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Physical vapor deposition (PVD) is also referred  as physical vapor transport (PVT) which includes a variety of vacuum deposition the process that is used to produce thin films and coatings. In this process materials transferred from condensed phases to vapor phases and then get back to the condense phase of thin films. Physical vapor deposition (PVD) is used across various applications such as fabrication of microelectronic devices, surface modifications battery and fuel cell electrodes, interconnects, diffusion barriers, optical and conductive coatings. Thermal evaporation, sputtering, and ion plating are the three commonly used physical vapor deposition in almost all industries. This process is used widely used in, manufacturing of semiconductor devices such as thin-film solar panels, titanium nitride coated cutting tools for metalworking and aluminized PET (polyethylene terephthalate) film for food packaging.

Global physical vapor deposition market was valued at US$ 18.9 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.59% during the forecast period (2022 to 2030).

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Physical Vapor Deposition Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 18.9 Bn
Historical Data for: 2017-2021 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 5.59% Forecast Period: 2022-2030
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Industry: PVD Equipment, PVD Material, PVD Services
  • By Application: Microelectronics, Storage, Solar, Medical Equipment, Catering Tools, Others
Companies covered:

Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG.

Growth Drivers:
  • Increasing penetration of microelectronics across various industries
  • Rising usage of physical vapor deposition in the production of low-e glass for construction and automotive industries 
Restraints & Challenges:
  • High capital investment and lack of product differentiation and innovation 

Drivers

Increasing penetration of microelectronics across various industries is primarily fueling the market growth of physical vapor deposition. Microelectronics is used to production of small electronic equipment that is micrometers in size and they find application across automotive, defense, and healthcare industries. Microelectronics is one of the major application areas for physical vapor deposition (PVD). Hence the growth of the microelectronics market is fueling the market growth of physical vapor deposition.

Rising usage of physical vapor deposition in the production of low-e glass for construction and automotive industries is projected to accelerate market growth. PVD materials for coating of low-e glass include aluminum & aluminum alloy, silver, copper & its alloy, chromium. Low-e glass helps in the reduction of heat loss which is gaining huge importance from the construction industry. Hence, rising demand for low-e glass from the construction industry is expected to propel the market growth of physical vapor deposition.

Among region, Europe held a dominant position in market in 2021, and is expected to maintain its dominance throughout the forecast period.  The rising concern over greenhouse emissions in this region has propelled the demand for environmentally safe products. For instance, the physical vapor deposition process adopts eco-friendly products such as titanium nitride (TiN) and chromium nitride (CrN). These materials are coated on corrosion-resistant electroplating and further enhance the finish of the surface. In addition, they offer superior performance without the risk of environmental hazards. Therefore, owing to this, the high demand for eco-friendly coating processes across several industrial applications is expected to favor the growth of the market during the forecast period.

Owing to the production disruption in key end-use industries, the demand for all categories went down significantly during COVID-19 pandemic. As the PVD industry does not fall under essential services, it experienced a negative impact on year on year growth rate due to decreased demand from key applications such as solar components, electronics, cutting tools and others.

Figure 1. Global Physical Vapor Deposition Market Value Share (%), By Region, 2021

Physical Vapor Deposition  | Coherent Market Insights

Market Restraints

High capital investment and lack of product differentiation and innovation is expected to restrict the market growth of physical vapor deposition. New and advance product development technology require huge capital investment in research and development and this the high cost of investment is expected to hinder the market growth of physical vapor deposition technology.

Market Trends

Rising trend of using plastic materials in place of metal across the electrical industry is expected to propel the market growth of physical vapor deposition. Such plastic used in the electrical industry should be durable and scratch-resistant to meet functional requirement and aesthetic appearance. PVD technology is highly preferred over conventional coating technologies, thus propelling the market growth of physical vapor deposition.

.Figure 2. Global Physical Vapor Deposition Market Value Share (%), By Industry Type, 2021

Physical Vapor Deposition  | Coherent Market Insights

On the basis of industry type, the physical vapor deposition equipment holds the largest market share in the year 2021. The PVD equipment refers to thin film deposition devices used for thermal evaporation, sputter deposition and arc vapor deposition. They are used in various industries across the globe. Physical vapor deposition equipment such as thin film deposition is used in various applications on solar products, microelectronics, data storage, medical and other applications. Owing to thickness, uniformity, reflectivity, adhesion, thin film deposition is projected to gain traction in different end use industries.

Recent Developments

  • In June 2022, Oerlikon, a physical vapor deposition industry, improved productivity and increased lifespan and tailored solutions, and most demanding applications within the chemicals and plastics industries and in PUR applications, these are the convincing arguments with which Oerlikon Barmag is showcasing its precision metering pumps. The focus is on the new pump for shear-sensitive conveying media and the new eccentric screw pump.
  • In April 2022, Veeco Instruments, a physical vapor deposition industry, unveiled its Environmental, Social, and Governance (ESG) goals for 2022 and beyond, showcasing the company’s on-going commitment to corporate social responsibility. The goals, based on feedback received from the company’s stakeholders and results of their 2021 materiality assessment, relate to climate change, product responsibility, diversity and inclusion and responsible corporate governance.
  • In February 2022, Veeco Instruments, a physical vapor deposition industry, announced that a mask blank supplier to the semiconductor industry has ordered Veeco’s IBD-LDD Ion Beam Deposition (IBD) System. The IBD system will be used to meet growing demand for extreme ultraviolet (EUV) mask blanks used to create semiconductor devices related to advanced logic and memory applications. This new customer is acquiring Veeco’s IBD technology for low defect EUV mask blanks intended for high volume production.

Competitive Section

Major players operating in the global physical vapor deposition market include Advanced Energy Industries, Inc., AJA International, Inc., Oerlikon Balzers (Oerlikon Group), IHI Corporation, Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc. and Platit AG

Physical Vapor Deposition (PVD) is also referred to as physical vapor transport (PVT) which includes a variety of vacuum deposition the process that is used to produce thin films and coatings. PVD is used in manufacturing of thin films and optics among others.

Market Dynamics

The global physical vapor deposition market has witnessed significant growth in recent past years, owing to the rising demand for physical vapor deposition from semiconductor industry. Based on application, the global physical vapor deposition market is bifurcated into microelectronics, storage, solar, medical equipment, cutting tools, architectural glasses, and others. Among these segments, the microelectronics segment dominated the global physical vapor deposition market in 2021, owing to the growing demand for microelectronics in various applications such as automobile industry, semiconductor industry, LED, and storage industry. This factor is estimated to drive growth of the global physical vapor deposition market during the forecast period.

Moreover, based on industry, the global physical vapor deposition market is bifurcated in PVD equipment, PVD materials and PVD services. Among these segments, the PVD equipment segment dominated the global physical vapor deposition market in 2021, owing to the growing use of PVD equipment in various applications such as an optics, flexible packaging and medical devices & equipment. This factor is expected to fuel the growth of the global physical vapor deposition market during the forecast period.

Furthermore, the rising usage of physical vapor deposition in the production of low-e glass for construction and automotive industries is another major factor that is projected to propel the market growth of physical vapor deposition, owing to the use of PVD materials for coating of low-e glass. This factor is estimated to drive growth of the global physical vapor deposition market in the coming years.

Key features of the study:

  • This report provides an in-depth analysis of global physical Vapor Deposition  market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global physical Vapor Deposition  market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global physical Vapor Deposition market report caters to various stakeholders in this industry including investors, suppliers, physical Vapor Deposition service providers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global physical Vapor Deposition market

Detailed Segmentation:

  • Global Physical Vapor Deposition Market, By Industry :
    • PVD Equipment
    • PVD Materials
    • PVD Services
  • Global Physical Vapor Deposition Market, By Application:
    • Microelectronics
    • Storage
    • Solar
    • Medical Equipment
    • Cutting Tools
    • Others
  •  Global Physical Vapor Deposition Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Rest of Latin America
    • Europe
      • By Country:
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Nordic
        • Benelux
        • Russia
        • Poland
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country:
        • GCC
        • South Africa
        • Rest of Middle East & Africa
  • Company Profiles
    • Oerlikon Balzers (Oerlikon Group)
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • IHI Corporation
    • Silfex Inc.
    • Lam Research Corp.
    • Singulus Technologies AG
    • Applied Materials, Inc.
    • ULVAC Inc.
    • Veeco Instruments Inc.
    • Buhler AG
    • Semicore Equipment, Inc.
    • Platit AG.

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global physical vapor deposition market was valued at around US$ 18.9 Billion in 2021.
Increasing penetration of microelectronics across various industries is primarily fuelling the market growth of the market. 
Rising trend of using plastic materials in place of metal across the electrical industry is expected to propel the market growth of physical vapor deposition.
High capital investment and lack of product differentiation and innovation is expected to restrain the market growth over forecast period.
Major players operating in the market include Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG.
The market is estimated to grow at around 5.59% CAGR in the forecast period (2022-2030).

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