ALD Equipment Market

Market Definition

The market encompasses specialized systems used to deposit ultra-thin, conformal films at the atomic scale through a sequential, self-limiting chemical vapor process. ALD equipment enables precise film thickness control and uniformity, making it essential for semiconductor fabrication, MEMS, optics, and energy storage. 

The process involves alternating exposure of substrates to precursor gases, ensuring layer-by-layer material growth with high aspect ratio coverage. ALD is widely applied in high-k dielectrics, diffusion barriers, and protective coatings for electronics and medical devices, supporting defect-free, nanoscale coatings critical to next-generation material engineering.

ALD Equipment Market Overview

The global ALD equipment market size was valued at USD 8,750.0 million in 2023 and is projected to grow from USD 10,034.5 million in 2024 to USD 29,097.9 million by 2031, exhibiting a CAGR of 16.43% during the forecast period. 

Market growth is driven by the increasing integration of ALD equipment in renewable energy applications, particularly in enhancing battery efficiency and photovoltaic performance. Additionally, the growing adoption of ALD in emerging nanotechnology fields, including quantum computing and advanced medical devices, is boosting demand for high-precision, conformal coating equipment and fostering market growth.

Major companies operating in the ALD equipment industry are ASM International N.V., LAM RESEARCH CORPORATION, Tokyo Electron Limited, Applied Materials, Inc., Veeco Instruments Inc., Beneq, Picosun Oy, Oxford Instruments, Forge Nano Inc., Kurt J. Lesker Company, Merck KGaA, Entegris, Samco Inc., Ultimaterials B.V., SENTECH Instruments GmbH, and others.

The growth of the market is supported by the increasing integration of atomic layer deposition processes in advanced semiconductor and electronics manufacturing. 

As the industry shifts toward high-density, miniaturized architectures, ALD equipment is being widely adopted for its capability to deliver precise, uniform, and conformal thin films across complex surfaces. This precision is critical for ensuring performance and reliability in next-generation devices.

• According to the Semiconductor Industry Association (SIA), global semiconductor industry sales reached USD 53.1 million in August 2024, reflecting a 20.6% year-over-year increase. This highlights the surging demand for high-performance ALD systems in fabrication facilities.

Key Highlights:

1. The ALD equipment industry size was recorded at USD 8,750.0 million in 2023.
2. The market is projected to grow at a CAGR of 16.43% from 2024 to 2031.
3. Asia Pacific held a share of 36.32% in 2023, valued at USD 3,178.0 million.
4. The single-wafer ALD systems segment garnered USD 4,228.0 million in revenue in 2023.
5. The semiconductor segment is expected to reach USD 11,107.8 million by 2031.
6. North America is anticipated to grow at a CAGR of 15.70% over the forecast period.

Market Driver

Integration of ALD in Renewable Energy Applications

The increasing utilization of ALD equipment in renewable energy applications is bolstering the growth of the market. The rising focus on clean energy initiatives is boosting the deployment of ALD technology in advanced batteries and photovoltaic cell development. 

ALD enables the deposition of uniform, ultra-thin films with atomic-level precision, enhancing the efficiency, reliability, and operational life of energy storage and conversion systems. This precision is vital as countries implement strategic policies aimed at achieving carbon neutrality and expanding renewable energy infrastructure.

• The U.S. Department of Energy (DOE) allocated up to USD 3.5 billion in 2023 to boost the domestic production of advanced batteries and battery materials. This funding, issued under the Bipartisan Infrastructure Law, targets the development of next-generation battery technologies, including advanced chemistries and traditional lithium-ion systems, where ALD equipment is essential for improving material performance and extending battery lifespan.

Market Challenge

High Initial Investment

The growth of the ALD equipment market is limited by the substantial upfront capital required to acquire and install these systems. Engineered with advanced precision and incorporate complex technologies, ALD equipment involves high procurement and setup costs. 

This financial burden can be particularly challenging for small and medium-sized enterprises (SMEs) operating in sectors such as semiconductors and electronics.

To minimize high capital barriers, companies are increasingly offering modular ALD equipment, enabling phased investments. Equipment leasing models and collaborative R&D initiatives are being adopted to share costs. Additionally, manufacturers are streamlining production processes to reduce operational expenses and improve cost-efficiency, making ALD technology more accessible to smaller enterprises.

Market Trend

Utilization of ALD in Emerging Nanotechnology Applications

The market is witnessing notable progress, bolstered by its critical role in emerging nanotechnology applications such as advanced medical devices and quantum computing. ALD enables the deposition of ultra-thin, highly uniform films with atomic-level precision, positioning it as a fundamental technology for manufacturing complex nanostructures and next-generation devices. 

In the medical field, ALD equipment is being applied to enhance the performance and biocompatibility of implantable devices, drug delivery systems, and biosensors. Its ability to form conformal coatings ensures long-term durability and adherence to stringent regulatory standards, making it suitable for critical healthcare solutions.

• According to a report by the United States National Library of Medicine, ALD enables the synthesis of high-purity inorganic nanocoatings on complex surfaces, offering advantages for medical applications.

ALD Equipment Market Report Snapshot

Segmentation	Details
By Reactor Type	Single-Wafer ALD Systems, Batch ALD Systems, Spatial ALD Reactors
By Application	Semiconductor, Electronics, Energy, Healthcare and Biomedical, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Reactor Type (Single-Wafer ALD Systems, Batch ALD Systems, and Spatial ALD Reactors): The single-wafer ALD systems segment earned USD 4,228.0 million in 2023 due to its superior process control, uniformity, and scalability, which are critical for advanced semiconductor manufacturing and high-performance device fabrication.
• By Application (Semiconductor, Electronics, Energy, Healthcare and Biomedical, and Others): The semiconductor segment held a shareof 36.13% in 2023, attributed to the its essential role in enabling atomic-level precision for thin-film deposition.

ALD Equipment Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

The Asia Pacific ALD equipment market share stood at around 36.32% in 2023, valued at USD 3,178.0 million. This dominance is supported by the region’s leadership in semiconductor and electronics manufacturing. 

Countries such as China, Japan, and South Korea are making substantial investments in next-generation semiconductor fabrication facilities, creating a strong demand for ALD systems that enable precise, atomic-level film deposition essential for producing high-performance chips. The region’s stronghold in consumer electronics innovation further accelerates ALD equipment deployment across advanced manufacturing lines.

• According to the Semiconductor Industry Association (SIA), approximately 75% of global semiconductor manufacturing capacity is concentrated in China and East Asia. Taiwan and South Korea account for 100% of the world’s most advanced (sub-10 nanometer) chip production, with shares of 92% and 8%, respectively.

North America ALD equipment industry is set to grow at a robust CAGR of 15.70% over the forecast period. Rapid advancements in the electric vehicle (EV) market are fueling the demand for atomic layer deposition (ALD) technology in North America. 

As the region accelerates its transition to electric mobility, ALD is increasingly utilized in the production of high-performance batteries and energy storage systems. ALD’s ability to enhance the efficiency, durability, and lifespan of battery components makes it essential for meeting the growing demands of the EV sector.

• The International Energy Agency (IEA) reported in 2024 that new electric car registrations in the United States reached 1.4 million in 2023, marking an increase of over 40% compared to 2022.

Furthermore, the increasing demand for miniaturized and high-performance electronic devices is further propelling the growth of the atomic layer deposition market in North America. 

With advancements in consumer electronics, such as smartphones, wearables, and IoT devices, there is a heightened need for smaller, more efficient components. ALD is widely used in the production of these devices due to its precision in creating thin films for semiconductors and other critical components.

Regulatory Frameworks

• In the U.S.,the Environmental Protection Agency (EPA) enforces regulations on chemical use and waste disposal associated with ALD operations, while the Occupational Safety and Health Administration (OSHA) mandates workplace safety concerning exposure to chemicals utilized in ALD systems.
• In the UK, ALD equipment usage is regulated under the Health and Safety at Work Act 1974, which ensures safe operations in laboratories and production facilities. The Environmental Protection Act 1990 and the Control of Substances Hazardous to Health (COSHH) regulations govern the handling and disposal of chemicals used in ALD processes, influencing equipment design and operational standards.
• In China, the State Administration of Work Safety (SAWS) enforces operational safety standards for ALD equipment and chemical usage, while the China National Environmental Protection Agency (SEPA) regulates emissions and waste disposal. Furthermore, the National Development and Reform Commission (NDRC) promotes energy-efficient ALD technologies in semiconductor manufacturing.

Competitive Landscape

The ALD equipment market is growing due to the strategic R&D focus of industry players on R&D to meet evolving technological demands. Companies are advancing equipment functionalities, such as improving deposition rates, expanding the material compatibility range, and enhancing process efficiency to meet application-specific requirements in electronics, nanotechnology, and energy storage. 

These innovations are crucial for addressing the complex needs of high-growth sectors and maintaining technological leadership. Continued R&D efforts support product differentiation and strenghthen the competitive position of ALD equipment manufacturers.

• For instance, in March 2024, PhotonExport, a leading distributor of specialty materials and advanced equipment for thin films, semiconductors, and nanotechnology R&D, announced its official representation of Swiss Cluster in Spain and Portugal. This strategic partnership introduces cutting-edge ALD/PVD single-chamber tools, enhancing fabrication and R&D capabilities in materials science across the region.

List of Key Companies in ALD Equipment Market:

• ASM International N.V.
• LAM RESEARCH CORPORATION
• Tokyo Electron Limited
• Applied Materials, Inc.
• Veeco Instruments Inc.
• Beneq
• Picosun Oy
• Oxford Instruments
• Forge Nano Inc.
• Kurt J. Lesker Company
• Merck KGaA
• Entegris
• Samco Inc.
• Ultimaterials B.V.
• SENTECH Instruments GmbH

Recent Developments (Partnership)

• In November 2023, Oxford Instruments partnered with prominent Japanese power electronics and RF foundries to deploy its plasma atomic layer deposition (ALD) and atomic layer etch (ALE) technologies. The collaboration aims to advance the manufacturing of GaN HEMT devices, which are essential components in the expanding markets of GaN-based power electronics and radio frequency applications.