Semiconductor Manufacturing Equipment Global Market Opportunities and Strategies to 2032

This report describes and explains the semiconductor manufacturing equipment market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global semiconductor manufacturing equipment market reached a value of nearly $107.66 billion in 2022, having grown at a compound annual growth rate (CAGR) of 13.7% since 2017. The market is expected to grow from $107.66 billion in 2022 to $170.56 billion in 2027 at a rate of 9.6%. The market is then expected to grow at a CAGR of 11.5% from 2027 and reach $293.73 billion in 2032.

Growth in the historic period resulted from growing adoption of connected devices or IoT devices and rising use of electronic components in the automotive industry. Factors that negatively affected growth in the historic period were fluctuating prices of raw materials.

Going forward, the rising penetration of smartphones and other consumer electronics, increasing government initiatives to support semiconductor industry and growing demand for electric vehicles will drive the market. Factors that could hinder the growth of the semiconductor manufacturing equipment market in the future include restrictions on export of semiconductor manufacturing equipment.

The semiconductor manufacturing equipment market is segmented by product type into memory, logic, optoelectronics, analog, sensors and other product types. The logic market was the largest segment of the semiconductor manufacturing equipment market segmented by product type, accounting for 42.5% or $45.56 billion of the total in 2022. Going forward, the logic segment is expected to be the fastest growing segment in the semiconductor manufacturing equipment market segmented by product type, at a CAGR of 11.5% during 2022-2027.

The semiconductor manufacturing equipment market is segmented by equipment type into front end equipment and back end equipment. The front end equipment market was the largest segment of the semiconductor manufacturing equipment market segmented by equipment type, accounting for 87.6% or $94.35 billion of the total in 2022. Going forward, the front end equipment segment is expected to be the fastest growing segment in the semiconductor manufacturing equipment market segmented by equipment type, at a CAGR of 9.8% during 2022-2027.

The semiconductor manufacturing equipment market is segmented by dimension into 2D, 2.5D and 3D. The 2.5D market was the largest segment of the semiconductor manufacturing equipment market segmented by dimension, accounting for 37.2% or $40.02 billion of the total in 2022. Going forward, the 3D segment is expected to be the fastest growing segment in the semiconductor manufacturing equipment market segmented by dimension, at a CAGR of 10.4% during 2022-2027.

The semiconductor manufacturing equipment market is segmented by application into semiconductor fabrication plant or foundry, semiconductor electronics manufacturing and testing and inspection. The semiconductor fabrication plant or foundry market was the largest segment of the financial advisory market segmented by application, accounting for 84.9% or $91.34 billion of the total in 2022. Going forward, the semiconductor fabrication plant or foundry segment is expected to be the fastest growing segment in the semiconductor manufacturing equipment market segmented by application, at a CAGR of 6.0% during 2022-2027.

Asia-Pacific was the largest region in the semiconductor manufacturing equipment market, accounting for 87.3% or $87.92 billion of the total in 2022. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the semiconductor manufacturing equipment market will be South America and Eastern Europe, where growth will be at CAGRs of 1.3% and 0.8% respectively. These will be followed by the Middle East and Africa, where the markets are expected to grow at CAGRs of 0.6% and 0.2% respectively.

The global semiconductor manufacturing equipment market is highly concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 61.5% of the total market in 2022. ASML Holding N.V was the largest competitor with a 13.8% share of the market, followed by Lam Research Corporation with 13.0%, Tokyo Electron Limited with 11.1%, Applied Materials Inc. with 8.7%, KLA Corporation with 5.5%, SCREEN Holdings Co., Ltd. with 3.2%, Advantest Corporation with 2.8%, Canon Machinery Inc with 1.4%, Teradyne Inc with 1.2% and Hitachi, Ltd with 0.9%.

The top opportunities in the semiconductor manufacturing equipment market segmented by product type will arise in the logic segment, which will gain $78.39 billion of global annual sales by 2027. The top opportunities in the semiconductor manufacturing equipment market segmented by equipment type will arise in the front end equipment segment, which will gain $150.42 billion of global annual sales by 2027. The top opportunities in the semiconductor manufacturing equipment market segmented by dimension will arise in the 3D segment, which will gain $62.00 billion of global annual sales by 2027. The top opportunities in the semiconductor manufacturing equipment market segmented by application will arise in the semiconductor fabrication plant or foundry segment, which will gain $146.65 billion of global annual sales by 2027. The semiconductor manufacturing equipment market size will gain the most in China at $15.95 billion.

Market-trend-based strategies for the semiconductor manufacturing equipment market include development of eBeam metrology systems, introduction of AI driven automated optical inspection system, focus on developing innovative technologies to detect manufacturing defects, focus on use of compound semiconductor equipment and expansion of new semiconductor manufacturing applications.

Player-adopted strategies in the semiconductor manufacturing equipment market include focus on strengthening operational capabilities through business expansions, launch of new products and solutions, strategic investments and expanding business operations through strategic acquisitions.

To take advantage of the opportunities, the analyst recommends the semiconductor manufacturing equipment companies to focus on development of ebeam metrology systems, focus on AI driven automated optical inspection system, focus on developing innovative technologies to detect manufacturing defects, focus on use of compound semiconductor equipment, focus on expansion of new semiconductor manufacturing applications, focus on fast-growing products, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and continue to target fast-growing applications.