The global atomic layer deposition market size was valued at USD 1.09 billion in 2016. It is a key process in the fabrication of semiconductor devices, and part of the set of tools available for the synthesis of nano-technology materials. Atomic Layer Deposition is considered as one of the superior deposition methods for producing thin and conformal films.
The industry is expected to be driven by the growing electronics industry and semiconductor solutions particularly in the Asia Pacific and North America. Various deposition instruments are used in the manufacturing of semiconductor categories such as copper electrodes, High-K dielectric gate stacks, and copper barrier/seed layers. Rising demand for electronic components in the automotive industry is expected to increase the demand for semiconductors and hence, directly impact the atomic layer deposition market positively.
Component miniaturization is one of the recent technological advancements in the global electronics sector. In the past few years, introduction of materials such as porous, Hf(Si)O, SiOC, AlO, ZrO, LaO, and SiC have resulted in higher efficiency and stability of substrates. Some of the other factors that are driving the market include increasing demand from current & emerging applications such as dye-sensitized solar cells, efficiency enhancement, and technological development. However, high investment cost in R&D is expected to restrain its application in several industries, therefore, many manufacturing companies prefer the atomic layer deposition technique to produce smaller components with comparatively low cost.
Increasing concerns for global warming climate change and has encouraged governments around the globe towards renewable & green energy sources. The subsidies offered by government have encouraged the growth of the solar power industry. Thin-film materials overcome this problem with their properties of efficiency and reliability. This material offers miniaturization and is one of the reasons for the MEMS industry to increasingly utilize micro components. In countries such as Germany, India, the U.S., and UK governments have been providing fiscal incentives and schemes to drive the use of renewable energy.
The global vapor deposition industry is rapidly growing with chemical vapor (CVD) accounting for a significant share. Other technologies include epitaxy, physical vapor (PVD), and atomic layer deposition. However, the advanced and feature-rich outputs of ALD systems result to give high deposition performance, high rates of production, and minimal waste.
The technology is largely present in almost all high-end products in industries such as automobile & other transportation, wearable health monitoring devices, and solar PV. ALD is a prominent technology to lower the cost in manufacturing advanced electronic products. The brightness and longevity of LED and precision optical layers are made by ALD for various specific applications. In medical technology, lifetime of various medical implants equipment is enhanced by biosynthesized ALD coatings.
Aluminum oxide ALD is expected to remain the largest type of product segment by 2025 which was valued at USD 328.2 million in 2016. With the abundance of aluminum, the demand for aluminum oxide film using this deposition technique is also anticipated to increase in industrial penetration. Deposited aluminum oxide film is known to contain effective permeation barriers owing to alumina’s pin-hole free morphology and uniformity. The aluminum oxide film acquires the maximum share of the type of technology due to its excellent characteristics, stability to numerous substrates, easy availability of precursor material, and optimal base metal prices.
Technological developments in the precursor materials and substrates is a major trend for the industry. The advancements have resulted in plasma enhanced-atomic layer deposition (PEALD) as the fastest-growing category. PEALD is a key enabler of logic devices and nanoscale memory owing to the characteristics such as thickness controllability and superior conformity.
The extensive research initiatives for the technology concerning enhanced nucleation have resulted in deposition on particles and polymers. This technology type holds a smaller share of the overall market due to high capital costs and specific applications. For instance, ALD on polymers mitigates numerous challenges concerning space polymers. However, it reduces the rate of oxygen-atom erosion and vacuum ultraviolet (VUV) of polymers in spacecraft.
The atomic layer deposition industry has numerous promising areas of application. The semiconductor industry was the leading application sector in 2016 while accounting for over 40% of the total revenue in the same year. The semiconductor technology node transition and the drive for miniaturized components have indeed contributed to the development of the global semiconductor industry. The need for a shrinking device dimension in tandem with high durability has tremendously increased the application scope of deposition technologies.
The technology in the semiconductor industry finds applications in both IC (Integrated Circuit) and Non-IC components. The other application sectors for the technology include flexible electronic devices, fuel cells, solar cells, medical devices, and data storage devices.
The changing consumer preference and government initiatives to reduce greenhouse gas emissions have resulted in swift growth of the solar sector. The technique is widely used for conformal coatings in solar cells and devices. Solar devices are expected to be the fastest-growing application sector over the prediction period.
The high growth of the solar energy industry is primarily driven mainly by increasing PV installations in economies including China, the U.S. Japan, India, Poland, and the U.K. Countries such as India and Japan are ideal solar markets due to high insolation, comparatively higher energy costs, increasing concerns regarding greenhouse gas emissions, and low electrification costs.
Asia Pacific was the dominant region in 2016 with revenue estimated over USD 504 million for the same year. The rapidly growing demand from end-use industries such as semiconductors, electronics, medical equipment industry, and the solar sector has led Asia Pacific to achieve the maximum market share.
The deep-rooted electronics manufacturing base in South Korea, China, and Taiwan have led to increased demand for the deposition technologies. The proliferating manufacturing of electronics products, tremendous modernization, and growing economies coupled with rising consumer electronics spending have backed up the growth of this region.
Some of the Asian countries offer lucrative opportunities for the industry participants due to increase in capacity of solar photovoltaics. China, India, Japan, Indonesia, South Korea, and Taiwan have led the ALD growth due to burgeoning solar panels manufacturing and installations.
North American ALD market followed Asia Pacific in 2016 in terms of market capitalization. The U.S. and Canada are the major contributors to the growth of the regional market. The U.S. emerged as the frontrunner and is estimated to grow at a CAGR of 12.2% over the next eight years. The key growth driver for North America’s market includes productive government regulatory support for encouraging domestic level private investment, which is likely to be a significant factor for the region’s growing semiconductor and consumer electronics industry.
The global atomic layer deposition market inherits an intense competition among the key international players. Technological advancements and innovative product launches are the major aspects contributing to the competition. The key companies in the industry include Lam Research Corporation, ASM International NV, Applied Materials Inc., Aixtron SE, and Adeka Corporation.
Some of the major companies have undertaken recurrent technological upgradations and product launches for manufacturing superior quality conformal films and gaining sustainability in the sector. These aspects are worked upon by the companies concerning to demand from consumers and industry dynamics.
Some other industry players offering the technology include Tokyo Electron Limited, Denton Vacuum LLC, Kurt J. Lesker Company, Beneq Oy, Veeco Instruments, Canon Anvela Corporation, Picosun Oy, Entergis Inc., and ALD NanoSolutions, Inc.
This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global atomic layer deposition market on the basis of product, application, and region:
- Product Outlook (Revenue, USD Million, 2014 – 2025)
- Aluminum Oxide
- Plasma Enhanced
- Application Outlook (Revenue, USD Million, 2014 – 2025)
- Solar devices
- Medical equipment
- Regional Outlook (Revenue, USD Million, 2014 – 2025)
- North America
- The U.S.
- The U.K.
- Asia Pacific
- Middle East & Africa
- Central & South America (CSA)
- North America