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Physical Vapor Deposition Market

Physical Vapor Deposition Market

Physical Vapor Deposition Market Analysis Report By Category (PVD Equipment, PVD Materials, PVD Services), By Application (Microelectronics, Data Storage, Cutting Tools, Medical Equipment), By Region - Global Insights 2022-2032

Physical Vapor Deposition Market
FACT4685MR

Physical Vapor Deposition Market Outlook (2022-2032)

The global physical vapor deposition market is expected to grow significantly, reaching US$ 43 Billion by 2032 at a 6% CAGR between 2022 and 2032. According to the report, the market was worth US$ 23 Billion in 2021. Factors such as rising demand for eco-friendly coating processes and medical equipment are expected to drive product demand in the coming years.

Report Attributes

Details

Anticipated Base Year Value (2021)

USD 23 Billion

Expected Market Value (2022)

USD 24.2 Billion

Projected Forecast Value (2032)

USD 43 Billion

Global Growth Rate (2022-2032)

6% CAGR

Expected Market Value of Asia Pacific (2032)

USD 10.30 Billion

Key Physical Vapor Deposition Service Providers

  • Applied Materials, Inc.
  • Lam Research Corporation (Novellus Systems)
  • Intevac, Inc.
  • Advanced Energy Industries, Inc.
  • Kurt J. Lesker Company
  • AJA International, Inc.
  • Angstrom Engineering, Inc.
  • CHA Industries, Inc.
  • Denton Vacuum LLC
  • PVD Products, Inc.

Physical Vapor Deposition Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

During the historical period, the PVD market grew at a CAGR of 2.6%, from 2015-2021, as per market research and competitive intelligence provider Fact.MR. Growth in end-user industries such as microelectronics and medical equipment has primarily increased the global PVD market in the past. Furthermore, operational advantages and eco-friendliness were expected to drive the PVD market.

The PVD coating is gaining traction, particularly in the automotive industry. Companies have been able to achieve full recyclability for automobile components by using thin metal layers. Furthermore, PVD coatings do not emit Volatile Organic Compounds, which is expected to boost PVD demand during the forecast period.

Sputtering technology in PVD has several advantages over other technologies, including higher packing densities and improved adhesion. Furthermore, sputtering can be performed on a broader range of metals, such as alloys and mixtures, which is expected to drive up demand for sputtering systems over the forecast period (2022-2032), growing at a 6% CAGR.

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Prominent Physical Vapor Deposition Industry Growth Drivers

Increasing Demand for Environmentally Friendly Coating Processes to Promote Growth

More than half of total emissions in the world are attributed to the industrial sector. The growing concern about greenhouse gas emissions has increased the demand for environmentally friendly products. For example, the physical vapor deposition process uses environmentally friendly materials such as titanium nitride (TiN) and chromium nitride (CrN) (CrN).

These materials are coated with corrosion-resistant electroplating to improve the surface finish. Furthermore, they provide superior performance while posing no environmental risks. As a result, the high demand for eco-friendly coating processes across a variety of industrial applications is expected to drive market growth during the forecast period.

Increasing demand for low-E glass is expected to drive market growth

Physical vapor deposition is being used more frequently in the production of low-e glass for the construction and automotive industries, which is expected to drive market growth. PVD materials for Low-E glass coating include aluminum and aluminum alloys, silver, copper and its alloys, and chromium.

Low-e glass aids in the reduction of heat loss, which is becoming increasingly important in the construction industry. As a result, rising demand for low-E glass from the construction industry is expected to drive the growth of the physical vapor deposition market.

Expanding Adoption of Digitization Solutions to Drive Market Growth

Digitization has played an important role in shaping economies over the years by opening up new business opportunities and increasing productivity. Productivity increased in sectors with a higher level of digitization. Digitization has been used by industries such as media, finance, travel, healthcare, retail, and manufacturing to improve connectivity and establish a resilient value chain.

The Electronics System Design & Manufacturing (ESDM) industry is expected to grow significantly during the forecast period due to the favorable growth of these end-use industries. The growing importance of artificial intelligence and machine learning is driving up global demand for electronic goods. Physical vapor deposition technology is helping to improve the performance of electronic components.

In the automotive industry, for example, the transparent and thin nature of the coating allows light and electromagnetic waves to pass through the coated components. It is critical that multi-sensor technology be integrated into the latest generation of automobiles. It also helps to improve the aesthetics and safety features of electronic components in vehicles. Huge investments by public and private stakeholders, backed by strong policy support, and continuous rising demand for electronic products are expected to contribute to the global market's growth in both developed and emerging economies.

Key Challenges Prevalent in the Global Physical Vapor Deposition Market

High service costs and fluctuating raw material prices will limit market growth

Some of the processes operate at higher temperatures and in a vacuum. As a result, special attention and a technically skilled workforce are required to achieve the desired results. The high temperature necessitates the installation of cooling water systems to channel large heat loads. Such factors significantly reduce the overall cost of service. As a result, the higher cost of this technology sometimes limits its adoption over alternative technologies.

Prices of common materials used in these coatings, such as chromium, zirconium, aluminum, and titanium, are fluctuating, limiting the growth of raw material suppliers and service providers. Physical vapor deposition coating has an operating cost that includes material, electricity, common gases (such as nitrogen and argon), and periodic maintenance. The material has the highest per-unit cost.

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Region-wise Analysis

How do Growth Prospects Appear in the Asia Pacific Market?

In 2022, Asia Pacific is expected to account for the largest physical vapor deposition market share, comprising nearly 46% of global market demand. As of 2032, the market is poised to reach US$ 10.3 Billion in value terms.

Due to the fastest growth of PVD end-use industries, the region is expected to exhibit exponential growth during the forecast period. Due to increased applications in solar products, medical equipment, and other fields, China is the leading consumer.

The region is dominant, with many players holding a sizable market share, and few new entrants are expected. It will help to accelerate the region's market growth. India, Japan, and South Korea are experiencing significant growth as a result of rising demand for medical equipment and the expansion of industrial sectors. PVD coatings are among the fastest-growing products due to increased demand for decorative coatings in a variety of industries as well as environmental benefits.

What is the Growth Outlook for Physical Vapor Deposition in Europe?

During the forecast period, the Europe Physical Vapor Deposition Market is expected to grow at a CAGR of 6%. (2022-2032). Europe is also expected to see promising market growth as a result of rising demand for solar panels and government-coordinated policies. The increasing use of PVD in microelectronics applications is expected to boost the region's market position.

Furthermore, the rising demand for long-lasting products with metallic coatings is boosting the PVD market in the region. Europe's market is dominated by countries such as Germany, France, the United Kingdom, Italy, and Spain. Because of economic development and expansion, Central and Eastern European countries are expected to provide growth opportunities in comparison to Western Europe. Medical equipment, solar products, microelectronics, and other applications have the region's largest market share.

The growing industrial and manufacturing sector cutting tools segment is also expected to see significant market growth. Hauzer Techno Coatings, MBRAUN Vacuum Deposition, Avatec, Kolzer, Horiba, Chem Europe, and others are major European manufacturers. As a result, the market in the region is consolidated with various players.

Physical Vapor Deposition Market forecast analysis by Fact.MR

Category wise Insights

Services Segment to boost Market Demand during the Forecast Period

The PVD services segment is the fastest-growing market. Coating services are used in a variety of industries because they are environmentally friendly and resistant to wear. Companies are constantly conducting research to discover new coating applications and improve product performance. The segment will likely document a 6.3% value CAGR until 2032.

Plasmakote, an Australian start-up, for example, offers ABACO thin-film coatings. It has unique antibacterial properties that prevent bacteria from growing on the deposited surface. As a result, the presence of such innovative products is expected to boost the growth of the services segment during the forecast period.

Medical Equipment Segment to Witness Major Demand in the Upcoming Years

During the forecast period, the medical equipment segment is expected to grow at the fastest rate. Coatings improve the performance and life of medical equipment. PVD is commonly used to deposit wear-resistant thin-film coatings on medical equipment such as surgical instruments, orthopedic implants, orthodontic appliances, pacemakers, dental instruments, and so on.

Several types of medical equipment are produced primarily in the United States, China, Germany, India, Japan, and other developed countries. During the forecast period, such economies are expected to drive the market. A CAGR of 6% is anticipated for the medical equipment segment in forthcoming years.

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Competitive Landscape

The market is made up of small, medium, and large businesses all vying for a stronghold. Companies are investing in research and development to create advanced physical vapor deposition solutions to meet the growing demand from a variety of industrial applications. Furthermore, other key players are pursuing organic and inorganic growth strategies that are expected to benefit market growth.

  • Oerlikon announced the acquisition of D-Coat GmbH, a leading Erkelenz, Germany-based diamond coating technology provider, in January 2020. This is expected to broaden the company's surface treatment technology portfolio and give it a competitive advantage over its competitors.
  • Dynavac announced a significant increase in capital investment, facility size, and workforce in February 2021. The company focuses on gaining a competitive advantage through expansion in both the thin film and space simulation markets. These investments will enable them to meet the demands of their customers.
  • Hyundai Motor Company ordered an INLINECOATER system from Impact Coatings in October 2020. It will be used to coat metal bipolar plates for fuel cells. In 2019, both companies signed a EUR 945,000 joint development agreement (JDA) for the same.

Key Segments Covered in the Physical Vapor Deposition Market Report

  • Physical Vapor Deposition by Category

    • PVD Equipment
    • PVD Materials
    • PVD Services
  • Physical Vapor Deposition by Application

    • Physical Vapor Deposition for Microelectronics
    • Physical Vapor Deposition for Data Storage
    • Physical Vapor Deposition for Solar Products
    • Physical Vapor Deposition for Cutting Tools
    • Physical Vapor Deposition for Medical Equipment
    • Physical Vapor Deposition for Other Applications
  • Physical Vapor Deposition by Region

    • North America Physical Vapor Deposition Market
    • Europe Physical Vapor Deposition Market
    • East Asia Physical Vapor Deposition Market
    • South Asia & Oceania Physical Vapor Deposition Market
    • Latin America Physical Vapor Deposition Market
    • The Middle East & Africa Physical Vapor Deposition Market

- FAQs -

As of 2021, Fact.MR estimated the physical vapor deposition market to have reached US$ 23 Billion.
By 2022, Fact.MR expected demand for physical vapor deposition to reach US$ 24.2 billion.
From 2015-2021, the Physical Vapor Deposition market grew at a 2.6% value CAGR
From 2022-2032, Physical Vapor Deposition demand is likely to surge at a 6% CAGR
By 2032, the market for Physical Vapor Deposition is likely to be valued at US$ 43 billion.
By 2032, Fact.MR expects the Asia-Pacific market for physical vapor deposition to reach US$ 10.3 Billion
Europe is expected to register a 6% CAGR with regard to the physical vapor deposition industry.

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