Physical Vapor Deposition Market Opportunities and Strategies to 2033

This report describes and explains the physical vapor deposition market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global physical vapor deposition market reached a value of nearly $21.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.36% since 2018. The market is expected to grow from $21.4 billion in 2023 to $31.9 billion in 2028 at a rate of 8.25%. The market is then expected to grow at a CAGR of 9.08% from 2028 and reach $49.2 billion in 2033.

Growth in the historic period resulted from the growth of the automotive industry, increasing demand in the semiconductor industry, rising medical device manufacturing and increasing demand for consumer electronics. Factors that negatively affected growth in the historic period include a lack of raw materials and economic uncertainties or downturns.

Going forward, the growth in renewable energy sector, increasing industrialization, strong economic growth in emerging markets and favorable government initiatives will drive the market. Factors that could hinder the growth of the physical vapor deposition market in the future include a lack of skilled workers.

The physical vapor deposition market is segmented by type into PVD equipment, PVD materials and PVD services. The PVD equipment market was the largest segment of the physical vapor deposition market segmented by type, accounting for 55.14% or $11.8 billion of the total in 2023. Going forward, the PVD services segment is expected to be the fastest growing segment in the physical vapor deposition market segmented by type, at a CAGR of 9.33% during 2023-2028.

The physical vapor deposition market is segmented by process into thermal evaporation, arc evaporation and sputter deposition. The sputter deposition market was the largest segment of the physical vapor deposition market segmented by process, accounting for 47.18% or $10.1 billion of the total in 2023. Going forward, the sputter deposition segment is expected to be the fastest growing segment in the physical vapor deposition market segmented by process, at a CAGR of 8.71% during 2023-2028.

The physical vapor deposition market is segmented by application into microelectronics, data storage, solar products, cutting tools, medical equipment and other applications. The microelectronics market was the largest segment of the physical vapor deposition market segmented by application, accounting for 33.59% or $7.2 billion of the total in 2023. Going forward, the solar products segment is expected to be the fastest growing segment in the physical vapor deposition market segmented by application, at a CAGR of 9.97% during 2023-2028.

Asia-Pacific was the largest region in the physical vapor deposition market, accounting for 39.72% or $8.5 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the physical vapor deposition market will be Asia-Pacific and Africa, where growth will be at CAGRs of 9.49% and 9.08% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 8.59% and 7.98% respectively.

The global physical vapor deposition market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 23.40% of the total market in 2023. Applied Materials, Inc was the largest competitor with a 8.36% share of the market, followed by OC Oerlikon group with 5.00%, Kobe Steel Ltd with 2.56%, Voestalpine AG with 2.54%, ULVAC Inc with 1.49%, Mitsubishi Materials Corporation with 1.29%, Sumitomo Electric Industries Ltd with 0.81%, HEF Group with 0.73%, Veeco Instruments Inc with 0.31% and Singulus Technologies AG with 0.31%.

The top opportunities in the physical vapor deposition market segmented by type will arise in the PVD equipment segment, which will gain $5.3 billion of global annual sales by 2028. The top opportunities in the physical vapor deposition market segmented by process will arise in the sputter deposition segment, which will gain $5.2 billion of global annual sales by 2028. The top opportunities in the physical vapor deposition market segmented by application will arise in the microelectronics segment, which will gain $3.5 billion of global annual sales by 2028. The physical vapor deposition market size will gain the most in China at $2.8 billion.

Market-trend-based strategies for the physical vapor deposition market include focus on development of advanced arc technology for enhanced efficiency and remote management, introduction of advanced PVD sputtering systems for fuel cell production efficiency, focus on semiconductor manufacturing with ion beam technology, innovations in surface technologies to enhance PVD coatings for business jet engine components and transforming energy infrastructure with the significance of floating regasification barges.

Player-adopted strategies in the physical vapor deposition market include focus on expanding business operations through new product developments and strengthening business operations through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the physical vapor deposition companies to focus on developing advanced ARC technology, focus on advanced PVD sputtering systems for fuel cells, focus on ion beam technology for semiconductor manufacturing, focus on expanding innovations in aerospace surface technologies, focus on expanding floating regasification solutions for ammonia, focus on PVD services market segment, expand in emerging markets, continue to focus on developed markets, focus on expanding strategic partnerships, provide competitively priced offerings, continue to use B2B promotions, focus on trade shows and partnerships and focus on targeting solar products manufacturers.