for fuel cells and PEM electrolyzers. The system features a modular design for flexible adaptation to various substrate sizes, upstream substrate cleaning for optimal surface preparation, and rotating magnetron cathodes for double-sided coating with excellent adhesion. Controlled thin-layer deposition reduces material usage, while the system supports scalable production and intelligent manufacturing. The GENERIS PVD range covers coating areas from 510 × 1,500 mm up to 1,400 × 1,600 mm, offering a highly efficient and sustainable solution for the growing hydrogen technology market.

In March 2025, HEF Groupe, a France-based provider of surface treatment and tribology solutions, acquired Vergason Technology, Inc. for an undisclosed amount. This acquisition aims to expand HEF Groupe’s global footprint in high-performance coating technologies by integrating Vergason’s advanced PVD equipment and services, enhancing technological capabilities and market reach across automotive, aerospace, medical, and electronics sectors. Vergason Technology, Inc. is a US-based provider of PVD coating equipment and services, offering sputtering, thermal evaporation, and cathodic arc deposition technologies for metallizing and hard coating applications.

Major companies operating in the physical vapor deposition market are Applied Materials, Inc., ULVAC, Inc., Tokyo Electron Limited, Veeco Instruments Inc., Singulus Technologies AG, Angstrom Engineering Inc., AJA International, Inc., Buhler AG, IHI Corporation, Oerlikon Balzers Coating AG, Platit AG, Intevac, Inc., Kurt J. Lesker Company, Semicore Equipment, Inc., Mustang Vacuum Systems Inc., HEF Group, NAURA Technology Group Co., Ltd., Impact Coatings AB, Shincron Co., Ltd., CemeCon AG, Intlvac Thin Film Corporation, CHA Industries, Inc., Pfeiffer Vacuum GmbH, Advanced Energy Industries, Inc.,

Asia-Pacific was the largest region in the physical vapor deposition market in 2025. North America was the fastest-growing region in the physical vapor deposition market share. The regions covered in the physical vapor deposition market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the physical vapor deposition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The physical vapor deposition market consists of revenues earned by entities by providing ion plating, electron beam sputtering, and magnetron sputtering. 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.

This product will be delivered within 1-3 business days.