The global physical vapor deposition market size was estimated at USD 18.9 billion in 2019 and is expected to register a CAGR of 6.1% over the forecast period. The growing need for highly sophisticated surface-related properties, such as super magnetic, optical, catalytic, and electronic by advanced mono-structured coatings has contributed to market growth.
Memory components represented more than 30% of the overall semiconductor sales in 2018. Semiconductor memory refers to a plethora of electronic data storage devices that find applications in consumer devices, commercial IT applications, computers, and the emerging spectrum of IoT applications. The rising sales of electronic goods in emerging economies such as China, India, and Thailand are expected to surge the demand for memory chips, thereby propelling the market growth of physical vapor deposition coatings over the coming years.
The demand for physical vapor deposition coating is anticipated to grow significantly on account of its ability to improve product appearance and durability along with updating the product’s base material with additional functions. In addition, the coating does not require a process medium which makes it an environmentally friendly coating process that provides appealing, durable, and bright finishes on a wide variety of industrial and consumer components.
The rising consumer demand for lightweight materials in the automotive sector owing to low CO2 emissions and less fuel consumption has increased the demand for magnesium, aluminum, and carbon-reinforced plastic materials. These materials have the tendency to stick to the cutting tool resulting in reducing the lifespan of the tools. This trend has stimulated the development of new coating materials with a low coefficient of friction, thereby surging the demand for physical vapor deposition in recent times.
Physical vapor deposition coating has been widely used to deposit a thin-film of wear-resistant coatings on a variety of medical devices, including pacemakers, orthodontic appliances, surgical instruments, dental instruments, and orthopedic implants. TiN and CrN are preferred materials for coating in the medical industry as they improve wear resistance, reduce friction, acts as a chemical barrier, and offer biocompatibility to the tools.
The physical vapor deposition technique requires high capital costs, skilled labors, and a line of sight process. In addition, the parts used for coating are exposed to high temperatures and require electroplated layers for maximum corrosion protection, which is difficult to achieve. The rising demand for chemical vapor deposition technique owing to less waste deposition and transition sharpness is expected to restrict market growth over the coming years.
In terms of category, the physical vapor deposition market is segmented into PVD equipment, PVD materials, and PVD services. PVD equipment is anticipated to contribute 58.6% of the market share in terms of revenue by 2027 on account of the rising demand for tool coating applications in automotive components, decorative coatings, and large dies and broaches.
Physical vapor deposition services include the incorporation of technologies such as evaporation, vacuum, and sputtering systems to produce affordable, wear-resistant, and superior quality coatings. Recent advancements in the technology that can lead to a reduction of costs and improve the mechanical properties of the coating material are expected to boost market growth over the forecast period.
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 physical vapor deposition coatings include titanium, aluminum, chromium, and nitrogen. Owing to the hard nature of these materials, they find applications in coating alloy and steel components in the automotive and electronics industry.
In terms of application industries, the PVD market is categorized into microelectronics, data storage, solar products, cutting tools, medical equipment, and others. The demand for physical vapor deposition coating is high in the metal cutting industry as they are preferred materials in sharp edges applications such as end-milling, grooving, and threading, and in cutting applications such as drilling, where demand for tough cutting edge is relatively high.
Physical vapor deposition coating is used for semiconductor packaging in satellite, space, and military markets. In wireless and photonics, this coating is used in packaging materials including micro-electromechanical systems, RF power amplifiers, light-emitting diodes, and laser recorders. Rising demand for chips related to the rapidly growing use of AI is anticipated to boost the demand for physical vapor deposition coating over the forecast period.
The demand for physical vapor deposition in the medical equipment industry is expected to exhibit a CAGR of 7.3% over the forecast period owing to the rising demand for wear-resistant and bio-compatible thin-film coatings. These coatings are used in various types of medical devices, including orthopedic plants, stents, pacemakers, medical pressure sensors, orthodontic appliances, dental instruments, and surgical instruments.
Constructive regulatory support for encouraging domestic level private investment in Mexico is likely to boost the semiconductor industry, thereby stimulating market growth of physical vapor deposition over the forecast period. In addition, increased spending on research and development by medical device manufacturers in the U.S. is expected to further propel the growth of the market for physical vapor deposition over the coming years.
The demand is shifting towards sophisticated medical coating materials owing to the rapid advances in technology and an increase in healthcare spending in the Asia Pacific region which is expected to boost market growth over the forecast period. In addition, the rising demand for flash memory and DRAM in the consumer and communication applications in China, South Korea, and India is anticipated to further propel product demand over the next eight years.
The market for physical vapor deposition in Europe was dominated by Germany, which accounted for a market share of 28.2% in terms of value in 2019. The demand for metal-cutting technologies in Germany remained strong as it provides surface texture, complex shaping, and closer dimensional accuracy to the finished goods used for manufacturing components in various industries including aerospace, electronics, defense, automotive, construction, and electrical.
The market is characterized by the presence of a large number of players including Advanced Energy Industries, Inc.; AJA International, Inc.; Applied Materials, Inc.; and Angstrom Engineering, Inc. Companies are involved in extensive research and development activities along with mergers and acquisitions with the leading manufacturers and distributors to strengthen their presence in the emerging economies.
The market for physical vapor deposition is expected to be consolidated in nature as the key players are focusing on expanding their customer base in the emerging economies by mergers and joint ventures. For instance, ASM Pacific Technology acquired Telnexx, which is expected to expand the company’s product portfolio in the high growth markets that include the manufacturing of tools and advanced semiconductor packaging materials.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Central & South America, Middle East, Africa
U.S., Canada, Mexico, Germany, U.K., France, Spain, Italy, China, India, Japan, South Korea, Indonesia, Australia, Thailand, Malaysia, Brazil, Argentina, Saudi Arabia, United Arab Emirates, South Africa
Revenue forecast, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global physical vapor deposition market on the basis of category, application, and region:
Category Outlook (Revenue, USD Million, 2016 - 2027)
Application Outlook (Revenue, USD Million, 2016 - 2027)
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Central & South America
United Arab Emirates
b. The global physical vapor deposition market size was estimated at USD 18.86 billion in 2019 and is expected to reach USD 19.97 billion in 2020.
b. The global physical vapor deposition market is expected to grow at a compound annual growth rate of 6.1% from 2020 to 2027 to reach USD 30.29 billion by 2027.
b. North America dominated the physical vapor deposition market with a share of 46.4% in 2019. This is attributable to the shifting demand towards sophisticated medical coating materials owing to the rapid advances in technology and an increase in healthcare spending.
b. Some key players operating in the physical vapor deposition market include Advanced Energy Industries, Inc.; AJA International, Inc.; Applied Materials, Inc.; and Angstrom Engineering, Inc.
b. Key factors that are driving the market growth include the rising need for highly sophisticated surface-related properties such as super magnetic, optical, catalytic, and electronic by advanced mono-structured coatings.
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The prevailing pandemic situation has led to weakened demand for paints and coatings in automotive, construction, electronics, and white goods. The path to recovery of growth for the industry is highly dependent on the duration of restrictions imposed and their influence on economic activity across the globe. Contrary to the trend prevalent in the industry in general, certain segments of the market such as antimicrobial coatings are witnessing a surge in demand in healthcare and food industries. The report will account for Covid19 as a key market contributor.