Semiconductor Capital Equipment Market size was over USD 86.72 billion in 2024 and is likely to reach USD 211.54 billion by the end of 2037, growing at around 7.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of semiconductor capital equipment is assessed at USD 91.65 billion. The increasing demand for digitalization in different sectors of industry, and the use of the Internet of Things (IoT) for digital devices. Around the globe, there are over 13 billion connected Internet of Things devices. By 2030, an estimated 25.4 billion devices for the Internet of Things are expected. In 2020, the number of Internet of Things devices exceeds that of non-IoT devices. The number of active Internet of Things platforms is over 400.
In addition, a major opportunity for semiconductor capital equipment manufacturers is expected to be provided by the rapid growth of the consumer electronics market. In order to satisfy the growing demand of this expanding market, it is important for chip manufacturers to have high quality equipment.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.1% |
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Base Year Market Size (2024) |
USD 86.72 billion |
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Forecast Year Market Size (2037) |
USD 211.54 billion |
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Regional Scope |
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Type (Assembly Equipment, Automated Test Equipment, Wafer Level Manufacturing Equipment)
The wafer level manufacturing equipment segment is expected to account for 40% share of the global semiconductor capital equipment market during the forecast period. The major factor which is expected to drive demand for semiconductor capital equipment over the coming years is the cost-effectiveness of wafer level production equipment. Moreover, a number of advantages are offered by this approach compared with traditional methods, such as a reduction in costs and increased production efficiency. The increasing number of semiconductor producers using the wafer level manufacturing process, which is leading to increased demand for equipment manufactured in this process. In the following years, it is planned that this trend towards higher level wafer production will continue. Global sales of semiconductors exceeded USD 619.00 billion in 2022, and have risen more than 30% over the past two years.
Industry Verticals (Consumer Electronics, Healthcare, Automotive, IT Telecommunication)
Semiconductor capital equipment market from the consumer electronics segment is projected to have largest revenue share of about 48% by the end of 2037. Semiconductor capital equipment sales have grown due to the increasing demand for consumer electronics such as mobile phones, laptops and other devices. This equipment is intended to produce semiconductors which are extremely small electronic components and have wide application in a variety of consumer electronics. The equipment to make the parts that are going in them is increasingly needed, driven by growing demand for mobile phones. It is thus that, by ensuring the continued supply of those essential components to meet increasing demand, investment and innovation in the semiconductor industry has driven this trend.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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Industry Verticals |
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APAC Market Forecast
Semiconductor capital equipment market is projected to hold 34% of the revenue share by 2037. The demand for chip production equipment in the region can be increased by the growing domestic market for semiconductors and other devices. Manufacturers are gaining an opportunity to increase their production capacity in view of increasing demand for smartphones in region. The adoption rate of mobile phones in the Asia Pacific region reached 76 per cent by 2022, which represented a slight increase from 64 per cent in 2019. In Asia, more than 90 per cent of smartphones are expected to be adopted by 2030. The companies will also be able to develop themselves as leading players in the electronics sector, due to a growing national market. This can provide a favorable feedback loop that leads to additional demand for semiconductor capital equipment in region, thereby leading to increased investment in this industry and domestic market growth.
North American Market Statistics
The semiconductor capital equipment market in North America is predicted to hold second largest share of about 28% by the end of 2037. The demand for capital equipment in the field of semiconductors is being driven by the deployment of 5G technology. A large number of semiconductors like microchips and transistors are required for the 5G technology to work. This has led to a significant increase in investment in the production of these components. New opportunities for development in advanced technology like autonomous cars, VR (Virtual Reality) and the Internet of Things have opened up due to 5G's increased adoption which means even more semiconductors and capital equipment is needed.
Author Credits: Abhishek Verma
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