Atomic Layer Deposition Equipment Market Size, Share, Opportunities, And Trends By End-Users (Semiconductor, Electronics, Automotive, Medical, Others), And By Geography - Forecasts From 2023 To 2028

The atomic layer deposition equipment market is projected to grow at a CAGR of 18.91% to reach US$8.131 billion in 2028 from US$2.418 billion in 2021.

Atomic Layer Deposition (ALD) is a technique used in the fabrication of thin films with precise thickness and composition control. ALD is a process that involves the sequential deposition of individual atomic layers on a substrate surface using self-limiting surface reactions. This process is performed in specialized equipment called an ALD reactor or ALD system. ALD systems can be designed in different configurations depending on the specific application requirements. Some examples include batch processing systems, continuous roll-to-roll systems, and plasma-enhanced ALD systems. Overall, ALD equipment plays a critical role in the development of advanced materials and devices with nanoscale precision. Several factors are propelling the growth of the worldwide market for atomic layer deposition (ALD) equipment, including a rise in demand for high-performance electronics, advancements in nanotechnology, an increasing need for renewable energy sources, the expansion of the semiconductor industry, and growth in the automotive and medical sectors.

The growing automotive sector is expected to boost the growth of the atomic layer deposition equipment market.

Atomic Layer Deposition (ALD) equipment is being increasingly used in the automotive industry for various applications. They are used to deposit thin protective coatings on automotive components to enhance their durability and corrosion resistance. ALD equipment is also used to fabricate thin films for sensors, which are used in a variety of automotive applications, including air quality monitoring, fuel efficiency, and safety systems. The growing automotive sector proves to be beneficial for the growth of the atomic layer deposition equipment market. For instance, data from The International Organization of Motor Vehicle Manufacturers indicates that the global production of vehicles increased by 3% in 2021 as compared to 2020. As per the same source, global sales of all vehicles increased from 78,774,320 in 2020 to 82,684,788 in 2021. OICA data also indicates that the total number of vehicles produced in the United States of America was around 9167214 representing an increase of 4% in 2021 as compared to 2020. The National Automobile Dealers Association states that vehicle sales in the United States rose by 4.2% (15.4 million units) in 2023 as compared to 2022. According to VDA - German Association of the Automotive Industry, vehicle production in Germany was recorded at 2,27,400 units in 2022. The Federal Motor Transport Authority Germany stated that the number of new car registrations in the country rose to 3,14,318 units in 2022. Data from The International Trade Administration states that around 797,243 vehicles were produced in Italy in 2021 representing an increase of 2.6% as compared to 2020. Thus, it can be concluded that the rising rate of both production and sales of vehicles globally will drive the demand for atomic layer deposition equipment proving to be beneficial for the growth of this market.

The Asia Pacific region exhibits the maximum growth potential of the atomic layer deposition market.

The growth of this market in this region is attributed to factors such as the increasing demand for ALD equipment in countries such as China, Japan, South Korea, and Taiwan, where the semiconductor and electronics industries are rapidly expanding. For instance, according to a report published by the International Trade Administration in 2022, the Japanese semiconductor industry increased by 19.8% between 2020 and 2021. The same report also states that in 2022, Japan accounted for 9% of global semiconductor production. The Indian Government declared in September 2022 its plans to invest approximately INR 76,000 crores in creating an ecosystem for semiconductor and display manufacturing electronics within the country. Similarly, the rising electrical and electronic devices sector also contributes to the market growth of atomic layer deposition equipment. For instance, data from the Ministry of Electronics and Information Technology states that India’s electronics manufacturing industry was valued at US$ 74.7 billion in 2020. According to the same source, India can achieve over US$ 300 billion in electronics manufacturing and exports by 2025. Data from Japan’s Ministry of Economy, Trade and Industry indicates that in 2020, the country produced around 29,362 million yen worth of consumer electronic equipment. Additionally, the expanding automotive industry in this area is anticipated to contribute to the market growth of atomic layer deposition equipment since they play a crucial role in vehicle manufacturing. For instance, data from OICA shows that there was a 3% increase in the production of commercial vehicles in China in 2021 and around a 24% increase in India in the same year. Moreover, atomic layer deposition (ALD) equipment is used in the medical sector to produce various medical devices and implants that require thin, uniform, and conformal coatings. Thus, the growth in this sector is also expected to boost the market growth of atomic layer deposition equipment. For instance, data from OECD and OECD Stat shows that the government health expenditure as a share of GDP in Japan went up from 9.20% in 2019 to 9.28% in 2021. Similarly, this number has increased from 4.96 in 2019 to 5.68% in 2021 in South Korea, as per the same source. In 2020, health spending in Australia amounted to 10.2% of the gross domestic product (GDP), which is a 0.2% increase from the previous year, as stated by the Australian Institute of Health and Welfare. Thus, all these factors combine to boost the market of atomic layer deposition equipment in the Asia Pacific region.

Market Developments:

• In March 2022, CVD Equipment Corporation, a key provider of chemical vapor deposition systems, announced that it received an order for a CVD/ALD (Atomic Layer Deposition) system from the Georgia Institute of Technology. The system was intended to be used for coating powders with advanced nanomaterials that provided exceptional performance in electric vehicle (EV) battery applications.
• In June 2022, Applied Materials, a manufacturer of semiconductor fabrication equipment, completed the acquisition of Picosun, a pioneering Finnish company in atomic layer deposition (ALD) technology.
• In June 2019, to tackle the key hurdles in the Gallium Nitride (GaN) power device sector, Oxford Instruments Plasma Technology (OIPT) introduced an innovative high-volume manufacturing (HVM) solution for plasma Atomic Layer Deposition (ALD).

Atomic Layer Deposition Equipment Market Scope:

Market Segmentation:

• By End-Users
  • Semiconductor
  • Electronics
  • Automotive
  • Medical
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Vietnam
    • Others