Semiconductor Production Equipment Market Expected to Reach $209.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Semiconductor Production Equipment Market," The semiconductor production equipment market size was valued at $87.9 billion in 2021, and is estimated to reach $209.9 billion by 2031, growing at a CAGR of 9% from 2022 to 2031. The semiconductor production equipment used to manufacture semiconductor chips and hybrid chips, and is termed semiconductor production equipment. The semiconductor business is broad with a diverse set of uses. The semiconductor production equipment market is divided into two categories on the basis of product type; front end equipment, and back end equipment. Semiconductor manufacturing equipment is a critical component in the production and fabrication of semiconductors. Manufacturing semiconductor is a time-consuming procedure that necessitates a high-quality fabrication facility. Diffusion system, epitaxial reactors, ion producing equipment, physical vapor, and depositing systems are all examples of semiconductor manufacturing equipment.

Based on product type, the front-end equipment segment held the highest market share in 2021. However, the back-end equipment segment is projected to manifest the highest CAGR from 2022 to 2031. Moreover, based on function, the integrated circuits segment held the highest market share in 2021. On the other hand, the OSD segment is projected to manifest the highest CAGR from 2022 to 2031. Furthermore, based on dimension, the 3 dimension segment accounted for the largest share in 2021, and the same segment is expected to portray the largest CAGR from 2022 to 2031. 

The advancement of R&D facilities and growth in foundries continue to drive the semiconductor manufacturing equipment market. The market for consumer electronics is experiencing growth due to rise in demand. The industry is also being supplemented by an increase in the number of servers and data centers. The most recent advancements in electronic products have resulted in a desire for high-performance electronic devices, high functionality, a smaller form factor, and low cost. This drives the market growth for the 3D packaging sector further.

Furthermore, rise in investment by the key players to establish new manufacturing facilities is anticipated to fuel the market growth. For instance, in April 2022, Intel a leader in semiconductor manufacturing installed the first ASML EUV lithography system for high-performance chip manufacturing in Ireland. Moreover, in December 2022, HCL Tech announced collaboration with Intel and Mavenir to deliver 5G enterprise solutions. This collaboration aims to develop and deliver more 5G solutions to CSPs, Internet of Things (IoT), and other offerings. Thus, such strategic moves are expected to positively influence the semiconductor production equipment market growth during the forecast period.

However, various businesses in the semiconductor production equipment market had to stop their business in countries such as Canada, the U.S., China, and countries in Europe, during the pandemic lockdown. This break directly impacted the sales of companies involved in semiconductor production, and negatively impacted the semiconductor production equipment market outlook. In addition, the lack of manpower and raw materials constricted the supply of raw materials for manufacturing various semiconductor production equipment; and negatively influenced the growth of the market for a short period. In addition, the shortage of raw materials also led to the global shortage of semiconductors. However, after two years of the COVID-19 outbreak and the introduction of vaccinations, the severity of the pandemic has significantly reduced and key players in the market are recovering rapidly. In addition, the global shortage of semiconductors caused by COVID-19 has forced countries across the world to develop their domestic semiconductor industry. This is expected to be a lucrative growth opportunity for the market.

 Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging semiconductor production equipment market trends and dynamics. 
• Depending on product type, the front end equipment segment accounted for a larger semiconductor production equipment market share, in terms of revenue in 2021.
• By function, the OSD segment is expected to grow with a higher CAGR.
• By dimension, the 3 dimension segment dominated throughout the semiconductor production equipment market forecast.
• Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the semiconductor production equipment market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the semiconductor production equipment industry.
• The report provides an extensive analysis of the current trends and emerging opportunities in the market. 
• In-depth semiconductor production equipment market analysis is conducted by constructing estimations for the key segments between 2022 and 2031