Physical vapor deposition (PVD) is a coating process used to produce coatings of pure metals, ceramics, and metallic alloys with thickness in the range of 1 to 10µm. This process involves the deposition of atoms, molecules, and ions of coating spices to the substrate. Thermal evaporation, sputtering, and ion plating are the three major types of physical vapor deposition. Physical vapor a deposition is characterized by a process in which the product transferred from a condensed phase to the vapor phase and then back to the condensed phase of a thin film. This process is widely adopted in the production of a product that requires thin films for mechanical, chemical, and electronic functions. Microelectronics, architectural glass, solar, cutting tools, medical equipment, and data devices storage is one of the major application areas of physical vapor deposition.
The global physical vapor deposition market is estimated to account for slightly less than US$ 15.9 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 5.4% during the forecast period (2019-2027)
Physical vapor deposition is gaining huge demand from the various industry due to its advantage over conventional coatings process such as electroplating and CVD and this factor is expected to augment the market growth. Physical vapor deposition process used high-strength products such as chromium, titanium, and aluminum. These high-strength product offer durability, corrosion resistance, and high strength to the surface. Moreover, it is environmental-friendly which makes it an ideal choice over its substitutes. All these factors are propelling the market growth of physical vapor deposition.
Growing demand for the lightweight product from the automotive sector for reducing carbon emission and fuel consumption has the demand for PVD which in turn propelling the market growth. Moreover, increasing application of physical vapor deposition coating in orthodontic appliances, medical devices such as pacemakers, dental instruments, surgical instruments, and orthopedic implants is estimated to augment the market growth of physical vapor deposition over the forecast timeframe.
Physical vapor deposition technology is patent-protected technology and this process was introduced in the 1960s. According to the Coherent Market Insights analysis, there are almost 200 patents for PVD technology, systems, process, and materials, which includes the U.S. patents, European Parliament (EP) documents, abstracts from Japan, World Intellectual Property Organization (WIPO) and patents from Germany. All these patents have limited the entry of new manufacturer in the market and also the expansion of smaller players which are expected to hinder the market growth of physical vapor deposition.
On the basis of application, microelectronics has dominated the global physical vapor deposition market in 2018 with a 45.2% of market share in terms of value, followed by solar and storage.
Increasing focus of manufacturers on expanding market presence and to cater to rising demand for PVD technology is estimated to propel the market growth. For instance, in June 2018, POSCO signed a cross-licensing agreement to trade its PVD with its cutting-edge PVD coating technology with TSE’s high corrosion-resistant MagiZinc products. Hence, rising adoption of such smart strategies by major players are expected to foster the market growth of PVD.
Rising trend of adopting acquisition and merger by major players in the market is resulting in industry consolidation and this is expected to augment market growth. For instance, in January 2016, IHI Hauzer Techno Coating B.V.—a Netherlands-based company—acquired intellectual property rights for use of Cromatipic technology owned by Sida S.A., Spain. Chromatic is sustainable PVD technology that replaces conventional electroplating technology; the former being a multistage process, while the latter is a two-step coating process.
Key players operating in global physical vapor deposition market are Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc. (Lam Research Corp.), Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG.