ALD Equipment Market Size & Growth Trends

Updated on : Oct 22, 2024

ALD Equipment Market Size & Share

The global ALD equipment market size is estimated to be worth USD 3.9 billion in 2023 and is projected to reach USD 6.2 billion by 2028, growing at a CAGR of 10.0% during the forecast period from 2023 to 2028

The rising number of 3D NAND SSDs and the growing implementation of more than Moore devices are some of the major factors driving the market growth of ALD equipment globally.

ALD Equipment Market Forecast to 2028

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ALD Equipment Market Trends

Driver: Rising number of 3D NAND SSDs

The growing trend of miniaturization in electronic devices, coupled with advancements such as 3D NAND memory and FinFET-based transistor devices, has generated a heightened demand for the precise deposition of conformal thin films. Therefore, ALD plays a crucial role in the miniaturization of electronic devices as it enables the deposition of materials with exceptional conformality even at temperatures around 400°C. Moreover, ALD provides a valuable means to achieve high-quality thin films, essential for optimizing the performance and efficiency of these cutting-edge technologies. Therefore, the increasing number of 3D NAND SSDs is expected to drive the market growth for ALD equipment.

Restraint: Shortage of trained workforce

The increasing demand for semiconductor devices from many end user industries, such as consumer electronics and automotive, has created several opportunities for the market players. However, the shortage of skilled technicians for such complex processes has not enabled the market players to utilize these opportunities to the fullest. So, the need for highly skilled workers to carry out these complicated tasks is a big problem that may restrain ALD equipment industry growth.

Opportunity: The escalating need for photovoltaic systems

Photovoltaics are integrated into solar cells; the growing demand for solar cells contributes to the growing deployment of photovoltaics, which is expected to drive the market growth for ALD equipment. ALD films are also used in solar cells as surface passivation layers, buffer layers, window layers, absorber layers, and hole/electron contact, which can further drive the market growth of ALD equipment.

Moreover, the health and environmental advantages of adopting photovoltaic power are particularly significant in densely populated areas heavily reliant on coal power, in contrast to sparsely populated regions abundant in clean hydropower or wind energy. Consequently, the surging demand for photovoltaics has led to an increased deployment of ALD equipment, which is expected to drive the market growth of ALD equipment in the future.

Challenge: Rising technical challenges and process complexities

Manufacturing semiconductors demands an extremely clean environment and equipment. Even a tiny speck of dust can disrupt the process and lead to significant financial losses. If there are manufacturing mistakes that cause supply delays, it can result in more losses and even canceled orders. Common problems in semiconductor manufacturing involve issues with the materials, mechanical strength, and the chips. Therefore, the increasing technical difficulties and process complexities in semiconductor manufacturing may impede the market growth of ALD equipment.

ALD Equipment Market Ecosystem

The prominent players in the ALD equipment market are ASM International N.V. (Netherlands), Tokyo Electron Limited. (Japan), Applied Materials, Inc. (US), LAM RESEARCH CORPORATION. (US), and Veeco Instruments Inc. (US). These companies perform organic and inorganic growth strategies to expand themselves globally by providing new and advanced ALD equipment solutions.

Plasma enhanced ALD (PEALD) equipment to register highest CAGR in the ALD equipment market during forecast period

Along with providing the benefits of conventional ALD methods, PEALD also offers supplementary advantages such as pre- and post-deposition in-situ treatment capabilities. It is primarily utilized in semiconductor applications like CMOS structures, MOSFETs, capacitors, and other semiconductor devices. Therefore, it provides distinct advantages over traditional ALD deposition methods. These advantages are key factors that contribute towards market growth for PEALD.

More Moore application held for the largest market size in the ALD equipment market during the forecast period.

The increasing proliferation of various logic and memory devices fuels the ALD equipment market for more Moore applications. In recent years, there has been a significant rise in demand for 3D NAND flash memory technology to facilitate the increasing need for storage speed without the requirement of reducing chip size. Therefore, the growing adoption of 3D NAND flash memory technology drives market growth.

Asia Pacific held for the largest share of the ALD equipment market in 2022.

Asia Pacific is expected to dominate the ALD equipment market during forecast period. The presence of established several semiconductor manufacturing companies such as Tokyo Electron Limited. (Japan), OPTORUN Co., Ltd. (Japan) and SHOWA SHINKU Co., Ltd. (Japan), government-led initiatives for increasing the adoption of more than Moore devices are the major factors driving the market growth in Asia Pacific

ALD Equipment Market by Region

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TOp ALD Equipment Companies - Key market players

The major players in the ALD equipment companies include

• ASM International N.V. (Netherlands),
• Tokyo Electron Limited. (Japan),
• Applied Materials, Inc. (US),
• LAM RESEARCH CORPORATION. (US), and
• Veeco Instruments Inc. (US).

These companies have used both organic and inorganic growth strategies such as product launches, agreements, collaborations, acquisitions, partnerships and expansions to strengthen their position in the market.

ALD Equipment Market Report Scope

ALD Equipment Market Highlights

The study segments the ALD equipment market based on deposition method, film type, application (non-semiconductor), application (semiconductor), and region at the regional and global level.

Recent Developments in ALD Equipment Industry

• In March 2022, ASM International N.V. acquired Reno Sub-Systems Inc., a company that offers RF matching sub-systems for equipment utilized to manufacture semiconductors such as ALD equipment. This acquisition strengthened the product portfolio of ASM International N.V.
• In March 2023, Tokyo Electron Limited. announced a new development facility at the Hosaka office in Nirasaki City, Yamanashi Prefecture. This expansion will serve the continuous technological advancements used to make semiconductors more diverse and complex.  Therefore, to meet the increasing demand from the semiconductor industry, the company has also been investing extensively in the development of new facilities.
• in June 2022, Applied Materials announced the acquisition of Picosun Oy, a global leader in ALD based in Finland. This acquisition allows Applied Materials to harness Picosun’s capabilities to provide innovative solutions for the automotive, IoT, communications, sensor, and power markets. This acquisition would broaden Applied Materials’ product portfolio related to specialty chips.
• In September 2022, LAM RESEARCH CORPORATION announced its engineering center in Bengaluru, India, which will focus on the R&D, engineering, and testing of wafer fabrication hardware and software used in the manufacturing process of DRAM, NAND, and logic technologies. Therefore, in recent years, the company has also been constructing new manufacturing and research facilities to meet the increasing demand from the semiconductor market.
•  In October 2022, Veeco Instruments Inc. announced its partnership with Justus Liebig University Giessen (Germany) so that the latter could perform hybrid gallium nitride deposition research.

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