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The Asia Pacific semiconductor manufacturing equipment market accounted for $46.44 billion in 2018 and is expected to grow at a CAGR of 5.7% over the forecast period 2019-2027, to account for $79.04 billion in 2027.
The increasing adoption of smart electronic devices is boosting the manufacturing prospects, and significant incorporation of electronics in automotive applications is one of the key drivers that is propelling the growth of the semiconductor manufacturing equipment market.
Moreover, the integration of IoT, artificial intelligence, and connected devices across various end-use verticals is expected to boost the semiconductor manufacturing equipment market growth in the forecast period. However, the dynamic nature of technologies requires several changes in manufacturing equipment is anticipated to hinder the semiconductor manufacturing equipment market growth. Asia-Pacific has become a global manufacturing hub with the presence of diverse manufacturing industries.
Further, the governments of these countries are making developments to improve investment scenario. The governments are providing tax-rebates, funds, subsidies, and other such support to attract the manufacturing companies to set-up plants in their respective countries.
Further, several governments have taken initiatives such as Made in China 2025 and Make in India, among others to flourish the growth of manufacturing and other high-tech industries. The high growth in semiconductor manufacturing equipment market is driven by high demand for more semiconductor applications in automotive, industrial, consumer goods, and other electronic products including wireless, storage products.
The significant portion of revenue contribution in the fabrication of semiconductor products is played by memory chips and sensors used in various applications. The semiconductor manufacturing equipment market players are focusing on multiple initiatives to enhance their capabilities and boost its position in the market.