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Wafer Processing Equipment Market Expected to Achieve 5.8% CAGR by 2029: Growth Forecast Insights
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.How Large Will the Wafer Processing Equipment Market Size By 2025?
In recent times, there has been a consistent expansion in the wafer processing equipment market. It is anticipated to surge from $150.28 billion in 2024 to $157.75 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.0%. Factors like rising consumer electronics, burgeoning industrial automation and IoT, along with various economic considerations have contributed to this growth in the past.
How Big Is the Wafer Processing Equipment Market Size Expected to Grow by 2029?
The market size of wafer processing equipment is predicted to witness a significant upswing in the coming years, reaching a value of $198 billion in 2029 with a compound annual growth rate (CAGR) of 5.8%. The escalation projected for this period can be tied to elements such as 5G technology, artificial intelligence (AI), electric vehicles (EVs), environmental awareness, and semiconductor deficiencies. Predominant trends during this forecast period encompass technological breakthroughs, research and development initiatives, AI and machine learning incorporation, contractions, and growth in wafer size, along with mergers and acquisitions.
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Which Key Market Drivers Powering Wafer Processing Equipment Market Expansion and Growth?
The expected growth of the wafer processing equipment market is believed to be driven by the increasing demand for consumer electronics. A rise in the need for electronic products has heightened customer requirements for enhanced features in next-gen electronic devices. Several consumer electronics and identity solutions such as identification tags, smart cards, among others, integrate RFIDs, and they utilize wafers in the creation of integrated circuits. The growing customer demand for these super-smooth and thinner wafers for seamless integration into electronic devices is noted. For example, in October 2022, Apple Inc., a US-based consumer electronic company reported in a press release that their revenue for the September 2022 quarter was $90.1 billion, reflecting an 8% YoY increase, and the quarterly earnings per diluted share increased by 4% YoY to $1.29. Furthermore, Apple's annual revenue increased by 8% YoY, reaching $394.3 billion. Also, the increased usage and consumption of consumer electronic devices is anticipated to drive the demand for semiconductors, which is expected to further stimulate revenue growth for the wafer processing equipment market during the forecast period.
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Which Fast-Growing Trends Are Poised to Disrupt the Wafer Processing Equipment Market?
The wafer processing equipment market is being significantly influenced by the increasing need for smaller wafers that enhance device performance. Semiconductor mediums such as wafers are being scaled down to tens of microns in final thickness. Many semiconductor wafers, employed for memory, CIS, and power applications, are reduced to a thickness of 100-200 microns. There's a growing requirement for additional thinning to boost the storage capability of single chipsets, improve data transfer speeds, and lessen power consumption - driven primarily by mobile apps. Standard memory devices like 2D NAND/DRAM employ silicon wafers thicker than 200 microns. By 2025, it's projected that the density of 3D stacked DRAM will continue to decrease, ranging from 50 to 30 microns in thickness. Presently, BSI CIS wafers maintain the thinnest profile among all applications, with a thickness below 10 microns. Therefore, ultra-flat and more slender wafers for integration into devices have been gaining traction in recent times.
What Are the Emerging Segments in the Wafer Processing Equipment Market?
The wafer processing equipmentmarket covered in this report is segmented -
1) By Equipment Type: Oxidation Systems, Diffusion Systems, Epitaxial Reactors, Photolithography Equipment, Other Equipment Types
2) By Application: MEMS, RFID, CMOS Image Sensor, Other Applications
3) By End Use: Medical, Military, Solar, Industrial, Other End Uses
Subsegments:
1) By Oxidation Systems: Dry Oxidation Systems, Wet Oxidation Systems
2) By Diffusion Systems: Batch Diffusion Systems, Single Wafer Diffusion Systems
3) By Epitaxial Reactors: Vertical Epitaxial Reactors, Horizontal Epitaxial Reactors
4) By Photolithography Equipment: Mask Aligners, Step and Repeat Systems, Stepper Systems, Scanners
5) By Other Equipment Types: Chemical Vapor Deposition (CVD) Equipment, Physical Vapor Deposition (PVD) Equipment, Etching Equipment, Ion Implantation Equipment
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Who Are the Global Leaders in the Wafer Processing Equipment Market?
Major companies operating in the wafer processing equipment market include Lam Research Corporation, Tokyo Electron Limited, Applied Materials Inc., SPTS Technologies Limited, Plasma-Therm LLC, Disco Corporation, Tokyo Seimitsu Co. Ltd., KLA-Tencor Corporation, Hitachi Kokusai Electronic Inc., Taiwan Semiconductor Manufacturing Company Limited, Nikon Corporation, Samsung Electronics Co. Ltd., SCREEN Semiconductor Solutions Co. Ltd., EV Group, Advantest Corporation, ASML Holding NV, KLA Corporation, Canon Inc., Axcelis Technologies Inc., Teradyne Inc., Kokusai Electric Corp., ASM International NV, ATS Automation Tooling Systems Inc., Tokyo Electron Limited, Screen Holdings Co. Ltd., Onto Innovation Inc., Veeco Instruments Inc., Mattson Technology Inc., Aixtron SE, Nordson Corporation
Which are the Top Profitable Regional Markets for the Wafer Processing Equipment Industry?
Asia-Pacific was the largest region in the wafer processing equipment market in 2024. Western Europe was the second-largest region in the wafer processing equipment market. The regions covered in the wafer processing equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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