Physical Vapor Deposition (PVD) Market Size, Share & Trends Analysis Report By Category (PVD Equipment, Material, Services), By Application (Medical Equipment, Solar Products), And Segment Forecasts, 2019 - 2025

Industry Insights

The global physical vapor deposition market size was valued at USD 16.85 billion in 2017 and is projected to expand at a CAGR of 6.1% from 2018 to 2025. The PVD market is primarily driven by the rising demand for reliable and durable coatings in medical equipment, particularly from developing economies. Thus, the medical devices application segment is expected to have a strong growth potential during the estimated time period.

These coatings are used for applications, such as storage devices, semiconductors, and LED, which are expected to fuel market growth over the next few years. Physical vapor deposition technology includes a process where the base material is used to form a thin coating layer on an object by evaporating and condensing the material used. Coatings comprise ceramics or metals, usually oxides, nitrides, and carbides.

Technology includes electron beam and sputter, evaporative, pulsed laser, cathodic arc, and physical vapor depositions. Policies for restricting hex chrome electroplating owing to rising environmental concerns in economies, such as Europe and U.S., are anticipated to boost the growth of this market over the years to come. However, patented technologies resulting in a high capital investments are likely to pose a challenge for the global market.

However, increasing number of end-use industry participants is estimated to boost the market in near future. Moreover, several technological advancements are likely to spur the market in the coming years. Growing need for highly sophisticated surface-related properties, such as super plasticity, magnetic, optical, electronic, and catalytic properties, by advanced mono-structured coatings is also contributing to the market growth.

Application Insights

Applications of PVD include microelectronics, data storage, solar products, cutting tools, and medical equipment. Medical equipment is anticipated to continue as a key application segment expanding at a CAGR of 7.4% from 2018 to 2025. Increasing expenditure by various governments to provide basic healthcare facilities is anticipated to augment the product demand in medical devices and equipment, subsequently driving the global market.

Microelectronics was the largest application segment in the year 2017 and is expected to witness moderate growth over the forecasted period. Presence of materials that require few coating processes is the major reason behind the slow growth of this segment. Solar product is the second fastest-growing segment with a CAGR of 7.1% from 2018-2025. This segment is expected to gain prominence particularly in Asia Pacific and Europe owing to increasing R&D investments by both wafer and photovoltaic cell manufacturers to maintain low-cost.

Category Insights

PVD equipment, materials, and services are the key market categories examined and reported in the study. PVD coating is achieved with the help of quality equipment that contributes to streamlining the process. The choice of equipment is based on the application, i.e., cutting tools, forming and punching, molding and die-casting. The technology implements physical process including heating to produce vapor from materials, which is deposited upon the material to be coated.

The conventional material used for coating purpose includes titanium, aluminum, chromium, and nitrogen. PVD services include incorporation of technologies, such as vacuum, evaporation, and sputtering systems to produce wear resistance, affordable, and superior-quality coatings. In 2017, PVD equipment was the largest category and accounted for 59.9% of the overall market share. The segment is expected to continue its dominance even during the forecast period.

Regional Insights

The Asia Pacific market is expected to witness considerable growth on account of rising demand in battery storage applications for small-scale solar PV system. The demand in India, China, and Japan is likely to be high over the next couple of years due to inadequate power infrastructure. The market in Europe is anticipated to demonstrate prospective growth over the coming years owing to escalating demand in applications that use metallic layer coating on products to increase the life span of final products.

North America is the pioneer in this market and is expected to register the highest CAGR of 5.7% between 2018 and 2025. This growth is attributed to sufficient regulatory support for encouraging domestic-level private investment in the semiconductor industry. The MEA region is also likely to have a significant development over the years to come.

Physical Vapor Deposition (PVD) Market Share Insights

Key companies in the global market include Advanced Energy Industries, Inc.; AJA International, Inc.; Veeco Instruments, Inc.; Angstrom Engineering, Inc.; and Applied Materials, Inc. with approximately 70% of the market share. Most of these companies are focusing on increasing their market share along with profitability through product innovations.

For instance, Advanced Energy acquired AEG Power Solutions in January 2014, a power control module manufacturer. The acquisition helped the company in increasing its market position in power-based products. In May 2015, the company introduced Applied Endura Cirrus HTX PVD, for creating titanium nitride hard mask films, which is used in fabricating 10 nanometers and 7 nanometer chips.

Several other companies in the market include Oerlikon Balzers Hartec GmbH; Denton Vacuum, Inc.; IHI Hauzer Techno Coating B.V.; Impact Coatings AB; Johnsen Ultravac, Inc.; Kurt J. Lesker Co.; Plasma Quest Ltd.; Platit AG; Richter Precision, Inc.; Sulzer Metplas GmbH; and Tokyo Electron Ltd.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global physical vapor deposition (PVD) market report on the basis of 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)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa