The semiconductor equipment market involves fabrication equipment that are used for assembling integrated circuits on silicon wafers or other semiconductor material. Various types of semiconductor equipment such as front-end equipment, back-end equipment and fab facility equipment are utilized in manufacturing semiconductor devices. The demand for semiconductor devices has been increasing rapidly across various industries including automotive, consumer electronics, industrial and telecommunication. This rising demand is influenced by the miniaturization of electronic devices and growing digitalization of products and services in many sectors.

The Global semiconductor equipment market is estimated to be valued at US$ 95.97 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the semiconductor equipment market include Northrop Grumman Corporation, BAE Systems, Lockheed Martin Corporation, Clearpath Robotics Inc., John Bean Technologies Corporation, ECA Group, Israel Aerospace Industries Ltd., Endeavor (Now a part of FLIR system), Harris Corporation, and General Dynamics. The market provides several growth opportunities such as increasing investments in fabrication plants by major players, rising focus on outsourcing of semiconductor manufacturing and technological advancements in semiconductor manufacturing equipment. Geographically, the U.S, South Korea, Taiwan and China have been the major regions contributing to the global expansion of semiconductor equipment market owing to presence of diversified manufacturing base and growing electronics industry.

Market Drivers

The rising demand for integrated circuits across different industries has been a major market driver for Semiconductor Equipment Market Demand  With increased usage of electronic devices and proliferation of digital technologies, the demand for semiconductor chips has witnessed significant surge. This has pushed manufacturers to ramp up production of semiconductors requiring deployment of advanced semiconductor manufacturing equipment. The ongoing miniaturization trends have further boosted utilization of semiconductor equipment for developing sophisticated integrated circuits.

PEST Analysis

Political: The government supports the semiconductor equipment industry through funding for research and development. It aims to make the country/region self reliant in semiconductor manufacturing.

Economic: Being a technology intensive industry, it is sensitive to changes in the economic conditions. During recessionary periods, capital expenditure reduces which impacts demand.

Social: Continuous miniaturization of devices has increased the demand for potent semiconductor chips. The industry has to develop advanced technologies to deliver cutting edge products matching social and individual needs.

Technological: Advanced technologies like IoT, artificial intelligence, autonomous vehicles, AR/VR etc are driving the need for more powerful and efficient chips. The industry invests heavily in R&D to develop new solutions enabling fabrication of next generation semiconductors with higher density and better performance. Innovation in lithography, deposition, and etching processes helps push the boundaries.

Geographical concentration

East Asia, led by countries like China, South Korea, Taiwan and Japan holds the major share of the global semiconductor equipment market in terms of value. This is attributed to presence of leading chip manufacturers and a supportive government policy driving local manufacturing.

Fastest growing region

The semiconductor equipment market in Southeast Asia is expected to witness fastest growth during the forecast period. Several global players are setting up new manufacturing facilities in countries like Singapore, Malaysia and Vietnam attracted by incentives. Coupled with rising electronics demand from domestic market, this is likely to substantially increase spending on equipment in the coming years.

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