Semiconductor Manufacturing Equipment Market Size | Share and Trends 2024 to 2034

Semiconductor Manufacturing Equipment Market Size and Forecast 2024 to 2034

The global semiconductor manufacturing equipment market size accounted for USD 92.45 billion in 2024 and is expected to reach around USD 190.54 billion by 2034, expanding at a CAGR of 7.5% from 2024 to 2034.

Semiconductor Manufacturing Equipment Market Key Takeaways

• Asia Pacific led the global market with the highest market share of 68% in 2023.
• By equipment type, the front end equipment segment has held the largest market share in 2023.
• By dimension, the 3D segment captured the biggest revenue share in 2023.
• By application, the semiconductor fabrication plant/foundry segment registered the maximum market share in 2023.

Asia Pacific Semiconductor Manufacturing Equipment Market Size and Growth 2024 to 2034

The Asia Pacific semiconductor manufacturing equipment market size was estimated at USD 58.48 billion in 2023 and is predicted to be worth around USD 129.57 billion by 2034, at a CAGR of 7.7% from 2024 to 2034.

Asia-Pacific dominated the semiconductor manufacturing equipment market in 2023. China dominated the semiconductor manufacturing equipment market in Asia-Pacific region. The presence of key market players especially in emerging nations such as China and Japan are driving the growth of semiconductor manufacturing equipment market in the region. As per the International Trade Administration, Korea and Japan were the biggest exporters of semiconductor manufacturing equipment in 2016. Thus, the Asia-Pacific semiconductor manufacturing equipment market is expected to expand in near future.

Europe, on the other hand, is expected to develop at the fastest rate during the forecast period. The UK dominates the semiconductor manufacturing equipment market in Europe region. The growing investments for manufacturing semiconductor equipment are driving the growth of semiconductor manufacturing equipment market in Europe region. In addition, good trade relations with other nations are paving way for expansion of Europe semiconductor manufacturing equipment market.

Growth Factors

One of the key factors driving the growth of global semiconductor manufacturing equipment market is the surge in demand for consumer electronics. In the consumer electronics industry, there is a growing demand for sophisticated and miniaturized semiconductor components and parts. In addition, the technological advancements and adoption of innovative technologies such as artificial intelligence and blockchain are supporting the growth and development of global semiconductor manufacturing equipment market. Furthermore, the semiconductor manufacturing equipment market will develop as a result of technological advancements in extreme ultraviolet lithography equipment. For example, ASML reported in February 2019 that it had delivered 18 high end lithography machines to Taiwan Semiconductor Manufacturing Company for $2.16 billion. 

The COVID-19 pandemic had negative impact on the growth of global semiconductor manufacturing equipment market. This is due to the supply chain disruption and halt of manufacturing units globally. According to research released in February by the Semiconductor Industry Association, the COVID-19 pandemic could have long term commercial implications outside the China. Companies’ 2020 revenues may show the impact of lower demand.

One of the major applications of the semiconductor equipment and devices are the manufacturing of consumer electronics. In addition, the growing penetration of smartphones and wearable devices are also boosting the semiconductor manufacturing equipment market growth. Smartwatch unit sales increased to 141 million in 2018, up from 75 million in 2017, as per the Consumer Technology Association, which is projected to benefit the semiconductor manufacturing equipment market. According to the GSM 2019 Report, mobile subscribers are predicted to increase from 5.1 billion in 2018 to 5.8 billion in 2025. As a result, the global semiconductor manufacturing equipment market is expected to expand in upcoming years.

Another trend that is shaping the global semiconductor manufacturing equipment market is the rising usage of hybrid and electric vehicles. Electric cars represented for 2.6% of the worldwide auto sales and around 1% of global automobile stock in 2019, according to the International Energy Agency and this trend will continue at a 40% annual growth rate. The large number of semiconductors are used as parts and components in electric cars. Thus, this factor is contributing towards the expansion of global semiconductor manufacturing equipment market.

Market Scope

Equipment Type Insights

The front end equipment segment dominated the semiconductor manufacturing equipment market in 2023. There are several market players who are selling front end equipment in the global semiconductor manufacturing equipment market. As per the Semiconductor Industry Association, developing and producing semiconductors account for the majority of chip’s value. Thus, this factor is driving the segment growth.

The back end equipment segment is fastest growing segment of the semiconductor manufacturing equipment market in 2023. The back end equipment segment growth is being driven by the stringent government regulations. In addition, the launch of new and innovative products is boosting the growth of the segment.

Dimension Insights

The 3D semiconductor manufacturing equipment segment dominated the semiconductor manufacturing equipment market in 2023. One of the major factors boosting the growth of the segment is technological developments in manufacturing semiconductor devices and equipment. The 3D integrated circuits are highly used in the semiconductor manufacturing equipment market. Thus, this factor is expected to boost the growth of semiconductor manufacturing equipment market, as design and development of 3D integrated circuits will shape the market in a new way.

The 2D and 2.5D segment is fastest growing segment in 2023. The reduced length and reusability are enabled by the 2D and 2.5D dimensions, leading to decreased time and system cost. This factor is accelerating the expansion of the global semiconductor manufacturing equipment market.

Application Insights

The semiconductor fabrication plant/foundry segment dominated the semiconductor manufacturing equipment market in 2023. The demand for semiconductor is growing rapidly in various industries such as medical devices, consumer electronics, and automotive. This factor is driving the usage of semiconductor manufacturing equipment for semiconductor fabrication plant or foundry.

The semiconductor electronics manufacturing and test home segments is fastest growing segment of the semiconductor manufacturing equipment market in 2023. One of the significant factors driving the growth of the segment is growing awareness regarding the testing of semiconductor and its parts. In addition, the growing awareness about the strict government regulations regarding testing of semiconductor manufacturing equipment is supporting the growth of global semiconductor manufacturing equipment market.

Semiconductor Manufacturing Equipment Market Companies

• Applied Materials Inc.
• Tokyo Electron Limited
• Lam Research Corporation
• ASML
• KLA Corporation
• Dainippon Screen Group
• Hitachi High Technologies Corporation
• ASM International
• Ferrotec Holdings Corporation
• Canon Machinery Inc.

Recent Developments

• Lam Research Corporation developed VantexTM, the most sophisticated dielectric etch process built specifically for Sense.i, the most intelligent etch platform, in January 2021. The ground-breaking architecture which is founded on etch leadership, gives current and next generation NAND and DRAM memory devices better performance and expandability. 

• R&D Altanova Inc. a prominent provider of consumable test interface boards and interconnects for high end usage, was bought by Advantest Corporation in November 2021. Advantest’s test and measurement solutions were to be expanded across the ever-changing semiconductor value chain as a result of the acquisition. 

• KLA Corporation declared the Surfscan SP7XP water and the PWG5TM wafer geometry system, a flaw inspection system in December 2020. These innovative technologies are designed to solve some of the most difficult challenges in the manufacturing of advanced memory and logic integrated circuits. 

• The Electron Beam Area Inspection System GS1000 will be available in December 2021, according to Hitachi High Tech Corporation. Through the use of a common platform based on established high speed inspection SEMs and knowledge of industry leading CD-SEM technology and high speed and huge measurements, the newly built instrument delivers precise and speedy e-beam inspection.

Segments Covered in the Report

By Equipment Type

• Front end Equipment
  • DUV Lithography
  • EUV Lithography
  • Etching
  • Chemical Mechanical Planarization
  • Single-Wafer Spray System
  • Single-Wafer Cryogenic System
  • Batch Immersion Cleaning System
  • Batch Spray Cleaning System
  • Scrubber
  • PVD
  • CVD
• Lithography Equipment
• Water Surface Conditioning Equipment
• Wafer Cleaning Equipment
• Deposition Equipment
• Other
• Back end Equipment
• Assembly and Packaging
• Dicing
• Metrology
• Bonding
• Water Testing

By Dimension

• 2D
• 2.5 D
• 3 D

By Application

• Semiconductor Fabrication Plant/Foundry
• Semiconductor Electronics Manufacturing
• Testing Home

By Product Type

• Memory
• Foundry
• Logic
• MPU
• Discrete
• Analog, MEMS and Others

By Supply Chain Participant

• Introduction
• IDM Firms
• OSAT Companies
• Foundries

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa