Atomic layer deposition (ALD) is a thin film coating technique that deposits a film one atomic layer at a time on a component or system in a controlled manner. Traditional thin film technologies such as chemical vapor deposition (CVD), spin coating, and physical vapor deposition (PVD) cannot function in nanometer scale deposits, this process has been used in the semiconductor industry.
The global atomic layer deposition market is expected to surpass US$ 6,587.9 million by the end of 2030 and exhibit a CAGR of 15.4% during the forecast period (2022 to 2030).
Rising adoption of electronics and semiconductor solutions across the globe acts as one of the major factors driving the growth of the global atomic layer deposition market. Various deposition instruments are used in the manufacturing of semiconductor, such as copper electrodes, high-K dielectric gate stacks, and copper barrier/seed layers. For instance, according to data published by India's national Investment Promotion & Facilitation Agency in March 2022, which comes under the Union Ministry of Commerce and Industry, India’s domestic production in electronics has increased from US$ 29 Bn in 2014-15 to US$ 67 Bn in 2020-21.
Increasing concerns for global warming and climate change have encouraged governments around the globe towards renewable & green energy sources. Hence, growing adoption of renewable energy is expected to drive the global atomic layer deposition market growth. For instance, according to the Center for Climate and Energy Solutions (C2ES) report published in July 2021, an independent, nonpartisan, nonprofit organization, renewable energy is the fastest-growing energy source in the U.S., increasing 42% from 2010 to 2020 (up 90% from 2000 to 2020).
Among regions, Asia Pacific held a dominant position in the global atomic layer deposition market in 2021, accounting for 66.7% market share in terms of revenue, followed by North America, and Europe. Due to increasing semiconductor and medical equipment industry.
Figure 1. Global Atomic Layer Deposition Market Revenue Share (%), By Region, 2021
High investment required for research and development is expected to obstruct the global atomic layer deposition market growth over the forecast period. Moreover, the process of ALD is gradual and this is known to be its major limitation.
|Base Year:||2021||Market Size in 2021:||US$ 1,841.7 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||15.4%||2030 Value Projection:||US$ 6,587.9 Mn|
ALD Nano Solutions, Inc., Applied Materials, Inc., ASM International, Beneq, Denton Vacuum, Hitachi, Kurt J. Lesker Company, Lam Research Corporation, Tokyo Electron, and Wonik IPS
|Restraints & Challenges:||
The semiconductor and electronics industries are expected to drive demand for atomic layer deposition technology. While the semiconductor industry is expected to have a direct impact on the technology's development, any increase in the electronics industry will help the technology advance. As a result, atomic layer deposition market is expected to grow in the forecast period.
Figure 2. Global Atomic Layer Deposition Market Revenue Share (%), By Product, 2021
Among product, Aluminum Oxide segment accounted for the highest market share of 32.7% in the global atomic layer deposition market in 2021. The use of atomic layer deposition to create aluminum oxide thin films aids in the encapsulation of organic light emitting devices, or OLEDs. The growing demand for OLEDs from the electronic industry has propelled the segment's growth.
Global Atomic Layer Deposition Market - Impact of Coronavirus (Covid-19) Pandemic
The global economy has been affected by the coronavirus pandemic, as governments across the globe imposed lockdown measures to curb the movement of people. Due to these lockdowns, industrial activities halted and international travel was ceased. These measures had a significant toll on almost all industrial sectors. Factories and manufacturing facilities also faced supply chain breakdowns and labor shortages. The COVID-19 pandemic continues to wreak havoc on the supply chain of the atomic layer deposition industry. Various countries and sub-regions such as the U.S., Germany, France, China, India, Japan, South Korea, Taiwan, and ASEAN are prominent markets, in terms of both production and consumption of atomic layer deposition. These countries are heavily impacted by the COVID-19. The pandemic has slowed the atomic layer deposition manufacturing projects due to labor shortage and disruption in the supply of raw materials. Due to such interruptions to global trade, the projects under construction were delayed, resulting in higher capital expenditure (CAPEX), which in turn halted the supply of atomic layer deposition.
Key players operating in the global atomic layer deposition market include ALD Nano Solutions, Inc., Applied Materials, Inc., ASM International, Beneq, Denton Vacuum, Hitachi, Kurt J. Lesker Company, Lam Research Corporation, Tokyo Electron, and Wonik IPS
Atomic layer deposition is used in the production of integrated circuits (ICs), various components and devices such as semiconductor devices and electronic component, and industrial applications. The growing demand for semiconductor devices in industries like consumer electronics, industrial equipment, automotive products, and healthcare equipment is driving the silicon wafer market and atomic layer deposition equipment demand.
As cosmetics witness a higher demand, demand for atomic layer deposition increase, particularly as people try to move to nonpetroleum-based products. A strong focus on personal grooming and good hygiene is propelling the cosmetics market growth, which in turn, is driving the global atomic layer deposition market growth. Atomic layer deposition act as nonpetroleum product alternatives for the cosmetics and personal care industry, which is expected to drive the global atomic layer deposition market growth.
Atomic layer deposition is widely used for conformal coatings in solar cells and devices. Hence, the rise in demand for solar devices is expected to drive the target market growth over the forecast period. Furthermore, the high growth of the solar energy industry is also driven mainly by increasing photovoltaic devices (PV) installations.
Key market players are focusing on product launches, product expansions, mergers, acquisitions, and partnerships in order to expand their business in the market. For instance, in February 2020, Forge Nano, a global leader in surface engineering and precision nano-coating technology and ALD NanoSolutions, Inc. merged to bring cutting edge surface engineering techniques to atomic layer deposition market. ALD NanoSolutions, Inc. is manufacturer of advanced materials that are transforming industries.
Key features of the study:
*” marked represents similar segmentation in other categories in the respective section.