Atomic Layer Deposition Market

Market Definition

Atomic Layer Deposition (ALD) is a technique used to apply thin and even coatings, layer by layer, on a surface, essential for advanced nanotechnology and semiconductor applications. It works by exposing the surface to alternating chemical gases that react in a controlled way, allowing each layer to form precisely. 

This process ensures that the coating is smooth, uniform, and can cover even complex shapes effectively. ALD offers key benefits like precise thickness control, strong adhesion, and high-quality coatings, which improve the performance and durability of devices.

Atomic Layer Deposition Market Overview

The atomic layer deposition market size was valued at USD 2,413.4 million in 2023, and is projected to grow from USD 2,700.6 million in 2024 to USD 6,366.2 million by 2031, exhibiting a CAGR of 13.03% from 2024 to 2031. 

The growing demand for miniaturized semiconductor devices, advancements in flexible electronics, and increasing adoption in energy storage & solar panel technologies are driving the global market.

Major companies operating in the atomic layer deposition 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., and SENTECH Instruments GmbH.

The global market is growing, due to its critical role in the fabrication of advanced electronic devices and thin-film coatings. ALD has become a preferred technique, owing to its accuracy and ability to coat complex geometries, meeting the increasing demand for precise, nanoscale film deposition in industries such as semiconductors, electronics, and energy storage.

• According to the Semiconductor Industry Association (SIA), the global semiconductor industry sales reached USD 53.1 million in August 2024, marking a 20.6% increase compared to August 2023.

Key Highlights:

1. The atomic layer deposition market size was valued at USD 2,413.4 million in 2023.
2. The market is projected to grow at a CAGR of 13.03% from 2024 to 2031.
3. Asia Pacific held a market share of 48.67% in 2023, with a valuation of USD 1,174.6 million and is anticipated to grow at a CAGR of 14.16% during the forecast period
4. The aluminium oxide ALD segment garnered USD 874.4 million in revenue in 2023.
5. The electronics segment is poised to register a significant CAGR of 18.02% throughout the forecast period.

Market Driver

"Increasing Adoption of ALD in Renewable Energy Applications"

The growing emphasis on renewable energy projects is driving the adoption of ALD technology, particularly in the production of advanced batteries and photovoltaic cells. 

ALD’s ability to create uniform, ultra-thin films with precise control enhances the efficiency and durability of these energy storage and generation systems. This has become crucial as several countries are implementing policies to achieve carbon neutrality and transition to clean energy sources.

• The U.S. Department of Energy (DOE) allocated up to $3.5 million in 2023 to strengthen domestic production of advanced batteries and battery materials. This funding, part of the Bipartisan Infrastructure Law, focuses on next-generation battery technologies, including advanced chemistries and traditional lithium-ion designs, where ALD plays a pivotal role in improving performance and lifespan.

Market Challenge

"High Initial Investment Costs"

The adoption of ALD technology is hindered by the significant initial investment required for ALD systems. The equipment used in ALD processes is highly specialized and technologically advanced, leading to elevated capital costs. 

These expenses can be a barrier, particularly for small and medium-sized enterprises (SMEs) in the semiconductor and electronics industries, limiting their ability to adopt this technology despite its advantages.

Market Trend

"Integration of ALD in Emerging Nanotechnology Applications"

The atomic layer deposition market is registering a surge in its adoption within emerging nanotechnology applications, including advanced medical devices and quantum computing. 

By enabling ultra-thin, uniform coatings with atomic-level precision, ALD has become a cornerstone technology for fabricating complex nanostructures and devices, driving innovation across multiple fields.

In healthcare, ALD is being used to enhance the functionality and biocompatibility of implantable medical devices, drug delivery systems, and biosensors. Its ability to provide conformal coatings ensures improved durability and compliance with rigorous medical standards, making it ideal for life-critical applications.

• According to a report published by the United States National Library of Medicine, ALD enables the successful synthesis of high-purity inorganic nanocoatings on surfaces of complex shape and topography, which is beneficial for medical applications.

Atomic Layer Deposition Market Report Snapshot

Segmentation	Details
By Product	Aluminium oxide ALD, Plasma Enhanced ALD, Metal ALD, Catalytic ALD, Others
By Application	Semiconductors, Solar devices, Electronics, Medical equipment, 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 Product (Aluminium oxide ALD, Plasma Enhanced ALD, Metal ALD, Catalytic ALD, Others): The aluminium oxide ALD segment earned USD 874.4 million in 2023, due to its widespread use in semiconductor manufacturing, offering high thermal stability and uniform thin-film deposition for applications such as gate dielectrics and protective coatings.
• By Application (Semiconductors, Solar devices, Electronics, Medical equipment, Others): The semiconductors segment held 42.35% share of the market in 2023, due to the increasing demand for advanced microelectronics and the critical role of ALD in producing high-precision thin films for next-generation semiconductor devices, such as memory chips and logic circuits.

Atomic Layer Deposition Market Regional Analysis

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

Asia Pacific accounted for around 48.67% share of the atomic layer deposition market in 2023, with a valuation of USD 1,174.6 million. The rapid expansion of the semiconductor and electronics industries in Asia Pacific is driving the market in the region. 

The demand for ALD technology, which offers precise deposition for high-performance chips, has surged as countries like China, Japan, and South Korea continue to invest heavily in advanced semiconductor manufacturing. This is further supported by the region's leadership in consumer electronics production and innovation.

• According to the Semiconductor Industry Association (SIA), about 75% of global semiconductor manufacturing capacity is concentrated in China and East Asia, with Taiwan and South Korea housing 100% of the world’s most advanced (below 10 nanometers) semiconductor manufacturing capacity, accounting for 92% and 8%, respectively.

The atomic layer deposition industry in North America is poised for significant growth at a robust CAGR of 12.68% over the forecast period. The rapid advancements in the electric vehicle (EV) market are fueling the demand for 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 U.S. reached 1.4 million in 2023, marking an increase of over 40% compared to 2022.

The increasing demand for miniaturized and high-performance electronic devices is further propelling the 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.

Region’s Regulatory Framework Also Plays a Significant Role in Shaping the Market

• In the U.S., ALD falls under regulations primarily focused on environmental impact, safety standards, and semiconductor manufacturing processes. The Environmental Protection Agency (EPA) sets standards for chemical usage and waste disposal associated with ALD processes. The Occupational Safety and Health Administration (OSHA) governs worker safety related to the exposure to chemicals used in ALD.
• The UK regulates ALD under several laws, such as the Health and Safety at Work Act 1974, which ensures safe working conditions in laboratories and manufacturing settings. The Environmental Protection Act 1990 covers waste management, including the disposal of chemicals used in the ALD process. The Control of Substances Hazardous to Health (COSHH) regulations require that companies manage and assess the risks associated with chemicals used during ALD.
• Germany’s regulation of ALD is guided by the Federal Immission Control Act (BImSchG), focusing on emission control and environmental impact of chemicals and equipment. Technische Regeln für Gefahrstoffe (TRGS) and Gefahrstoffverordnung (GefStoffV) are also relevant, as they establish safety measures for handling hazardous substances used in the deposition process.
• In China, the State Administration of Work Safety (SAWS) regulates the safety standards for equipment and chemicals involved in ALD processes, ensuring that they comply with occupational safety laws. The China National Environmental Protection Agency (SEPA) oversees emission standards and chemical waste management. Additionally, China's National Development and Reform Commission (NDRC) controls energy usage in semiconductor manufacturing, pushing companies toward sustainable and energy-efficient ALD processes.
• India’s regulation of ALD processes is overseen by the Ministry of Environment, Forest, and Climate Change (MoEFCC), which monitors environmental impact through the Environment Protection Act (EPA), regulating emissions and waste disposal.
• In South Korea, ALD is regulated by the Ministry of Environment (MOE), which enforces environmental protection laws related to emissions, chemicals, and waste disposal. The Occupational Safety and Health Agency (OSHA) regulates worker safety in manufacturing facilities using ALD, ensuring safe handling of hazardous substances.

Competitive Landscape:

The atomic layer deposition industry is characterized by a large number of participants, including both established corporations and rising organizations. Companies are investing in research and development (R&D) to create new and improved products to keep pace with the rapidly evolving technology landscape. 

By advancing ALD capabilities, such as increasing deposition rates or broadening the range of materials that can be processed, companies aim to address market demands in high-growth sectors like electronics, energy storage, and nanotechnology. Continuous R&D efforts help maintain a competitive edge and contribute significantly to the overall growth of the ALD market.

List of Key Companies in Atomic Layer Deposition 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

• In November 2023, Oxford Instruments collaborated with leading Japanese power electronics and RF foundries for its plasma ALD and atomic layer etch (ALE) systems. These systems are intended to enhance the production of GaN HEMT devices, critical for the rapidly growing market of GaN power electronics and radio frequency applications.