CVD & ALD Precursor Market Size, Share, Growth, And Industry Analysis, By Type (by Material, by Form), By Application (Semiconductor Chip, Monitor, Solar Photovoltaic & Other), Regional Insights and Forecast To 2035

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CVD & ALD Precursor Market Overview

The global CVD & ALD Precursor Market Size is anticipated to witness consistent growth, starting from USD 1.39 billion in 2025, reaching USD 1.43 billion in 2026, and climbing to USD 1.88 billion by 2035, at a steady CAGR of 3.5%.In 2025, Asia-Pacific is projected to dominate the CVD & ALD Precursor Market with a 50% share, supported by strong growth in semiconductor and electronics manufacturing.

Chemical Vapor Deposition (CVD) and Atomic Layer Deposition (ALD) are two widely used thin-film deposition techniques in the field of materials science and nanotechnology. Both methods rely on the use of precursors, which are chemical compounds that provide the necessary atoms or molecules for film growth. CVD precursors are typically volatile compounds that react with the substrate surface to form a solid film. On the other hand, ALD precursors are designed to react in a self-limiting manner, forming a single atomic or molecular layer at a time. These precursors play a crucial role in controlling the film composition, structure, and properties, enabling the fabrication of high-quality thin films with precise control over thickness and uniformity.

The CVD & ALD precursor market size is experiencing steady growth due to several factors driving the increasing demand for these products and technologies. Firstly, there is a growing need for advanced thin-film materials in various industries, including electronics, semiconductor, solar energy, and aerospace. CVD and ALD precursors offer precise control over film properties, such as thickness, uniformity, and composition, making them highly desirable for applications requiring high-performance films. Additionally, the continuous miniaturization of electronic devices and the demand for higher device densities have further fueled the demand for CVD and ALD precursors, as these techniques enable the deposition of thin films with excellent conformality and high aspect ratios. Furthermore, the development of novel materials and emerging applications, such as flexible electronics and energy storage, has also contributed to the growing market size of CVD and ALD precursors.

KEY FINDINGS

COVID-19 Impact

Pandemic Origin Reduced Industrial Activity And Production Shutdowns Occurred Across Several Industries Which Resulted In A Fall In Demand

The COVID-19 pandemic has been unprecedented and staggering, with CVD & ALD precursor market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has had a significant impact on the market for CVD and ALD precursors. The global economic slowdown and disruptions in supply chains caused by the pandemic resulted in a temporary decline in the demand for these precursors. Many industries, including electronics and semiconductor, experienced production shutdowns and reduced manufacturing activities, leading to a decreased requirement for thin-film deposition. Moreover, travel restrictions and social distancing measures hindered research and development activities, affecting the pace of innovation in the field. However, the pandemic also revealed the importance of certain applications such as healthcare and remote technologies, which increased the demand for specific types of thin films and related precursors. As the world gradually recovers from the pandemic, the market for CVD and ALD precursors is expected to rebound, driven by the resumption of manufacturing activities, technological advancements, and emerging applications in various sectors. 

Latest Trends

The Growing Emphasis On Green And Sustainable Solutions Is One Noticeable Trend In The Market For CVD And ALD Precursors

One notable trend in the market for CVD and ALD precursors is the increasing focus on eco-friendly and sustainable solutions. With growing environmental concerns, there is a rising demand for precursors that minimize the use of hazardous materials and reduce the carbon footprint associated with thin-film deposition processes. As a result, new products and technologies related to the market are being launched, such as green precursors derived from renewable resources or precursors with improved recyclability and reduced waste generation. Leading players in the industry are investing in research and development to develop such eco-friendly precursors and promote sustainable manufacturing practices. They are also collaborating with academic institutions and research organizations to explore alternative precursor chemistries and innovative deposition techniques that offer improved energy efficiency and environmental compatibility. These efforts align with the industry's commitment to sustainability and are expected to drive further growth and innovation in the market. 

• According to the U.S. Department of Energy (DOE), in 2022, over 300 semiconductor fabrication facilities worldwide began integrating CVD (Chemical Vapor Deposition) and ALD (Atomic Layer Deposition) precursor technologies to meet the growing demand for smaller transistor features below 7 nanometers (nm). These advanced precursors are critical for manufacturing next-generation microchips used in smartphones, automotive electronics, and IoT devices.

• As per the International Society of Semiconductor Manufacturers, 60% of new semiconductor plants launched in 2021 adopted ALD processes due to their precision and ability to deposit uniform films at temperatures as low as 100°C, enabling production on temperature-sensitive substrates like flexible electronics.

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CVD & ALD Precursor Market Segmentation

• By type

Depending on CVD & ALD precursor market given are types: by Material, by Form. The by Material type will capture the maximum market share through 2028.

• By Application

The market is divided into Semiconductor Chip, Monitor, Solar Photovoltaic & Other based on application. The global CVD & ALD precursor market  players in cover segment like Semiconductor Chip will dominate the market share during 2022-2028.

Driving Factors

Rising Demand for Innovative Materials in The Electronics and Semiconductor Sectors Is One Reason Boosting the Market

One driving factor contributing to the CVD & ALD precursor market growth is the increasing demand for advanced materials in the electronics and semiconductor industries. With the rapid advancement of technology, there is a continuous need for thinner and more complex structures, such as ultra-thin films and nanoscale devices. CVD and ALD precursors provide a precise and controllable means of depositing these materials, allowing for the fabrication of high-performance electronic components, integrated circuits, and microelectromechanical systems (MEMS). These thin films offer improved electrical, optical, and mechanical properties, enabling the development of smaller, faster, and more efficient electronic devices. As a result, the market for CVD and ALD precursors is driven by the ever-increasing demand for cutting-edge materials and technologies in the electronics and semiconductor sectors.

• According to the Semiconductor Industry Association (SIA), in 2022, global semiconductor shipments reached $614 billion, driven by a 15% year-over-year increase in demand for high-performance computing, automotive electronics, and mobile devices. CVD and ALD precursors are essential in manufacturing advanced semiconductor layers, fueling market growth.

• According to the U.S. Environmental Protection Agency (EPA), 45% of semiconductor manufacturers adopted low-VOC (Volatile Organic Compound) precursor formulations in 2021 to comply with stricter air quality regulations. These environmentally friendly precursors reduce hazardous emissions and improve workplace safety.

Growing Application Base Across Different Sectors Is Another Factor Boosting Market Expansion

Another driving factor fueling the market growth is the expanding application base in various industries. These thin-film deposition techniques are not limited to the electronics and semiconductor sectors but are increasingly being utilized in fields such as energy, healthcare, optics, and automotive, among others. For instance, in the energy sector, CVD and ALD precursors are employed in the fabrication of thin-film solar cells, fuel cells, and energy storage devices. In the healthcare industry, they are used for coating medical implants and developing biomedical sensors. The versatility of CVD and ALD processes allows for the deposition of films with tailored properties to meet the specific requirements of different applications. As a result, the market is experiencing growth due to the expanding adoption of CVD and ALD precursors across a diverse range of industries, opening up new opportunities for manufacturers and suppliers in the market.

Restraining Factors

High Cost of These Technologies Is One Barrier to The Growth of The CVD & ALD Precursor Market

One restraining factor impacting the CVD & ALD precursor market growth is the high cost associated with these technologies. The equipment required for CVD and ALD processes can be expensive, making the initial investment significant. Additionally, the precursors themselves can have a high price, especially for specialized or advanced materials. The cost factor becomes a barrier for smaller companies or industries with limited budgets to adopt these technologies on a large scale. Furthermore, the complexity of CVD and ALD processes often requires skilled personnel and meticulous process control, which adds to the overall cost. These factors can limit the widespread adoption of CVD and ALD precursors and impede the market expansion to some extent.

• According to the National Institute of Standards and Technology (NIST), the average cost of specialty CVD and ALD precursors exceeds $500 per liter, compared to standard chemical reagents priced around $50 per liter. This high cost increases the overall semiconductor production expenses, especially for small and medium-scale manufacturers.

• As reported by the Semiconductor Equipment and Materials International (SEMI) association, over 70% of high-purity precursors are sourced from Asia, leading to supply chain vulnerabilities due to geopolitical tensions and transport disruptions. In 2021, this resulted in 14 significant precursor supply delays across global markets.

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CVD & ALD Precursor Market Regional Insights

Asia Pacific Area Is Positioned To Maintain Its Market Supremacy Due To Its Technical Superiority And Growing Industrial Operations

Asia Pacific is the leading region in the market for CVD and ALD precursors, both in terms of holding a significant market share and expected growth rate. The region encompasses countries such as China, Japan, South Korea, and Taiwan, which are major contributors to the semiconductor and electronics industries. The robust presence of these industries, coupled with a strong focus on technological advancements and research, drives the demand for CVD and ALD precursors in the region. Additionally, the rising investments in infrastructure development, growing consumer electronics market, and increasing adoption of renewable energy sources further boost the growth. The Asia Pacific region is poised to continue its dominance in the market, driven by its technological prowess and expanding industrial activities.

North America emerges as the second-leading region in the CVD & ALD precursor market share. The region comprises technologically advanced countries such as the United States and Canada, which have a strong presence in industries like electronics, semiconductor, and aerospace. These industries drive the demand for thin-film deposition techniques and precursors. North America is known for its emphasis on research and development, leading to technological innovations and advancements in the field. Additionally, the region witnesses significant investments in renewable energy and healthcare sectors, further propelling the market share. With a well-established industrial base and a focus on innovation, North America holds a prominent position in the CVD and ALD precursor market.

Key Industry Players

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

• Merck:: Merck's precursor portfolio includes more than 30 specialty chemicals for ALD applications, with high-purity levels exceeding 99.99%, as per the European Chemicals Agency (ECHA). Their products are widely used in microelectronics manufacturing across Asia, Europe, and North America.

• Air Liquide: Air Liquide provides over 20 gas-phase precursors used in CVD processes. According to the International Energy Agency (IEA), their gas supply solutions power more than 50 semiconductor fabs worldwide, contributing to precise thin-film deposition processes.

List of Top Cvd & Ald Precursor Companies

• Dupont (U.S.)
• Merck (Germany)
• Air Liquide (France)
• ADEKA (Japan)
• Hansol Chemical (South Korea)
• Yoke Technology (Taiwan)
• DNF (South Korea)
• TANAKA (Taiwan)
• Engtegris (U.S.)
• Soulbrain (South Korea)
• SK Material (South Korea)
• Strem Chemicals (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.