Asia Pacific Vapor Deposition Equipment Market Size, Share & Trends Analysis Report By Technology (CVD, PVD), By Application (Data Storage, Medical Equipment, Data Storage, Microelectronics), And Segment Forecasts, 2021 - 2028

Report Overview

The Asia Pacific vapor deposition equipment market size was estimated at USD 11.98 billion in 2020 and is anticipated to grow at a compounded annual growth rate (CAGR) of 6.4% from 2021 to 2028. Rising demand for high-quality thin films on solid materials in various applications, such as microelectronics, solar products, medical devices, and cutting tools, among others, drive the market. During the COVID-19 pandemic, various electronics, cutting tools, and solar products manufacturing companies were shut resulting in hampering the demand for vapor deposition equipment. However, as the world has started returning to normalcy from the beginning of 2021, due to vaccine rollouts, the demand for vapor deposition is expected to witness growth.

The COVID-19 pandemic is anticipated to have a dual effect on the electronics, automobile, and solar industries, wherein the manufacturing of components was halted due to lockdowns imposed in various countries, coupled with a slowdown in logistics, resulting in supply interruptions. Furthermore, the unavailability of labor regionally has also contributed negatively to the manufacturing of components, thereby hampering the market growth. According to IRENA, Asia Pacific dominated the solar energy market with over 56% of the total installed capacity globally. The increasing demand for solar photovoltaic systems is one of the factors driving the growth of semiconductor devices, which, in turn, is anticipated to drive the market for vapor deposition equipment in the region.

The growth of the solar equipment industry in China, Indonesia, and India is likely to contribute significantly to the market growth. Countries across Asia Pacific have pledged to reduce carbon emissions in line with the Paris Climate Treaty. This has increased the penetration of solar technology in the region, thereby complementing market growth. The costs incurred by the manufacturers are affected by a number of factors, including volatile commodity prices, raw materials, parts, freight, and labor costs. Furthermore, other factors, such as inflation, exchange rates, international trade agreements, economic concerns, and tariffs, also affect the raw material prices and the manufacturing costs of the equipment, thereby restraining the market growth.

Technology Insights

The Chemical Vapor Deposition (CVD) segment led the market and accounted for the largest revenue share of more than 57% in 2020. CVD materials have fueled the growth of the overall market owing to the rising demand for electronics, medical equipment, and solar products manufacturing applications for advanced coatings. In the aforementioned applications, CVD is mainly used in high-speed machining, tooling, and magnetic storage devices. The CVD technology is also used in the fabrication of optical fiber whose demand is expected to accelerate in Asia Pacific over the forecast period. Moreover, the upcoming 5G network requires optical fibers; which is expected to augment the demand for CVD coating and its equipment over the forecast period. CVD is the most preferred technology to make 2D nanomaterials and is expected to continue its role in nanotechnology.

The demand for physical vapor deposition equipment is estimated to witness significant growth over the forecast period. Thermal evaporation, sputtering, and ion plating are the types of physical vapor deposition technologies that are used to carry out thin film coating in the presence of a vacuum. Physical vapor deposition equipment processes, such as sputtering and evaporation, are utilized on microelectronics components to impart hardness and wear resistance before the components are installed in devices. In addition, the rising demand for consumer electronics is further likely to augment the regional market growth.

Application Insights

The microelectronics application segment led the market with a revenue share of more than 38% in 2020. Vapor deposition coating equipment is used for coating packaging materials, including microelectromechanical systems and laser recorders. Increasing demand for durable and high-quality coatings in microelectronics is expected to drive the segment growth. PVD is one of the basic technologies in microelectronics that allows the coated material to possess the unique property of peptide supramolecular nanomaterials and allows them to integrate with a wide range of applications. Whereas, CVD technology has a significant advantage, as it is based on chemical reactions that allow for customizable deposition rates as well as high-quality microelectronics products with outstanding conformity.

The medical equipment segment is expected to register the fastest CAGR over the forecast period as a result of increasing healthcare spending in China & India, coupled with rising disposable income levels and health awareness. Vapor deposition is one of the most appropriate technologies for providing a wear-resistant, hard coating on medical devices and surgical instruments. Innovative medications are extending human longevity all around the world, with Asia Pacific leading the way in terms of life expectancy. Higher living standards contribute to higher expectations and increased demand for better healthcare. The demand for medical equipment is expected to witness growth, thereby complementing the market growth.

Regional Insights

China led the market with a revenue share of more than 43% in 2020. China’s semiconductor production is expected to witness growth to decrease the gap between its production and consumption. The demand for chipsets and microelectronics is anticipated to augment the demand for vapor deposition equipment over the forecast period. An emerging trend of electric/hybrid vehicles and green vehicles is expected to have a positive impact on the market growth. In addition, technological advancements in the development of autonomous vehicles are expected to drive automotive production in the country. These factors are expected to boost the demand for PVD coatings in automotive applications, as a result, driving the demand for vapor deposition equipment in China.

The market in India is likely to grow at a steady CAGR over the forecast period. The advent of Artificial Intelligence (AI) and the Internet of Things (IoT) are likely to accelerate the storage volume requirement. Third-party data centers are beginning to invest heavily in the country, which is likely to boost the demand for thin-film coatings and subsequently the demand for vapor deposition equipment. The upcoming Greenfield and Brownfield project in the automotive sector in India is expected to boost the rate of automotive production in the country. Moreover, the production capacity expansion by major OEMs in India, such as Ashok Leyland, Mahindra, Bajaj, and Tata Motors, is expected to drive the demand for PVD coatings for automotive applications. These factors are also expected to boost the market growth in India.

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of both regional and local manufacturers. Manufacturers adopt several strategies including acquisition, collaboration, new product launches, and regional expansions to enhance their market penetration and meet the changing technological demand from various applications industries.

For instance, in November 2021, Yield Engineering Systems, Inc., a manufacturer of semiconductor advanced packaging and life sciences, acquired the semiconductor business of Kanthal. This acquisition will give the company access to Kanthal’s low-pressure CVD process and complement its thermal processing capabilities. Some prominent players in the Asia Pacific vapor deposition equipment market include:

• Buhler Alzenau GmbH

• Vacuum Techniques Private Ltd.

• Ningbo Danko Vacuum Technology Co., Ltd.

• Vergason Technology, Inc.

• Vapor Technologies, Inc.

• AJA International, Inc.

• Kobe Steel, Ltd.

• Milman Thin Film Systems Pvt. Ltd.

• Foshan Foxin Vacuum Technology Co. Ltd.

• IKS PVD Technology (Shenyang) Co., Ltd. 

Asia Pacific Vapor Deposition Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the Asia Pacific vapor deposition equipment market report on the basis of technology, application, and region:

• Technology Outlook (Revenue, USD Million, 2017 - 2028)

  • Physical Vapor Deposition

  • Chemical Vapor Deposition

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Microelectronics

  • Data Storage

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia