Semiconductor Manufacturing Equipment Market Trends

Growth Drivers

• Growing Trend of Electric and Hybrid Vehicles – Manufacturers of electric and hybrid vehicles use semiconductors for various parts and components of the vehicles such as sensors and microcontrollers. Thus, the emergence of electric and hybrid mobility along with the requirement for AI-based automotive systems is estimated to generate favorable opportunities for market expansion. The International Energy Agency (IEA) stated the global sales of electric cars in 2021 soared up to 6.6 million, bringing the total number of electric cars on the road to 16.5 million.
• Emergence of 5G Technology and IoT Devices – Penetration of the 5G network has increased wireless communication, ultra-fast speeds, low latency, and high reliability of IoT (Internet of Things), augmented reality, mission-critical services, cloud solutions, and others. This factor is anticipated to favor the growth of the semiconductor manufacturing equipment market in the upcoming years for the smooth functioning of the devices and networks. The number of 5G subscriptions around the world is estimated to reach 6 billion by 2027.
• Increased Demand for Semiconductors – Almost every electronic including computers, laptops, mobile phones, tablets, televisions, video games, kitchen appliances, and others includes semiconductors. This factor is anticipated to expel the semiconductor manufacturing equipment market value in the forecasted timeline. In 2022, global semiconductor sales reached around USD 620 billion.
• Rise in Digital Supply Chain – A digitalized supply chain uses data analytics and digital technologies that smoothens the process and improves performance through the use of semiconductor which subsequently helps in semiconductor manufacturing equipment market expansion in the future.

Challenges

• Rising Complexity of Patterns and Functional Defeats in Semiconductor Chips – The production process of semiconductors requires a highly clean room and equipment as even one tiny dust particle can hamper the overall semiconductor manufacturing setup. Also, the reduced size and increased complexity of semiconductor chips have resulted in the complexity of the design. This factor is anticipated to hinder market growth in the forecast period.
• Lack of Skilled Workforce Around the World
• Disruption in Supply Chains