The atomic layer deposition (ALD) equipment market is expected to grow significantly over the forecast period, driven by the increasing demand for high-speed, reliable connections in data centers and telecommunications networks. The market is expected to reach USD 6.2 billion by 2028, growing at a CAGR of 10.0% during the forecast period.

Key Drivers and Restraints

Driver: Rising Number of 3D NAND SSDs
The growing trend of miniaturization in electronic devices, coupled with advancements such as 3D NAND memory and FinFET-based transistor devices, has generated a heightened demand for the precise deposition of conformal thin films. Therefore, ALD plays a crucial role in the miniaturization of electronic devices as it enables the deposition of materials with exceptional conformality even at temperatures around 400°C. Moreover, ALD provides a valuable means to achieve high-quality thin films, essential for optimizing the performance and efficiency of these cutting-edge technologies. Therefore, the increasing number of 3D NAND SSDs is expected to drive the market growth for ALD equipment.

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Restraint: Shortage of Trained Workforce
The increasing demand for semiconductor devices from many end user industries, such as consumer electronics and automotive, has created several opportunities for the market players. However, the shortage of skilled technicians for such complex processes has not enabled the market players to utilize these opportunities to the fullest. So, the need for highly skilled workers to carry out these complicated tasks is a big problem that may restrain ALD equipment market growth.

Market Trends and Insights

Rising Technical Challenges and Process Complexities
Manufacturing semiconductors demands an extremely clean environment and equipment. Even a tiny speck of dust can disrupt the process and lead to significant financial losses. If there are manufacturing mistakes that cause supply delays, it can result in more losses and even canceled orders. Common problems in semiconductor manufacturing involve issues with the materials, mechanical strength, and the chips. Therefore, the increasing technical difficulties and process complexities in semiconductor manufacturing may impede the market growth of ALD equipment.

Escalating Need for Photovoltaic Systems
Photovoltaics are integrated into solar cells; the growing demand for solar cells contributes to the growing deployment of photovoltaics, which is expected to drive the market growth for ALD equipment. ALD films are also used in solar cells as surface passivation layers, buffer layers, window layers, absorber layers, and hole/electron contact, which can further drive the market growth of ALD equipment. Moreover, the health and environmental advantages of adopting photovoltaic power are particularly significant in densely populated areas heavily reliant on coal power, in contrast to sparsely populated regions abundant in clean hydropower or wind energy. Consequently, the surging demand for photovoltaics has led to an increased deployment of ALD equipment, which is expected to drive the market growth of ALD equipment in the future.

Market Analysis and Forecast
The ALD equipment market is expected to grow at the highest CAGR in the Asia Pacific region during the forecast period. The Asia Pacific region has witnessed significant growth in data center infrastructure due to the rising demand for cloud computing, digital services, and e-commerce. With the deployment of 5G networks in the Asia Pacific countries, high-speed, low-latency communication links are essential.

Competitive Landscape
The prominent players in the ALD equipment market are ASM International N.V. (Netherlands), Tokyo Electron Limited. (Japan), Applied Materials, Inc. (US), LAM RESEARCH CORPORATION. (US), and Veeco Instruments Inc. (US). These companies perform organic and inorganic growth strategies such as product launches, partnerships and acquisitions, to expand themselves globally by providing new and advanced ALD equipment solutions.