Global Metal Organic Chemical Vapor Deposition (MOCVD) Market (by Application, Category, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Global Metal Organic Chemical Vapor Deposition (MOCVD) Market (by Application, Category, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Market Insight:

Today's world depends heavily on semiconductors and the related low-dimensional nanostructures. Lasers, light-emitting diodes, quantum-dot photodetectors, and ultraviolet optoelectronics are a few examples that have undergone extensive research and are employed in both business and military applications. Therefore, it is crucial to comprehend the dynamics of how metalorganic chemical vapor deposition (MOCVD) produces semiconductor nanostructures. Chemical vapor deposition techniques such as MOCVD are often employed in industry to epitaxially produce compound semiconductors.

The demand for MOCVD process has grown significantly in the recent years as a result of the rising demand for semiconductors owing to the increasing demand for consumer electronics and microelectronics. Additionally, it is anticipated that the rise of end-use applications for autonomous technology, such as the autonomous automobile, would result in rapid growth of МОCVD throughout the projected period. The global metal organic chemical vapor deposition market is expected to be valued at US$1.38 billion in 2023, growing at a CAGR of 10.46% during the forecast period.

Segment Covered:

• By Application: The market report has segmented the global metal organic chemical vapor deposition market into six different segments on the basis of application: microelectronics, data storage, solar products, cutting tools, medical equipment, and others. The microelectronic MOCVD segment held the highest share in metal organic chemical vapor deposition market, owing to increasing adoption of microelectronics devices such as resistors, transistors, capacitors, inductors, diodes, and others in various industries across the globe.
• By Category: The report splits the global metal organic chemical vapor deposition market into three segments in terms of category: MOCVD Equipment, MOCVD Materials, and MOCVD Services. MOCVD services is the fastest growing segment expanding at a highest CAGR during the forecast period, due to the growing demand for advancement in technology in coming years.

Geographic Coverage:

According to this report, the global metal organic chemical vapor deposition market can be divided into five major regions: Asia Pacific, Europe, North America, Latin America, and Middle East and Africa. The countries covered in Asia Pacific region include the China, Japan, South Korea and Rest of Asia Pacific, while Europe includes Germany, Italy, UK, France, and Rest of Europe. Moreover, the US, Canada, and Mexico, are included in the North America region.

Asia Pacific enjoyed the major share of the total of the global market, primarily owing to the increasing production and sales of passenger vehicles, and the high demand for automobiles and increasing income levels which have resulted in the rising growth of mid-sized premium and luxury car segments in the region. Therefore, augmenting the MOCVD market growth. China MOCVD market is booming at a rapid pace, thanks to the favorable Government intervention and high production of LED.

Top Impacting Factors:

Growth Drivers

• Increased Demand for Consumer Electronic Devices
• Rise in Automotive Industry
• Rapid installation of MOCVD base
• Escalating Use of Advanced Medical Equipment

Challenges

• High Cost Associated with MOCVD Manufacturing
• Health Concerns Associated with MOCVD Manufacturing

Trends

• Increasing Penetration of AI applications
• Growing Global Demand For Photovoltaic Cells
• Rіѕіng Uѕе Оf МОСVD in the Mаnufасturіng Оf Multіlауеr Ѕеmісоnduсtоr Structure
• Growing Popularity of Micro-LEDs
• Driver: Increased Demand for Consumer Electronic Devices

Rising demand for smartphones, artificial intelligence, and voice recognition technologies, as well as the replacement cycles and falling prices of various electronics devices, are some of the primary drivers of future consumer electronics growth. The surge in demand for consumer electronics is directly impacting the growth in MOCVD market, especially due to growth in demand for semiconductor market, which is a major end-user of MOCVD market. Most of the consumer electronics devices use semiconductor devices such as memory chips, microprocessors, commodity integrated circuit, etc., these semiconductors are grown using MOCVD as their raw material. Therefore, demand for consumer electronic goods have a positive effect on the growth of MOCVD market in recent years.

• Challenge: Health Concerns Associated with MOCVD Manufacturing

MOCVD precursors are very hazardous. They are also even toxic and torming by products of these precursors are toxic. Carbon contamination and unintentional hydrogen incorporation are a major problem in MOCVD. This results in unintentional p-type doping. So for proper doping, the proper V/III ratio is chosen and the suitable amount of carbon gas is injected to remove out CH3 or C2H5 groups for removing contamination. Also, as the human body absorbs organic compounds very easily, the metal organics are very easily absorbed by humans. Once in the body, the weak metal organic bond is easily broken, thus, poisoning the body with heavy metals that often cannot be easily removed by normal bodily functions. Therefore, one drawback of MOCVD is the toxic and explosive nature of the precursor gases, which makes them difficult to use.

• Trend: Increasing Penetration of AI applications

AI has grown in popularity as a result of greater data quantities, improved algorithms, and advancements in processing power and storage. Robotic process automation will shorten the time required to accomplish repeated operations, making the strategy less burdensome and more successful. AI-powered smartphone applications and other mediums will aid in determining what people desire. Data-driven insights result in more tailored solutions and better engagement. The benefits of AI would be driving the demand for AI devices which would require installation of components such as microelectronics, laser, LED lighting & chips, and even transistors, which would increase the demand for MOCVD used in manufacturing such components in coming future.

The COVID-19 Analysis:

The global metal organic chemical vapor deposition market benefited from the COVID-19 pandemic. Since MOCVD is used to grow semiconductors, its influence on semiconductor production has had a considerable market impact. Furthermore, the use of MOCVD as a basic material in solar cells and transistors resulted in some positive developments throughout the pandemic. Understanding the demand drivers for MOCVD end-applications would help assess the influence of COVID on the global MOCVD market. The market is expected to develop quicker in the next years as a result of changes brought about by the pandemic, such as increased semiconductor demand, reconfiguration of MOCVD firms' supply chains to improve robustness, and so on. As a result, COVID-19 had a short-term detrimental impact on the medical laser systems market.

Analysis of Key Players:

The metal organic chemical vapor deposition market currently has only three competitors; however, the potential for rapid expansion has made many semiconductor equipment manufacturers interested in this market opportunity. Further, key players of the metal organic chemical vapor deposition market are:

Nippon Sanso Holding Corporation (Taiyo Nippon Sanso Corporation)

Toshiba Corporation (NuFlare Technology Inc.)

AIXTRON SE

JUSUNG ENGINEERING Co. Ltd.

Nichia Corporation

Advanced Micro-Fabrication Equipment Inc. China

Veeco Instruments Inc.

CVD Equipment Corporation

Samco Inc.

Agnitron Technology, Inc.

Alliance MOCVD, LLC.

Qingdao Jason Electric Co. Ltd.

The global market for MOCVD is concentrated, with three companies accounting for more than 95% of the market. With a market share of more than 70%, Aixtron SE is the world's top supplier of MOCVD equipment, followed by AMEC in China and Veeco Instruments Inc. in the US. MOCVD equipment demand is cyclical, resulting in inconsistent income inflows for MOCVD companies. This is also expected to reduce the number of new producers entering the market.