Epitaxy Equipment Market

Epitaxy Equipment Market Outlook (2023 to 2033)

The Global Epitaxy Equipment Market size is set to reach US$ 1.7 billion in 2023. Over the next decade (2023 to 2033), global epitaxy equipment sales will surge at 6.0% CAGR. By the end of 2033, the market valuation will exceed US$ 3.1 billion.

Demand remains particularly high for MOCVD equipment in the market. The target segment is likely to rise at around 5.9% CAGR between 2023 and 2033 as per PMR. This is due to various advantages of MOCVD technology. For instance, it can help to prepare high-purity film materials at lower temperatures.

• Robust expansion of semiconductor and electronics industries is boosting the epitaxy equipment market
• Advancements in photonics will elevate epitaxy equipment demand worldwide
• Burgeoning demand for optoelectronic devices is likely to fuel epitaxy equipment sales
• Growing popularity of LED lights to boost epitaxy equipment industry
• Increasing usage in wireless applications including satellite communications will create growth prospects
• Rise of electric & hybrid vehicles and adoption of smart technologies will trigger sales
• High adoption of advanced semiconductor devices such as MEMS & transistors will boost market
• Shift towards alternative energy sources such as solar cells is set to fuel market expansion

Epitaxy equipment are systems used to create or grow a perfect crystalline foundation layer on a surface or structure. They have become essential tools in manufacturing of semiconductor components and photonics devices. Epitaxy is a sub-category of wafer processing technologies.

Epitaxy equipment are used for several applications in semiconductor industry. By using these equipment, semiconductor films are grown epitaxially on semiconductor substrate wafers.

This equipment creates an ultra-pure environment for precision fabrication of thin film structures for optoelectronic, semiconductor, photovoltaic, and magnetic applications. Growing demand for semiconductors worldwide will trigger epitaxy equipment sales.

Increasing usage of LEDs worldwide will create lucrative opportunities for epitaxy equipment manufacturers. Besides this, application of epitaxy equipment in wide-gap materials will spur market expansion.

Companies are using strategies such as new product launches & acquisitions to increase sales. For instance, Veeco Instruments Inc. acquired Epiluvac AB in February 2023. Epiluvac AB is a privately held manufacturer of CVD epitaxy systems.
Asia Pacific currently leads the global epitaxy equipment industry and the trend is likely to continue through 2033. As per Persistence Market Research (PMR), Asia Pacific epitaxy equipment market size is slated to reach US$ 0.81 billion in 2023. By the end of 2033, Asia Pacific market valuation will reach US$ 1.46 billion.

Robust growth of semiconductor industry in countries such as China and Japan is driving Asia Pacific market. Besides this, development of new solutions by Asia Pacific-based companies will boost the market.

Amid growing demand for epitaxy equipment, several Asian companies are introducing novel products. For instance, in July 2020, Advanced Micro Fabrication Equipment Incorporation, a China-based electronic equipment manufacturer developed Prismo HiT3 system. This is an MOCVD tool designed to produce ultraviolet light-emitting diodes.

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2018 to 2022 Epitaxy Equipment Sales Outlook Compared to Demand Forecast from 2023 to 2033

As per Persistence Market Research, global epitaxy equipment sales increased at 6.9% CAGR from 2018 to 2022. For the next ten years (2023 to 2033), the worldwide market is set to rise at 6.0% CAGR. This will create an absolute $ opportunity of US$ 1.4 billion by 2033.

Epitaxy equipment are useful in semiconductor, photonics, and wide band-gap materials. In photonics, light-emitting diodes are used with the help of epitaxy equipment. The commercial use of epitaxy devices is in computers, video displays, and telecommunication equipment.

Metal-organic chemical vapor deposition (MOCVD) epitaxy equipment are widely used in solar cells, transistors, light-emitting diodes (LED), and optoelectronic devices. These MOCVDs are used in III-IV applications such as radio frequency devices.

Electronics produced by MOCVD are used in cell phones, optical communication, and optical storage devices such as CDs and DVDs, billboards, and in traffic lights.

High temperature chemical vapor deposition (HT CVD) type equipment helps in producing silicon carbide crystals that are used in Schottky diodes and blue LEDs. These HT CVD epitaxy equipment are used in power electronic devices and optoelectronic industries.

In LEDs, epitaxy wafers are used as material. Epitaxy equipment have become essential tools for making LEDs and other electronic devices. In 2017, around 1.4 billion LEDs were installed in the United States. By 2035, it is expected about 7.9 billion LEDs will be sold. Thus, such massive demand from LED market will fuel epitaxy equipment sales.

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Country-wise Insights:

How is the United States Epitaxy Equipment Market Shaping?

As per Persistence Market Research, the United States of America epitaxy equipment market is set to cross a valuation of US$ 505.4 million by 2033. Epitaxy equipment sales in the country are likely to surge at 5.4% CAGR over the next ten years.

The United States market will create an absolute $ opportunity of US$ 206.8 million by 2033. From 2018 to 2022, the United States of America market grew at 3.9% CAGR. Rising usage in photonic applications is providing impetus to growth of the United States of America market.

Photonic technology is gaining wider popularity across the United States. This is because it enables companies to develop smart and efficient systems across the United State. Hence, increasing adoption of photonics technology across various industries will elevate epitaxy equipment demand.

Large presence of leading epitaxy equipment manufacturers is another factor expanding the United States of America market. The United States houses various prominent epitaxy equipment companies. these companies are adopting numerous strategies to strengthen their presence.

For instance, in December 2022, Ganvix, the United States-based start-up that works on blue vertical cavity surface emitting lasers partnered with Blugrass to produce green emitters. Blugrass will provide Ganvix green quantum well Epitaxy services. Thus, such agreements between USA-based companies will help the market expand.

What is the Growth Projection for the United Kingdom Epitaxy Equipment Market?

The United Kingdom epitaxy equipment market is likely to progress at 4.5% CAGR through 2033. Total epitaxy equipment demand in the country grew at a CAGR of 2.5% from 2018 to 2022.

Over the next ten years, the United Kingdom market will generate an absolute $ opportunity of US$ 29.1 million. Epitaxy equipment sales in the country are forecast to generate revenues worth US$ 81.9 million by 2033.

Robust expansion of IT & telecommunication sector and rising adoption of optoelectronic devices are key factors driving the United Kingdom market. Besides this, various efforts put in by manufacturers and institutions across the country are favoring market expansion.

For instance, in England, National Epitaxy Facility, a joint collaboration between the University of Sheffield, Cambridge and University College London provides semiconductor epitaxy facilities to industries in the country and educational institutions.

It (National Epitaxy Facility) was recently (2022) awarded US$ 12.7 million in funding by the United Kingdom Research and Innovation to support the country’s semiconductor research and development. This is creating a conducive environment for the expansion of epitaxy equipment industry.

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Category-wise Insights:

Which is the Most Lucrative Application of Epitaxy Equipment?

By application, photonics segment is likely to generate high demand for epitaxy equipment. As per PMR, photonics segment grew at a CAGR of 6.5% from 2018 to 2022. Over the next ten years, the target segment is set to exhibit 5.8% CAGR. Growth of this segment is stimulated by rising adoption of epitaxy equipment in photonics applications.

Epitaxy equipment have become ideal solutions for improving performance of photonic devices. Expansion of photonic industry and advancements in photonics will elevate epitaxy equipment through 2033.

Besides this, development of new epitaxy solutions by key manufacturers will boost growth of the target segment. For instance, II-VI recently developed epitaxial wafers that are used in photonics. These solutions are designed to improve performance of products such as smartphones and tablets.

Zaid Sheikh
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Competitive Landscape:

Key manufacturers of epitaxy equipment include Applied Materials, II-VI Incorporated, DOWA Electronics Materials, ASM International, Intelligent Epitaxy Technology, Aixtron, Optowell, Tokyo Electron Limited, Siltronic, and Toshiba Electronic.

Recent Developments:

• In 2022, AIXTRON introduced next-generation G10-SiC 200 mm solutions for Silicon carbide Epitaxy.
• In December 2022, Coherent Corporation also known as II-VI, collaborated with two Korean institutions to research on advanced electronic and photonic devices. The two institutions include Electronics and Telecommunication Research Institution and Korean Advanced Institute of Science & Technology.
• In October 2022, Coherent Corporation developed ultrahigh power cutting head lasers of 30kW.
• In July 2022, II-VI completed the acquisition of Coherent Incorporation. Because of this transaction, the II-VI could become a leader in materials, lasers, and networking.

Scope of the Report:

Global Epitaxy Equipment Market Segmentation:

By Type:

• MOCVD
• HT CVD

By Application:

• Photonics
• Semiconductor
• Wide band-gap Material
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa