China Physical Vapor Deposition Market Size, Share & Trends Analysis Report By Category (Equipment, Materials, Services), By Application (Microelectronics, Data Storage), And Segment Forecasts, 2019 - 2025

Report Overview

The China physical vapor deposition market size accounted for USD 3.58 billion in 2018 and is estimated to expand at a CAGR of 7.0% by 2025. Growing demand for reliable and durable coatings in solar products and medical equipment is projected to drive the expansion. Rising demand from the microelectronics industry is expected to drive the physical vapor deposition (PVD) equipment market in the forthcoming years.

Physical vapor deposition is a thin film deposition technique that produces coatings of pure metals, alloys, and ceramics, typically from a range of 1 to 10 µm. PVD technology includes a process of evaporation and condensation of base material on the target object to form a thin and reliable coating layer. The raw material used in the physical vapor deposition process includes Titanium, nitrogen, aluminum, titanium carbonitride, and zirconium nitride. Coatings comprise ceramics or metals, usually oxides, nitrides, and carbides. Technology includes thermal evaporation, sputter deposition, electron beam and sputter, pulsed laser, cathodic arc, and ion plating.

The China PVD market is expected to witness significant growth on account of rising product demand from various applications including microelectronics, data storage, solar products, and medical equipment. The market is competitive with major companies involved in continuous product innovation and R&D activities owing to the stringent environmental regulations and to expand their customer base. The industry is characterized by new product launches and expansions, as the companies try to expand their customer base.

The demand is expected to witness a significant increase every year with the growing demand for upgraded equipment, which, in turn, is expected to significantly contribute to the growth. PVD equipment category segment is projected to lead the China physical vapor deposition (PVD) market, in terms of revenue, owing to the rising demand for PVD coating in data storage, microelectronics, and solar product applications.

Category Insights

Based on the category, the market is segmented into PVD equipment, materials, and services. PVD equipment led in terms of revenue with USD 2.12 billion in 2018. Growing demand from the microelectronics, medical equipment, and solar products industry is expected to drive the growth.

Physical vapor deposition uses physical processes such as heating to generate vapor from materials, which is further deposited upon the material to be coated. Some common materials used in PVD coatings include aluminum, titanium, chromium, and nitrogen. Owing to the hard nature of these materials, they are used for coating on steel and alloy components.

The PVD materials segment is estimated to reach USD 1.31 billion by 2025. The growing demand for optical, magnetic, electronic, and catalytic properties by advanced nanostructured coatings for industrial applications such as high-speed machining, tooling, and magnetic storage devices is likely to fuel the growth.

Physical vapor deposition imparts properties to change the surface properties of the base material to improve the property, performance, and lifetime of the product. Physical vapor deposition services include the incorporation of technologies such as thermal evaporation, vacuum, and sputtering systems to produce wear resistance, reliable, and superior quality coatings.

Application Insights

Based on the application, the market is segmented into, microelectronics, data storage, solar products, cutting tools, medical equipment, and others. Microelectronics and data storage are the major application segments. Microelectronics held the highest market share, in terms of revenue, at 36.50% in 2018, and is expected to reach USD 2.07 billion by 2025. Increasing demand for reliable and durable coatings in microelectronics is expected to drive the segment growth.

Physical vapor deposition services are used to get efficient coating for storage devices used in notebooks, computers, laptops, mobiles, and tablets occupied a significant market share of 25.31% in 2018. Physical vapor deposition (sputtering) is used in the production of a magnetic disk that is a key component of hard disk drives.

PVD is the most appropriate technology for providing a wear-resistant, hard coating on medical devices and surgical instruments. Surgical tools ranging from traditional scalpels and saws to horning tools, motorized drills, and retractors, are coated with titanium nitride and aluminum titanium nitride to improve the sharpness and durability of the tools. Medical equipment application was estimated to be worth USD 173.5 million in 2018.

Key Companies & Market Share Insights

Key players holding a major market share include Advanced Energy Industries, Inc.; Applied Materials, Inc.; Intevac, Inc.; Oerlikon Balzers; and Impact Coatings AB. These companies aim to achieve optimum growth and strengthen their market position through various expansion strategies. These strategies include mergers and acquisitions of small or medium-sized players, expanding as well as improving the sales and service network, and R&D initiatives to develop more efficient and cost-effective products among others. The companies can offer a wider range of products if they possess a large product portfolio.

China Physical Vapor Deposition 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 and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the China physical vapor deposition market report based on category, application, and region:

• Category Outlook (Revenue, USD Million, 2014 - 2025)

  • PVD Equipment

  • PVD Materials

  • PVD Services

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  •  Microelectronics

  • Data Storage

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • China