Physical Vapor Deposition Market Size, Share & Trends Analysis Report By Product (Sputter Deposition, Thermal Evaporation, Arc Vapor Deposition), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global physical vapor deposition market size was estimated at USD 2,809.99 million in 2022 and is anticipated to grow at a compounded annual growth rate (CAGR) of 7.5% from 2023 to 2030. The flourishing industrial manufacturing is likely to fuel the market growth over the forecast period. Physical vapor deposition is used to coat the surface of tools and components to improve functionality and aesthetics. The outbreak of COVID-19 had a moderate impact on the growth of the PVD services market, significantly during the first half of 2020, as a result of lockdown, lack of workforce, disruption of the supply chain, and decrease in demand. Over the forecast period, the market is expected to witness steady growth owing to the resumption of industrial manufacturing.

In the U.S., increasing domestic manufacturing is expected to fuel the demand for PVD coating services. The government is taking initiatives to reduce offshore manufacturing and encourage domestic production. In January 2022, the U.S. government introduced Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act.

In order to bolster semiconductor production in the U.S., The CHIPS and Science Act is likely to provide $52.70 billion for manufacturing, research, and development. Moreover, new semiconductor production facilities are being constructed in South Korea, Singapore, China, and India. The growth in the semiconductor industry is expected to propel the demand for PVD services.

Increasing environmental concern is expected to boost the demand for environmentally friendly and renewable energy sources, such as solar cells and photovoltaics. PVD is used to coat solar panels with photovoltaic coating allowing high yield and efficiency. The growth in solar product installation is expected to drive the demand for PVD coating services over the forecast period.

Additionally, the rising automotive industry is likely to fuel the PVD services market growth. PVD coating is used to coat automotive parts that contribute to enhanced efficiency, appearance, and fuel consumption saving. The global automotive industry is continuously witnessing steady growth attributed to increased consumer spending.

Product Insights

The sputter deposition segment accounted for the largest revenue share of over 47.6% in 2022. Sputter deposition is a widely used physical vapor deposition type owing to various applications in medical, aerospace, electronics, etc. Sputter deposition delivers a high yield and produces a uniform and qualitative film layer.

The arc vapor deposition segment is estimated to register a lucrative CAGR of 8.1% over the forecast period. Arc vapor deposition is characterized by high current and low voltage process conditions. Arc vapor deposition is gaining momentum in the decorative, hard, and optical coating process owing to the efficient ionization at relatively low temperatures.

Thermal evaporation is one of the significant physical vapor deposition types in the market, consisting of pulsed laser deposition and electron beam deposition techniques. This type of PVD requires high temperatures to produce metal vapor of titanium, zirconium, copper, or aluminum, which are coated on the surface. It is commonly used for microfabrication in the computer industry.

Low-temperature arc vapor deposition (LTAVD) is also becoming a prominent PVD type. LTAVD is the most environmentally friendly PVD method, which produces ultra-thin layers of hard metallic coating. The advantage of LTAVD is that the lower processing temperatures allow it to be compatible with a wider array of substrates.

Application Insights

The semiconductor and electronics segment held the largest share of over 41.6% in 2022. This is attributed to the extensive application of physical vapor deposition coating in consumer electronics, home appliances, and other electronic products. The rising consumer spending and demand for electronic products are expected to facilitate market growth.

The consumer electronics industry is continuously changing and growing owing to the manufacturers’ increasing production and demand from customers. According to the Ministry of Electronics & Information Technology of India, the electronics industry is driven by the manufacturing of mobile phones, TV, LED lighting, laptops, and tablets, which drives the demand for PVD services.

The solar products segment is expected to register the highest CAGR of 7.6% over the forecast period. The segment is significantly driven by increasing consumer awareness, rising public and private investments, and improving regulations. According to the International Energy Agency, solar photovoltaic power generation recorded a growth of 22% in 2021 compared to 2022.

The others segment includes aerospace, automotive, kitchen tools, and bathroom fixtures. In the aerospace industry, PVD coating is replacing the chrome plating process due to the documented health risks for workers from exposure to hexavalent chromium, a carcinogen. Coating is being done on various parts such as landing gears, engine mounts, aero structures, and air frames.

Regional Insights

Asia Pacific led the global market with a revenue share of over 43.1% in 2022. This is significantly attributed to the extensive manufacturing of automotive and auto components, semiconductor and electronic products, and solar cells in the region. Moreover, rising industrialization and increasing investments are likely to fuel market growth.

North America is expected to register a CAGR of 7.3% over the forecast period. The growth is significantly attributed to the rising industrialization in Mexico and Canada. In September 2021, it was announced that Mexico’s government is planning to boost its semiconductor manufacturing industry by setting up a production facility in southern states.

Europe is witnessing the worst energy crisis, which is likely to accelerate the transition to green energy resources, according to the International Renewable Energy Agency. Solar cells and photovoltaics demand has witnessed significant demand. This is also likely to increase the manufacturing of solar cells in the region. The European Solar Initiative was introduced in February 2021 to enhance manufacturing.

The growth of industrial manufacturing in China is expected to fuel the demand for PVD coating services. Manufacturing share in the country’s GDP was over 25% in 2021, according to World Bank, and is expected to grow at a steady rate. New developments and investments are also likely to fuel market growth. For instance, in April 2022, Impact Coatings Inc. established a new PVD coating facility in Shanghai, China.

Key Companies & Market Share Insights

Key players are actively focusing on several strategies, including product innovation, research & development, geographical expansion, and joint venture. With these strategies, key players aim to increase market penetration.

For instance, in June 2022, High Temperature Superconductors, Inc. announced a successful acquisition of PVD Products Inc., which specializes in the manufacturing of PVD techniques and PLD systems. The acquisition is expected to strengthen the market position of HTS, Inc. Some prominent players in the global physical vapor deposition market include:

• Oerlikon Group

• Angstrom Engineering Inc.

• Kurt J. Lesker Company

• Voestalpine AG

• NISSIN ELECTRIC Co., Ltd

• IHI Corporation

• HEF Groupe

• Kobe Steel Ltd.

• Lafer S.p.A.

• Inorcoat

• KOLZER SRL

• Advanced Coating Service

• Impact Coatings AB

• Denton Vacuum

• Intevac, Inc.

Physical Vapor Deposition Market Report Scope

Global Physical Vapor Deposition Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the physical vapor deposition market on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million; 2018 - 2030)

  • Thermal Evaporation

  • Sputter Deposition

  • Arc Vapor Deposition

• Application Outlook (Revenue, USD Million; 2018 - 2030)

  • Semiconductor & Electronics

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Other

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • South Africa