The global physical vapor deposition (PVD) market size was estimated at USD 23.5 billion in 2021 and it is expected to surpass around USD 47.7 billion by 2030 with a registered CAGR of 8.18% during the forecast period 2022 to 2030.
Key Takeaways:
Growth Factors
The rapidly rising demand for thin-film coating in decorative applications and in various end-use verticals like the microelectronics industry is boosting the growth of the global physical vapor deposition market. The rapidly rising demand for various consumer electronics such as desktops, laptops, and smartphones across the globe owing to the rising penetration of digital services and the internet is significantly driving the global physical vapor deposition market. The rising popularity of remote working or work from home trends across the globe and the rapid IT and telecommunications industry is boosting the demand for laptops, desktops, and mobile phones at an aggressive rate. This burgeoning demand for the electronic devices is expected to have a significant and positive impact on the global physical vapor deposition market growth during the forecast period. The rapidly growing healthcare industry owing to the surging prevalence of various chronic diseases and the rising geriatric population across the globe is expected to boost the demand for the physical vapor deposition market.
The physical vapor deposition coating is extensively used in medical equipment as decorative coating and the higher biocompatibility of the physical vapor deposition coating allows its application in medical equipment. Therefore, the rising demand for medical equipment in hospitals, clinics, and surgical centers across the globe is expected to drive the global physical vapor deposition market. Furthermore, the rising adoption of solar power is surging the demand for solar panels globally. The PVD coating is used in the production of solar panels as it makes the solar panels corrosion-resistant and increases the life of the panels. The PVD coating is also expected to have a significant demand for the production of next-generation perovskite-crystalline silicon cells in the forthcoming years and augment the market growth in the upcoming future.
Scope of the Physical Vapor Deposition (PVD) Market
| Report Coverage | Details |
| Market Size in 2022 | USD 25.42 Billion |
| Market Size by 2030 | USD 47.7 Billion |
| Growth Rate from 2022 to 2030 | CAGR of 8.18% |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Category, Application, Substrate, Process, End-User, and Geography |
| Companies Mentioned | Advanced Energy Industries, Inc., AJA International, Inc., Angstrom Engineering, Inc., Applied Materials, Inc., CHA Industries, Intevac, Inc., Denton Vacuum, OC Oerlikon Management AG, IHI HAUZER B.V., Impact Coatings AB |
Segments Insight
Category Insights
Based on the category, the PVD equipment segment dominated the global PVD market, accounting for a market share of around 59% in 2021. The surface coating companies are seeking to eliminate carbon emissions and adopt eco-friendly processes. The PVD offers the benefits of a low carbon footprint and hence the demand for PVD equipment is extensively high in surface coating companies across the globe. The PVD coating is achieved by adopting quality equipment that allows the user to streamline the processes. The manufacturers are engaged in the development of application-specific PVD equipment for decorative coatings, high-estimate tool coatings, automotive components and large die and broaches, which is anticipated to boost the growth of the global PVD market in the forthcoming future.
Moreover, the physical vapor deposition market players are engaged in the development of magnetron sputtering systems that are used in the deposition of various films on wafers such as gold, platinum, aluminum alloys, aluminum, and tungsten. This factor is anticipated to further drive the growth of the PVD equipment segment in the global physical vapor deposition market.
On the other hand, PVD services are expected to be the fastest-growing segment with a CAGR of around 6.6% during the forecast period. The PVD equipment is expensive and hence there is a high demand for PVD coating services in the market. Furthermore, the PVD companies provide skilled and experienced PVD equipment operators that offer specialized output to the customers, and hence the demand for PVD services is expected to foster during the forecast period.
Application Insights
Depending on the application, the microelectronics segment dominated the global PVD market and accounted for a revenue share of around 37% in 2021. This is attributed to the rising demand for physical vapor deposition in packaging materials. The PVD coating facilitates the coated materials to merge with a wide range of applications in the microelectronics industry and hence, the demand for PVD is expected to rise significantly in the upcoming years.
The PVD is extensively used in the production of the magnetic disk, which is an essential component of hard disk drives. The rising importance of digital technology, growing penetration of artificial intelligence, big data analytics, and the internet of things is driving the demand for data storage, which is expected to contribute significantly to the growth of the global PVD market.
The solar products segment is expected to witness strong CAGR growth during the forecast period. The rising government initiatives to tackle the depleting fuel resources and control carbon emission is significantly driving the demand for solar power. As a result, the demand for solar panels across the globe is increasing rapidly. The PVD coatings helps the solar panels to extend its life and add corrosion-resistant properties. The rising demand for solar panels is expected to boost the demand for PVD coating during the forecast period.
Physical Vapor Deposition (PVD) Market Share, By Region, 2021 (%)
| Regions | Revenue Share in 2021 (%) |
| North America | 18.6% |
| Asia Pacific | 46% |
| Europe | 28.6% |
| Latin America | 4.4% |
| MEA | 2.4% |
Regional Insights
Asia Pacific captured a market share of around 46% in 2021 and dominated the global PVD market. Asia Pacific is one of the largest producers of solar panels, automotive vehicles, microelectronics, and consumer electronics in the globe. The presence of a huge number of manufacturing facilities of various products like medical devices, vehicles, and electronic components has significantly fostered the demand for PVD in the Asia Pacific, which led to the dominance of this region in the global physical vapor deposition market. The rapid industrialization in the region resulted in higher pollution levels and climate change issues. This has shifted the focus of the government towards developing and shifting to solar energy sources that have significantly driven the demand for the solar panels. Moreover, the rising volume of medical equipment and electric vehicle manufacturing in a nation like China is expected to offer huge growth opportunities to the market players in the forthcoming future. The presence of several top electronic manufacturers in the region such as Samsung, MI, and Baja is expected to boost the demand for the PVD during the forecast period.
North America is estimated to be the most opportunistic market during the forecast period. The rising prevalence of diseases and rapidly ageing population in the US is significantly driving the demand for numerous medical equipment for diagnosis and treatment. Therefore, the rising demand for medical equipment in US is expected to significantly boost the demand for the PVD coatings in the region. Furthermore, the rising adoption of automotive vehicles or electric vehicles in the region is another major factor behind the growing adoption of the PVD in North America.
Key Market Developments
Segments Covered in the Report
(Note*: We offer reports based on sub-segments as well. Kindly, let us know if you are interested)
By Category
By Application
By Substrate
By Process
By End User
By Geography
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