The global physical vapor deposition market witnesses a high degree rivalry among the main players and passage boundaries is confined for the new and little players. Passage boundaries are severe because of broad patent security gave to PVD innovations, materials, procedure, and frameworks, notes Transparency Market Research. More than 200 licenses have additionally constrained development of little organizations, as they should be approved under licenses that have restricted their extent of development. As indicated by the report, the main players in market; a portion of the main players are Mustang Vacuum Systems, Applied Materials, Inc., Singulus Technologies AG, Silfex Inc. (Lam Research Corp.), and IHI Corporation.
As per the TMR, the global physical vapor deposition market is estimated to attain a valuation of US$33.33 bn by the end of 2025 progressing from US$16.4 bn in 2016. The market is predicted to rise at a healthy 8.3% CAGR during the forecast period 2017 to 2025.
Among various classification by category in which physical vapor deposition market is divided, PVD equipment segment leads the market by holding nearly half of the share in the market in 2016. This segment is considered one of the most lucrative segment for the growth of the market. During the forecast period, PVD equipment segment is expected to maintain its dominance mainly because of high costs of PVD equipment. Based on geography, Asia Pacific leads the market by holding 40% of the global market shares in 2016. The value of the market in this region was US$7.44 bn in 2016 and is expected to double by the end of forecast period.
Rising Application of Microelectronics to Help Market Gain Momentum
The demand for the physical vapor deposition is increasing in the electronics industry as they have adopted PVD on a large scale. In addition, rising demand for microelectronics in various applications such as automotive industry, data storage, medical equipment, solar products, architectural glasses are acting as the growth driver for the global physical vapor deposition market. PVD coating is widely employed in cutting tools by providing advanced oxidation resistance, outstanding wear resistance, improved cutting speed and feed rate, and many other benefits.
Thus, PVD in cutting tools is expected to grow in coming years. Furthermore, flourishing automotive and construction industries are expected to accelerate the demand in the physical vapor deposition market in coming years. Increasing focus on the incorporation of green power technologies in their energy mixes is creating high demand for effective solar energy products, which, in turn, is also expected to drive the market.
High Initial Investment from New Entrants to Restrict Market Entry
There are certain restraining factors affecting the growth of the market. One of the major factors is stringent patent protection laws on existing PVD technologies. Due to strict laws, the market entry by the new entrants has become more difficult, thus, reducing the chance of healthy competition among the various leading as well as small players in the market.
Moreover, patent protection is likely to increase initial investment required by new players that may lead to a possibility of market monopoly in coming years.