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The ALD equipment market size is expected to reach USD 6.0 billion by 2027 from USD 4.1 billion in 2022 to grow at a CAGR of 8.2% during the forecast period.
The report "ALD Equipment Market by Film Type (Oxide, Metal, Sulfide, Nitride), Deposition Method, Application (Semiconductor) (More-than-Moore, Research & Development Facilities, More Moore), Application (Non-semiconductor) and Region - Global Forecast to 2027" The ALD Equipment Market is projected reach USD 6.0 billion by 2027 from USD 4.1 billion in 2021, at a CAGR of 8.2% during forecast period. Constantly developing semiconductor industry, proliferation of 3D NAND SSDs, and the advantages offered by ALD are some of the major factors driving the market growing during the forecast period.
The research study involved 4 major activities in estimating the size of the ALD equipment market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
In secondary research, various secondary sources have been referred to for obtaining the information that was needed for the study. Various secondary sources that were used for the research include, corporate filings such as annual reports, press releases, investor presentations, and financial statements, trade, business, and professional associations, whitepapers, journals based on atomic layer deposition, certified publications, and articles from recognized authors and databases.
In the ALD equipment market report, the top-down as well as the bottom-up approaches have been used for the estimation of the global market size, along with several other dependent submarkets. The major players in the market were identified with the help of extensive secondary research and their presence in the market was determined using secondary and primary research. All the percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Extensive primary research has been conducted after understanding the ALD equipment market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand- and supply-side vendors across 4 major regions— North America, Europe, Asia Pacific, and the Rest of the World. Approximately 25% of the primary interviews have been conducted with the demand-side vendors and 75% with the supply-side vendors. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews; questionnaires and emails have also been used to collect the data.
After successful interaction with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings of our primary research. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the report.
Driver: Constantly developing semiconductor industry
The emergence of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and 5G have led to a significant increase in the development of data-driven solutions. Many companies extensively focus on research & development (R&D) activities to develop advanced solutions using such technologies. This has led to increased demand for ICs to be embedded in devices to develop advanced, efficient, and smart solutions. Moreover, the growing trend of lightweight, miniaturized, and fast electronic devices have created a surge in demand for complex and compact ICs. This is expected to drive the ALD equipment market growth as ALD facilitates the deposition of very thin nano-layers on a wide range of substrates. Deposition of thin films and coatings using ALD enables the development of smaller ICs by maintaining their standard performance.
Restraint: Requirement of skilled workforce
Front-end wafer fabrication processes in manufacturing semiconductors such as lithography, wafer surface conditioning, wafer cleaning, and deposition are highly complex and require skilled technicians. The growing demand for semiconductor devices from many end-user industries such as consumer electronics and automotive has been creating ample growth opportunities for market players. However, the shortage of skilled technicians for such processes has not enabled the market players to exploit the opportunities to their fullest. The requirement of a skilled workforce to implement such complex processes is a major factor negatively affecting the market growth.
Opportunity: Rising demand for photovoltaics
Due to the rapid depletion of resources, there has been a surge in demand for renewable energy sources. According to International Energy Agency (IEA), renewable energy accounted for 28% of the total energy globally in 2021. With the help of PV cells and solar panels, energy from the sun can be converted into electricity. Due to the increasing energy crisis, there has been an increase in demand for solar energy in the last decade. The growing demand for photovoltaics is expected to create lucrative opportunities for market players offering solutions for ALD. In solar cells, ALD films can be used as surface passivation layers, buffer layers, window layers, absorber layers, and hole/electron contacts. Increasing demand for photovoltaics is expected to drive the market growth for ALD.
Challenge:Technical difficulties and process complexity
Processes involved in manufacturing semiconductors need clean rooms and clean equipment. Even a tiny amount of dust can hamper the process and result in a heavy financial loss. Delay in supply due to errors during manufacturing may result in additional losses and order cancelations. A few common challenges associated with semiconductor manufacturing include defects associated with raw materials, mechanical integrity, and problems at the chip level. Moreover, advanced and innovative technologies are needed at the fabrication stage to produce high-quality semiconductor devices and ICs. The growing trend of miniaturization has significantly increased the complexity of wafers due to the presence of multiple patterns at the chip level. ALD needs a very high degree of cleanliness. However, it is difficult to maintain cleanliness in ALD when process nodes are extremely small. Moreover, technicians must ensure that there should not be any leakage during ALD as the gases used in the production processes can be hazardous. The increasing number of challenges involved while manufacturing semiconductors may impede the market growth for ALD.
Medical applications to register the highest CAGR during forecast period
The rising demand for smart and connected healthcare solutions, wearables, and implants is expected to drive the ALD equipment market growth for medical applications. ALD is a suitable deposition method for medical devices as most of the materials used in ALD are biocompatible. The adoption of ultra-thin biocompatible ALD coatings also improves adhesion to the bone and protects patients from leakages from the implant to the body. Such advantages offered by ALD make it highly suitable for medical applications
Flouride films to register the highest CAGR during forecast period
In recent years, there has been an increasing demand for ALD of fluorides as they have a low refractive index and facilitate improved transmission at UV and IR wavelengths, making them highly suitable for optical applications. Compounds such as aluminum fluoride can also be used for developing protective coatings on lithium-ion batteries. High-performance mirrors at UV wavelengths require transparent dielectrics as protective coatings to prevent oxidation. Decreasing the thickness of protective layers subsequently reduces absorption losses. ALD of metal fluorides ensures superior transmission at UV wavelengths and facilitates the deposition of ultra-thin films to prevent absorption losses.
More Moore applications to account for the largest share of the ALD equipment market during forecast period
The increasing usage of various logic devices and memory technologies is a significant factor expected to drive the ALD equipment market growth for More Moore applications. In recent years, there has been a surge in demand for 3D NAND flash memory technology. The use of 3D NAND flash memory facilitates increased storage speed without the need of reducing the chip size. The increasing demand for 3D NAND flash memory technology, logic devices, and interconnect technologies is expected to drive the market growth for ALD equipment.
The study segments the ALD equipment market based on deposition method, film type, application (non-semiconductor), and application (semiconductor) at the regional and global level.
By Deposition Method
By Film Type
By Application (Non-semiconductor)
By Application (Semiconductor)
Research & Development Facilities
Rest of the World
In June 2022, Applied Materials announced the acquisition of Picosun Oy, a global leader in ALD based in Finland. With this acquisition, Applied Materials aims to harness Picosun’s capabilities to provide innovative solutions for the IoT, communications, automotive, sensor, and power markets. This acquisition would broaden Applied Materials’ portfolio related to specialty chips
In March 2022, ASM International N.V. acquired Reno Sub-Systems Inc. (Reno), a company that offers RF matching sub-systems for equipment used to manufacture semiconductors. With this acquisition, ASMI aims to enhance its portfolio of plasma products with the help of Reno’s RF generators and matching networks
In September 2020, Lam Research Corporation launched the Striker FE ALD system that is highly suited for manufacturing high aspect-ratio chip architectures. The system uses ICEFill technology for filling structures in 3D NAND, logic devices, and DRAM chips
In September 2019, Tokyo Electron Limited announced the merger of TEL FSI, Inc. and TEL Epion Inc., subsidiaries of Tokyo Electron U.S. Holdings, Inc. (US). With the merger of these subsidiaries, the company optimized and enhanced manufacturing processes and improved operational efficiency
In May 2017, Veeco Instruments Inc. announced the acquisition of Ultratech, Inc., a leading supplier of lithography, laser processing, and inspection systems used in the production of LEDs and other semiconductor devices. With this acquisition, Veeco strengthened its product portfolio of advanced packaging lithography systems