Atomic Layer Deposition Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 7.16 Billion |
| Market Size (2030) | USD 12.30 Billion |
| Growth Rate (2025 - 2030) | 11.43% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Atomic Layer Deposition Market Analysis by Mordor Intelligence
The atomic layer deposition market size stood at USD 7.16 billion in 2025 and is forecast to reach USD 12.30 billion by 2030, reflecting an 11.43% CAGR. This expansion has been driven by increasing process intensity at advanced logic and 3D memory nodes, the adoption of gate-all-around (GAA) transistors, and a rapidly growing demand from solid-state battery and micro-LED lines. The Asia-Pacific’s large wafer-fab build-out, coupled with policy incentives in the United States and the European Union, has expanded the buyer base for single-wafer, batch, and spatial platforms. Equipment makers are capturing value by introducing high-throughput reactors, offering lower-resistance metal films such as ruthenium and molybdenum, and embedding real-time analytics for precursor utilization. Meanwhile, precursor scarcity, PFAS regulation, and the need to trim cost-per-wafer keep process integration and supply-chain resilience at centre stage for tool vendors and chipmakers alike.[1]ASM International, “ASM Q1 2025 Results,” asm.com
Key Report Takeaways
- By equipment type, Thermal ALD led with 55.2% revenue share in 2024; Spatial ALD is projected to expand at a 17.1% CAGR to 2030.
- By reactor configuration, cluster (single-wafer) tools held 65.2% of the atomic layer deposition market share in 2024, while stand-alone batch systems are forecast to grow 14.3% CAGR through 2030.
- By substrate size, 300 mm platforms captured 70.5% of the atomic layer deposition market size in 2024; ≥450 mm pilot lines are expected to rise at a 21.7% CAGR to 2030.
- By film chemistry, oxide films commanded a 48.3% share in 2024; metal films (Co, Ru, Mo) represent the fastest segment with an 18.3% CAGR outlook.
- By application, semiconductor logic and memory accounted for 68.4% of the atomic layer deposition market size in 2024; solid-state battery coatings are projected to advance at a 22.5% CAGR through 2030.
- By geography, Asia Pacific dominated with 41.8% revenue share in 2024, and also the region is forecast to post the highest of 17.3% CAGR for 2025-2030.
Global Atomic Layer Deposition Market Trends and Insights
Drivers Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Scarcity and Cost Volatility of Precursor Metals (Ru, Ir, Co) | -1.2% | Global, with higher impact in Asia Pacific | Medium term (2-4 years) |
| Throughput Limitations vs. High-Volume Foundry Targets | -0.8% | Global | Short term (≤ 2 years) |
| Competing Spatial CVD for OLED Encapsulation | -0.5% | Asia Pacific | Medium term (2-4 years) |
| Stringent EHS Regulations on Fluorinated Plasma By-products | -0.7% | Europe, North America | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Surging 3-D NAND and DRAM Node Shrink in Asia
Layer counts already surpassed 200 in commercial 3-D NAND devices, requiring dozens of high-aspect-ratio dielectric and metal layers deposited with sub-Ångström precision. Leading memory makers in South Korea and China ramped orders for thermal ALD reactors that can maintain thickness variation below 1% across structures with 100:1 aspect ratios. Memory price recovery in 2024–2025 restored fab utilization, raising tool demand even amid export-control headwinds. Chinese fabs purchased 40% of global wafer-fab equipment in 2024, creating a regional undersupply of ALD precursor capacity. Vendors able to couple batch economics with high-k dielectric uniformity won most replacement awards.
Transition to Gate-All-Around and High-k Metal Gate Logic
GAA architectures move the gate electrode around the entire nanoribbon, multiplying the number of conformal high-k/metal layers per device. TSMC’s 2 nm platform, slated for 2H 2025 mass production, integrates hundreds of ALD steps to secure threshold-voltage control while shaving 25-30% power versus 3 nm nodes. Molybdenum and ruthenium ALD replaced tungsten and copper in several interconnect levels, trimming line resistance by 35% and simplifying CMP. Demand has skewed toward single-wafer tools with in-source metrology that validates film thickness after every cycle. Suppliers capable of delivering sub-2 Å thickness repeatability at >200 Wph throughput are best positioned.
Rapid Adoption of Mini/Micro-LED Backplanes
Micro-LED fabs need pinhole-free passivation at ≤100 °C to protect GaN pixels. Spatial ALD lines installed in 2024 lifted output by 4× while meeting water-vapor-transmission targets of 4.4 × 10⁻⁵ g/(m² day). Display makers reported 85% leakage-current reduction and 30% brightness gains after converting side-wall passivation from PECVD to ALD. The push into AR/VR headsets and automotive HUDs has shortened payback periods for dedicated ALD encapsulation tools, especially in Taiwan and mainland China, where most panel capacity resides.
EV Battery Solid-State Electrolyte Coatings Demand
Automakers accelerated their solid-state roadmaps, driving orders for cathode-particle coating systems using rotary-bed ALD. Niobium-oxide films of 5 nm improved capacity retention to 99.4% after 500 cycles at 4.7 V.[2]Nature Communications, “Eliminating chemo-mechanical degradation of lithium solid-state batteries,” nature.com A tier-one battery supplier reduced charge time from 45 minutes to 15 minutes by suppressing dendrite formation with alumina ALD layers. However, volumes are modest compared with semiconductors, and multi-reactor battery lines booked through 2027 signal a durable second leg of growth for the atomic layer deposition market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Scarcity and Cost Volatility of Precursor Metals (Ru, Ir, Co) | -1.2% | Global, with higher impact in Asia-Pacific | Medium term (2-4 years) |
| Throughput Limitations vs. High-Volume Foundry Targets | -0.8% | Global | Short term (≤ 2 years) |
| Competing Spatial CVD for OLED Encapsulation | -0.5% | Asia-Pacific | Medium term (2-4 years) |
| Stringent EHS Regulations on Fluorinated Plasma By-products | -0.7% | Europe, North America | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Scarcity and Cost Volatility of Precursor Metals
Ruthenium and iridium supply chains remained concentrated in two producing nations, exposing fabs to price swings above 40% in 2024. One leading-edge logic fab deferred a 3 nm ramp by three months owing to Ru shortages, adding precursor-recycling skids that raised tool CAPEX by 15%. Research into zinc-alkyl-assisted cobalt ALD cut sheet resistance to 15 µΩ cm but still trails Ru in electromigration life. Until alternative chemistries mature, the price of PGMs will cap aggressive cost-down roadmaps.
Throughput Limitations vs. High-Volume Foundry Targets
Conventional ALD grows 0.5–2 Å per cycle, yielding slower wafer-per-hour figures than CVD or PVD. A 5 nm logic line benchmarked ALD and high-density plasma CVD for a barrier layer; the latter’s 3× higher throughput secured the production slot despite ALD’s better step coverage. Vendors responded with spatial ALD and high-speed pulsed-plasma modes that doubled throughput for 45 nm high-k gates. While gains narrow the gap, capital efficiency remains a gating factor for broad deployment in price-sensitive fabs.
Segment Analysis
By Equipment Type: Spatial ALD Disrupts Traditional Platforms
Thermal ALD captured the largest slice of the atomic layer deposition market at 55.2% in 2024. Single-wafer thermal reactors proved indispensable for high-aspect-ratio memory etch-stop layers, with recipe flexibility supporting frequent precursor swaps. However, spatial ALD’s 17.1% CAGR makes it the standout gainer through 2030. A top OLED panel maker validated atmospheric spatial ALD encapsulation that quadrupled throughput and met stringent barrier metrics. The resulting cost per square meter fell by 28%, steering fresh orders toward in-line spatial tools. Plasma-enhanced ALD widened its appeal for flexible electronics, enabling sub-100 °C film growth critical for plastic substrates. Vendors also released roll-to-roll variants, pushing ALD into barrier films for food and solar modules.
The atomic layer deposition market size for Spatial ALD is projected to expand faster than any other segment, driven by demand from display and solar fabs. Conversely, ALE-enabled platforms have emerged as a niche; integrating deposition and etch within one frame shortens process queues for 232-layer NAND stair-etch steps. Collectively, these developments diversified revenue streams beyond the core semiconductor base.
Note: Segment shares of all individual segments available upon report purchase
By Reactor Configuration: Single-Wafer Flexibility Meets Batch Economics
Cluster systems held 65.2% of 2024 revenue, favored for recipe agility at sub-3 nm logic lines. A recent upgrade that combined advanced precursor-vapor delivery with machine-learning fault detection trimmed cycle time 25% and boosted wafer-to-wafer uniformity 40%. Such productivity gains helped sustain the atomic layer deposition market share advantage of single-wafer tools.
Batch reactors, however, are staging a comeback as memory and analog fabs seek lower cost per wafer. New hot-wall designs process 100 wafers simultaneously while controlling temperature within ±1 °C. A South Korean memory producer realized 30% cost savings when migrating a dielectric liner step from cluster to batch ALD. Consequently, batch revenue is on pace for a 14.3% CAGR, outstripping overall market growth.
By Substrate Size: 450 mm Pilot Lines Drive Future Growth
Equipment optimized for 300 mm substrates accounted for 70.5% of 2024 sales, reflecting the entrenched 300 mm fab base. Process control advances, such as predictive precursor-mass-flow tuning, cut chemical usage 35%, aiding gross-margin expansion for tool builders. The atomic layer deposition market size derived from ≥450 mm pilot lines is small today, yet exhibits a 21.7% CAGR outlook to 2030. A multi-partner research and development line demonstrated 40% lower cost per chip versus equivalent 300 mm flows, underscoring long-term economic incentives.
≤200 mm systems remain relevant for SiC power devices and MEMS. Demand uptick from automotive inverters prompted one vendor to acquire a niche epitaxy firm, broadening its 150 mm and 200 mm ALD portfolio. Diversification across wafer diameters cushions suppliers against cyclicality in logic megafabs.
By Film Chemistry: Metal Films Enable Next-Generation Interconnects
Oxide films retained 48.3% share in 2024, buttressed by high-k gate stacks and ferroelectric memory layers. Process tweaks that induce orthorhombic HfO₂ phases cut switch energy 60% and extended retention 3×, revitalizing embedded non-volatile memory roadmaps.
Metal films rose fastest at 18.3% CAGR thanks to GAA-driven molybdenum and ruthenium adoption. A leading foundry’s ALD-Ru line lowered interconnect resistance 35% versus copper, unlocking higher bandwidth for AI accelerators. Nitride and oxy-nitride stacks continued serving barrier and work-function needs, while fluoride and sulfide processes found traction in quantum-device passivation.
Note: Segment shares of all individual segments available upon report purchase
By Application: Solid-State Batteries Emerge as Growth Frontier
Semiconductor logic and memory use dominated at 68.4% in 2024 as leading nodes demanded more than 300 ALD layers per wafer. The atomic layer deposition market benefited from the semiconductor sector’s USD 697 billion revenue in 2025, with AI servers and HBM modules sustaining capital intensity.
Energy devices, led by solid-state batteries, form the fastest-growing application, expanding at a 22.5% CAGR. Rotary-bed ALD lines that coat kilogram-scale cathode powders demonstrated 40% cycle-life gains, propelling pilot installs across Asia, Europe, and North America. Emerging use cases in advanced packaging and biomed coatings add incremental demand and diversify the atomic layer deposition industry’s end-market exposure.
Geography Analysis
Asia-Pacific retained a 41.8% revenue share in 2024 and is forecast to post a 17.3% CAGR through 2030. Taiwan, South Korea, and China jointly produced more than 80% of global logic and memory wafers, ensuring concentrated tool demand. China alone bought 40% of all wafer-fab equipment in 2024 despite export curbs, underpinned by a USD 47 billion national fund. The region also hosts most micro-LED capacity, further amplifying spatial ALD adoption.
North America ranked second, buoyed by CHIPS and the Science Act incentives. New fabs in Arizona, Ohio, and Texas earmarked multi-billion-dollar ALD tool budgets for GAA pilot lines and advanced chiplet packaging. U.S. firms invested USD 107.5 billion in research and development and capex during 2023, reinforcing domestic demand.[3]Semiconductor Industry Association, “2024 Factbook,” semiconductors.org
Europe’s share is smaller yet accelerating. The European Chips Act mobilized EUR 43 billion (USD 49.09 billion), including EUR 3.7 billion (USD 4.22 billion) for five pilot lines that rely on ALD to prototype advanced packaging stacks. Emerging activity in Brazil, Israel, and the United Arab Emirates broadened the customer map, mainly through research lines targeting power electronics and renewable-energy storage.
Competitive Landscape
ASM International maintained its leadership position in single-wafer atomic layer deposition tools after introducing a GAA-ready platform that increased throughput by 30% and secured multi-fab orders for 2 nm logic production. Applied Materials deepened its portfolio by integrating high-speed plasma modules into its core deposition frame, allowing customers to combine ALD, CVD, and etch steps under one factory automation umbrella. Tokyo Electron expanded its batch product line with a new hot-wall reactor that processes 100 wafers simultaneously, while maintaining thickness non-uniformity below 1 Å, appealing to memory producers scaling 3-D NAND layers beyond the 232-mark.
Competition intensified as Chinese manufacturer SiCarrier unveiled the “Alishan” tool at SEMICON China, highlighting a national push for domestic equipment capacity and triggering local procurement programs at several mature-node fabs. Smaller specialists, Beneq and Picosun, focused on flexible electronics and medical implant niches, leveraging compact reactors and rapid recipe customization. The market also witnessed collaborations such as Lam Research partnering with a leading foundry to qualify low-fluorine tungsten ALD flows that meet forthcoming PFAS reduction rules while cutting line resistance 15%.[4]SEMI, “Semiconductors and PFAS: Navigating Innovation and Sustainability,” semi.org
Strategic differentiation centred on throughput gains, precursor-utilization efficiency, and integrated data analytics. Tool builders embedded real-time mass-flow feedback and machine-learning edge nodes that trimmed chemical waste up to 20%. Several vendors packaged atomic layer etch modules on the same backbone to shorten queue time for high-aspect-ratio features. Environmental compliance emerged as a second growth vector, with Merck releasing low-temperature silicon precursors for flexible OLED encapsulation and capturing early design wins among Korean display makers. Collectively, these moves indicated a shift from pure hardware competition toward full-stack process enablement that aligns with regional policy incentives and sustainability mandates.
Atomic Layer Deposition Industry Leaders
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ASM International N.V.
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Tokyo Electron Limited
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Applied Materials Inc.
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Lam Research Corporation
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Beneq Oy
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: ASM International posted Q1 2025 orders of EUR 834 million, up 14% YoY, driven by AI and memory demand.
- March 2025: TSMC began construction of its 2 nm fab in Kaohsiung; the node depends heavily on ALD for GAA transistors.
- March 2025: SiCarrier debuted the ‘Alishan’ ALD tool at SEMICON China, expanding China’s domestic supply base.
- February 2025: The European Commission funded five semiconductor pilot lines with EUR 3.7 billion (USD 4.27 billion), targeting advanced packaging that uses ALD diffusion barriers.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the atomic layer deposition (ALD) equipment market as revenue generated from the sale of brand-new, factory-built tools that create ultra-thin, self-limiting films for semiconductor, energy-storage, display, and biomedical manufacturing lines. Film chemistries span oxides, nitrides, metals, and emerging solid-state battery coatings; reactor formats cover single-wafer cluster, spatial, and batch platforms, and substrate diameters up to pilot 450 mm lines.
Scope Exclusion: Refurbished tools, laboratory R&D coaters below 100 mm, and standalone atomic-layer etch systems sit outside our count.
Segmentation Overview
- By Equipment Type
- Thermal ALD (Batch)
- Plasma-Enhanced ALD (PEALD)
- Spatial ALD
- Roll-to-Roll / Sheet-to-Sheet ALD
- Atomic Layer Etching (ALE)-Enabled Tools
- By Reactor Configuration
- Cluster (Single-Wafer)
- Stand-alone Batch
- By Substrate Size
- ≤ 200 mm
- 300 mm
- ≥ 450 mm Pilot Lines
- By Film Chemistry
- Oxide Films
- Nitride and Oxy-Nitride Films
- Metal Films (Co, Ru, Ti, Al, Cu)
- Fluoride and Sulfide Films
- By Application
- Semiconductor Logic and Memory
- Advanced Packaging and Heterogeneous Integration
- Power and Optoelectronics (SiC, GaN, LEDs)
- Energy Devices (Li-ion, Solid-State, Fuel Cells)
- Biomedical and Implant Surface Functionalization
- Automotive Sensors and ADAS
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- South-East Asia
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- Saudi Arabia
- United Arab Emirates
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Rest of Africa
- Middle East
- North America
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts interviewed process engineers at leading foundries, coating-chemistry researchers, and tool-procurement managers across Asia-Pacific, North America, and Europe. These conversations validated throughput assumptions, average selling prices, and the emerging role of >=450 mm pilot lines, enabling us to close gaps spotted in desk work and align model drivers with on-ground realities.
Desk Research
We began by mapping historic and planned fab investments using public sources such as SEMI's monthly billings, World Fab Forecast, and national customs data that track ALD tool imports. Capacity road maps from corporate filings, 10-Ks, and TSMC, Intel, and EUV-related investor decks helped anchor spending by node. Trade association white papers (Japan Society of Applied Physics), OECD R&D statistics, and patent families retrieved through Questel clarified the pace of spatial and plasma-enhanced ALD adoption. Additional color came from peer-reviewed journals and International Energy Agency battery gigafactory trackers. This list is illustrative; many other open sources complemented data collection and sense-checking.
Market-Sizing & Forecasting
Annual market value is first derived top-down from global wafer-fab capital expenditure, allocating the share addressed by ALD based on node mix, layer counts in 3D NAND, and prevalence of high-k metal gates. Results are corroborated with selective bottom-up supplier roll-ups, sampled unit shipments multiplied by blended ASP, to temper over- or under-allocation. Key variables feeding the model include 300 mm clean-room additions, spatial ALD penetration in backside power delivery, gigawatt-hours of solid-state battery capacity, advanced packaging wafer starts, and average tool replacement cycles. A multivariate regression combined with scenario analysis projects these drivers to 2030. Where bottom-up evidence is thin, regional proxy ratios are applied and then adjusted during analyst review.
Data Validation & Update Cycle
Outputs undergo variance checks against SEMI billings, WSTS semiconductor revenue, and quarterly vendor disclosures. Anomalies trigger re-contact with select primary sources before senior analyst sign-off. Mordor Intelligence refreshes every twelve months and issues interim updates when chip-capex guidance or policy shifts (e.g., CHIPS Act grants) materially alter the baseline.
Why Mordor's Atomic Layer Deposition Equipment Baseline Stands Out
Published estimates differ because firms choose varying tool scopes, apply contrasting ASP progressions, and refresh at different cadences.
Key gap drivers include exclusion of battery and display lines by some publishers, reliance on constant ASPs despite node-driven price drift, or omission of spatial ALD ramp-ups visible in 2025 purchase orders; elements our model captures.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 7.16 B (2025) | Mordor Intelligence | |
| USD 4.30 B (2024) | Global Consultancy A | Omits energy-storage and display installations; applies flat ASPs |
| USD 2.75 B (2024) | Industry Journal B | Counts only thermal ALD tools; excludes cluster configurations and >=300 mm lines |
These comparisons show that our disciplined scope selection, mixed top-down and bottom-up validation, and annual refresh cycle give decision-makers a dependable, transparent baseline that mirrors real capital flows into ALD equipment.
Key Questions Answered in the Report
What was the atomic layer deposition market size in 2025 and how fast is it growing?
The market reached USD 7.16 billion in 2025 and is forecast to expand to USD 12.30 billion by 2030 at an 11.43% CAGR.
Which region leads the atomic layer deposition market?
Asia-Pacific held 41.8% of global revenue in 2024 and is projected to grow at a 17.3% CAGR through 2030, driven by capacity additions in Taiwan, South Korea, and China.
Why is spatial ALD gaining traction?
Spatial ALD separates precursors in space, boosting throughput up to 4× over conventional ALD while maintaining barrier performance, making it attractive for OLED, micro-LED, and solar applications.
How are solid-state batteries influencing ALD tool demand?
Automotive OEMs and cell makers adopt ALD coatings to enhance electrode-electrolyte interfaces, creating a 22.5% CAGR growth avenue that diversifies the tool vendor customer base beyond semiconductors.
What are the main challenges limiting ALD adoption in high-volume fabs?
Key restraints include the scarcity and price volatility of ruthenium, iridium, and cobalt precursors, along with inherent throughput limits relative to CVD and PVD alternatives.
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