Semiconductor capital equipment: Key market research findings
- APAC to dominate the market geographically
- Foundry segment to continue market dominance
- Key vendors – ASML, Applied Materials, Lam Research, and Tokyo Electron
Technavio’s market research analysts predict the global semiconductor capital equipment market to grow at a CAGR of over 4% between 2016 and 2020. The market is driven primarily by the sustainable growth in the semiconductor industry. During 2015, the APAC accounted for around 72% of the overall market share to become the dominant shareholder in the global semiconductor market. The presence of key vendors in the region coupled with a vast consumer base of the semiconductor devices are some of the factors that will steer growth in the semiconductor capital equipment market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the semiconductor capital equipment segments based on the end-user.
“Increase in the use of semiconductor devices in automobiles is an ongoing trend in the market. Several types of semiconductor ICs are used in a number of automotive products like navigation control, infotainment systems and collision detection systems. This increase in the use of semiconductor ICs in the automotive sector is projected to boost growth in the market by 2020,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
The foundry segment was the largest revenue contributor to the global semiconductor capital equipment market in 2015 and accounted for a revenue share of almost 63%. This segment of the market is flourishing due to the rise in demand for semiconductor ICs. The foundry segment will grow at a CAGR of more than 4% during the forecast period to reach a revenue share of almost 64% in the market by the end of the forecast period.
The key vendors in the market include ASML, Applied Materials, Lam Research, and Tokyo Electron. The global semiconductor capital equipment market is a highly consolidated one with the presence of several prominent vendors. The top four vendors account for more than two-thirds of market share. Since entry barriers to the market are very high, new players find it tough to break in. Competition is expected to intensify in this market due to technological advances in the industry. Vendors are also actively investing in the expansion of production capacities to shorten production to market times. The increased investment in R&D has helped vendors to remain competitive in the global market and also increase market share.
A more detailed analysis is available in the Technavio report, Global Semiconductor Capital Equipment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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