Physical Vapor Deposition Market Size & Share, by Type (Materials, Equipment, Services); Substrate; Process; End-user - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

• Growth in medical device industry - Medical devices requires coatings that are biocompatible, resistant to corrosion, and capable of withstanding sterilization processes. PVD coatings, such as chromium nitrite (CrN), titanium aluminum nitride (TiAIN), and titanium boron nitride (TiBN), meet these requirements, making them suitable for implants and surgical instruments.
  
  Moreover, leading medical device manufacturers are increasingly adopting PVD technology to meet higher performance standards and regulatory requirements. This adoption is driven by the benefits of PVD coatings in extending device lifespan and improving patient outcomes. For instance, Kurt J. Lesker Company manufactures a wide range of PVD thin film deposition devices for diverse medical device applications. The devices include TORUS Mag Keeper, TORUS Circular HV, and PRO Line PVD 75 to optimize system base pressures, automate substrate loading, and decrease pump down times, thereby, improving patient outcomes.
• Expansion of the solar energy sector - PVD is a key technology in the production of thin films and coatings used in solar panels. As solar energy adoption increases, the demand for efficient and durable photovoltaic cells rises, thus, driving the need for PVD techniques. Additionally, governments and private sectors are investing in solar and other renewable energy technologies. This investment often includes funding for advanced manufacturing technologies such as PVD.
  
  Fundings and investments in the solar sector have fostered R&D in PVD technologies, For instance, a 2024 report published by the International Energy Agency (IEA) stated that the global investment in the manufacturing of five important clean energy technologies—solar PV, wind, batteries, electrolyzers, and heat pumps—increased by more than 70% from 2022 to USD 200 billion in 2023, accounting for almost 4% of global GDP growth.
• Increasing production of automobiles - Automobiles increasingly use PVD coatings for enhanced durability, aesthetics, and the overall performance of various components, such as engine parts, exterior trims, and wheels. As automobile production increases, the demand for advanced coatings on parts and components also. rises. As per the International Organization of Motor Vehicle Manufacturers (OICA), the estimated world vehicle motor production in 2023 was approximately 93.5 million units. Moreover, as car manufacturers push for more advanced and efficient vehicles, including hybrid and electric models, the need for specialized coatings can further drive physical vapor deposition market.

Challenges

• Varying cost of raw materials – PVD processes require materials such as copper, titanium, zirconium, stainless steel, and aluminum. The prices of these raw materials can be volatile due to factors such as supply chain disruptions, geopolitical issues, or change in mining regulations. Increase in raw material cost lead to higher production expenses for PVD equipment and coatings. This may result in higher prices for end-users, potentially slowing down adoption in cost-sensitive industries or applications.
• Lack of competent workforce – PVD technology is complex and requires specialized skills in material science, engineering, and precise manufacturing techniques. A shortage of skilled professionals, including engineers and technicians, can limit the ability of companies to develop, maintain, and improve PVD systems.