ID: PMRREP27970
Format: PPT*, PDF, EXCEL
Last Updated: 30 May 2023
Industry: Semiconductor Electronics
Number of Pages: 259
The global market for semiconductor capital equipment was valued at US$ 84.29 billion in 2024 and is projected to reach US$ 152.43 billion by the end of 2033, expanding at a healthy CAGR of 6.8% over the decade.
Semiconductor capital equipment refers to the machinery and equipment used in the manufacturing of semiconductor devices, such as microchips and integrated circuits. These devices are the building blocks of all electronic products. Semiconductor capital equipment includes a wide range of tools and equipment, including photolithography systems, deposition systems, etching systems, and inspection systems, among others. The technology used in the production of semiconductor capital equipment is constantly evolving, and the industry is characterized by rapid innovation and intense competition.
Companies that manufacture semiconductor capital equipment play a critical role in the growth and development of the semiconductor industry, and their products are essential for maintaining and improving the performance and competitiveness of the devices that use semiconductors.
The market is expected to grow at a substantial rate over the coming years, driven by factors such as increasing demand for high-performance computing and data storage, growing adoption of the Internet of Things (IoT) and 5G networks, and high demand for advanced semiconductor devices in emerging markets.
| Attribute | Key Insights |
|---|---|
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Semiconductor Capital Equipment Market Size (2024) |
US$ 84.29 Billion |
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Projected Market Value (2033) |
US$ 152.43 Billion |
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Global Market Growth Rate (2024 to 2033) |
6.8% |
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Consumer Electronics Industry Share (2022) |
33.5% |
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India Market Growth Rate (2024 to 2033) |
8.6% |
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Demand Growth for Wafer-level Manufacturing Equipment (2024 to 2033) |
6.7% |
“High Cost of Semiconductor Capital Equipment and Constant Need for Their Upgradation”
The cost of these tools is a significant investment for companies, and it can be challenging for smaller companies and start-ups to compete with larger companies that have more resources to invest in advanced equipment.
The need for constant upgradation to stay ahead of technological advancements can add to the financial burden, making it difficult for companies to maintain their competitiveness in the market.
Why is the United States One of the Most Lucrative Markets for Manufacturers of Semiconductor Capital Equipment?
“Rapid Implementation of 5G Technology Boosting Demand for Semiconductor Capital Equipment Market”
The rollout of 5G technology has been driving the demand for semiconductor capital equipment. 5G technology requires a large number of semiconductors, such as microchips and transistors, to function. This has led to a significant increase in investment in the production of these components.
Increasing implementation of 5G has created new opportunities for the development of advanced technologies, such as autonomous cars, VR (virtual reality), and the (IoT) Internet of Things, which will require even more semiconductors and capital equipment in the future.
How are Sales of Semiconductor Capital Equipment Shaping Up in India?
“Huge Demand for Smartphones and Major Players’ Increased Investments in Electronics Sector”
A growing domestic market for semiconductors and other equipment can boost the demand for semiconductor capital equipment in India. High demand for smartphones in India creates an opportunity for manufacturers to increase their production capacity. This, in turn, drives the demand for capital equipment used in the manufacture of semiconductors.
A growing domestic market also creates an opportunity for Indian companies to establish themselves as major players in the semiconductor industry. This can lead to increased investment in the sector and further growth of the domestic market, creating a positive feedback loop that further drives demand for semiconductor capital equipment in India.
What is the Demand Outlook for Semiconductor Capital Equipment in China?
“Increasing Focus of Established Players on Innovation and Product Efficiency”
China has become a hub for the semiconductor industry in recent years, with many of the world's largest semiconductor manufacturers establishing operations in the country. This has created a thriving ecosystem of suppliers, manufacturers, and customers, which has helped to drive the growth of the market in China.
Presence of major players in the market can help drive innovation, as companies compete to offer the most advanced and efficient equipment. This can lead to improvements in the quality and cost-effectiveness of semiconductor capital equipment, making it more accessible and affordable for smaller companies.
Key players can help create a more stable and predictable market, which can attract additional investment and lead to further growth of the sector.
Which Industry Accounts for High Demand for Semiconductor Capital Equipment Market ?
“Growing Emphasis on Technological Advancements in Consumer Electronics”
The growing demand for consumer electronics, such as smartphones, laptops, and other devices, has led to an increase in the sales of semiconductor capital equipment. This equipment is used in the manufacture of semiconductors, which are tiny electronic components that are used in a wide range of consumer electronics. The growing demand for smartphones has led to an increased need for the equipment used to produce the components that go into them.
This in turn drives investment and innovation in the semiconductor industry, which helps ensure that the supply of these essential components continues to meet the growing demand.
Why is Wafer-level Manufacturing Equipment Extensively Used?
“High Demand for Wafer-level Manufacturing Equipment Due to its Cost-effectiveness and Improved Production Efficiency”
Cost-effectiveness of wafer-level manufacturing equipment is a major factor that is expected to drive the demand for semiconductor capital equipment in the future. Wafer-level manufacturing is a process in which individual semiconductor devices are fabricated on a single wafer, rather than being produced individually. This method offers several advantages over traditional approaches, including lower costs and improved manufacturing efficiency.
Increasing number of semiconductor manufacturers are adopting wafer-level manufacturing processes, which is driving demand for the equipment used in these processes. The trend toward wafer-level manufacturing is expected to continue in the coming years.
Major industry players are enhancing their production capabilities in response to the increasing demand for electronic devices. They are also focusing on improving the affordability and accessibility of their products to meet the demands of the semiconductor industry.
Recent developments related to key players providing semiconductor capital equipment solutions have been tracked by analysts at Persistence Market Research, which will be accessible in the full report.
The global semiconductor capital equipment market was valued at US$ 74.57 billion.
In 2022, East Asia held a dominant market share of 28.9%.
The market for semiconductor capital equipment is forecasted to expand at a 6.8% CAGR through 2033.
The global market is forecasted to climb to US$ 152.43 billion by 2033.
Demand for semiconductor capital equipment in India is set to swell at 8.6% CAGR through 2033.
| Attribute | Details |
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Forecast Period |
2024 to 2033 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Million/Billion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
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