Sputtering Equipment Cathode Market - Forecast(2023 - 2028)

Sputtering Equipment Cathode Market Overview

Sputtering Equipment Cathode Market size is forecast to reach US$1.6 billion by 2026, and is growing at a CAGR of 4.8% during 2021-2026. Electrons ejected from the target are propelled out of the cathode in cathode sputtering. Using a magnetic field, electrons can be deflected while remaining close to the target surface, increasing electron density. Sputtering cathodes have made it possible to fine-tune thin film deposition methods, making them easier to use and expanding the range of process parameters to produce higher-quality nanometer-scale structures. Because of its capacity to function at lower temperatures, thin film solid oxide fuel cells (TF-SOFCs) are gaining popularity. Sputtered thin films such as lithium cobalt oxide, titanium dioxide, and silicon dioxide are used in semiconductor devices, wireless communications, telecommunications, integrated circuits, solar cells, light-emitting diodes, and light-emitting crystal displays, as well as lithography. Because high melting material or dielectrics can be sputtered from a solid target with a high frequency generator/source, cathode sputtering is more commonly utilized in thin film technology than evaporation. As a result, the Sputtering Equipment Cathode Mark was created.

COVID-19 Impact

Due to the COVID-19 pandemic, the Sputtering Equipment Cathode Market was highly impacted. Most of the manufacturing plants were shut down, which declined the production of Sputtering Equipment. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs have been forced to function at zero or partial capacity, resulting in lower demand and consumption of sputtered thin film, sputtered coated products in various end use industries. However, the manufacturing plants have started operating gradually with a minimum workforce abiding by necessary covid-19 norms. Hence the Sputtering Equipment Cathode Market is expected to gradually recover the minor economic disruption and start contributing in various end use industry applications in the forecast period.

Report Coverage

The report:“Sputtering Equipment Cathode Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of Sputtering Equipment Cathode Market.

By Type: Circular Cathode, Linear Cathode.

By Application: Metallurgical Coating, Thin Films Deposition, Microchip, Gold Sputter Coating of Jewellery, Watches, Decorative Finishes, Glass and Optical Components, Others.

By End-Use Industry: Paints and Coating, Electronics, Manufacturing, Pharmaceutical, Textile, Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia Pacific dominates the Sputtering Equipment Cathode Market, owing to the huge demand for semiconductors across multiple industries in the region.
• The U.S. semiconductor industry is a key driver of America’s economic strength, global competitiveness, and technology leadership.
• Semiconductors enable the systems and products that we use to work, communicate, travel, entertain, harness energy, treat illness, and make new scientific discoveries. Semiconductors make possible the global trillion dollar electronics industry. U.S. still leads the world in cutting-edge manufacturing and design.
• According to the world semiconductor trade statistics, semiconductor industry forecast, worldwide semiconductor industry sales are forecast to reach US$433 billion in 2020 and US$460 billion in 2021.
• Semiconductor technology has rapidly evolved as the industry develops more advanced product and process technologies for applications in end-use industries in recent years. Hence the Sputtering Equipment Cathode Market is projected to grow in the forecast period.

Figure: Asia Pacific Sputtering Equipment Cathode Market Revenue, 2020-2026 (US$ Billion)                                              

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Sputtering Equipment Cathode Market Segment Analysis – By Type

Circular Cathode segment accounted for the largest proportion of the Sputtering Equipment Cathode Market, and it is expected to increase at a CAGR of 5.7% from 2021 to 2026. Confocal or combinatorial sputtering is a technique that involves tilting a small circular cathode (usually 2” to 4”) off normal and directing it to a point (about 0.5 r) on a revolving substrate. Due to the relative eccentric motion of the substrate relative to the sputter head, this method creates remarkably uniform coatings on substrates up to twice the magnetron's diameter. Multiple sources can be programmed to deposit compound thin films simultaneously on a single rotating substrate in this setup, making it a very efficient approach to generate compound thin films. The ability to modify the tilt head gives you additional flexibility in a wide range of sputtering applications and allows you to better maximize coating uniformity.

Sputtering Equipment Cathode Market Segment Analysis – By Application

Thin film deposition segment held the largest share in the Sputtering Equipment Cathode Market in 2020 and is growing at a CAGR of 12% during 2021-2026. The technique of generating and depositing thin film coatings onto a substrate material is known as thin film deposition. Coatings can be constructed of a variety of materials, including metals, oxides, and compounds. Film adhesion strength and high step or route coverage are two advantages of thin film deposition sputtering. It is also possible to do simultaneous double-sided coating with the right mechanical arrangement, and load lock chamber entry and exit are common. According to American Coating Association, in 2020 the coatings industry also contributes in a significant way to the U.S. economy by exporting over US$2.2 billion in coatings product, while generating a substantial trade surplus of US$1.3 billion. Thin layers help shield metallic parts of various gadgets from corrosion and wear. Thin film coatings are also employed in jewelry as anti-tarnish protection for some sensitive materials, such as silver. Due to various applications of thin film deposition in many end use industries, the Sputtering Equipment Cathode Market is going to grow in the forecast period.

Sputtering Equipment Cathode Market Segment Analysis – By End-Use Industry

Electronics segment held the largest share in the Sputtering Equipment Cathode Market in 2020 and is growing at a CAGR of 5.6% during 2021-2026. Sputtering is used in the semiconductor sector to deposit thin films of different materials in integrated circuit processing in electronics industry. According to JEITA (Japan Electronics and Information Technology Association), production by the global electronics and information technology industries is estimated to increase 2% year on year in 2020 to reach US$2,972.7 billion, and 7% year on year in 2021 to record US$3,175.6 billion. Positive growth is expected to continue on the back of greater demand for solution services and electronic components and devices around the world. Japanese electronics and IT companies are expected to decline 5% year on year in 2020 to US$329.8 billion. According to Invest India, Electronics System Design and Manufacturing (ESDM) is the fastest growing industry in the world and it continues to transform businesses, and economies across the globe. The global electronics market is estimated to be over US$2 trillion. India’s share in global electronics manufacturing has grown 3.6% in 2019. Domestic electronics market in India to reach US$400 billion by 2025.Due to huge growth in the electronics segment, Sputtering Equipment Cathode Market is estimated to grow in the forecast period.

Sputtering Equipment Cathode Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the Sputtering Equipment Cathode Market in 2020 up to 34%, owing to the growing Electronic Industry in the region. The electronics sector is one of the largest industrial sectors in the world and in the last decade the global electronics market has experienced considerable growth. According to DCMSME (Development Commissioner Ministry of Micro Small and Medium Enterprises) the global Electronics and Manufacturing (EMS) market volume in 2019 was US$463.2 billion and has the potential to increase by US$118.49 billion from 2020 to 2045. In another estimate, it is anticipated to increase at a CAGR of approximately 8% and stand at a whopping US$575.69 billion by 2022. The electronics industry is highly competitive, owing to the growing complexity of electronic products and raising tension on OEMs for lowering expenses. The Asia Pacific market size for EMS in 2019 was US$292.6 billion and China accounted for more than 33% of this market share. According to India Brand Equity Foundation by 2020, the electronics market in India is expected to increase with a CAGR of 24.4 % to US$400 billion. By 2020, the semiconductor design market in India is expected to increase with a CAGR of 25.3 % to US$60 billion. Hence the Sputtering Equipment Cathode Market is estimated to grow in the forecast period. 

Sputtering Equipment Cathode Market Drivers

• Increasing use of semiconductor in Automotive Industry:

Automobile semiconductor ICs (Integrated circuits) are utilized in a number of automotive elements, including navigation, infotainment, and collision detection systems, among others. Automobile electrification and automation have boosted demand for semiconductor wafers. Microprocessors are in the core of the vehicle, increasingly transforming it into an electronic piece of engineering, driving basic things like digital radio tuners, electronic power steering, and door-and-mirror controls to complex mechanisms like LED lighting, telematics, and V2X communication for ADAS functionalities integrated into the neural networks of a vehicle to drive a predominant set of functionalities, which seems to be the vehicles of the future. According to the (Organisation Internationale des Constructeurs d'Automobiles) OICA, 2,10,84,417 vehicles were produced in 2020, and in 2019 total 9,1,786,869 were produced which can imply increasing use of semiconductors in the automotive industry in recent years is growing and implying that the Sputtering Equipment Cathode Market will grow over the forecast period. Microprocessors and semiconductors are allowing automobiles to turn into mobile computers. Furthermore, as the use of electric mobility grows, these semiconductors will increase their contribution and become more firmly embedded.

Artificial Technology creating opportunity for semiconductor industry:

 transportation networks with self-driving services. The vehicles are not just self-driving, but they also communicate with nearby drivers and pedestrians, such as by showing a notice to pedestrians signalling that it will wait for them to cross. To address data consumption in AI-integrated circuits, semiconductor design enhancements are required With higher power and more efficient memory systems, advancements in semiconductor design for AI will focus less on enhancing overall performance and more on speeding up the transit of data in and out of memory. Samsung announced intentions to increase investments in industries that will drive future growth, pledging to a KRW 25 trillion (US$0.027 trillion) investment by 2021 in artificial intelligence (AI), 5G, and automotive electronics components, lead by Samsung Electronics. As a result of recent technical advancements in the automotive and electronics industries, the Sputtering Equipment Cathode Market will increase over the forecast period.

Sputtering Equipment Cathode Market Challenges

• Higher Price of cathode material:

Cathode active materials are composed of lithium and metal such as magnesium, aluminum and others. Depending on the type and ratio of metals, active materials have varying properties. Magnesium, on the other hand, is still constrained by its extraction costs, which make the metal roughly 20% more expensive than aluminium. Magnesium costs in the United States can be nearly quadruple those of aluminium due to import duties on Chinese-produced magnesium. Prices have continued to rise across the lithium chain due to increased demand and tightening supply. According to the London Metal Exchange aluminum price in august 2021 is US$2647 per ton, while in July 2020 the price was US$1681.5 per ton. The trend of aluminum prices increasing indicates high price of raw materials which poses a challenge for Sputtering Equipment Cathode Market in the forecast period.

Sputtering Equipment CathodeMarket Landscape

Technology launches,acquisitions,and R&D activitiesare key strategies adopted by players in the Sputtering Equipment Cathode Market. Sputtering Equipment Cathode Markettop companies include:

1. Kurt J. Lesker Company (KJLC)
2. Veeco Instruments, Inc.
3. Semicore Equipment, Inc.
4. Impact Coatings AB.
5. AJA International, Inc.
6. Soleras Advanced Coatings
7. Sputtering Components, Inc.
8. KDF Electronic and Vacuum Services, Inc.
9. PVD Products, Inc.
10. Strom Sciences, Inc
11. Others

Acquisitions/Technology Launches

Ø  On 13th September 2021, Heritage Battery Recycling, LLC ("Heritage") and 6K announced that they have entered into an exclusive cooperative development agreement to generate new cathode material from salvaged batteries. This ground-breaking approach combines Heritage's established network infrastructure for collecting, storing, and processing end-of-life batteries with 6K's breakthrough plasma technology for producing crucial cathode-grade battery materials required for high-purity applications.

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