March 1, 2024

The increased implementation of advanced technological solutions anticipated to open up new avenue for Physical Vapor Deposition Market

Physical Vapor Deposition (PVD) is a variety of processes used to deposit thin films of material onto a substrate in vacuum conditions. PVD coating is extensively used in various industries such as automobiles, optics, and electronics to enhance the load-bearing capacity, increase hardness, and provide protection against corrosion & wear & tear. PVD coatings are used on tools, engine components, bio-medical implants, sunglasses, watches, and several other products.

The Physical Vapor Deposition Market is estimated to be valued at US$ 18.9 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Rising demand from electronics and automotive industries is a major factor driving growth of the physical vapor deposition market. PVD coatings are extensively used in the electronics industry to enhance the conductivity and improve the shelf life of semiconductors, chips and display panels. In the automotive industry, PVD coatings are applied on engine components, transmission parts and brake components to extend their lifespan and reduce friction. The increasing implementation of value-added thin films in applications such as medical, aerospace and defense also supports growth of the market. Moreover, advancements in PVD coating technologies such as filtered cathodic arc deposition, sputter deposition and ion plating are expected to foster adoption of PVD coatings, thereby fueling market growth over the forecast period.

Segment Analysis
The physical vapor deposition market is dominated by the microelectronics sub-segment. This sub-segment accounts for more than 35% of the overall market share owing to the wide range of applications of PVD in the microelectronics industry for thin film coatings, aluminum deposition, alloy coatings, and others. PVD techniques such as sputter deposition are majorly used for aluminum and alloy metallization layers in integrated circuits as they provide highly reflective and conductive coatings required for IC manufacturing.

PEST Analysis

  • Political: The governments across major economies are supporting the semiconductor industry via funding in R&D and manufacturing facilities development. This is positively impacting the demand for PVD equipment and services from the microelectronics segment.
  • Economic: The rising demand for electronic products and increasing investments in industries such as automotive, medical devices are fueling the need for advanced deposition technologies like PVD for coating applications.
  • Social: The growing consumer demand for miniaturization of electronic devices and advances in technologies such as 5G connectivity are augmenting the demand for deposition of thin films in microelectronics using PVD techniques.
  • Technological: Advancements in PVD processes such as broad-ion-beam sputtering are allowing the production of coatings with superior properties. Integration of PVD with processes such as atomic layer deposition is also enhancing the application scope.

Key Takeaways

The global Physical Vapor Deposition market is expected to witness high growth, exhibiting a CAGR of 5.5% over the forecast period, due to increasing demand for miniaturized electronic components from industries such as consumer electronics, automotive, and healthcare.

On a regional basis, Asia Pacific dominated the global market in 2023 attributed to strong presence of semiconductor manufacturing units in countries such as China, South Korea and Taiwan. The region is expected to maintain its dominance during the forecast period as well, primarily due to growing infrastructural developments, increasing electronics exports and supportive government policies in many APAC countries.

North America is projected to grow at a CAGR of over 6% during 2023-2030 supported by rising electric vehicle sales in countries like US and increased funding in microelectronics sector by governments.

Key players operating in the Physical Vapor Deposition market are Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG. These players are focusing on new product launches, partnerships, and mergers & acquisitions to strengthen their market presence.

For instance, in 2022, Lam Research Corp collaborated with EV startup Canoo to supply plasma etch and PVD systems for their MEGAFABTM production facility in Arkansas. Platit AG provides PVD coating machines and process know-how to various industries including consumer electronics, architecture, automotive, tools & medical devices. The company operates R&D centers and production sites across Europe.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it