Physical Vapor Deposition Market Size, Share & Trends Analysis Report By Category, By Application (Microelectronics, Data Storage, Solar Products, Cutting Tools), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global physical vapor deposition market size was valued at USD 18.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2021 to 2028. Increasing demand for thin-film coating in decorative applications and end-user industries such as microelectronics is expected to augment the demand for Physical Vapor Deposition (PVD). The COVID-19 pandemic resulted in lockdown restrictions leading to more remote work. This created a spike in demand for electronics such as mobiles, laptops, and desktops prompting companies to manufacture more microchips, which positively affected the market growth.  

The rising prevalence of coronavirus coupled with the increasing government spending on healthcare is expected to boost medical device production. PVD coatings are increasingly used as a decorative coating in medical equipment and also because of their biocompatibility. The aforementioned factors are expected to increase the demand for physical vapor deposition over the forecast period.

The microelectronics industry is highly profitable and competitive, having been on an upward climb for many years. Moreover, emerging markets, including quantum computing, artificial intelligence (AI), and advanced wireless networks, are anticipated to further drive the demand for semiconductors, thereby having a positive impact on the PVD market over the forecast period.

The rapid adoption of solar power in increasing the renewable energy capacity has increased the demand for solar panels globally. Physical vapor deposition coating for solar cells makes them more corrosion-resistant and increases their durability. The use of physical vapor deposition coating is also suitable for next-generation perovskite-crystalline silicon cell manufacturing which is likely to boost the market growth.

Electroplating, a traditional method used for coating, which is also a cheaper alternative as compared to physical vapor deposition, is being replaced by the latter. Moreover, superior quality, development in advanced technology, cost reduction, and environment-friendly nature of physical vapor deposition leads to a higher opportunity of advancement over electroplating resulting in a low threat of substitutes.

Category Insights

The PVD equipment segment led the market and accounted for the largest revenue share of 59.7% in 2020. Surface coating companies are focusing on reducing their carbon footprint and are in need of environmentally friendly processes, which is one of the benefits of physical vapor deposition and as a result positively impacting the market.

Physical vapor deposition coating is achieved with the help of quality equipment that helps to streamline the process. Manufacturers have been developing application-specific equipment mainly for automotive components, decorative coatings, large dies & broaches, and high estimates tool coatings due to which the demand for physical vapor deposition is expected to boost over the forecast period.

PVD equipment manufacturers have been focusing on developing magnetron sputtering systems. Sputtering can be used for the deposition of various metallic films on wafers, including aluminum, gold, platinum, aluminum alloys, and tungsten, among others. Sputtering systems are able to deliver the highest rate of scalability with low-level impurity and are likely to boost market growth.

The PVD services segment is estimated to witness a CAGR of 6.7% from 2021 to 2028, in terms of revenue. Coating companies are offering PVD coating services which are in demand as PVD equipment is expensive. Moreover, PVD requires skilled operators which coating companies can provide. This is expected to increase the PVD services demand over the forecast period.

Application Insights

The microelectronics segment led the market and accounted for the largest revenue share of over 37.5% in 2020 on account of the increasing demand for physical vapor deposition in packaging materials, including microelectromechanical systems in wireless and photonics applications. The demand for physical vapor deposition in microelectronics is likely to increase as PVD coating allows the coated material to integrate with a wide range of applications.

Physical vapor deposition (sputtering) is used in the production of a magnetic disk that is a key component of hard disk drives. Increasing digitization and the introduction of big data, artificial intelligence, and the internet of things have resulted in an increase in demand for data storage. The aforementioned factors are expected to augment the demand for PVD in data storage.

PVD coating helps in sharp edges and cutting applications such as end-milling, threading and drilling, where demand for tough cutting edge is relatively high. The use of physical vapor deposition coatings on cutting tools reduces wear and pick up of the tool, reduces the cycle time of the tool, and reduces the need for cutting fluid that, in turn, is anticipated to drive the PVD application market over the forecast period.

PVD is one of the most appropriate technologies for providing a wear-resistant, hard coating on medical devices and surgical instruments. The demand for thin-film coatings in performance improvement of dental and orthopedic implants, biomaterials, and Bio-MEMS is expected to boost the demand for physical vapor deposition in medical equipment over the forecast period.

Regional Insights

Asia Pacific led the market and accounted for the largest revenue share of over 46.7% in 2020. Large-scale solar projects, increasing use of PVD coatings for automotive engine parts, and increased healthcare spending leading to medical equipment market growth are some of the factors responsible for market growth in the region.

U.S. government’s push towards domestic manufacturing coupled with the recent USMCA (United States Mexico Canada Agreement) is expected to increase the demand for PVD coating in North America mainly in microelectronics and medical equipment applications. Moreover, increased use of physical vapor deposition coating in the automotive industry in Mexico is likely to further boost the market growth in the region.

The demand for PVD coatings is estimated to witness a CAGR of 5.6% in Spain over the forecast period. Factors such as a large number of hospitals, rising prevalence of chronic diseases, a higher purchasing power, and higher expectations from the population regarding healthcare are anticipated to drive the medical equipment industry growth and in turn, the PVD market.

Increasing utilization of renewable energy resources in India is driving the demand for solar panels and fuel cells, which in turn is expected to drive the demand for PVD coating. Moreover, an increase in the use of low E-glass in commercial as well as residential buildings is expected to boost the demand for large area glass coatings and in turn, drive the demand for PVD equipment.

Key Companies & Market Share Insights

PVD equipment manufacturers are focusing on developing advanced machinery which can deliver output with less cost and better efficiency. In August 2020, Advanced Energy Industries, Inc. introduced the Ascent multi-output power system which generates less cost as compared to plasma-enhanced chemical vapor deposition systems for photovoltaic cells.

Coating companies have developed a new business model where they offer coating services for PVD. Higher costs and the requirement of skilled operators are some of the factors responsible. As equipment manufacturers develop new systems with advanced technologies, the demand for PVD equipment is likely to increase from coating companies over the forecast period. Some of the prominent players in the physical vapor deposition market include:

• Advanced Energy Industries, Inc.

• AJA International, Inc.

• Angstrom Engineering, Inc.

• Applied Materials, Inc.

• CHA Industries

• Intevac, Inc.

• Denton Vacuum

• OC Oerlikon Management AG

• IHI HAUZER B.V.

• Impact Coatings AB

• KDF Electronic & Vacuum Services Inc.

• Johnsen Ultravac

• Kurt J. Lesker Co.

• Penta Technology (Suzhou) Co. Ltd

• LAM RESEARCH CORPORATION

Physical Vapor Deposition Market Report Scope

Segments Covered in the Report

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 2017 to 2028. 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, 2017 - 2028)

  • PVD Equipment

  • PVD Materials

  • PVD Services

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

  • Microelectronics

  • Data Storage

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • U.K.

    • Spain

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Argentina

    • Brazil

  • Middle East & Africa

    • South Africa

    • UAE