Semiconductor Metrology And Inspection Market Research Report and Outlook by 2028

The Semiconductor Metrology and Inspection sector is anticipated to achieve a market value of US$ 11,102.53 million by 2028, with a compound annual growth rate (CAGR) of 6.6% from 2022 to 2028. Over recent years, the consumer electronics market has been on a continuous upward trajectory, marked by significant advancements.

Factors such as increased disposable income, rapid technological progress, and enhanced internet connectivity have contributed to a higher adoption rate of electronic devices, including smartphones, smartwatches, earbuds, washing machines, and air conditioning units. Furthermore, the demand for smart home technologies has surged dramatically in recent times. This growing consumer electronics market is consequently driving the need for semiconductors. Numerous nations are implementing strategies to lessen their dependence on foreign semiconductor supplies and are enacting policies to bolster their domestic semiconductor industries. For example, the United States has committed to supporting Mexico in enhancing its semiconductor manufacturing capabilities to decrease reliance on China. In a similar vein, the European Union (EU) introduced the Chips Act in February 2022, aimed at boosting semiconductor production within the region. This renewed focus on semiconductor manufacturing is expected to significantly increase the demand for semiconductor metrology and inspection tools in the upcoming years, thereby propelling the growth of the semiconductor metrology and inspection market throughout the forecast period.

Effects of the COVID-19 Pandemic on the Growth of the Semiconductor Metrology and Inspection Market

The COVID-19 pandemic had a profound effect on the semiconductor sector, particularly in the Asia Pacific region, which is the largest producer and consumer of semiconductors. The pandemic resulted in substantial disruptions, causing delays and cancellations in shipments, especially from major manufacturing centers like China, Taiwan, and South Korea. Consequently, the semiconductor metrology and inspection market faced challenges due to a significant backlog of orders among leading market players. However, the scenario began to improve after the third quarter of 2020, as the global semiconductor shortage compelled manufacturers to invest in advanced metrology and inspection technologies to optimize resource utilization and minimize material waste. This shift led to an increased demand for semiconductor metrology and inspection equipment, positively influencing market growth. Additionally, several countries that were heavily reliant on semiconductor imports began to implement strategies to enhance their domestic semiconductor production, resulting in a notable rise in demand for semiconductor metrology and inspection equipment from Q3 2020 onwards. Companies like ASML Holding N.V. reported substantial year-over-year growth in their metrology and inspection divisions from 2020 to 2021. Thus, despite initial revenue declines in early 2020, the semiconductor metrology and inspection market ultimately benefited from the pandemic.

According to research on the semiconductor metrology and inspection market, China commands the largest share in the Asia Pacific region, owing to its robust manufacturing capabilities in electronics and semiconductors. The nation is a leading producer of consumer electronics, industrial electronic components, and electric vehicles, and it stands as the largest global consumer of semiconductors. Prominent semiconductor firms in China include HiSilicon, SMIC, OmniVision, UNISOC, ZTE, and Nexperia. Furthermore, initiatives by the Chinese government, such as the Made in China 2025 strategy, are expected to bolster the country's self-sufficiency in semiconductor manufacturing. These factors are likely to enhance revenue generation for semiconductor metrology and inspection market participants in China during the forecast period.

The demand for semiconductors is on the rise across various sectors, including aerospace, automotive, manufacturing, and military & defense, driven by the integration of artificial intelligence (AI), deep learning, and big data analytics. This trend necessitates the development of complex semiconductors that are compact yet offer high accuracy, precision, sensitivity, and throughput. Consequently, there is an increasing need for adaptable measurement and inspection systems capable of managing a diverse range of parameters, including two-dimensional (2D) and three-dimensional (3D) geometries, while also being flexible enough to accommodate new requirements as they emerge. To align with the industry's evolving roadmap, equipment manufacturers must concentrate on the specific needs of advanced packaging (AP) operations and deliver innovative solutions. For instance, KLA Corporation has introduced the Kronos 1190 patterned wafer inspection system, which features high-resolution optics tailored for advanced wafer-level packaging (AWLP) applications, such as 3D IC and high-density fan-out. This system is designed to detect critical flaws during process development and production monitoring. The increasing global demand for such advanced solutions is a key driver of growth in the semiconductor metrology and inspection market.

Key players identified in the semiconductor metrology and inspection market analysis include KLA Corporation, ASML Holding N.V., Applied Materials, Inc., Onto Innovation, Inc., and Hitachi High-Technologies Corporation.

The size of the semiconductor metrology and inspection market has been assessed through a combination of primary and secondary research methodologies. Initially, extensive secondary research was conducted utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This process provided a comprehensive overview and forecast of the semiconductor metrology and inspection market across all segments. Additionally, numerous primary interviews were held with industry experts and commentators to validate the findings and gain deeper analytical insights. Participants in this process included key personnel such as vice presidents, business development managers, market intelligence managers, national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders with specialized knowledge in the semiconductor metrology and inspection market.