Semiconductor Gases Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

Global semiconductor gases market is estimated to witness a major jump in revenue from US$ 9,035.8 Million in 2022 to US$ 15,956.8 Million by 2031, at a CAGR of 6.4% during the forecast period 2023-2031.

In recent years, the electronics industry has experienced significant growth, with the demand for advanced electronics products increasing rapidly. As a result, the need for semiconductor materials has also increased, driving demand for related gases. These gases play a critical role in the manufacturing of semiconductors, which are vital components of modern-day electronics.

In the global marketplace, the demand for semiconductor gases is on the rise, with Asia-Pacific leading the way in terms of consumption. This growth is attributed to the region's expanding electronics industry and the increasing demand for advanced electronic products. In addition, the demand for environmentally-friendly and sustainable semiconductor gases has increased, which is expected to drive growth in the coming years.

To remain competitive in this dynamic semiconductor gases market, companies must continue to innovate and develop new semiconductor gas products that meet customer needs. This involves conducting extensive market research to identify areas of opportunity and understand customer demand. Companies must also invest in research and development to improve their existing products and stay ahead of emerging trends in the industry.

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Market Dynamics

Increasing Demand for Electric Vehicles

The demand for electric vehicles (EVs) has been increasing rapidly in recent years. According to the International Energy Agency (IEA), global electric car sales increased by 41% in 2020, despite the COVID-19 pandemic. The IEA also predicts that by 2030, there will be 140 million electric cars on the road globally, up from just over 10 million in 2020. The growth of the EV in the global semiconductor gases market is expected to drive demand for lithium-ion batteries, which are used to power EVs and require semiconductors in their manufacturing. As such, the demand for semiconductor gases is expected to grow alongside the growth of the EV market.

In addition to the impressive growth of electric car sales, governments around the world are also implementing policies and regulations to promote the adoption of EVs. For example, the European Union (EU) has set a target of reducing carbon emissions from cars by 37.5% by 2030, which is expected to increase the demand for EVs in the region. Similarly, China, the world's largest auto market, has implemented a range of policies to encourage the adoption of EVs, including subsidies and tax exemptions. These policies are expected to drive demand for EVs and, consequently, semiconductor gases.

Moreover, the growth of the EV market is also driving innovation in battery technology, with companies investing heavily in research and development to improve the performance and reduce the cost of lithium-ion batteries. This is expected to increase the demand for semiconductor gases market, as these gases are used in the manufacturing of advanced lithium-ion batteries.

Advancements in Internet of Things (IoT) technology

The Internet of Things (IoT) market is expected to reach $1.6 trillion by 2025, at a compound annual growth rate (CAGR) of 29.4%. IoT devices rely on sensors for collecting data and performing various functions, which require semiconductors in their manufacturing. The demand for sensors is expected to increase as the IoT market continues to grow, driving growth of semiconductor gases market.

The growth of the IoT is being driven by a range of factors, including the increasing availability of affordable and reliable internet connectivity, the proliferation of connected devices, and the rise of big data analytics. As the IoT market continues to grow, demand for sensors is expected to increase significantly. Sensors are used in a wide range of IoT devices, from smart thermostats to industrial machinery, and they require semiconductors in their manufacturing.

In addition to sensors, the IoT market is also driving demand for other semiconductor components such as microcontrollers, memory chips, and processors. These components are used in a wide range of IoT devices, from smart home appliances to autonomous vehicles, and they require semiconductor gases in their manufacturing.

Restrain: Supply Chain Disruptions due to the COVID-19 Pandemic to Hamper Semiconductor Gases Market Growth

The COVID-19 pandemic has caused significant disruptions to global supply chains, affecting the semiconductor industry and the semiconductor gas market. According to the World Semiconductor Trade Statistics (WSTS), the global semiconductor market decreased by 11.9% in 2020 due to the pandemic. The pandemic has caused manufacturing facility closures, transportation restrictions, and labor shortages, leading to delays in the delivery of materials and components. This has created a challenging business environment for semiconductor gas manufacturers and may continue to restrain market growth in the short term.

Segmental Analysis of the Global Semiconductor Gases Market 

By Type

By type, electronic special gaes segment to dominate the global semiconductor gases market. The electronic special gases segment includes gases such as nitrogen, oxygen, and hydrogen, which are widely used in the electronics manufacturing sector. These gases are used to maintain a controlled atmosphere during the manufacturing process, which is critical for ensuring high yields and consistent product quality. Additionally, electronic special gases are used to enhance the performance of electronic devices and lower manufacturing costs, which is driving their adoption across the industry. Nitrogen gas, for example, is used in the production of flat-panel displays to prevent oxidation during the manufacturing process.

Furthermore, the demand for electronic special gases is expected to increase in the near future due to the rising demand for advanced electronic devices, such as smartphones, tablets, and laptops. As the demand for these devices continues to grow, the need for electronic special gases is also expected to increase, as they are essential components in the manufacturing process.

By Process

By process, chamber cleaning to contribute the largest revenue to semiconductor gases market. Chamber cleaning is a critical process in semiconductor manufacturing, as it involves removing impurities from the chamber to maintain high yields and product quality. Fluorinated gases, such as sulfur hexafluoride and nitrogen trifluoride, are widely used for chamber cleaning due to their ability to remove impurities without damaging the chamber. As a result, the demand for fluorinated gases for chamber cleaning is expected to increase in the coming years.

Etching is another important process in semiconductor manufacturing, as it involves removing layers of material to create a desired pattern on the surface of the semiconductor. Chlorine and hydrogen fluoride are commonly used as etching gases due to their high selectivity and high etch rates. The demand for etching gases is expected to increase in the near future due to the growing demand for printed circuit boards and other electronic devices.

By Application

Semiconductors are the backbone of modern electronics and are used in a wide range of devices, from smartphones to automobiles. As such, the demand for semiconductor gases is expected to increase in the near future as manufacturers seek to expand production and improve the quality of their products. The availability of high-purity semiconductor gases is critical to achieving this goal, as impurities in the gas can have a significant impact on the performance and reliability of the semiconductor devices.

The solar (PV) segment is also expected to experience significant growth in the semiconductor gases market due to the growing demand for renewable energy sources. Solar panels require high-purity gases, such as silane and phosphine, in their manufacturing process, which is driving the demand for these gases in the solar industry. Additionally, government policies and initiatives aimed at promoting the use of renewable energy sources are expected to further drive the growth of the solar industry and, consequently, the demand for semiconductor gases.

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Regional Analysis 

Asia Pacific is the largest and fastest-growing semiconductor gases market, accounting for the majority of the global market share in 2022. The region is expected to continue its dominance over the forecast period, driven by factors such as rapid urbanization and digitization in emerging countries such as India and China.

In recent years, the demand for electronic devices has grown significantly in Asia Pacific, due to the increasing population and rising disposable incomes. This has led to a surge in demand for semiconductors and, consequently, semiconductor gases. Furthermore, the expansion of the electronics manufacturing industry in the region is expected to drive the demand for semiconductor gases in the coming years.

The governments of several countries in the Asia Pacific semiconductor gases market, such as China and South Korea, are also investing heavily in the development of their semiconductor industries, which is expected to further drive the growth of the semiconductor gas market in the region. For instance, China's government has launched several initiatives to promote the development of the country's semiconductor industry, including offering tax breaks and subsidies to companies in the sector.

Moreover, the increasing adoption of renewable energy sources in the region is expected to drive the demand for semiconductor gases in the solar industry. Several countries in the region, such as India and China, have set ambitious targets for increasing their renewable energy capacity, which is expected to further boost the demand for semiconductor gases.

List of Key Companies Profiled:

• Air Liquide S.A.
• Air Products Inc
• American Gas Products (AGP)
• Linde Group
• Gruppo SIAD
• Indiana Oxygen Inc.
• Iwatani Corporation
• Sumitomo Seika Chemicals Company, Ltd.
• Messer Group
• Mitsui Chemicals, Inc.
• REC Silicon ASA
• Solvay SA
• Other Players

Segmentation Overview 

Global semiconductor gases market is segmented based on type, process, application and region:

By Type:

• Bulk Gases
  • Nitrogen
  • Oxygen
  • Argon
  • Helium
  • Hydrogen
  • Carbon-di-oxide
• Electronic Special Gases (ESGs)
  • Chlorine
  • Ammonia
  • Silicon
  • Others

By Process:

• Chamber Cleaning
• Oxidation
• Deposition
• Etching
• Doping
• Others

By Application:

• Semiconductor Type
• PCBs
• Displays
• Solar (PV)
• LED
• Others

By Region:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe 
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of Latin America