Photolithography Equipment Market Report 2026

The photolithography equipment market size has grown strongly in recent years. It will grow from $13.57 billion in 2025 to $14.78 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to growth in semiconductor device miniaturization, expansion of consumer electronics manufacturing, rising demand for high performance chips, increased investment in wafer fabrication plants, advancements in photomask technologies.

The photolithography equipment market size is expected to see strong growth in the next few years. It will grow to $21.28 billion in 2030 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to growth in AI and high performance computing chips, expansion of electric vehicle semiconductor demand, increasing investments in advanced fabs, rising adoption of EUV processes, demand for next generation logic and memory devices. Major trends in the forecast period include increasing adoption of extreme ultraviolet lithography systems, rising demand for advanced node semiconductor manufacturing, growing focus on precision and overlay accuracy, expansion of front end wafer fabrication capacity, increasing investment in high throughput lithography tools.

The growing semiconductor industry is expected to propel the growth of the photolithography equipment market going forward. The semiconductor industry is a vital sector that encompasses the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. Photolithography equipment is used to create complex circuit patterns on semiconductor wafers, which are then used to manufacture integrated circuits. It also enables the creation of highly precise patterns, ensuring that semiconductor devices are manufactured with accurate dimensions and performance characteristics. For instance, in November 2023, according to the Semiconductor Industry Association, a US-based trade association representing the United States semiconductor industry, global semiconductor sales for September 2023 increased by 1.9% compared to August 2023. Additionally, worldwide sales of semiconductors totaled $134.7 billion during the third quarter of 2023, an increase of 6.3% compared to the second quarter of 2023. Therefore, the growing semiconductor industry is driving the growth of the photolithography equipment market.

Major companies in the photolithography equipment market are focused on developing cutting-edge systems, such as immersion lithography systems, to address challenges in 3D semiconductor manufacturing and gain a competitive edge in the market. An immersion lithography system is a semiconductor manufacturing tool where a liquid, typically water, is used as an optical medium between the projection lens and the wafer during exposure. For instance, in December 2023, Nikon Corporation, a Japan-based manufacturer and distributor of optical instruments, launched the NSR-S636E ArF immersion scanner, a cutting-edge immersion lithography system designed for critical layers in semiconductor manufacturing. This scanner offers superior overlay accuracy and ultra-high throughput, making it ideal for diverse structures, including 3D semiconductor devices. With an enhanced inline Alignment Station (iAS) for advanced wafer measurement and correction capabilities, it addresses challenges in 3D semiconductor manufacturing, ensuring high precision and improved overlay performance without compromising productivity.

In June 2023, IMEC vzw, a Belgium-based research hub for nanoelectronics and digital technologies, partnered with ASML Holding N.V. to advance semiconductor research and development. Through this partnership, IMEC vzw and ASML Holding N.V. aim to accelerate innovation in next-generation semiconductor lithography by combining IMEC’s expertise in micro- and nanoelectronics research with ASML’s advanced lithography technology, enabling faster development of smaller and more efficient semiconductor devices. ASML Holding N.V. is a Netherlands-based manufacturing company specializing in designing and producing photolithography systems for the semiconductor industry.

Major companies operating in the photolithography equipment market are Canon Inc., Applied Materials Inc., ASML Holding NV, ZEISS Group, KLA Corporation, Nikon Corporation, JEOL Ltd., Onto Innovation Inc., Vecco Instruments Inc., NuFlare Technology Inc., EV Group, NIL Technology ApS, Holmarc Opto-Mechatronics Pvt Ltd., Orthogonal Inc., Microfab Service GmbH, microfab Service GmbH, S-Cubed Inc., Eulitha AG, Eulitha AG, Osiris International GmbH, Rudolph Technology & Associates, Shanghai Micro Electronics Equipment (Group) Co. Ltd. (SMEE), Orthogonal Inc.

North America was the largest region in the photolithography equipment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the photolithography equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the photolithography equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The photolithography equipment market consists of sales of mask aligners, steppers, direct writing tools, and wafer inspection tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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