Global semiconductor gases market is estimated to witness a major jump in revenue from US$ 9,035.8 million in 2022 to US$ 15,956.8 million by 2031, at a CAGR of 6.4%.
The strong growth in the semiconductor industry is driving demand for advanced gases, such as hydrogen fluoride (HF) and nitrogen trifluoride (NF3), which are used in etching and deposition processes. The rising trend of miniaturization of devices is also driving gas demand, as smaller devices require more precise plasma control during manufacturing. In addition, the growing trend of 3D NAND flash memory and other advanced packaging applications are expected to create new opportunities for gas suppliers in the coming years.
Astute Analytica expects the electric vehicle market to have the biggest impact on the semiconductor gases industry, with sales of these vehicles increasing from 2 million in 2018 to 11 million by 2025. This demand will be driven by stricter emissions regulations, declining battery costs and consumer preference for greener transportation options.
5G is also expected to drive the global semiconductor gases market growth, as the new wireless standard will require more chips and higher speeds than ever before. The IoT is another major opportunity for the market, as connected devices are forecast to increase from 6 billion in 2018 to 25 billion by 2025. This rapid growth will create demand for new sensors and other components that use semiconductor gases.
We attribute the industry’s growth to an increase in demand for semiconductor manufacturing equipment and materials, as well as rising expenditure on research and development (R&D). The market for semiconductor gases continues to be buoyed by the strong underlying fundamentals of the semiconductor industry. Despite concerns about a potential slowdown in spending on semiconductor equipment, we believe that the long-term prospects for the sector remain positive.
The Asia-Pacific region is expected to be the largest market for semiconductor gases during the forecast period. The growth of this market can be attributed to the increasing demand for semiconductor devices from China, Japan, and South Korea. Moreover, the presence of a large number of wafer fabrication facilities and chipmakers in Taiwan is another factor driving the growth of the semiconductor gases market in this region. Astute Analytica’s analysis predicts that APAC will grow at a rate a robust CAGR from 2023-2031 largely due to Chinese foundries’ production ramp-ups for 7nm node and beyond as well as increases in spending on new equipment and expansion by memory manufacturers within South Korea and Taiwan.
The primary driver for growth in the Asia Pacific semiconductor industry is the increasing demand for electronic devices, such as smartphones, tablets, and Ultrabook. This has led to an increase in the production of semiconductor chips, which are used in these devices. In addition, the region’s manufacturing capabilities and skilled workforce have attracted foreign companies to set up manufacturing facilities in countries such as China, Taiwan, and South Korea
Semiconductor manufacturing activity is shifting to Asia Pacific, especially Taiwan, China and South Korea, due to the lower cost of labor and land. In addition, the governments of these countries are investing heavily in the semiconductor industry, which is further driving semiconductor gases market growth. However, there are some challenges that could impede market growth. For instance, the volatile raw material prices could create cost pressures for gas suppliers. In addition, environmental regulations could limit the use of certain gases, such as fluorinated gases.
North America is projected to have the second highest market share as US fabless IC companies such as AMD, NVIDIA and Qualcomm continue their string of 20nm/14nm product announcements and expansions while leading IDMs Intel and Micron implement 3D NAND at scale within their US-based operations.
Challenges Mount for Semiconductor Gases Market as Rare Gases Shortages and Environmental Regulations Impede Growth
- Oversupply of DRAM chips and NAND flash memories
In its latest semiconductor gas market analysis, Astute Analytica has found that several manufacturers around the globe have slashed chip sales by 2.8% amid a deteriorating outlook for the memory market and continued weakness in the personal computer sector. Currently, the industry being pressured by significant oversupply of DRAM chips and NAND flash memories, which has led to falling prices and profitability. It expects these conditions to continue until 2031.
- Supply and Demand Imbalance
One of the biggest challenges is the supply and demand imbalance in certain gas types, which can lead to price fluctuations and shortages. This is especially true for rare gases such as helium, which is used in several applications such as leak detection and cleaning operations. In addition, regulations imposed by environmental agencies can also pose a challenge to the semiconductor gases market growth as they can result in increased costs for gas suppliers.
- Increasing Cost of New Nodes
Semiconductor device manufacturers have been able to increase output by using larger wafers and adding more capacity, but these approaches are becoming less effective. Another challenge is the increasing cost of new nodes. The cost of developing and implementing a new process node has been rising, from $500 million in 2005 to an estimated $3 billion in 2020. In addition, the time required to bring new nodes into production has increased from about two years in 2005 to about four years today.
Electronic Special Gas to Generate more than 65% market Revenue in Global Semiconductor Gases Market
Despite a challenging global semiconductor market, the electronic special gases industry is forecast to grow at a healthy pace through 2022, according to Astute Analytica. This is due to strong demand from key applications such as flat panel display (FPD) production, light-emitting diode (LED) lighting and enhanced computer chip manufacturing.
The FPD industry is expected to drive growth in the electronic special gases market during the next few years. The move to 4K/ultra-high-definition (UHD) TVs is accelerating the need for larger substrate sizes and improved yields in the production of liquid crystal displays (LCDs). This increase in LCD production will lead to higher demand for argon, krypton and xenon. As of 2021, global sales of LED and LCD TVs amounted to approximately 224 million units. LED TVs are the most popular type of television, accounting for the majority of TV sales worldwide in the global semiconductor gases market.
The LED segment is also forecast to grow at a healthy rate as LEDs are increasingly being used for general lighting in both commercial and consumer applications. The higher efficiency and longer lifetime of LEDs compared with traditional incandescent bulbs is driving this shift. This increase in demand for LEDs will lead to higher demand for nitrogen, hydrogen and helium.
Chamber Cleaning Process to Generate More than US$ 3,487.6 Million by 2031
Semiconductor gases are used in a variety of industries, including the production of semiconductors and flat panel displays. The demand for these gases is expected to continue to grow as the semiconductor industry expands. Our analysis of chamber cleaning process in semiconductor gases industry to generate highest revenue is based on their study of the global semiconductor gases market. Wherein, chlorine-based etchants are expected to be the largest revenue generator in the chamber cleaning process. This is due to the increasing use of these etchants in advanced packaging processes and 3D NAND manufacturing.
There are a number of factors driving this growth, including the continued migration to advanced process nodes, the need for improved yields and shorter cycle times, and the increased adoption of 3D NAND technology. As such, it’s no surprise that chamber cleaning is seen as a key enabler for these trends.
Competitive Landscape: Highly Competitive, Top 6 Players Hold 76% Market Share
The global semiconductor market is highly competitive. The top six players accounted for more than 76% of the market in 2022. The key players in the market are Linde, Air Liquide, Air Products and Chemicals, and Taiyo nippon, among others.
Linde plc is the largest player in the semiconductor gases market with a share of 25%. The company has a strong presence across North America, Europe, Asia Pacific, and South America. It has a wide range of products catering to different end-use industries such as electronics, healthcare, chemicals & refining, food & beverage, and construction & mining.
However, there are many other smaller companies vying for attention in this crowded marketplace. In fact, there are over 100 companies competing in this space! This high level of competition means that prices are under pressure and margins are tight. It also means that innovation is key to success in this marketplace.
So, what does the future hold for the semiconductor gases market? Astute Analytica believe that it will continue to grow at a healthy pace, driven by growth in the electronics sector. However, competition will remain fierce and margins will remain tight.