As per the Market Research Transparency Inc., the semiconductor production equipment market is estimated to reach US$ 152.5 billion by 2031, increasing at a 4.5% CAGR between 2023 and 2031. Specialized semiconductors are becoming increasingly important as electric vehicles gain popularity and advanced driver assistance systems (ADAS) are integrated into automobiles. To fulfill the changing needs of the automobile industry, semiconductor production equipment must be updated on a regular basis.
Investments in new manufacturing equipment can be supported by government assistance and subsidies provided to the semiconductor industry. Subsidies for R&D might also be included as part of these incentives. A recent global shortage of semiconductors underlined the importance of a reliable supply chain. Semiconductor production equipment will be in great demand as technology progresses and the automobile industry expands.
Growth Drivers in the Global Semiconductor Production Equipment Market
Continuous developments in semiconductor manufacturing processes, which entail smaller process nodes and sophisticated materials, promote chip designs that satisfy the requirements of cutting-edge technology. As smartphones, laptop computers, and smart home gadgets become increasingly popular, so does the demand for semiconductor production equipment.
Semiconductor markets are expanding as Internet of Things (IoT) devices grow across a wide range of businesses. As more IoT devices employ semiconductor components, the demand for equipment that can create high-quality semiconductor components in huge quantities is increasing. As 5G networks are deployed around the world, semiconductor components, such as those used in smartphones, cellular towers, and other 5G-enabled products, will be in great demand. As a result, semiconductor manufacturing equipment improves.
AI and machine learning are increasingly being integrated into a wide range of applications, from data centers to edge devices, necessitating the employment of specialized semiconductor components. High demand exists for equipment capable of producing semiconductors capable of handling the particular requirements of AI and machine learning applications.
Key Players in the Global Semiconductor Production Equipment Market
To remain competitive, several leading semiconductor equipment makers are investing in research and development. New raw materials, such as silicene, graphene, and germanene, are being employed to improve the efficiency and performance of chipmaking technology. They are also investing in advanced analytics as part of their drive to increasing performance.