Market Trends of Plasma Etching Equipment Industry
This section covers the major market trends shaping the Plasma Etching Equipment Market according to our research experts:
Consumer Electronics Segment to Drive the Demand
- The electrical and electronics industry includes a wide range of products, including aerospace products, lamps and light fixtures, including light-emitting diodes, consumer electronics, such as television sets, electrical household appliances, electronic medical equipment, microelectronic components, and automotive software, and electrical and electronic components, like on-board diagnostics (OBD), in-car touch screens, cameras, and navigation systems. Another key factor driving the semiconductor industry's growth is the expanding consumer electronics sector.
- People worldwide were forced to work, learn, and spend their free time at home due to the COVID-19 pandemic, which increased the demand for consumer electronics. Many electrical devices, however, are still in low supply due to a global lack of chips and supply chain bottlenecks. Compared to the previous year, the global electrical and electronics sector did not grow in 2020. The industry was predicted to grow in 2021 and is expected to grow in 2022, as the concerns linked to COVID-19 are being increasingly addressed. According to ZVEI, a German association of the electrical and digital sector, the industry was predicted to grow by 6% globally between 2021 and 2022.
- Emerging economies, such as India, have witnessed a reduction in data costs by 95% since 2013, resulting in tremendous growth in smartphone users. According to ASSOCHAM, smartphone users in India were expected to double from 468 million users in 2017 to approximately 859 million by 2022, at a CAGR of 12.9%. Such significant volume growth in smartphone adoption is expected to create a demand for semiconductors in the smartphone industry. Moreover, the appliances and consumer electronics industry is expected to double, to reach USD 21.18 billion by 2025, in India, according to the Indian Brand Equity Foundation.
- Increasing investment and supportive regulations being framed by governments worldwide to meet some portion of their local demand are creating a good market scenario for the studied market growth.
- Furthermore, the growing demand from the consumer electronics industry is also encouraging semiconductor manufacturers to expand their production facilities. For instance, in October 2021, Taiwan Semiconductor Manufacturing Company Ltd (TSMC) announced its plans to build a new semi-specialist factory in Japan to meet the needs of local customers. The factory will be the most advanced logic factory in Japan when it operates in the second half of 2024. Such expansions will create opportunities for the studied market to grow.
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Asia-Pacific is Expected to Witness Significant Growth
- Asia-Pacific is one of the prominent markets for plasma etching equipment, primarily attributed to the presence of some of the leading semiconductor manufacturers, growing demand for advanced technologies across numerous end-user industries, high consumer electronics industry growth, and supporting government policies for the semiconductor industry in the region.
- Growing demand for smart and portable devices is also anticipated to boost the demand for miniature integrated circuits (ICs), which is expected to rapidly fuel the need for the plasma etching equipment market over the forecast period. According to GSMA, China's unique mobile subscriber rate is among the highest in the world. While it was 1.22 billion in 2020, it is estimated to reach 1.26 billion in 2026, approximately 85% of the total population.
- The governments in many countries across the region are supporting the semiconductor industry. For instance, China has continuously introduced policies to support the localization of the semiconductor industry. The "Made in China 2025" initiative has provided a clear roadmap for the localization of semiconductor equipment production. According to SEMI, in recent years, many new 12-inch fab projects have been announced, started construction, or are in the ramp-up stage in China, including UMC in Xiamen, TSMC in Nanjing, PSC in Hefei, GLOBALFOUNDRIES in Chengdu, as well as YMTC in Wuhan and Nanjing.
- Similarly, several semiconductor manufacturing companies are increasing their investment to establish manufacturing facilities in India after the government announced several PLI schemes. For instance, in August 2022, Polymatech, a Tamil Nadu based semiconductor chip manufacturer, announced an investment worth USD 1 billion to expand its manufacturing facilities.
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