Global Semiconductor Capital Equipment Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

Global Semiconductor Capital Equipment Market Growth

In 2023, China dominated the global semiconductor equipment industry with a 34% market share as investments in semiconductor equipment manufacturing increased year-on-year by 29% to reach USD36.6 billion. Also, in 2023, wafer processing equipment sales rose by 1%, while the billings of other front-end segments surged by 10%.

As per the International Semiconductor Industry Association, the global sales of chip equipments is expected to surge to USD 109 billion, recording a year-on-year growth of 3.4%. Furthermore, sales are expected to reach USD 128 billion in 2025, thereby exhibiting a growth of 17%. Increasing investments in HBM and DRAM due to the emergence of AI computing is expected to lead to a 2.8% increase in the demand for wafer fab equipment in 2024 to reach USD 98 billion. As per the semiconductor capital equipment market analysis, by 2025, the rising demand for semiconductors in advanced logic applications is expected to lead to a 14.7% year-on-year growth in the demand, to reach nearly USD 113 billion.

Moreover, in 2024, the demand for front-end chip production equipment is expected to record year-on-year growth of 5% to reach nearly USD 100 billion. With the increasing demand for smartphones and personal computers, the demand for wafer fab equipment is expected to record a growth of 10% during 2025-26 from 2024-25. This is expected to accelerate the semiconductor capital equipment market development.

The smallest structures in chips, which are 5 nm and 3 nm in size, confer important benefits within select market segments and application areas, including data centers, 5G smartphones, edge computing, and machine learning. Semiconductor customers in these segments will pay a premium for leading-edge chips since they need a combination of strong performance and low power requirements to win their markets. The resulting sales boost will more than compensate for higher chip costs, thereby favouring the growth of the market.

Key Trends and Developments

Global Semiconductor Capital Equipment Market Trends

The semiconductor capital equipment industry is increasingly adopting AI-based tools for enhancing their efficiency. AI-driven solutions enable them to reduce downtime, improve yield rates, and optimise production processes. High-quality products are being manufactured through advanced machine learning algorithms, which are enabling organisations to better categorise product defects and make real time adjustments. This is expected to increase the semiconductor capital equipment market value over the forecast period.

Global Semiconductor Capital Equipment Industry Segmentation

Global Semiconductor Capital Equipment Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-2032, the Asia Pacific is expected to grow at a CAGR of 3.6% because of increasing technological advancements in the consumer electronics industry that necessitate the production of advanced semiconductors created using modern manufacturing techniques.

Leading Companies in the Global Semiconductor Capital Equipment Market

Major players are integrating powerful AI processors into an increasing number of electronic devices, which is driving the demand for semiconductor capital equipment market.

Hitachi, Ltd.

Hitachi, Ltd. was founded in February 1920 and is headquartered in Tokyo, Japan. It is engaged in the engineering, construction, and procurement of fossil fuel-based electricity generation stations.

Tokyo Electron Limited

Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan. It is engaged in manufacturin...

ASM International N.V.

ASM International N.V. was founded in 1968 and is headquartered in Flevoland, Netherlands. As per semiconducto...

Lam Research Corporation

Lam Research Corporation was founded in 1980 and is headquartered in California, United States. It is involved...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other players included in the semiconductor capital equipment market report are SCREEN Holdings Co., Ltd., Applied Materials, Inc., KLA Corporation, Plasma-Therm LLC, Advantest Corporation, and ASML Holding N.V., among others.