The Global Semiconductor Gases Market Size Was Valued At USD 8.71 Billion In 2021. The Market Is Projected To Grow From USD 9.36 Billion In 2022 To USD 15.56 Billion By 2030, Exhibiting A CAGR Of 7.5% During The Forecast Period.

Semiconductor Gases Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for products is lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market was 4.0% smaller in 2020 than it was in 2019.

In the making of semiconductors, gases that are semiconducting are used. These semiconductor gases can be further divided into two main groups, such as bulk electronic gases and special electronic gases. Some of these gases are industrial gases, like argon, carbon dioxide, helium, hydrogen, nitrogen, and oxygen in their purest form. Other gases, like nitrogen fluoride, are only made for the electronics industry. Semiconductor chips are at the heart of every electronic device made today. They have led to improvements in communications, computing, healthcare, military systems, transportation, and many other fields.

Also, advances in cutting-edge semiconductor technologies make it possible for future technologies like quantum computing, artificial intelligence, and advanced wireless networks like 5G to be made. Semiconductor gases are very important in most of the steps that go into making semiconductors. This includes steps like deposition, lithography, etching, doping, annealing, and chamber cleaning. As the process of making semiconductors gets more complicated, the demand for the high-purity gases that are used to make these more advanced chips is likely to rise at the same time.

Market Dynamics:

Latest Trends:

The Semiconductor Gases Market will grow because electric vehicles will need more semiconductors.

Semiconductors have become an important part of modern life and are at the heart of all the technology that makes electronic devices possible today. In the last few decades, the growing trend of digitalization in many industries has led to a rise in the demand for semiconductors. The global automotive industry is also part of the digitalization trend. Cars with traditional IC engines have a much higher number of processors and microcontrollers to control every other small function. In an electric car, there are a lot more electronic parts, like sensors, touchscreens, and power electronics, than in a regular car with an internal combustion engine.

As the global auto industry rides the electric wave, it is expected that the demand for semiconductors will go up by several times over the next few years. This shift toward electric vehicles on a global scale is likely to give a huge boost to the manufacturing of semiconductors. This, in turn, will lead to a higher demand for raw materials like high purity semiconductor gases, which are used in every step of the manufacturing process. So, growth in the market is likely to be driven by rising demand in the electric mobility sector.

Driving Factors:

Market growth will be boosted by a rise in demand from the consumer electronics industry.

In the past few decades, technology has changed quickly. This has made consumer electronics like smart phones, tablets, and wearable electronics more affordable for most people. During the forecast period, this trend is likely to keep going, which will lead to more people using these consumer electronics. According to data released by the World Bank in April 2021, the number of people around the world who use the internet has been growing quickly over the past few years. More than 60% of the world's people use the internet, and that number is likely to grow in the coming years as the internet becomes easier to use. Also, recent improvements in the technologies that support consumer electronics, like 5G and IoT, are likely to make more people want to buy them.

For example, the use of smart, connected home electronics that use advanced technologies like machine learning and artificial intelligence has been on the rise. Semiconductor gases are a key part of making high-end semiconductors, which are what make these consumer electronics possible. So, a rise in demand for consumer electronics is likely to be good for the market and help it grow.

Restraining Factors:

Rising concerns about the environment and the adoption of stricter rules will slow market growth.

Few of the gases used to make semiconductors are thought to be the most harmful to people and the environment and to be among the worst polluters. For example, this includes fluorinated gases, which are often used in manufacturing steps like etching, chemical vapour deposition, and chamber cleaning, among others. Based on the dangers they pose, these types of gases can be put into three groups: fire, explosion, and contamination. Companies need to keep up with regulations in order to protect their employees' health and safety and keep the workplace from getting damaged by accident. This translates to additional costs for installation of equipment such as scrubbers and other facilities to treat gas emissions.

Alternative gases that are better for the environment are another option that manufacturing companies can look into. For example, Air Liquide has made a line of etching gases that have less of an effect on global warming. However, switching to alternative gases can be a capital-intensive process. Governments across the globe are enforcing stringent standards to limit hazardous greenhouse gases emitted during semiconductor production owing to rising concerns for the environment and public health. Companies that use these semiconductor gases may be affected by these new rules. So, stricter rules about health and the environment are likely to slow market growth.

Segmentation Analysis:

By Product Analysis:

The market is split into two groups based on the products they sell: Electronic Special Gas and Electronic Bulk Gas.

In 2021, the market was led by the electronic special gas segment. Few of these special electronic gases, such as nitrogen fluoride, are exclusively produced for the electronic manufacturing sector. As the industry that makes semiconductors moves toward making advanced, cutting-edge semiconductors that are smaller than 5 micrometres, the need for gases and chemicals that can give precise results is expected to grow. Most of the time, these gases are called "special electronic gases." So, the demand for electronic special gases is likely to rise as the number of people who want high-density, advanced semiconductor chips grows.

By Application Analysis:

The market is divided into Memory, Logic, and Others in terms of what it is used for.

The largest part of the market was made up of the logic segment. People think of logic chips as the brains of electronic devices. These chips are used to make devices like CPUs, GPUs, and NPUs that can do a lot of work. With the development of new technologies that require high computing power to run machine learning algorithms, the demand for logic chips is expected to grow by a factor of ten during the period of the forecast. Also, improvements in IoT and 5G technologies are expected to help the market grow and make money.

Regional Insights:

Asia-Pacific made up a big part of the market in 2021. Due to rising demand from its growing semiconductor manufacturing sector, the region is likely to keep its position over the next few years. Most of the world's consumption takes place in the Asia-Pacific region. Countries like Taiwan, which has a strong semiconductor manufacturing sector, are major consumers. The country has been a leader in making semiconductor chips, and it continues to put a lot of money into increasing its production capacity. During the forecast period, other countries like China, South Korea, and Japan are also likely to increase the amount of semiconductors they can make. This is to meet the growing demand. This is likely to make more people want to buy semiconductor gases.

The growing importance of the semiconductor industry and the important role it can play in today's geopolitics have caused countries all over the world to change their minds about making things at home. Even though most semiconductor technology was created in the U.S., the country's share of production has dropped from about 37% in 1990 to about 12% today. The recent shortage of semiconductors caused by the pandemic shows how important it is to make semiconductors in the United States. So that the U.S. doesn't have to rely as much on foreign suppliers, it has been taking steps to increase domestic production. For example, the CHIPS Act has just been passed by the U.S. Congress. This law includes tax credits for investments, grants for making semiconductors, and investments in research for making chips. During the forecast period, it is expected that more semiconductor chips will be made. This, in turn, should help and drive the market share of semiconductor gases.

The European semiconductor industry is about the same as the U.S. semiconductor industry in terms of its ability to make things. The semiconductor industry that does the most research and development is in this area. But the European Union is now putting more effort into making things at home and wants to increase its share of global semiconductor production. For example, in February 2022, the EU passed a law called the European Chips Act to deal with the shortage of semiconductor chips. This act is meant to make it easier to build infrastructure to meet rising demand, bring in new investments, and create an environment where new talent can thrive. The semiconductor manufacturing industry in the region is likely to do well over the next few years because the government is doing more to help it. This, in turn, is expected to open up new ways for the market to grow.

Scope Analysis

Recent Development:

• July 2022 – Iwatani Corporation has signed an agreement with Helious Specialty Gases, an Indian specialty gas company. This will make Helious the first company to have three helium transfill facilities in India. The company also plans to become the country's leading helium supplier, accepting major OEMs.
• July 2022 – SK Materials and Showa Denko signed an MOU on business cooperation for the production of special gases used in the semiconductor chip manufacturing process. Considering the increase in demand for semiconductors, the two companies plan to build factories in the United States and produce high-purity gas in North America.
• May 2022 – Air Products San Fu Co. Ltd recently introduced two new air separation units as part of a long-term contract to supply ultra-high purity industrial gases to one of the world's largest semiconductor manufacturers in Asia.
• April 2022 – Air Products announced an investment of approximately $900 million in several on-site factories in Taiwan. The company has agreed to supply high-purity gases, including nitrogen, oxygen, argon and hydrogen, to an undisclosed semiconductor manufacturer in Taiwan.
• September 2021 – The Linde Group announced a long-term agreement with a prominent semiconductor manufacturer based in Phoenix, Arizona. Under the contract, Linde has agreed to supply customers with ultra-high purity gases such as nitrogen, oxygen and argon. To that end, Linde has announced that it will build, own and operate an on-site factory complex.

Market Segmentation

By Product:

• Electronic Special Gas
• Electronic Bulk Gas
• Others

By Application:

• Memory
• Logic
• Others

By Companies:

• Air Liquide (France)
• Air Products and Chemicals, Inc. (U.S.)
• Linde plc (U.K.)
• Solvay (Belgium)
• Iwatani Corporation (Japan)
• Messer Group (Germany)
• American Gas Products (U.S.)
• Electronic Fluorocarbons, LLC (U.S.)
• SUMITOMO SEIKA CHEMICALS CO.,LTD. (Japan)
• Taiyo Nippon Sanso JFP Corporation (Japan)
• SHOWA DENKO K.K. (Japan)
• Others