Semiconductor Production Equipment Market Size, Share, and Trends 2024 to 2034

Semiconductor Production Equipment Market Size and Forecast 2024 to 2034

The global semiconductor production equipment market size accounted for USD 86.17 billion in 2024 and is predicted to reach around USD 86.17 billion by 2034, growing at a CAGR of 9.11% from 2024 to 2034.

Key Takeaways

• Asia Pacific led the global market with the highest market share of 40% in 2023.
• By Product, the front-end semiconductor segment has held the biggest revenue share of 75% in 2023.
• By Dimension, the 2.5D segment generated more than 35% of revenue share in 2023.
• By Supply Chain Process, the integrated device manufacturer (IDM) segment had the largest market share of 45% in 2023.

Asia Pacific Semiconductor Production Equipment Market Size and Forecast 2024 To 2034

The Asia Pacific semiconductor production equipment market was valued at USD 31.51 billion in 2022 and is projected to grow around USD 82.41 billion by 2032 with a significant CAGR of 18% between 2024 to 2034.

The Asia Pacific semiconductor manufacturing equipment market accounted for more than 75% of revenue in 2023, and is predicted to increase at an annual rate of 8.5% by 2034. The supportive government programmers and financial actions are expected to boost semiconductor production in the region driving the market revenue. The consumer electronics market is centered on Asia Pacific, which is served by various fabrication sites in the Asia Pacific area.

China, Japan, South Korea, and Taiwan have the most fabrication plants in the world. Favorable economic conditions and low labor costs in Asia Pacific are the primary drivers that are anticipated to drive the growth of the Semiconductor Production Equipment market. The region is one of the world's greatest markets for electric and autonomous vehicles, as well as a hotbed of consumer electronics demand in recent years. As a result, semiconductor goods have grown in popularity, driving the demand for semiconductor production equipment.

Growth Factors

The market for semiconductor manufacturing equipment is predicted to grow as consumer electronics demand grows. The rising demand for semiconductor chips from producers of consumer electronics, medical gadgets, and sensor systems is propelling the semiconductor industry forward. The rise of the middle class, changing lifestyle tastes, and a growing desire to use smart electronic devices have all contributed to the growth of consumer electronics in recent years. This indicates that over the projection period, the market for semiconductor manufacturing equipment will rise at a rapid pace.

Furthermore, during the projection period, the semiconductor sector is expected to increase at a CAGR of above 5%. This is attributed to a rise in both mobile and consumer electronic device sales. Over the projection period, emerging technologies such as the Internet of Things (IoT), connected gadgets, ultra-high-definition (UHD) televisions, automotive automation, and hybrid laptops will continue to fuel demand for semiconductor wafers. Market analysts predict that demand for semiconductor wafers would rise significantly throughout the forecast period, particularly in the automotive and industrial sectors.

Other growth-promoting elements include the use of artificial intelligence (AI) technologies and the integration of connected devices with the Internet of Things (IoT). IoT-enabled silicon-based sensors are being used in production equipment by electronics makers to provide remote monitoring capabilities for complex circuit boards. Other factors, such as the growing trend of device downsizing and intensive research and development (R&D) efforts, are expected to propel the growth of Semiconductor Production Equipment market even more. For instance, On 12th September 2021, Lam Research has announced that in December 2021, it will establish a new 45,000 square foot plant in Sherwood, Oregon, to increase its manufacturing footprint in the state. This new site will provide chipmakers with the crucial instruments needed to produce chips that power sophisticated electronic devices. Lam is one of the world's top providers of semiconductor fabrication equipment. The new plant is Lam's fifth in the United States, and it will strengthen the company's resilience and ability to satisfy growing customer demand as chipmakers attempt to scale up production globally.

Report Scope of the Semiconductor Production Equipment Market

Product Insights

Based on the Product, in 2023, the front-end semiconductor production equipment category accounted for more than 60% of sales and is expected to expand at CAGR of 9.1% during the forecast period.

Several high-end capabilities given by lithography front-end equipment credited with the industry's growth, as they support semiconductor volume/mass manufacturing. These lithography systems are expensive pieces of equipment, costing up to USD 150 million per unit. The producers and providers of semiconductor production equipment benefit from substantial profit margins. Foundry firms and IDMs are the primary drivers of lithography-based semiconductor production equipment demand.

Dimension Insights

Based on the Dimension, the Semiconductor Production Equipment Market is divided 2D, 2.5D and 3D. Because of the rising use of 2.5D packaging architecture in stacked memory modules, the 2.5D sector hit 35% market share in 2022 and is expected to grow at an annual rate of 8.2% until 2032. 2.5D design achieves greater chip functions, broader bandwidth, and improved memory performance in stacked semiconductor memory. To be competitive in the industry, market leaders place a strong emphasis on replacing traditional 2D architecture with 2.5D layered architecture. The expansion of the semiconductor manufacturing equipment sector will be aided by increased development of High Bandwidth Memory (HBM) products.

Supply Chain Process Insights

Based on the Supply Chain Process, the Semiconductor Production Equipment Market is divided into OSAT, IDM and Foundry. In the semiconductor manufacturing equipment market, the integrated device manufacturer (IDM) sector accounted for more than 45% of revenue in 2020. The advancement of the sector can be credited to IDM companies increasing their spending in research and development to develop technically sophisticated semiconductor ICs, sensors, RFID circuits, and system on chips. To enhance their IC production capacity, these companies are partnering with semiconductor manufacturing equipment providers. Participants in the industry are also focusing on improving their IC production facilities, which will drive up demand for semiconductor manufacturing equipment in the market.

Semiconductor Production Equipment Market Companies 

• Tokyo Electron Limited,
• Applied Materials, Inc
• ASML, LAM RESEARCH CORPORATION,
• Canon Inc.

Segments Covered in the Report

By Product

• Front-end equipment
  • Lithography
  • Polishing & grinding
  • Water surface conditioning equipment
  • Others
• Back-end equipment
  • Wafer manufacturing equipment
  • Assembly & packaging equipment
  • Test equipment
  • Others

By Dimension

• 2D
• 2.5D
• 3D

By Supply Chain Process

• OSAT
• IDM
• Foundry

By Geography

• North America
• Europe
• Asia Pacific
• LAMEA