Epitaxy Equipment Market Size (2024 - 2029)

The Epitaxy Equipment Market is anticipated to experience significant growth, driven by the increasing adoption of new LED devices and their expanding applications in the power industry and wireless communications. The market's expansion is further supported by the rising use of alternative non-silicon-based substrates, such as GaAs, GaN, SiC, and InP, which are gaining traction in power electronics due to their wide-bandgap properties. Despite challenges posed by the COVID-19 pandemic, which initially impacted silicon wafer sales and production capacities, a recovery is expected, particularly with potential global stimulus measures.

Market Size of Epitaxy Equipment Industry

Epitaxy Equipment Market Overview
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 20.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Epitaxy Equipment Market Major Players

*Disclaimer: Major Players sorted in no particular order

Epitaxy Equipment Market Analysis

The Epitaxy Equipment Market is expected to grow at a CAGR of 20% during the forecast period 2021 - 2026. The growth of the market can be attributed to the continuous introduction of new LED devices and their growing applications in power industry.

  • Further, they are being increasingly used in wireless applications like satellite communication. AIXTRON SE provided Sumitomo Electric Device Innovations, Inc.with an AIX G5+ tool with 8x6-inch wafer configuration in order to expand the production capacity of GaN-on-SiC radio frequency (RF) devices for aiding the growth of rapidly expanding 5G mobile networks.
  • The growth of alternative non-silicon-based substrates such as GaAs, GaN, SiC and InP are creating new avenues for the market. Moreover, wide-bandgap materials like SiC substrates are being increasingly deployed in the power electronics market. Power consumption reduction is necessary for electrification of transportation, renewable energy, motor drives and power supply applications.
  • The outbreak of the novel coronavirus, is expected to negatively affect silicon wafer sales in the second half of 2020 with possible effects on price negotiations in 2021. China's small-diameter silicon wafer facilities have been affected as utilization dropped between 30 percent and 50 percent in February. By the end of March, however the utilization rate at Chinese silicon wafer manufacturers has recovered to around 80 percent. Taking into account the Chinese recovery, we project a V-shaped recovery for the market, if proper stimulus packages are announced by the markets across the globe.

Epitaxy Equipment Industry Segmentation

Epitaxy is commonly done through chemical vapor deposition, which is basically a process that forms a non-volatile solid film on a substrate from reactions of the appropriate chemical vapors. The market has been segmented on the basis of application and geography.

Technology
MOCVD
HT CVD
MBE
Application
Photonics
Semiconductor
Wide-bandgap Material
Others
Geography
North America
Europe
Asia-Pacific
Rest of the World
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Epitaxy Equipment Market Size Summary

The epitaxy equipment market is poised for significant expansion, driven by the increasing demand for LED devices and their applications in various sectors, including power and wireless communications. The market is experiencing a shift towards non-silicon-based substrates such as GaAs, GaN, SiC, and InP, which are gaining traction in power electronics due to their efficiency in reducing power consumption. The deployment of wide-bandgap materials like SiC substrates is particularly notable in the electrification of transportation and renewable energy sectors. The COVID-19 pandemic initially disrupted silicon wafer sales, particularly in China, but a recovery is anticipated, supported by global stimulus measures. The market's resilience is further bolstered by advancements in LED technology, with epitaxial wafers playing a crucial role in the development of high-performance lighting solutions and specialized UV and IR LEDs.

Regionally, Taiwan is emerging as a dominant player in the epitaxy equipment market, with China and Korea following closely. The recovery in these regions is driven by new projects and increased demand for memory chips. Major manufacturers in Taiwan are expanding their operations, while initiatives in India aim to bolster the country's electronics manufacturing capabilities. The competitive landscape is marked by continuous innovation and the entry of new players, with companies like AIXTRON SE and EpiWorld International Co., Ltd. making significant contributions to the development of next-generation epitaxial wafers. Collaborative efforts, such as those between India and Israel, are expected to further stimulate market growth, highlighting the dynamic nature of the epitaxy equipment industry.

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Epitaxy Equipment Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Continuous Introduction of Disruptive LED Devices

      2. 1.2.2 Growing Use in Power Applications is Expected to Act as Driver

    3. 1.3 Market Restraints

      1. 1.3.1 Complexities Associated with the Design

    4. 1.4 Porters Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Assessment of Impact of Covid-19 on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 MOCVD

      2. 2.1.2 HT CVD

      3. 2.1.3 MBE

    2. 2.2 Application

      1. 2.2.1 Photonics

      2. 2.2.2 Semiconductor

      3. 2.2.3 Wide-bandgap Material

      4. 2.2.4 Others

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Rest of the World

Epitaxy Equipment Market Size FAQs

The Epitaxy Equipment Market is projected to register a CAGR of 20% during the forecast period (2024-2029)

II-VI Incorporated, Applied Materials, Inc., DOWA Electronics Materials Co., Ltd., Intelligent Epitaxy Technology, Inc. and Optowell Co.,Ltd are the major companies operating in the Epitaxy Equipment Market.

Epitaxy Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)