Automotive industry drives production equipment growth
The "Global Semiconductor Production Equipment Market Size, Share & Industry Trends Analysis Report By Dimension, By Supply Chain Process, By Product Type, By Function, By Regional Outlook and Forecast, 2022-2028" report has been added to ResearchAndMarkets.com's offering.
The Global Semiconductor Production Equipment Market size is expected to reach $153.8 billion by 2028, rising at a market growth of 9.2% CAGR during the forecast period.
The semiconductor industry is expanding quickly, which is helping to boost sales of modern semiconductor production equipment and propel the market upward. Consumers' rising desire for electronic gadgets drives the demand for chips, which is anticipated to indirectly raise the requirement for semiconductor production equipment.
The demand for consumer electronics is rising globally, which can be linked to the growing necessity for user-friendly electronic products as well as the expanding residential sector. For example, MEMS, optoelectronics, and MOEMS devices are used in the mass manufacturing of electronic items, including wearables, smartphones, and white goods.
Due to the delicate nature of semiconductor processing, precise supervision of automated steps, including cutting, drying, washing, etching, and assembly, as well as total control over working parameters like temperature and humidity, are required.
A solution for improved control of these parameters, along with other automated processes, and the environment where semiconductors are made, is provided by semiconductor production equipment.
Semiconductor production equipment provides numerous advantages like improved production, greater output & dependability, fewer production & design errors, decreased process & equipment downtime, and enhanced workplace security.
Growing demand for consumer electronics worldwide
The increasing demand for semiconductor chips from producers of consumer electronics, medical devices, and sensor systems is driving the rise of the semiconductor business. Since more people are using consumer electronics like cell phones, laptops, televisions, and other devices, the industry is growing.
The need for production equipment is expected to rise because semiconductors are crucial to many sectors related to consumer electronic products, including telecommunications, information technology, machine automation, power & solar photovoltaic, and others. Rising digital content and improved connectivity, as well as mobility in the coming years, will further promote market expansion.
Rising semiconductor usage in the automotive industry
The automotive industry continues to be a significant source of demand as well as a source of potential for semiconductor vendors, despite recent recessions and demand variations. Trends like the rise in demand for autonomous & electric vehicles and the increasing number of semiconductor components per vehicle are key motivators for semiconductor manufacturers. As more semiconductor components, such as sensors, microcontrollers, and radar chips, are utilized in automobiles, the market for semiconductor production equipment expands.
Market Restraining Factors
High costs of machines and interruptions to the supply chain
The supply chain for the semiconductor production equipment market has a large number of participants. However, the coronavirus pandemic significantly hindered the market's supply chain. The locations of semiconductor production plants must be in tidy areas. Moreover, there should be no flaws in the equipment supplied for making semiconductors. Most importantly, semiconductor equipment is expensive and requires a significant upfront investment. Machine price volatility is anticipated to impede market expansion.
