The global vertical furnace industry share is expected to witness high growth in the following years with a CAGR of 5.6%.
The industry size is expected to enlarge exhibiting growth factors and upcoming opportunities for major players. The vertical furnace market growth attributes to the constant demand from consumers for home-based electrical appliances based on advances in the semiconductor industry. Major countries with a high technical capability have created significant markets having a high consumer base. Also, the market is greatly influenced by ongoing trends, consumer demand and competition among the key players as witnessed across the globe.
The installation of a vertical furnace can be two ways, i.e. up-flow and down-flow. The flow of air can be determined depending on either of the types. For instance, in case of upflow vertical furnace, cold air comes from the bottom while the hot air is passed from the top of the furnace. Similarly, in a down-flow furnace it is vice-versa. Up-flow vertical furnaces are most energy efficient for domestic purpose as compared with down-flow furnace. Also, installation costs are relatively low as compared to down-flow furnace.
Growing demand for vertical furnace in the residential segment drives the market growth
The market growth is triggered due to the significant rise in demand for vertical furnace in the residential segment. Adoption of sedentary lifestyle, modernized home designs, and wide availability of kitchen appliances have contributed majorly. Additionally, the rise in disposable income and increase in demand for heat treating services in the residential and commercial segment is more likely to attract a huge market growth in the following years.
Technical enhancement is a major booster for vertical furnace market. Growing demand for technical applications is witnessed throughout the market sectors. Moreover, product improvement led by significant research and development is anticipated to encourage the market growth in the years to come. Growing investments and commercial developments in wafer size are some of major highlights that determine the market growth.
High costs and low awareness might restrict the market growth
High costs of products and complex maintenance are some downsides in the market. The market can be negatively affected due to unavailability of demand for complex products despite good design and architecture. Low awareness in consumers pertaining to the brand is probably worsening the market condition for vertical furnace.
Wafer size with 200mm?300mm accounted for a significant market share
Based on wafer size, the vertical furnace industry is segmented as 100mm?150mm, 150mm?200mm, and 200mm?300mm.
Wafer size with 200mm?300mm is a dominant segment attributing to the demand from higher middle-class population. This wafer size also caters to the requirements from automotive and aircraft industries. Moreover, there is a huge demand from markets in Asia Pacific for 200mm?300mm wafer size. Rise in demand for IC products is likely to supplement the market development in the following years.
The demand for 150mm?200mm wafer size is anticipated to have a second leading share attributing to the growing importance in the medical & pharmaceutical industry. In addition, the growth of this segment majorly depends on adoption of innovation by manufacturers that delivers effective solutions.
Semiconductor domain to hold the dominant share
Based on type, the vertical furnace industry can be segmented as semiconductor and advanced packaging.
The semiconductor domain held a dominant share and will continue to dominate in the later years due to the increase in digitalization and rise in consumer spending on home appliances.
Advanced packaging is likely to expect a steady growth attributing to the growing significance of packaging in the HVAC industry. Moreover, the modern packaging techniques have significantly resulted in user demand.
The vertical furnace industry is geographically segmented as North America, Europe, Asia Pacific, Middle-East, and Africa. Asia Pacific is likely to encourage significant developments in the coming years. For instance, in terms of production, the government regulations have resulted in betterment for small and large manufacturers. The presence of distribution channels and other mediums have been actively contributing to the market growth.
North America and Europe are probably the second leading markets for vertical furnace attributing to the increase in number of commercial constructions and user preference in the residential sector. Extensive use of energy-efficient devices in the end-user category is propelling the growth of regional market. Another major factor is rise in disposable income and increase in per capita expenditure.
The global vertical furnace industry report has profiled a few companies namely ASM International, Koyothermos, Centrotherm Photovaltics and Tempress. The key players have been actively adopting mergers, acquisitions, and collaboration for market positioning. Moreover, companies are adopting integrated approach and also offer aftermarket sales and service.
List Of Key Companies Profiled: