Vapor deposition market size is forecast to reach $19.4 billion by 2025, after growing at a CAGR of 8.6% during 2020-2025, owing to the increasing demand for electronic products worldwide. Vapor deposition is extensively used in coating applications of thin films in the electronic industry. Macro factors such as the growing middle-class population and rising disposable income are driving the electronics industry in the various regions. In addition, decreasing prices of electronics and the adoption of high-end technology devices are leading to an increase in electronic device consumption. Thus, the increasing consumption of electronic products is anticipated to drive the vapor deposition market substantially during the forecast period.
Asia Pacific dominates the vapor deposition market, owing to the increasing electronic industries in the region. According to Invest in India, India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.0% in 2018.
Chemical vapor deposition (CVD) is widely used in commercial powder and thin-films manufacturing. Due to Brownian motion-induced coagulation following gas reaction and nucleation, the distribution of powder materials obtained by CVD is relatively broad.
The Physical Vapor Deposition (PVD), sometimes called physical vapor transport (PVT), describes a variety of vacuum deposition methods that can be used in various applications including semiconductors, LED, optics, displays, photovoltaic cells, and decorative coatings.
Due to the COVID-19 pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as electronics and optoelectronics has been negatively affected, which is hampering the vapor deposition market growth.
Vapor Deposition Market Segment Analysis – By Technology
The chemical vapor deposition (CVD) segment held the largest share in the vapor deposition market in 2019. Due to its high throughput, high purity, and low cost of operation, CVD has become the main method of film deposition for the semiconductor industry. CVD is also widely used in applications of optoelectronics, optical coatings, and wear-resistant parts coatings. Compared to physical vapor deposition (PVD) procedures CVD has many benefits such as molecular beam evaporation and sputtering. CVD uses source materials that flow from external reservoirs into the process chamber that can be refilled without contaminating the growing environment, does not require very high vacuum levels, and can generally process substrates in larger batches than evaporation, and is more forgiving in terms of its precision tolerance under process conditions. Thus, these are the major factor driving the growth of chemical vapor deposition during the forecast period.
Vapor Deposition Market Segment Analysis – By End-Use Industry
The electrical & electronics segment held the largest share in the vapor deposition market in 2019 and is growing at a CAGR of 9.3%. Physical vapor deposition (PVD) is one of the basic technologies in microelectronics and its application to biomolecules deposition allows us to use in a facile way the unique properties of peptide supramolecular nanomaterials and to integrate them into various wide applications. Due to its high process efficiency, large-scale patternability, lower cost, and eco-friendly nature, plasma-enhanced chemical vapor deposition (PECVD) is widely used for the processing of flexible and printable electronic devices. Laser chemical vapor deposition (LCVD) is a new process used to directly deposit metal in a pattern determined by a laser. For a variety of microelectronic applications, the increased metal purity opens up the use of LCVD. Combined with its increased velocity, this characteristic makes LCVD a viable candidate for a production process. Thus, it is anticipated that during the forecast period vapor deposition will be extensively used in the microelectronics coating applications.
Vapor Deposition Market Segment Analysis – By Geography
Asia Pacific region held the largest share in the vapor deposition market in 2019 up to 33%, owing to the increasing electronic sector in the region. The electronics sector uses vapor deposition for atom-by-atom or molecule-by-molecule deposition of a single layer or multi-layers of some selected materials on a solid surface of a targeted substrate. According to the Electronic Industries, the total electronics industry production in India was Rs.3,87,525 crore in 2017-18 by the Association of India (ELCINA), compared to Rs.3,17,331 crore in 2016-17, showing a growth of about 22 percent. According to the International Trade Administration (ITA), Japan has the third-largest electronics manufacturing industry in the world and is the United States’ fourth-largest export market for semiconductor manufacturing equipment (SME). The Chinese government will spend considerable effort to support the electronics industry, especially the IC manufacturing and design industry, according to China’s National Integrated Circuit Development Promotion Outline. The production of ICs in China will accelerate at an average annual rate of above 14% through 2022. Singapore has one of the most diverse semiconductor industries in the Asia Pacific, according to the Singapore Economic Development Board (EDB). S$3.3 billion of fixed asset investments (FAI) was attracted by the electronics sector in 2015, which made up 28.6% of the total FAI committed to Singapore. It was second only to the chemicals sector, which accounted for 31.3%. Thus, with the expanding electronics industry, the demand for vapor deposition will also subsequently increase, which is anticipated to drive the vapor deposition market in the APAC region during the forecast period.
Vapor Deposition Market Drivers
Growing Consumer Electronics Market
According to the United States International Trade Commission, the total exports of electronic products grew by $7.9 billion (3 percent) to $268 billion in 2017 in the United States. According to the Department for International Trade, The electronics sector is worth £16 billion every year to the UK economy. With about 18,000 UK based companies, the UK is the largest European market for high-end consumer electronics products. The consumer electronics retail sector will grow faster than any other UK retail sector up to 2015, with average annual growth of 4.4 percent. The consumer electronics and appliances sector in India is expected to become the fifth-largest in the world by 2025, according to Invest in India. By 2025, India could create a digital economy of $800 billion to $1 trillion, and India’s digital economy could fuel 18–23% of overall economic activity by 2025. And since the consumer electronic products require vapor deposition for coating gadgets, the growing consumer electronics acts as a driver for the vapor deposition market during the forecast period.
Strict Regulations Over The Usage of Chromium(6+) For Electroplating
One of the valence states (+6) of the element chromium is Hexavalent chromium [Cr(VI)]. Usually, an industrial process produces it. It is known that Cr(VI) causes cancer. Furthermore, the respiratory system, kidneys, liver, skin, and eyes are targeted. To boost durability and corrosion resistance, chromium metal is added to alloy steel. During “hot work,” such as welding on stainless steel and other alloy steels containing chromium metal, there is a significant source of worker exposure to Cr(VI). In dyes, paints, inks, and plastics, Cr(VI) compounds may be used as pigments. It can also be used in paintings, primers, and other surface coatings as an anti-corrosive agent. In order to provide a decorative or protective coating, the Cr(VI) compound chromic acid is used to electroplate chromium onto metal parts. But the strict regulations such as 1910.1026, Cr(VI), 1910.124, General requirements for dipping and coating operations, and third Unregulated Contaminant Monitoring Rule (UCMR 3), over the usage of chromium(6+) for electroplating is unlatching the door for vapor deposition market during the forecast period.
Vapor Deposition Market Challenges
High Capital Investment
The process of vapor deposition requires some specialized equipment, and it is important to strictly adhere to guidelines on gas volumes, pressure, temperature, and time duration in order to produce good quality graphene. The cluster tool system is used for parallel processing of multiple substrates to increase throughput and productivity. A load lock chamber for loading substrates, a transfer chamber, and several process chambers that can perform one or more processes are typical configurations. The substrates are transferred between chambers under a vacuum using a robotic arm to prevent exposure to air which prevents oxidation and contamination. All these require a high initial investment, which acts as a restrain for the vapor deposition market.
Covid-19 Impact on The Vapor Deposition Market
Due to the Covid-19 outbreak, the vapor deposition processors are facing issues such as delays in receiving raw materials especially from China, which is further resulting in delayed shipments to the customer. The shipment orders are being heavily affected due to the non-availability of vessels and blank sailing. In addition, the import and export restrictions are heavily affecting the vapor deposition market growth as the consignment deliveries are being hindered, due to which the vapor deposition market is negatively affected.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the vapor deposition market. In 2019, the market of vapor deposition has been consolidated by the top five players accounting for xx% of the share. Major players in the vapor deposition market are Applied Materials Inc., Adeka Corporation, Plasma Therm, Aixtron SE, Tokyo Electron Limited, IHI Group, Lam Research Corporation, Kurt J Leskar, and Veeco Instruments.
In April 2018, Plasma-Therm LLC acquired plasma deposition company KOBUS, France. For all silicon and emerging compound semiconductor applications, KOBUS offers a unique portfolio of equipment for both mature and advanced material deposition, expanding the plasma-based deposition of Plasma-Therm and etching product suite.
In February 2020, The Lumina Metal-Organic Chemical Vapor Deposition (MOCVD) platform was launched by Veeco Instruments Inc., which incorporates the proprietary TurboDisc ® reactor technology for excellent film uniformity, yield, and device performance for a variety of photonics applications. This new MOCVD platform, including the Lumina R480™ and Lumina R480S™ models, will accelerate the production of VCSEL, Edge-Emitting Laser (EEL) and Mini / Micro LED devices.