June 24, 2016, anysilicon
According to the latest market research report by Technavio, the global semiconductor capital equipment marketis expected to reach USD 47.34 billion mark by 2020.
In this report, Technavio covers the present scenario and growth prospects of the global semiconductor capital equipment market education market for 2016-2020. To calculate the market size, the report considers the revenue generated from each equipment of the semiconductor production process.
The electrification and automation of automobiles have led to the increasing need for semiconductor wafers. Different types of semiconductor ICs are used in a number of automotive products like navigation control, infotainment systems and collision detection systems. There is also a growing demand for hybrid and electric vehicles (HEVs) with increased environmental awareness and emissions legislations. The demand for driverless and smart cars will generate demand for advanced sensors over the next four years.
“With advances like the emergence of 3D and ultra-high definition (UHD) TVs and hybrid laptops in the consumer electronics sector, the demand for semiconductor ICs will further increase during the forecast period. This rise in demand for semiconductor ICs will, in turn, generate demand for semiconductor devices,” said Asif Gani, one of Technavio’s lead industry analysts for semiconductor equipment.
“Technavio researchers expect the semiconductor market to grow at a CAGR of 6.42% during the forecast period. The increase in sales of microelectronics and consumer electronic devices is anticipated to support the growth of the semiconductor market,” added Asif.
Global semiconductor capital equipment market by geography 2015-2020 (% share)
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In 2015, APAC accounted for USD 27.86 billion of the total revenue. A number of semiconductor foundries such as TSMC, Samsung, and SMIC are present in APAC. These foundries are driving the semiconductor capital equipment market in this region.
Taiwan is one of the key countries in the region that is creating maximum demand for semiconductor equipment. In 2015, fab equipment spending in Taiwan was above USD 10 billion, which was above 25% of the total industry spending on wafer fab equipment. South Korea and Japan are the other key contributors to the market because of the presence of different semiconductor manufacturing units.
North America was the second-largest revenue contributor to the market in 2015 and generated USD 7.23 billion revenue for the same year. The increase in the automotive market of the US and the shipments of communication devices, such as smartphones and phablets, have been driving the production of semiconductor ICs in the region. The presence of few prominent semiconductor manufacturers like GlobalFoundries and Intel that fabricate wafers of sizes 200 nm and 300 nm have been creating demand for semiconductor capital equipment in the region. GlobalFoundries is planning to expand Fab 8.2 during the forecast period. We expect Intel to expand its facilities post 2016, creating demand in the region.
In 2015, the Europe market accounted for USD 2.8 billion revenues. Europe will grow at a relatively low rate compared to other regions because of less number of semiconductor foundries and IC manufacturers in this region. Some of the semiconductor manufacturing companies in this region are Infineon Technologies, NXP Semiconductors, and STMicroelectronics, which are contributing to the revenue from this region.