Physical Vapor Deposition On Plastics Market (2019 - 2025)

Industry Insights

The global physical vapor deposition on plastics market size was valued at USD 6,785.9 million in 2018 and is expected to grow at a CAGR of 6.2% over the forecast period. Ascending demand of plastic products with Physical Vapor Deposition (PVD) from key applications including microelectronics, data storage, and solar products, particularly in the BRICS (Brazil, Russia, India, China, and South Africa) countries, is likely to drive physical vapor deposition (PVD) on the plastic market over the forecast period.

Rapid growth in the medical equipment industry is expected to drive market demand over the forecast period. High-quality medical equipment and microelectronics manufacturing activities are also expected to influence the market positively.

Over the last few years, technological development has helped to reduce the energy consumption by PVD equipment in regions such as North America and Asia Pacific that witness high technological growth. This, along with generating a consistent demand for physical vapor deposition (PVD) on plastic, also helps reduce the overall cost of film deposition on plastic products.

Rapid technological development of PVD equipment has been posing a threat to large multinational corporations operating in the global market, with the former offering low-cost technologies, thereby creating a gap in the prices in the global market. Government support in the form of tax benefits and financial incentives in China and India to increase the FDI inflow has helped develop the market for physical vapor deposition (PVD) on plastic in these countries.

Application Insights

The medical equipment segment dominated the global physical vapor deposition plastics market and accounted for 26.61% of the market revenue share in 2018. Ascending demand for high-quality medical equipment in the healthcare industry is expected to propel the demand for PVD on plastics over the forecast period.

Growing health awareness among consumers is driving the demand for new diagnostic equipment and technologies for early diagnosis and treatment. This, in turn, is expected to propel the demand for medical equipment in all the regions, thus driving the demand for physical vapor deposition (PVD) on plastics over the forecast period.

Rising utilization of medical equipment in medical procedures such as chromatography, spectrometry, and others is also expected to drive the market. In addition, the market is likely to be driven by the rising utilization of surgical equipment coupled with technological advancement in the medical equipment industry.

Rising demand for photovoltaic cells and emphasis on renewable energy production in Asia Pacific, especially in countries including China, India, and Japan, is expected to propel the demand for physical vapor deposition (PVD) on plastics for solar products in the region.

In addition, factors including dropping prices of solar photovoltaic cells globally, growing concerns regarding the pollution in China, global renewable energy shift from Europe to Asia, policies promoting renewable energy generation, and a shift from public to private power purchase agreements are expected to propel the generation of solar electricity in the region.

Regional Insights

Innovation, price deflation, and rising household incomes especially in emerging markets of Asia Pacific have resulted in high demand for physical vapor deposition (PVD) on plastics products in various applications in the region. Developing economies such as India, South Korea, Japan, and China are expected to witness strong economic growth over the coming years.

With increasing electricity consumption in Asian countries, especially in China and India, renewable energy, mainly solar energy, in the Asian energy mix is gaining prominence as an alternative to coal for electricity generation. The region has average solar radiation of 18.5 MJ/m2/day, with a current solar power generation capacity of 20 GW.

Important factors for the growth of power generation from renewable sources in the region are reducing the carbon footprint, and supportive government regulations & incentives to minimize risk, facilitate healthy sales competition based on per unit price of electricity, and subsidies for new and large-scale solar projects. Large-scale solar projects use state-of-the-art technologies resulting in power generation at a competitive price.

The environmental conditions required for solar power generation are favorable in Southeast Asian countries, such as Myanmar, Malaysia, Indonesia, and the Philippines, with average solar radiation of 17.2 MJ/m2/day compared to 16.2 MJ/m2/day in China. The total installed solar power generation capacity in Southeast Asia is 5 GW compared to 126 GW installed capacity in China. This possesses a tremendous growth opportunity in the Southeast Asian region. The growth in solar power generation is expected to drive physical vapor deposition on the plastics market in the region.

Physical Vapor Deposition (PVD) on Plastics Market Share Insights

Most of the key players operating in the Physical Vapor Deposition (PVD) on Plastic market have integrated their equipment manufacturing and distribution operations to maintain equipment quality and expand regional reach. This provides companies a competitive advantage in the form of cost benefits thus increasing the profit margin. Companies are undertaking research & development activities to develop new technology to sustain market competition and changing application requirements.

Some of the popular technologies mainly include sputtering, thermal evaporation, arc vapor deposition. Research activities focused on the new deposition process, which combines several properties, are projected to gain wide acceptance in this industry in the coming years. Some of the prominent companies manufacturing these physical vapor deposition (PVD) equipment include Angstrom Engineering, Inc., Applied Materials Inc., Advanced Energy Industries, Inc., and Oerlikon Balzers.