Semiconductor Equipment Market Is Estimated To Witness High Growth Owing To Increasing Demand For Electronic Devices.
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| Semiconductor Equipment Market |
Semiconductor equipment are electronic measurement
instruments and component used in the design, development, fabrication and
testing of semiconductors, electronic integrated circuits and electronic
devices. The key equipment includes wafer fabrication equipment, packaging and
assembly equipment, test equipment, process control and metrology equipment.
Semiconductor equipment help deliver high-performance and energy-efficient
devices with greater functionality to support various end-use applications.
There is increasing demand for electronic devices such as smartphones, laptops,
tablets and TVs which is expected to drive the demand for semiconductor
equipment.
The
global Semiconductor Equipment Market is estimated to be valued at US$ 83.3 Bn in 2023 and is expected to
exhibit a CAGR of 6.0% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Opportunity:
Increasing demand for electronic devices.
The demand for consumer electronic devices such as smartphones, laptops,
tablets, TVs, gaming consoles and accessories have increased significantly over
the past few years. Semiconductors are integral components in these electronic
devices which are driving their demand. Consumer electronics segment accounted
for more than 50% of the total semiconductor demand in 2021. As electronic
technologies become more advanced, powerful and affordable, their adoption and
penetration is expected to increase at a robust pace in the coming years. This
increasing demand for electronic devices from consumers worldwide is expected
to significantly drive the demand for semiconductor equipment during the
forecast period. Key players will be able to leverage this market opportunity
of increasing demand for electronic devices by expanding their production
facilities and capabilities of semiconductor equipment to manufacture large
volumes of semiconductors.
Threat of new entrants: The threat of new entrants is moderate as the
semiconductor equipment market requires huge R&D investments and capital
costs to develop new technologies. However, new startups with innovative
technologies pose a threat.
Bargaining power of buyers: The
bargaining power of buyers is moderate to high as major semiconductor
manufacturers purchase in large volumes and demand better quality, service, and
pricing from equipment providers.
Bargaining power of suppliers: The
bargaining power of suppliers is low as there are numerous component suppliers
for semiconductor equipment. Switching costs are also low.
Threat of new substitutes: The threat of new substitutes is low as
semiconductor equipment have no close substitutes and are essential for chip
manufacturing.
Competitive rivalry: Competitive rivalry is high given the presence of
numerous global players offering similar products and technologies. Players
compete on innovation, quality, and pricing.
SWOT Analysis
Strength: Semiconductor equipment
have applications across diverse industries. Major players have strong R&D
capabilities and financial resources.
Weakness: Huge capital investments,
long product replacement cycles, and dependence on semiconductor market cycles
are weaknesses.
Opportunity: Rising demand for
semiconductors from smartphones, data centers, automotive, and other industries
present growth opportunities. Advancing technologies such as 5G, IoT, and AI
will spur demand.
Threats: Trade restrictions,
geopolitical issues, and fluctuations in semiconductor demand amid economic
slowdowns are threats. Increased competition from local players in Asia also
poses threats.
Key Takeaways
The Global
Semiconductor Equipment Market Analysis is expected to witness high
growth supported by increasing demand for semiconductors across diverse
industries.
Regional
analysis: Asia Pacific will continue dominating the market with over 70% share
through 2030. China, Taiwan, South Korea and Japan have emerged as major hubs
for chip design and manufacturing. Countries are making huge investments to
strengthen semiconductor supply chains. North America and Europe are other
major regions driven by presence of semiconductor giants and high spend on
R&D activities.
Key players: Key sight Technologies is a leader in electronic measurement
solutions. Fluke Corporation offers test and measurement instruments. Rohde
& Schwarz manufactures wireless communications test systems. Yokogawa
Electric Corporation provides R&D, production monitoring, and maintenance
testing solutions for semiconductor industry. Agilent Technologies provides
electronic measurement instruments and systems. Anritsu Corporation provides 5G
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