Product Code: 65283
The Atomic Layer Deposition (ALD) Market is expected to grow at a CAGR of 14.2% over the forecast period 2020 to 2025. The demand for atomic layer deposition solutions is increasing, as it enables the use of new materials and designs for advanced chip manufacturing.
- Industries are increasingly adopting the miniaturization trend globally. Thus, presently, there has been an increased demand for miniaturized electronics and equipment.
- According to Cisco, there will be around 500 billion devices connected to the Internet by 2030. Each device includes sensors that collect data, interact with the environment, and communicate over a network. These applications need miniaturized storage devices and ICs. The increasing amount of data generated from the growing connected devices have proliferated the demand for storage devices.
- Moreover, there are several data center projects inline, owing to the rise in data center traffic due to higher data generation. By 2020, it is anticipated that major global data centers will begin more than 10 construction projects around the world, of which, more than 80% are expected to be initiated by the North American data center market.
- Further, factory automation and increased use of robots are also expected to drive the sales of semiconductors, which, in turn, will drive the market for ALD technology. In 2017, 3-D printing technologies enabled the German company, Adidas, to set up two "speed factories" for shoe production, where one in Ansbach, Germany, and the other in Atlanta in the United States.
- The spread of Covid-19 pandemic has impacted both the supply and demand segment of the market and had prompted multiple companies to fast-track their business decision in the market. With Samsung moving manufacturing units to India and Vietnam, the supply sector is expected to readjust in APAC region as with Covid-19 impact businesses are trying to diversify their supply dependencies to remain function in the face of new challenges.
Key Market Trends
Semiconductors and Electronics Segment to Drive the Market Growth
- Atomic layer deposition technology is expected to be driven by the demand from the semiconductor and electronics segment. While the semiconductor segment is expected to directly affect the growth of the technology, any surge in the electronics sector will lead to the growth of the technology.
- The electronics industry goes through cyclic phases of ups and downs. The electronic industry's forecast in the short to medium term are encouraging. According to the Ericsson Mobility Report, there will be about 8.9 billion mobile subscriptions, 8.4 billion mobile broadband subscriptions, and 6.2 billion unique mobile subscribers by 2024. This is expected to boost the growth of ALD technology.
- The rise in the sale of microelectronics and consumer electronics is expected to fuel the demand for semiconductor ICs, during the forecast period. The increase in demand for semiconductor ICs is projected to improve the production capacity of semiconductor device manufacturers, which, in turn, may augment the demand for the atomic layer deposition market.
Asia-Pacific Expected to Witness the Highest Growth Rate
- Asia-Pacific continues to be the most critical region for the proliferation of the electronics industry. Asia-Pacific has now become a hub of OEMs in the electronics industry. Moreover, there are emerging economies, like Vietnam, that have invested heavily into this industry, leading to healthy competition among various countries in the region. Moreover, established hubs, like Taiwan and China, continue to invest heavily into R&D, enabling them to stay ahead of the curve in terms of new innovations that drive the market growth.
- With exceptional data traffic across China (IP and mobile data traffic), the demand for server memory is expected to increase. With IoT taking shape in China, the number of network devices are expected to reach almost 5.5 billion in 2021, compared to 3.5 billion in 2016, according to the Cisco systems.
- Furthermore, according to the World Investment Report of 2018 by UNCTAD, while the FDI inflows to East Asia remained stable at USD 265 billion, with a slight decline in Hong Kong (China), they reached an all-time high in China. Most of the FDI inflows were in the electronics industry. This factor is expected to strengthen the future forecasts for the industry in the region, as investors continue to put their money in this industry in the region.
The Atomic Layer Deposition market is fragmented in nature as several players are operating in the market. The major players include Applied Materials Inc., Lam Research Corporation, Entegris Inc., among others.
- November 2019 - Applied Materials Inc. introduced the Materials Engineering Technology Accelerator (META Center), a facility aimed at speeding customer prototyping of new materials, process technologies, and devices. As chipmaking is becoming increasingly challenging, the META Center has extended Applied's ability to collaborate with customers to pioneer new ways of improving chip performance, power, and cost.
- July 2019 - Applied Materials Inc. announced the acquisition of the semiconductor equipment maker, Kokusai Electric, for USD 2.2 billion, from KKR & Co. (KKR). This acquisition is expected to strengthen Applied's footprint in Asia and add to the existing processing technologies of the company.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.2.5 Threat of Substitutes
- 4.3 Industry Value Chain Analysis
- 4.4 Technology Snapshot
- 4.5 Impact of Covid-19 on the Market
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Increase in Demand for Microelectronics and Consumer Electronics
- 5.1.2 Advancements in Computing and Storage Technologies
- 5.2 Market Challenges
- 5.2.1 Higher Associated Costs due to Effective Deposition Reactants and Materials
6 MARKET SEGMENTATION
- 6.1 By Application
- 6.1.1 Semiconductors and Electronics
- 6.1.2 Healthcare and Biomedical Applications
- 6.1.3 Automotive
- 6.1.4 Other Applications
- 6.2 Geography
- 6.2.1 North America
- 6.2.2 Europe
- 6.2.3 Asia-Pacific
- 6.2.4 Rest of the World
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Applied Materials Inc.
- 7.1.2 Lam Research Corporation
- 7.1.3 Entegris Inc.
- 7.1.4 Veeco Instruments Inc.
- 7.1.5 Oxford Instruments PLC
- 7.1.6 Beneq Oy
- 7.1.7 Picosun Oy
- 7.1.8 ASM International
- 7.1.9 Tokyo Electron Limited
- 7.1.10 Kurt J. Lesker Company
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET