PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930195
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930195
The global extreme ultraviolet (EUV) lithography market is experiencing steady growth due to rising demand for advanced semiconductor nodes and increasing complexity in integrated circuit (IC) designs. According to Fortune Business Insights, the global EUV lithography market size was valued at USD 12.16 billion in 2025. The market is projected to grow from USD 13.27 billion in 2026 to USD 25.08 billion by 2034, registering a compound annual growth rate (CAGR) of 8.28% during the forecast period. Europe dominated the global market, accounting for 44.71% of the total market share in 2025, supported by a strong semiconductor R&D ecosystem and the presence of leading EUV technology providers.
EUV lithography uses extreme ultraviolet light to etch extremely small patterns onto semiconductor wafers, enabling the production of chips below 7 nanometers. This technology is essential for sustaining Moore's Law by increasing transistor density, performance, and energy efficiency in modern processors.
Impact of Generative AI on the EUV Lithography Market
Generative AI is playing a crucial role in improving EUV lithography processes by enhancing pattern optimization, defect detection, and design automation. By analyzing large datasets from prior manufacturing cycles, AI models generate optimized lithography patterns that reduce defects, improve yields, and minimize trial-and-error during production. These advancements significantly enhance process precision and throughput, thereby supporting the growth of the EUV lithography market globally.
Market Dynamics
Market Drivers
The rising complexity of integrated circuits is a key driver of EUV lithography adoption. As semiconductor manufacturers shift toward smaller feature sizes and higher transistor densities, traditional optical lithography struggles to meet resolution requirements. EUV lithography enables highly precise patterning, making it indispensable for advanced logic and memory chips. The growing demand for high-performance chips across applications such as artificial intelligence, 5G, data centers, and consumer electronics continues to fuel market growth.
Market Restraints
Despite its advantages, the high cost of EUV lithography systems remains a significant barrier. EUV tools are considerably more expensive than conventional lithography equipment due to complex components such as light sources, masks, pellicles, and photoresists. Additionally, technical challenges related to mask protection and industrial-scale deployment further increase implementation costs, limiting adoption among smaller semiconductor manufacturers.
Market Opportunities
The rapid expansion of data centers and advanced memory devices presents a major growth opportunity. EUV lithography supports the production of high-density NAND Flash and DRAM memory required for modern computing, cloud infrastructure, and enterprise storage. As demand for faster and energy-efficient memory rises, EUV technology is expected to gain further traction.
EUV Lithography Market Trends
A prominent trend shaping the market is the increasing demand for advanced semiconductor nodes, particularly 5nm and below. Leading semiconductor companies such as Samsung and TSMC are expanding their EUV capacity to support next-generation chip production. This focus on miniaturization and performance enhancement is a key factor driving sustained market progress.
By Equipment Type
The light source segment held the largest market share of 41.26% in 2026, driven by its critical role in enabling sub-10 nanometer patterning. Continuous innovations, government support for semiconductor R&D, and collaborations among manufacturers are supporting segment growth.
The mask segment is expected to record the highest CAGR during the forecast period due to increasing precision requirements in sub-7 nanometer chip manufacturing.
By End-User
The Integrated Device Manufacturer (IDM) segment dominated the market and is projected to capture 53.92% market share in 2026, as IDMs increasingly adopt EUV lithography to overcome power, performance, and area limitations.
The foundries segment is expected to grow at the highest CAGR of 12.27%, driven by rising demand for advanced semiconductors used in AI, smartphones, automotive, and high-performance computing applications.
Europe led the market with a valuation of USD 5.44 billion in 2025 and USD 6.02 billion in 2026, supported by strong investments in semiconductor manufacturing. Germany is projected to reach USD 1.39 billion in 2026, while France is valued at USD 1.11 billion in 2025.
Asia Pacific is the second-largest market, estimated at USD 3.73 billion in 2026, with the highest CAGR of 12.34%, driven by major foundries in China, Taiwan, and South Korea.
North America is projected to reach USD 1.89 billion in 2026, supported by demand for advanced computing and telecom devices.
The Middle East & Africa market is estimated to reach USD 0.96 billion in 2026, while the GCC market is valued at USD 0.29 billion in 2025.
Conclusion
In conclusion, the global EUV lithography market is set for steady growth from USD 12.16 billion in 2025 to USD 25.08 billion by 2034, driven by increasing semiconductor complexity, rising demand for advanced nodes, and expanding data center infrastructure. While high costs and technical challenges remain, continuous innovations, generative AI integration, and strong investments by key players such as ASML are expected to strengthen EUV lithography's role as a cornerstone technology in next-generation semiconductor manufacturing.
Segmentation By Equipment
By End-user
By Region
Companies Profiled in the Report ASML (Netherlands), Samsung Electronics Co. Ltd. (South Korea), Canon Inc. (Japan), KLA Corporation (U.S.), NTT Advanced Technology Corporation (Japan), Nikon Corporation (China), ZEISS Group (Germany), ADVANTEST CORPORATION (Japan), SUSS MicroTec SE (Germany)