U.S. Chemical Vapor Deposition Market Size, Share & Trends Analysis Report By Category (CVD Equipment, CVD Materials, CVD Services), By Application (Semiconductor & Microelectronics, Data Storage, Solar Products), And Segment Forecasts, 2024 - 2030

Market Size & Trends

The U.S. chemical vapor deposition market was valued at USD 4.15 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2030. This growth is attributed to technological advancements in the semiconductor industry, increasing demand for high-performance and energy-efficient devices, and the growing need for miniaturized semiconductor components are some of the key driving factors. Additionally, the rise in the adoption of CVD in various applications such as data storage, solar products, and cutting tools is also contributing to the market growth. However, the market’s expansion is not without challenges. Factors such as high equipment costs and the need for skilled labor can potentially hinder market growth.

Regulations play a significant role in shaping the U.S. Chemical Vapor Deposition (CVD) market. They influence product development, safety standards, and market access, and are increasingly driving market players towards sustainability and carbon-efficient processes. One specific regulation impacting the U.S. chemical vapor deposition market is the Occupational Safety and Health Administration (OSHA) standard (1910.1026) in place to protect workers from Chromium (VI) exposure. This standard is particularly relevant to the CVD market as the production process can involve the use of chromium.

Moreover, there are stringent regulations pertaining to the F-gas emissions due to the use of a few precursors in the chemical vapor deposition process. These regulations can pose significant challenges for manufacturers in the global market, potentially affecting the growth of the CVD market.

Market Concentration & Characteristics

The U.S. CVD market is characterized by rapid technological advancements and a high degree of innovation. Ongoing advancements in CVD techniques, such as plasma-enhanced CVD and atomic layer deposition, are driving the market. Significant research and development investments are being made by industry players and research institutions to develop innovative deposition processes, materials, and applications.

The CVD industry is also characterized by moderate merger and acquisition (M&A) activity by the leading players. Mergers and acquisitions are undertaken to improve the reach of their products in the market by making these products and services available to end users over diverse geographical areas. For instance, in December 2022, Intevac Inc. signed a joint development agreement with a major provider of glass and glass-ceramic materials called TRIO.

Regulations play a significant role in shaping the U.S. CVD market. They influence product development, safety standards, and market access, and are increasingly driving market players towards sustainability and carbon-efficient processes. However, these regulations also present challenges. For instance, stringent regulations concerning environmental hazards have been imposed due to the release of toxic and corrosive gases during the production process. These regulations can potentially limit the growth of the global CVD market.

Competition from alternative thin-film deposition technologies, such as physical vapor deposition (PVD) and atomic layer deposition (ALD), also diverts a considerable number of consumers from the market. For instance, metals such as aluminum and copper, which go into the manufacturing of microelectronics, are often deposited by CVD methods. Copper CVD is generally used as a substitute in integrated circuits.

Category Insights

The chemical vapor deposition equipment segment dominated the U.S. market in 2023. This dominance can be attributed to the extensive use of CVD equipment in various industries, including semiconductors, electronics, and solar panels. The equipment is used to deposit thin films and coatings on substrates, which are essential in the manufacturing of semiconductors and other electronic components. The high demand for these components, driven by the growing electronics and semiconductor industries, has led to a significant market share of the CVD equipment segment.

On the other hand, the CVD Services segment is the fastest-growing product segment in the U.S. chemical vapor deposition market, from 2024 to 2030. This growth can be attributed to the increasing need for maintenance and repair services for CVD equipment. As the complexity of CVD processes and equipment increases, so does the demand for specialized services to ensure optimal performance and longevity of the equipment. Furthermore, the services segment also includes consulting and training services, which are becoming increasingly important as companies seek to optimize their CVD processes and stay competitive in the market.

Application Insights

The semiconductor & microelectronics segment dominated the U.S. market in 2023. The high market share is attributed to the increasing demand for high-quality and high-performance materials in the aerospace and defense sectors has been a significant driver for using CVD technology. Furthermore, in the U.S., rising demand for miniaturized and high-performance electronic devices has propelled the adoption of CVD for thin-film deposition of semiconductors and insulating materials.

The U.S. is a key market within the global semiconductor industry, leading in research and development (R&D) activities such as electronic design automation (EDA), core intellectual property (IP), chip design, and advanced manufacturing equipment. Semiconductors form an important part of the U.S. economy, worth just under 74 billion U.S. dollars in 2022. As a result, the strength of the U.S. semiconductor industry also plays a significant role in the success of other sectors.

On the other hand, the Medical Equipment segment is the fastest-growing product segment in the U.S. chemical vapor deposition market. This growth can be attributed to the increasing use of CVD in the medical industry, particularly for applying biocompatible coatings on medical implants, such as orthopedic implants, stents, and dental implants. These coatings enhance the functionality and bio-integration of the implants, making them more effective and safe for use. As the medical industry continues to advance and demand for high-quality, durable medical implants increases, the use of CVD in this sector is expected to grow significantly.

Key U.S. Chemical Vapor Deposition Company Insights

The U.S. chemical vapor deposition market is somewhat consolidated, with a few large corporations dominating the business. Some key players operating in this market include Veeco Instruments Inc., IHI Ionbond AG, and Applied Materials Inc.

• Veeco Instruments Inc. Veeco Instruments Inc. is a major player in the U.S. chemical vapor deposition market. The company has more than 25 years of experience in PVD technology development. Veeco provides the epitaxial growth of SiC by chemical vapor deposition.

• IHI Ionbond AG offers a broad range of thin-film technologies, including CVD, PACVD, PVD, and CVA. Ionbond operates 39 coating centers in 17 countries in Europe, North America, and Asia for customers in the automotive, industrial & racing, deco & sports, and medical sectors.

• Applied Materials Inc. offers different products, which include chemical vapor deposition (CVD), plasma-enhanced chemical vapor deposition (PECVD), electrochemical deposition (ECD), ultraviolet thermal processing (UVTP), and resist strip and surface preparation, as well as synergy cleaning products.

Recent Developments

• In February 2023, Veeco acquired Epiluvac AB, a manufacturer of CVD epitaxy systems that allow advanced silicon carbide (SiC) applications in the electric vehicle market. This acquisition is expected to accelerate Veeco’s penetration into the high-growth SiC equipment market.

• In February 2024, Applied Materials Inc. invested in VVDN Technologies, an India-based electronics product design, software, and manufacturing company. This investment is a step toward Applied Materials Inc.'s aim of enabling and developing the global semiconductor and electronics manufacturing ecosystem.

U.S. Chemical Vapor Deposition Market Report Scope

U.S. Chemical Vapor Deposition Market Report Segmentation

This report forecasts revenue and volume growth and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. chemical vapor deposition market report based on category and application:

• Category Outlook (Revenue, USD Billion, 2018 - 2030)

  • CVD Equipment

  • CVD Materials

  • CVD Services

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Semiconductor & Microelectronics

  • Data Storage

  • Solar Products

  • Cutting Tools

  • Medical Equipment

  • Other