Analysis Of Global Semiconductor Manufacturing Equipment Market, Forecast To 2032: Expected To Grow By 10.28% CAGR, Says Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) Semiconductor manufacturing equipment market growth is propelled by technological advancements.

New Delhi, Feb. 07, 2025 (GLOBE NEWSWIRE) -- The global semiconductor manufacturing equipment market valuation is poised to reach US$ 203.2 billion by 2032, with a CAGR of 10.28% during the forecast period from 2024 to 2032.

As of 2024, the semiconductor manufacturing equipment market is encountering strong growth, boosted by several key factors and technological advancements. The use of advanced technologies such as 3D stacking is pushing this growth since it allows fulfilling the demands for small size and high performance in modern electronic devices. The semiconductor industry still heavily depends on artificial intelligence (AI), where the sales of AI chips have increased by 20% annually. It is estimated that the AI chip market will be worth US$ 65 billion by 2025 as a result of deep insertion into different application areas. Therefore, semiconductor manufacturers have been prompted to upgrade their plants following augmented demand for these types of chips.

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Investment in research about alternative materials like graphene has gone up by 15%, with prototypes demonstrating electron mobility up to ten times faster than traditional silicon-based semiconductors. Because new materials need unique fabrication techniques, this study pushes the boundaries of what can be achieved in manufacturing equipment utilized for making semiconductors. Also, there is a move towards shrinking things even more through nanoscale transistors which are now being produced with features as small as 2 nm. This has resulted in enhanced performance by 30% over prior generations hence necessitating very precise machines during manufacture.

Geopolitical Factors and Natural Disaster Drives Up Demand for Semiconductor Manufacturing Equipment

The US has decreased its imports of semiconductors from China by 10% due to geopolitical factors, such as trade relations between the two countries. This move has prompted an expansion in domestic production supported by the US CHIPS Act which is giving out US$ 52 billion to help boost the American semiconductor industry. It is expected that this money will increase local production capacity by 10% thus causing a huge demand for more machines employed in manufacturing semiconductors, giving a much-needed boost for the semiconductor manufacturing equipment market. European investments are also significant. For instance, Intel plans on investing more than US$ 20 billion in the region to double its market share which may lead to higher requirements for advanced semiconductor manufacturing equipment within Europe.

After Taiwan was hit with a natural disaster, Micron's DRAM and SSD prices went up by 15%, thereby, affecting worldwide markets as well as equipment used during their manufacture. Seeking to achieve self-sufficiency in chip supply, governments across the globe have committed more than US$ 150 billion towards this course hence creating a wave of high demand for semiconductor-making machines.

The growth forecast of the semiconductor manufacturing equipment market has been adjusted upwards to 4%, despite economic challenges such as inflation and high interest rates which erode consumer spending power. In 2024, the capital equipment market is estimated to grow at a rate of 9%; foundry and logic segments will be responsible for much of this growth since they are vital components in the production procedure of semiconductors.

Increasing Demand for Advanced Electronic Devices Drives Growth in the Semiconductor Manufacturing Equipment Market

The semiconductor industry is rising rapidly throughout the world with a forecasted growth rate of 9% from 2025 to 2032, mainly propelled by the augmented requirement for advanced electronic devices. This requirement can be measured via sales volumes for smartphones and other consumer electronics which are estimated to reach more than 1.5 billion units in 2024 alone; as well as cars fitted with ADAS systems or electric powertrains where automotive semiconductors are anticipated to grow at an annual rate of 15%. Furthermore, there will be more than 600 million connections utilizing 5G mobile networks by end-2024 that will push demand further for more complex chips such as those needed for AI applications in the semiconductor manufacturing equipment market.

These numbers are astonishing but they only tell part of the story because each device connects to many others. With this in mind, it is projected that there could be as many as 30 billion Internet of Things (IoT) devices worldwide by 2025 – all requiring some form or another semiconductor chip inside them! Hence manufacturers are investing heavily in research and development every year (with spending increasing on average 10%), looking for ways to make their machines faster yet more accurate at making these tiny components that can now measure just atoms across. At the same time, factories in the semiconductor manufacturing equipment market have become 25% more productive since robots were introduced onto production lines. While new products hit shelves 20% sooner thanks partly due to automation speeding things up even further.

The surge in the semiconductor market, which is anticipated to reach a valuation of US$ 1 trillion by 2030, is directly impacting equipment manufacturers, with orders for semiconductor manufacturing equipment growing by 35% in 2024. Companies in this space are dedicating 15% of their revenue to R&D to keep pace with the rapid evolution of semiconductor technology.

Front-End Equipment Dominates Semiconductor Manufacturing Market, Driven by Advanced Technology and Growing Demand

In 2023, front-end equipment accounted for a dominant 74.5% of the total market revenue, highlighting its crucial role in the industry. The global semiconductor manufacturing equipment market is very much pushed by the demand for front-end equipment. In 2024, 74% of the total revenue was generated from this segment, signifying its significance in the industry. Also, integrated circuits are increasingly being utilized in many electronic devices like smartphones or electric vehicles among others hence making their production more demanding than ever before.

Furthermore, the requirement for front-end tools has been boosted by technological change towards smaller node sizes i.e., 5nm and 3nm which need the replacement of current tools as well as specialized machines capable of managing advanced materials such as gallium nitride (GaN), silicon carbide (SiC) or graphene (GR). With AI advancements and the rollout of 5G networks forcing changes within the electronics industry; there arises an even greater necessity for technologically refined front-end semiconductor manufacturing equipment. Therefore, major players in this market have invested heavily in advanced front ends to enhance production efficiency while catering to higher performance requirements associated with semiconductors.

Key Companies

• Tokyo Electron Limited
• Lam Research Corporation
• Asml Holdings N.V.
• KLA-Tencor Corporation
• Screen Holdings Co., Ltd.
• Applied Materials Inc.
• Teradyne Inc.
• Hitachi High-Technologies Corporation
• Plasma-Therm
• Rudolph Technologies, Inc
• Advantest Corporation
• Startup Ecosystem
• Other Prominent Players

Key Segmentation:

By Type

• Front-end Equipment
• Backend Equipment

By Application

• Automation
• Chemical Control Equipment
• Gas Control Equipment
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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