Physical Vapor Deposition Market 2030 Growing Worldwide By Best Key players- Oerlikon Group; Angstrom Engineering Inc.; Kurt J. Lesker Company; Voestalpine AG; Nissin Electric Co., Ltd.; IHI Corporation; HEF Groupe; Kobe Steel Ltd.; Lafer S.p.A.; Inorcoat; KOLZER SRL; Advanced Coating Service

 

The global physical vapor deposition market size is expected to reach USD 5.0 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 7.5% from 2022 to 2030. The market is significantly driven by the increasing demand for semiconductors, electronic, and solar products across the world.

Physical vapor deposition are used for the functional lifetime coating of semiconductor components by depositing non-metal and chemical-resistant oxides on the surfaces. The coating process increases its lifetime and enhances functionality. The rising demand for semiconductors driven by the increasing usage of consumer electronic products is likely to fuel market growth.

Additionally, PVD is used for the coating process in solar panels and photovoltaic cells. The rising installation of solar products across the world is expected to increase the demand for PVD coating. According to Solar Energy Industry Association, new installations of solar products in the U.S. are increasing continuously owing to the decreasing cost of installation.

Moreover, technological developments in PVD equipment are enabling emerging new applications of coating services, which is expected to fuel the market growth over the forecast period. According to SME Organization, PVD coating is gaining momentum in the aerospace industry replacing the chrome plating process, which tends to have a carcinogenic effect.

The COVID-19 outbreak moderately affected the market growth during the first half of 2020 due to strict lockdowns, disruption of the supply chain, and lack of workforce. However, according to the SME Organization, the manufacturing industry bounced back in the second half with safety precautions. The market is expected to witness promising growth over the forecast period.

Companies in the industry are actively engaged in mergers and acquisitions, expansion, and joint ventures to increase market penetration. For instance, in January 2022, KDF Electronics & Vacuum Services Inc. was acquired by Kurt J. Lesker Company. KDF Electronics & Vacuum Services Inc. is based in the U.S. and offers thin film deposition by PVD coating to customers.

 The flourishing industrial manufacturing is likely to fuel the market growth over the forecast period. Physical vapor deposition is used to coat the surface of tools and components to improve functionality and aesthetics. The outbreak of COVID-19 had a moderate impact on the growth of the PVD services market, significantly during the first half of 2020, as a result of lockdown, lack of workforce, disruption of the supply chain, and decrease in demand. Over the forecast period, the market is expected to witness steady growth owing to the resumption of industrial manufacturing.

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In the U.S., increasing domestic manufacturing is expected to fuel the demand for PVD coating services. The government is taking initiatives to reduce offshore manufacturing and encourage domestic production. In January 2022, the U.S. government introduced Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act.

In order to bolster semiconductor production in the U.S., The CHIPS and Science Act is likely to provide $52.70 billion for manufacturing, research, and development. Moreover, new semiconductor production facilities are being constructed in South Korea, Singapore, China, and India. The growth in the semiconductor industry is expected to propel the demand for PVD services.

Physical Vapor Deposition Market Report Highlights

• The arc vapor deposition is expected to register a lucrative CAGR of 8.1% over the forecast period. This is attributed to increasing demand owing to the high current and low voltage arc usage producing efficient ionization during the coating
• The semiconductor and electronics segment accounted for a significant share of over 40.0% in 2021. Increasing spending on home appliances, consumer electronics, and automotive is expected to increase the demand for PVD coating of microelectronics and microchips
• Asia Pacific accounted for a significant share of over 40.0% in 2021 owing to the large manufacturing of solar cells, semiconductors, and electronics. China accounts for a majority of semiconductor production, according to Semiconductor Industry Association
• North America is expected to register a CAGR of 7.3% over the forecast period. The increasing initiatives to improve domestic production by the U.S. government such as United States Innovation and Competition Act (USICA), 2021 are likely to fuel the growth of the market
• In July 2020, Ionbond (IHI Group) introduced the first deep black PVD color coating service in its decorative PVD portfolio. The coating can be applied to surfaces of ABS, zinc, stainless steel, and brass, enhancing the application availability of PVD coating services

Increasing environmental concern is expected to boost the demand for environmentally friendly and renewable energy sources, such as solar cells and photovoltaics. PVD is used to coat solar panels with photovoltaic coating allowing high yield and efficiency. The growth in solar product installation is expected to drive the demand for PVD coating services over the forecast period.

Additionally, the rising automotive industry is likely to fuel the PVD services market growth. PVD coating is used to coat automotive parts that contribute to enhanced efficiency, appearance, and fuel consumption saving. The global automotive industry is continuously witnessing steady growth attributed to increased consumer spending.

Key players are actively focusing on several strategies, including product innovation, research & development, geographical expansion, and joint venture. With these strategies, key players aim to increase market penetration.

For instance, in June 2022, High Temperature Superconductors, Inc. announced a successful acquisition of PVD Products Inc., which specializes in the manufacturing of PVD techniques and PLD systems. The acquisition is expected to strengthen the market position of HTS, Inc. Some prominent players in the global physical vapor deposition market include:

• Oerlikon Group
• Angstrom Engineering Inc.
• Kurt J. Lesker Company
• Voestalpine AG
• NISSIN ELECTRIC Co., Ltd.
• IHI Corporation
• HEF Groupe
• Kobe Steel Ltd.
• Lafer S.p.A.
• Inorcoat
• KOLZER SRL