by The global Physical Vapor Deposition (PVD) Market is estimated to be valued at US$18.9 billion in 2021 and is expected to exhibit a CAGR of 5.59% over the forecast period of 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The PVD market refers to the deposition of thin films of materials onto various surfaces using physical processes. PVD offers several advantages such as high film quality, excellent adhesion, and the ability to deposit on complex geometries. It finds applications in various industries including electronics, automotive, medical, and aerospace. The need for advanced coating technology to enhance the performance and durability of products is driving the demand for PVD technology.
Market Key Trends:
One key trend in the PVD market is the growing demand for thin films in the electronics industry. With the increasing adoption of miniaturized devices and the need for improved performance, thin films play a crucial role in enhancing functionality and reducing energy consumption. PVD technology offers precise deposition control and the ability to deposit a wide range of materials, making it ideal for thin film applications in electronics.
Porter’s Analysis
Threat of New Entrants:
The physical vapor deposition market faces a moderate threat of new entrants. While the barriers to entry are relatively high due to the need for significant capital investment, technological expertise, and strong distribution networks, there is still the possibility of new players entering the market. However, established companies with strong brand recognition, extensive customer base, and proprietary technology are likely to have a competitive advantage.
Bargaining Power of Buyers:
Buyers in the physical vapor deposition market have a moderate level of bargaining power. The market is characterized by a large number of buyers, including various industries such as electronics, solar energy, automotive, and aerospace. However, the importance of physical vapor deposition technology in these industries and the relatively limited number of suppliers give suppliers some leverage in negotiations.
Bargaining Power of Suppliers:
Suppliers in the physical vapor deposition market have a high level of bargaining power. The market is dominated by a few key players who have established strong relationships with customers and hold significant market share. As a result, suppliers have the ability to dictate prices and terms to some extent. Additionally, the requirement for specialized raw materials, equipment, and expertise further strengthens the suppliers’ bargaining power.
Threat of New Substitutes:
The threat of new substitutes in the physical vapor deposition market is relatively low. Physical vapor deposition is a widely recognized and established technology used in various industries for thin film deposition. While alternative technologies may emerge in the future, the high capital investment required to adopt new technologies and the suitability of physical vapor deposition for a wide range of applications act as barriers for substitutes.
Competitive Rivalry:
The competitive rivalry in the physical vapor deposition market is high. The market is dominated by established players such as Oerlikon Balzers, IHI Corporation, Silfex Inc., and Lam Research Corp., who compete on the basis of product quality, technology innovation, customer service, and price. The presence of several key players, along with their continuous efforts to gain a larger market share, intensifies the competition in the industry.
Key Takeaways
The Physical Vapor Deposition Market Analysis is expected to witness high growth, exhibiting a CAGR of 5.59% over the forecast period of 2022-2030. This growth can be attributed to the increasing demand for thin film coatings in various industries, such as electronics, solar energy, and automotive. The use of physical vapor deposition technology for improving product performance, enhancing durability, and reducing environmental impact is driving the market growth.
In terms of regional analysis, Asia Pacific is expected to be the fastest growing and dominating region in the physical vapor deposition market. The region is witnessing significant growth in electronics manufacturing, solar energy installations, and automotive production, which are key end-use industries for physical vapor deposition. Moreover, the presence of major players in countries like China, Japan, and South Korea further supports the market growth in the region.
Key players operating in the physical vapor deposition market include Oerlikon Balzers (Oerlikon Group), IHI Corporation, Silfex Inc., Lam Research Corp, Singulus Technologies AG, Applied Materials, Inc., ULVAC Inc., Veeco Instruments Inc., Buhler AG, Semicore Equipment, Inc., and Platit AG. These companies have a strong market presence, extensive distribution networks, and offer a wide range of physical vapor deposition solutions to cater to the diverse needs of their customers.
In conclusion, the physical vapor deposition market is poised for significant growth in the coming years, driven by increasing demand from various industries and technological advancements. However, the market faces the challenges of intense competition and the potential threat of new entrants.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
