Evaporation Material Market

Evaporation Material Market Outlook (2024 to 2034)

The evaporation material market size is forecasted to hit US$ 1,942.6 million in 2024. A promising compound annual growth rate (CAGR) of 7.1% is projected to boost the market consistently through 2034. This upward motion is estimated to lead the market to a noteworthy valuation of US$ 3,857.3 million by 2034.

Key Evaporation Material Market Growth Factors

• The market is experiencing significant growth due to the rising demand for thin-film deposition processes across various industries.
• Increased adoption of evaporation materials in the manufacturing of electronic components, such as semiconductors, is a key driver for market expansion.
• Increasing awareness and emphasis on sustainable and eco-friendly manufacturing processes are driving the demand for evaporation materials with lower environmental impact.
• Government initiatives promoting the adoption of advanced technologies and materials in manufacturing are creating a conducive environment for the market to flourish.
• Continuous developments in nanotechnology have increased the demand for evaporation materials, which has led to market growth.
• The evaporation material market is also rising largely due to the growing application spectrum in solar energy generation.
• Sputtering targets and chemical vapor deposition, two recent technical developments in the product, are anticipated to accelerate market expansion.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 1,942.6 million
Forecasted Market Value (2034F)	US$ 3,857.3 million
Global Market Growth Rate (2024 to 2034)	7.1% CAGR
Electronics Segment Growth Rate (2024 to 2034)	8.0%
North America Market Share (2024)	28.6%
East Asia Market Share (2024)	36.5%
Key Companies Profiled	Materion Corporation Umicore Group ULVAC, Inc. Nichia Corporation China Rare Metal Material Co., Ltd. GRIKIN Advanced Materials Co., Ltd. Canon Optron Inc. Plasmaterials Inc. Process Materials, Inc. The Kurt J. Lesker Company Aida Chemical Industries Co., Ltd.

What are the Key Dynamics Encouraging the Global Evaporation Material Market Growth?

“Evaporation Materials Ride High on Global Consumer Electronics Growth”

Evaporation material market forecasts indicate a bright future with a significant spike in demand brought on by the material's expanding applications in diverse industries. The surge in electronics industries has propelled a robust demand for evaporation materials. The CAGR for the global consumer electronics industry is predicted to be 5.80%. The rise in electronic goods production, including semiconductors and computer chips, drives the demand for evaporation materials. Deployed through alloys and ceramic targets, these materials skillfully craft precise coatings for a variety of tools. Since evaporation makes electrical devices lighter and thinner, which minimizes the amount they weigh and eventually lowers their energy consumption, it is essential to the manufacturing of integrated circuits. Their versatile applications in semiconductors and electronic devices continue to fuel the prospering evaporation material market.

“Evaporation Materials Ride the Wave of Developing Countries’ Clean Energy Push”

The governments of several countries, including China and India, have encouraged the application of renewable energy. An essential adoption is solar panels. As of right now, the Indian government wants to reach 175 GW of renewable energy capacity by 2022. Additionally, the government declared that it is going to establish a program to support dispersed solar and wind energy applications. Similarly, China is really pushing for more renewable energy.

It wants to have more renewable capacity than fossil fuel capacity by 2025. Evaporation materials are in great demand from solar panel producers. Government measures driving the solar energy industry's growth are anticipated to expedite the evaporation materials market growth rate. A significant element propelling solar energy applications is undoubtedly the steady rise in demand for thin-film solar cells.

“Evaporation Material Innovations are Reshaping Semiconductor Fabrication”

Evaporation material market trends suggest that there is a growing demand for advanced materials with enhanced thermal stability and efficiency. Manufacturers are increasingly focusing on developing innovative solutions to meet the evolving needs of different industries. This trend is driven by ongoing technological advancements and the pursuit of more sustainable and cost-effective solutions in various applications. New developments in thermal evaporation materials, including in-situ monitoring and control, atomic layer deposition, organic vapor phase deposition, and pulsed laser deposition, have the potential to change the industry. These are intended for the deposition of organic compounds, such as those used in optoelectronic and organic electronics. These are also commonly utilized in nanotechnology, microelectronics, and advanced semiconductor fabrication.

Which Factors Pose Challenges to the Development of the Evaporation Material Market?

“Evaporation Material Industry Witnesses Headwinds amid Cost Concerns”

The market faces a challenge due to the varying costs of evaporation materials compared to those in alternative vapor deposition technologies. This fluctuation might impede market growth. Industries seek sustainable options for profitability, prompting a negative impact on market growth. Finding alternative applications becomes crucial in navigating this obstacle. It is a factor that demands attention, influencing the market negatively to some extent.

“Evaporation Material Industry Navigates Challenges in Coating Control”

Challenges loom for the evaporation material industry due to issues in controlling the evaporation rate of finished products. This hurdle directly impacts the quality of coatings, demanding meticulous control for efficient results. The intricacies of managing evaporation rates become paramount for achieving optimal coating efficiency. Unfortunately, these challenges are anticipated to impede the overall growth of the evaporation materials market.

Country-wise Insights

The East Asia evaporation material market is gearing up for promising growth, prophesying a healthy CAGR of 7.6% through 2034. The region's supremacy in terms of demand for evaporation materials can be attributed to the sizeable and expanding electronics industries in countries like South Korea, Japan, and China. In the upcoming years, the market is anticipated to continue growing in terms of revenue due to the growing need for optical coatings for several kinds of applications. In this region, China is set to take the lead in the evaporation material industry, holding a substantial regional market share of 56.9% in 2024.

The evaporation material market in North America is poised for considerable advancement, aiming at a 7.3% CAGR until 2034. Important drivers bolstering market expansion in the region include rising expenditures on research and development, the renewable energy sector's growth, the availability of a long-standing infrastructure, and the growing demand from various end-use sectors. In 2024, the United States is likely to take the limelight as a key player in the evaporation material industry, boasting an estimated regional market share of 71.7%.

What Factors Contribute to China’s Supremacy in the Evaporation Material Industry?

“Evaporation Material Demand in China Soars on Consumer Electronics Dominance”

China's dominance in consumer electronics has propelled its evaporation material market to new heights. The local manufacturing sector has flourished, driven by technological advancements, giving rise to robust revenue streams. Notably, China stands as the world's prime energy consumer, demonstrating a commitment to environmental responsibility. With ambitious plans to reduce CO2 emissions significantly by 2035 and 2050, the country is steering toward sustainability.

The China government is set to elevate renewable energy generation by 50% in the next five years. The 14th Five-Year Plan outlines a target for 33% of electricity to be derived from renewables by 2025, emphasizing a decisive shift toward cleaner energy sources. Solar energy, a rapidly expanding segment, plays a crucial role in this transition. The surge in solar energy adoption amplifies the demand for evaporation materials, which is integral to the production of solar cells and related technologies.

Attributes	Details
China Market Size (2024E)	US$ 403.5 million
China Market Size (2034F)	US$ 848.7 million
China Market CAGR (2024 to 2034)	7.7%

The booming automotive refinish coatings market in China is a catalyst for the evaporation material sector. These materials find extensive use in the automotive industry for coating applications, supporting the country's ruthless plans for sustainable development. As China charts its course toward greener practices and technological prowess, the evaporation material market stands poised for sustained growth.

Why is the United States a Prospering Market for Evaporation Material Providers?

“United States’ Commitment to Reduce CO2 Emissions Drives Evaporation Material Sale Surge”

The United States holds the distinction of being the world's second-leading consumer electronics market, maintaining this position with the continuous adoption of connected smart technologies. The widespread use of home appliances, wearable devices, and other electronics has fueled a notable surge in consumer electronics demand. Evaporation is crucial for integrated circuit manufacturing as it reduces the weight and thickness of electrical devices, ultimately minimizing energy consumption.

Top market players are actively investing in research and development, exemplified by Philips dedicating over US$ 500 million in the first quarter of 2022. Given this dedication to innovation, new products with revolutionary characteristics are introduced. This is likely to help the country's evaporation material market continue its upward trend.

Attributes	Details
United States Market Size (2024E)	US$ 398.4 million
United States Market Size (2034F)	US$ 825.0 million
United States Market CAGR (2024 to 2034)	7.6%

The surge in solar and wind energy installations, coupled with supportive governmental policies and decreasing costs of solar panels, is fostering a heightened demand for renewable energy in the United States. The commitment of the government to allocate a substantial US$ 555 billion for clean energy programs provides a promising opportunity for the evaporation material market.

Category-wise Insights

In 2024, the optics segment is projected to be at the forefront, claiming a 31.5% market share.

What Makes Evaporation Material Preferable for Optics Applications?

“Evaporation Materials Shine in Optics Innovations”

The optics segment is estimated to hold 32.8% of the evaporation material market share by 2034. The adoption of evaporation material for optic application is projected to upsurge at a CAGR of 7.2% through 2034. A corresponding need for improved materials is seen in the growth of the optics industry, where evaporation materials are essential. The growing array of applications for optics makes accurate and effective thin-film deposition-a strength of evaporation materials-all the more necessary. Within the field of optics, evaporation material is distinguished by its special benefits. Its accuracy in forming thin films is what makes it preferred. These films are produced by the evaporation technique and have remarkable optical characteristics. The technique guarantees consistency and dependability by enabling the regulated deposition of materials onto surfaces. For many optical applications where reliable and superior thin films are essential, evaporation material is an excellent option due to its accuracy.

By 2034, however, the electronics application segment is projected to witness a maximum CAGR of 8.0%. The booming global electronics sector significantly influences evaporation material market dynamics. Evaporation materials are essential because they are employed extensively in the deposition procedures needed to make semiconductors, LEDs, and other electronic components. In order to make integrated circuits, evaporation makes electrical devices lighter and thinner, which decreases their overall weight and energy consumption. Additionally, during the manufacturing or packaging process, these materials are applied to flexible substrates or printed circuit boards. This helps keep moisture from leaking between layers and improves the product's reliability and durability over time.

Competitive Landscape

Key players in the evaporation material market include Materion Corporation, ULVAC, Inc., Nichia Corporation, Umicore Group, China Rare Metal Material Co., Ltd., Canon Optron Inc., Plasmaterials Inc., GRIKIN Advanced Materials Co., Ltd., Process Materials, Inc., Aida Chemical Industries Co., Ltd., and The Kurt J. Lesker Company. These key players employ various strategies to stay competitive. Some focus on enhancing research and development efforts, continuously innovating to introduce advanced materials. Others prioritize cost-effective production methods to maintain a competitive pricing edge. Several players emphasize sustainable practices, aligning with the growing environmental consciousness. Strategic partnerships and collaborations are prevalent, fostering technological exchange and market expansion.

Recent Developments

In May 2023, for metallizers and metal coating, Supervac Industries LLP introduced Alpha+ Evaporation Boats. These have a longer operating life, an evenly distributed metal coating free of pinholes, and use less power.

In May 2023, at its pulp factory in Sweden, Södra Cell Mönsterås constructed and opened an entirely novel evaporation line. The previous line in the mill, evaporation line 1, has been supplanted with the brand-new line, evaporation line 3.

Segmentation of Evaporation Material Market Analysis

• By Application:

  • Electronics
  • Optics
  • Power and Energy
  • Others

• By Region:

  • North America
  • Latin America
  • East Asia
  • South Asia and Pacific
  • Western Europe
  • Eastern Europe
  • Middle East and Africa