Physical Vapor Deposition Global Market Report 2026

Physical vapor deposition (PVD) refers to several different vacuum deposition techniques that can be used to create thin films and coatings. PVD is a method in which a material transforms from a condensed to a vapor phase before returning to a thin-film condensed phase.

The main categories of physical vapor deposition (PVD) are PVD equipment, PVD materials, and PVD services. PVD equipment refers to devices designed for the application of PVD coatings. PVD materials that are deposited on the material to be coated include titanium, aluminum, chromium, and nitrogen. PVD services include the use of technologies such as evaporation, vacuum, and sputtering systems to produce affordable, wear-resistant, and superior-quality coatings. The different processes include thermal evaporation and sputtering deposition and find applications in microelectronics, data storage, solar products, cutting tools, medical equipment, and other industries.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the physical vapor deposition market by increasing costs of imported coating equipment, vacuum systems, target materials, and electronic control components. Manufacturers in North America and Europe are most affected due to dependence on imported high-precision systems, while Asia-Pacific faces pricing pressure on export-oriented coating services. These tariffs are raising capital investment requirements and extending equipment replacement cycles. However, they are also encouraging local equipment manufacturing, regional service capabilities, and innovation in cost-efficient coating solutions.

The physical vapor deposition market research report is one of a series of new reports from The Business Research Company that provides physical vapor deposition market statistics, including physical vapor deposition industry global market size, regional shares, competitors with a physical vapor deposition market share, detailed physical vapor deposition market segments, market trends and opportunities, and any further data you may need to thrive in the physical vapor deposition industry. This physical vapor deposition market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The physical vapor deposition market size has grown strongly in recent years. It will grow from $24.67 billion in 2025 to $26.65 billion in 2026 at a compound annual growth rate (CAGR) of 8.0%. The growth in the historic period can be attributed to advancements in vacuum coating technologies, growth of cutting tool manufacturing, increasing demand for durable surface coatings, rising adoption in electronics production, availability of high-performance coating materials.

The physical vapor deposition market size is expected to see strong growth in the next few years. It will grow to $36.95 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to increasing semiconductor fabrication investments, rising demand for advanced medical coatings, expansion of renewable energy applications, growing focus on sustainable coating processes, increasing integration of automated coating systems. Major trends in the forecast period include increasing adoption of advanced thin-film coatings, rising demand for wear-resistant surfaces, growing use in semiconductor manufacturing, expansion of pvd in medical devices, enhanced focus on high-precision coating processes.

The increasing demand in the semiconductor industry is expected to drive the growth of the physical vapor deposition (PVD) market. The semiconductor industry involves the design, manufacturing, and distribution of semiconductor devices such as integrated circuits and microchips. Physical vapor deposition is employed to create the thin metal wiring that connects components and transistors on semiconductors. For instance, in July 2025, according to the Semiconductor Industry Association (SIA), a US-based trade group, global semiconductor sales reached $630.5 billion in 2024, surpassing earlier projections and exceeding $600 billion for the first time, with growth in the Americas, China, and Asia Pacific/All Others, while Japan and Europe experienced slight declines. Therefore, the rising demand in the semiconductor industry is propelling the physical vapor deposition market.

Major companies in the PVD market are focusing on innovations such as inline sputtering systems to improve efficiency and cost-effectiveness. Inline sputtering systems enable precise deposition of thin films on substrates, ensuring uniform coating, reduced material consumption, and high adhesion-especially important for precious metals. For instance, in April 2024, SINGULUS TECHNOLOGIES, a Germany-based provider of thin-film coating and surface-treatment equipment, launched the GENERIS PVD inline sputtering system for producing bipolar plates for fuel cells and PEM electrolyzers. The system features a modular design for flexible adaptation to various substrate sizes, upstream substrate cleaning for optimal surface preparation, and rotating magnetron cathodes for double-sided coating with excellent adhesion. Controlled thin-layer deposition reduces material usage, while the system supports scalable production and intelligent manufacturing. The GENERIS PVD range covers coating areas from 510 X 1,500 mm up to 1,400 X 1,600 mm, offering a highly efficient and sustainable solution for the growing hydrogen technology market.

In March 2025, HEF Groupe, a France-based provider of surface treatment and tribology solutions, acquired Vergason Technology, Inc. for an undisclosed amount. This acquisition aims to expand HEF Groupe's global footprint in high-performance coating technologies by integrating Vergason's advanced PVD equipment and services, enhancing technological capabilities and market reach across automotive, aerospace, medical, and electronics sectors. Vergason Technology, Inc. is a US-based provider of PVD coating equipment and services, offering sputtering, thermal evaporation, and cathodic arc deposition technologies for metallizing and hard coating applications.

Major companies operating in the physical vapor deposition market are Applied Materials, Inc., ULVAC, Inc., Tokyo Electron Limited, Veeco Instruments Inc., Singulus Technologies AG, Angstrom Engineering Inc., AJA International, Inc., Buhler AG, IHI Corporation, Oerlikon Balzers Coating AG, Platit AG, Intevac, Inc., Kurt J. Lesker Company, Semicore Equipment, Inc., Mustang Vacuum Systems Inc., HEF Group, NAURA Technology Group Co., Ltd., Impact Coatings AB, Shincron Co., Ltd., CemeCon AG, Intlvac Thin Film Corporation, CHA Industries, Inc., Pfeiffer Vacuum GmbH, Advanced Energy Industries, Inc.,

Asia-Pacific was the largest region in the physical vapor deposition market in 2025. North America was the fastest-growing region in the physical vapor deposition market share. The regions covered in the physical vapor deposition market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the physical vapor deposition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The physical vapor deposition market consists of revenues earned by entities by providing ion plating, electron beam sputtering, and magnetron sputtering. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Physical Vapor Deposition Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses physical vapor deposition market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for physical vapor deposition ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The physical vapor deposition market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: PVD Equipment; PVD Materials; PVD Services
• 2) By Process: Thermal Evaporation; Sputter Deposition
• 3) By Application: Microelectronics; Data Storage; Solar products; Cutting Tools; Medical Equipment; Other Applications
• Subsegments:
• 1) By PVD Equipment: Evaporation Systems; Sputtering Systems; Cathodic Arc Deposition Systems; Ion Beam Deposition Systems
• 2) By PVD Materials: Metallic Materials; Ceramic Materials; Alloy Materials; Target Materials
• 3) By PVD Services: Coating Services; Maintenance and Repair Services; Consulting And Support Services
• Companies Mentioned: Applied Materials, Inc.; ULVAC, Inc.; Tokyo Electron Limited; Veeco Instruments Inc.; Singulus Technologies AG; Angstrom Engineering Inc.; AJA International, Inc.; Buhler AG; IHI Corporation; Oerlikon Balzers Coating AG; Platit AG; Intevac, Inc.; Kurt J. Lesker Company; Semicore Equipment, Inc.; Mustang Vacuum Systems Inc.; HEF Group; NAURA Technology Group Co., Ltd.; Impact Coatings AB; Shincron Co., Ltd.; CemeCon AG; Intlvac Thin Film Corporation; CHA Industries, Inc.; Pfeiffer Vacuum GmbH; Advanced Energy Industries, Inc.;
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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