The PVD market is primarily driven by the rising demand for reliable and durable coatings in medical equipment, particularly from developing economies. Thus, the medical devices application segment is expected to have a strong growth potential during the estimated time period.
These coatings are used for applications such as storage devices, semiconductors and LED, which are expected to fuel market growth over the next few years. Physical vapor deposition technology includes a process where the base material is used to form a thin coating layer on an object by evaporating and condensing the material used. Coatings comprise ceramics or metals, usually oxides, nitrides, and carbides.
Technology includes electron beam and sputter, evaporative, pulsed laser, cathodic arc, and physical vapor depositions. Policies for restricting hex chrome electroplating owing to rising environmental concerns in economies, such as Europe and the US, are anticipated to boost the growth of this market over the years to come.
Several technological advancements are likely to spur the market in the coming years. The growing need for highly sophisticated surface-related properties, such as superplasticity, magnetic, optical, electronic, and catalytic properties, by advanced mono-structured coatings is also contributing to the market growth.
Applications of PVD include microelectronics, data storage, solar products, cutting tools, and medical equipment. Medical equipment is anticipated to continue as a key application segment, expanding at a CAGR of 7.4% from 2018 to 2025.
Microelectronics was the largest application segment in the year 2017 and is expected to witness moderate growth over the forecasted period. Presence of materials that require few coating processes is the major reason behind the slow growth of this segment. Solar product is the second fastest-growing segment with a CAGR of 7.1% from 2018-2025. This segment is expected to gain prominence particularly in Asia Pacific and Europe owing to increasing R&D investments by both wafer and photovoltaic cell manufacturers to maintain low-cost.
Key companies in the global market include Advanced Energy Industries, Inc.; AJA International, Inc.; Veeco Instruments, Inc.; Angstrom Engineering, Inc.; and Applied Materials, Inc. with approximately 70% of the market share.