Atomic layer deposition Market generated revenue of $3.2 billion in 2020 and is projected to grow at a CAGR of 7.8% during the forecast period 2021-2026 to reach a revenue of $4.4 billion by 2026. Atomic Layer deposition (ALD) is a thin film coating method utilized to deposit the film on a component or system in a controlled manner one atomic layer at a time. This technology has been utilized in the semiconductor industry for a number of years as the increasing size conformity requirements make this process an ideal development as traditional thin film technologies such as chemical vapor deposition (CVD), spin coating and physical vapor deposition (PVD) cannot function in nanometer scale deposits. The chemical and structural purity of ALD method has resulted in increased usage in a number of industries including electronics, chemical, healthcare, energy and mechanical applications. Atomic Layer Deposition also allows usage of sensitive substrates such as plastic or paper, which is not possible with traditional thin film coating methods. Atomic Layer deposition is utilized in applications such as manufacture of Integrated Circuits (IC), various components and devices, MEMS products as well as industrial applications. Silicon wafers form the building blocks of semiconductors, since semiconductor devices or chips are fabricated on these substrates. Growing need for semiconductor devices in industries such as consumer electronics, industrial equipment, automotive products, and healthcare equipment is fuelling the silicon wafer market growth and demand for ALD equipment.
Atomic Layer Deposition Market Segment Analysis - By End Use Application
The IC Application segment is growing at a significant CAGR of 6.4% in the forecast period to reach $1.1 billion by 2026. ALD equipment are used across industries for manufacturing electronic components such as integrated circuits (ICs), MEMS fabrication, detectors, sensors and many more Silicon wafers are widely used in different applications include consumer electronics, telecommunications, automotive, healthcare power generation, lighting, industrial and others. The growing demand for high speed, high temperature and high power capabilities has made the semiconductor industry to adopt new technologies to support the functionalities of the advanced devices. When batteries are stored or used, unwanted reactions occur inside the battery leading to degradation of battery performance. Many of these unwanted reactions, such as transition metal dissolution, lithium inventory loss, and SEI growth, can be slowed or passivated by surface coatings. The ALD process provides the best performing, most precise, reproducible, scalable, and cost-effective coating process to reduce unwanted reactions and enhance the performance of batteries. ALD can be applied to a wide variety of cathode and anode powders to produce benefits including longer cycle life, lower gas generation, slower impedance growth, and higher voltage utilization.
Atomic Layer Deposition Market Segment Analysis - By Industry Vertical
The Wafer fab equipment (WFE) industry had revenues of around $54bn in 2019, decreasing from $59bn in 2018. However the industry is expected to grow again in 2020-2021. Compared to the overall WFE industry, ALD market has been continuously growing during 2017-2020. The semiconductor industry sales are expected to increase post Covid-19 despite the market declining from $478bn in 2019 to $466bn in 2020, with the DRAM segment contributing majority share. ALD market is also set to grow higher based on the increased demand for different memory products, with companies such as Tokyo Electron leading the way in this specific segment. The COVID-19 pandemic has created volatility for the semiconductor industry, including the ALD equipment OEMs and this will cause a slight downturn of -6.2% in 2020. Healthy spending environment driven by 10nm logic and sub-10nm foundry currently is driving the ALD market growth. Companies are currently working on continued development engagements with customers on next nodes, 7nm in logic and 3nm in foundry. While the 32nm/22nm node market demand is estimated to reduce by 2024, the 7nm and below, 14n,/10nm nodes are expected to witness a heightened demand.
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Atomic Layer Deposition Market Segment Analysis - By Geography
Asia Pacific ALD Market accounted for over 71% of the global market share in 2020 while Americas, Europe and RoW held 21%, 7% and 1% respectively. The market in Americas region is estimated to grow at a faster rate with a CAGR of 9.4% during 2021-2026. Taiwan accounted for over 32% of the revenue of the Asia Pacific estimated ALD market in 2020 owing to the strong semiconductor fabrication industry in the country led by companies such as TSMC. Growing popularity of advanced electronic equipment and devices like high end laptops, gaming consoles and other smart gadgets are fueling the market for ALD market in Asia Pacific region.
Atomic Layer Deposition Market Drivers
Logic Chip/Foundry Segment Growth
In 2019, Investment by logic chip manufacturers and foundries in expanding production capacity for leading-edge technologies was robust, reflecting growth in demand for high-performance processors used in data centers and 5G smartphones. In the advanced logic sector, investments in the 10nm node increased strongly on top of continued 14nm capacity additions earlier in the year. Foundry spending on the 5nm node also increased strongly, with ongoing demand for 7nm capacity.
Growing emphasis on M2X and V2X Communication
The growing penetration of the Internet of Things across various verticals is unfolding new potential for advanced electronic components for high end communication, data transmission and high speed data processing system. The M2X communication systems in industrial sector and V2X communication in automotive sector are taking a new turn for the upcoming wave of Industry4.0 and connected cars respectively. This is paving the way for high end, complex and rugged electronic components for use in the harsh environment and this is set to avail prominent opportunity to the ALD market growth in the future
Atomic Layer Deposition Market Challenges
Technological Challenges
As the scaling of DRAM and logic chips continues and the number of layers in 3D NAND 100 increases, the use of new materials and increasingly complex device structures are creating greater technological challenges. To turn these business opportunities into growth, in the area of deposition, companies need to enhance technologies for batch, semi-batch and single wafer processes and leverage their strengths to offer optimal deposition methods while advancing the development of technologies for new materials.
Atomic Layer Deposition Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Atomic Layer Deposition market. Atomic Layer Deposition top 10 companies include Tokyo Electron, Lam Research, Kokusai, the Korean OEMs (Jusung Engineering, Wonik IPS and Eugene Technology, among others.
Acquisitions/Product Launches
In 2019, Applied Materials announced it is purchasing Kokusai for $2.2 bn, indicating a consolidation future growth strategy by major OEMs, especially in the Spatial ALD segment.
Key Takeaways
The rising demand for efficient energy usage over concerns of environmental impact of energy generation from conventional sources such as coal and natural gas, is expected to help grow the Atomic Layer Deposition market in APAC.
The inner rotor segment is growing at a significant CAGR of 9.1% in the forecast period. In inner rotor type motors, rotors are positioned at the centre and surrounded by stator winding.
Automotive sector is expected to witness a highest CAGR of 10.9% the forecast period, owing to various factors such as increase in sales of electric vehicles due to rising concerns over greenhouse gases emissions, and favourable government policies in countries such as India, China and so on.
Atomic Layer Deposition companies are strengthening their position through mergers & acquisitions and continuously investing in research and development (R&D) activities to come up with solutions to cater to the changing requirements of customers.
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