Flow Control Market In The Semiconductor Industry Market Size

Flow Control Market Analysis

The Flow Control Market In The Semiconductor Industry is expected to grow from USD 5.67 billion in 2024 to USD 7.74 billion by 2029, at a CAGR of 6.41% during the forecast period (2024-2029).

The need for tighter process control during semiconductor manufacturing and the growing investment in new production facilities driven by higher demand are among the key factors driving the growth of the studied market.

• Flow control is highly critical in the semiconductor industry as several processes, including plasma-etch, chemical vapor deposition (CVD), and many other processes, require two or more of these gases to react to produce the passivation layer or essential film, wherein even a slight deviation in gas flow can cause the process to fail. Hence, accurate metering of gas flow into the process chamber is essential.
• Significant advancements in the semiconductor and electronics industries are expected to drive industrial growth. The strong adoption of the work-from-home lifestyle may also add to the surge in demand for electronic equipment caused by the pandemic. Furthermore, with technological advancements and well-established distribution networks, European and US electronics manufacturers strive to expand operations in emerging nations. Furthermore, the increasing popularity of consumer electronics among China's and India's youth is expected to boost the demand for semiconductor chips, which in turn will have a positive impact on the studied market's growth.
• Driven by the growing demand, the semiconductor industry is also witnessing significant growth. For instance, according to the Semiconductor Sector Association (SIA), the global semiconductor industry's sales reached USD 580.13 billion in 2022, a 4.4% growth over the previous year's total of USD 555.89 billion. Although the growth is anticipated to slow down, with SIA anticipating revenue of USD 556.57 billion in 2023, stable growth will positively influence the studied market's growth.
• Due to the existence of major global and local players, the market studied is fragmented as of now. With the increasing complexity of semiconductor manufacturing, the requirement for flow control equipment is also increasing, and much more sophisticated and technologically advanced pumps, valves, and seals are required. Global investment in research and development in power efficiency and facility upgrades in the semiconductor industries are also important drivers of severe competition among companies. The ongoing developments of products and mergers and acquisitions in the market further add to the market's competitiveness.
• However, a higher cost involved with semiconductor manufacturing is anticipated to continue to remain among the major challenging factors for the growth of the studied market. Additionally, the design complexity involved in designing flow control devices/components, considering the critical nature of applications associated with the semiconductor industry, also challenges the growth of the studied market.
• The COVID-19 pandemic had a detrimental impact on the market studied, especially during the initial phase, as the widespread lockdown imposed across the globe significantly disrupted the supply chain and manufacturing capability of chip manufacturers. However, the demand for semiconductor chips significantly increased during the pandemic, which is anticipated to continue during the forecast period, driving investments in new production facilities, which in turn will drive the demand for flow control solutions.