Market Introduction

The global lithography equipment market was valued at USD 30 billion in 2024 and grew at a CAGR of 8% from 2025 to 2034. The market is expected to reach USD 64.76 billion by 2034. The increasing demand for consumer electronics will drive the growth of the global lithography equipment market.

Semiconductor manufacturing depends on lithography equipment to produce integrated circuits (ICs). The lithographic procedure serves as a vital semiconductor wafer processing method which results in small and complex electronic features of current devices. The main purpose of lithography equipment consists of photo-exposing patterns through light on wafer-based photosensitive layers before developing and etching them to form circuits. Photolithography systems represented by steppers and scanners function with ultraviolet (UV) light to carry out pattern projection. Proper steppers direct illumination to one wafer each time but scanners utilize optical lenses to accomplish step-by-step pattern printing across entire wafers with increased operational efficiency. The systems maintain precise alignment because deviations however minor will result in defective circuit performance. The production of advanced and miniature ICs depends heavily on precise lithography equipment resolution together with accuracy which makes extreme ultraviolet (EUV) lithography technology advancement essential. EUV technology produces narrower light wavelength frequencies which enables manufacturers to generate crucial features needed for contemporary microprocessors and memory chips. The future growth of microelectronics depends heavily on lithography technology because manufacturers need advanced printing solutions to achieve improving devices that are more powerful while smaller in size.

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Recent Development

• In an effort to counter the market leader's hegemony in the semiconductor industry, Nikon intends to launch a new ArF immersion lithography system platform in fiscal year 2028 (April 2028–March 2029) that is compatible with ASML equipment.

Market Dynamics

Drivers

The increasing demand for consumer electronics – The increased need for consumer electronics is the main reason behind the increased need for improved lithography equipment. Companies focused on consumer electronics seek to develop devices that will achieve better processing efficiency combined with improved battery endurance and enhanced connectivity. Advanced semiconductors need smaller efficient chips to function properly which leads directly to the requirement for state-of-the-art lithography equipment to print complex patterns for the newest semiconductor applications. Semiconductor manufacturers need to maintain constant advancements because customers now seek advanced processors and memory modules and integrated circuits within faster multi-functional products that power modern electronics. Consumer electronics chip complexity has grown because of 5G technology and augmented reality (AR) and virtual reality (VR) and artificial intelligence (AI). Chips for next-generation devices need advanced lithographic patterns that EUV lithography tools provide to make these patterns possible. Advanced lithography solutions will maintain a steady market demand because consumer electronics remain a leading force in technological innovation that drives continuous growth of smaller and faster semiconductor devices.

Restraints

High capital investments – The high capital investments along with operating costs act as major barriers against the market acceptance of lithography equipment that includes advanced technologies such as extreme ultraviolet (EUV) lithography. The total cost for buying and installing lithography machines spans hundreds of millions of dollars at the beginning. Advanced systems need state-of-the-art technology together with exact engineering applications to achieve their costly price point. Advanced semiconductor manufacturers including medium to small-scale organizations may find it difficult to handle the substantial financial costs of equipment acquisition. Stable operation of these systems needs continuous maintenance procedures together with calibration procedures for optimum performance. The implementation of skilled technicians and engineers for operating and equipment maintenance contributes extra to equipment expenses. The machines use abundant power while needing specific materials which cost a lot to acquire. Operating these systems in cleanroom environments creates continued costs for systems that filter air and control temperatures while preventing contamination within the environment. Organizations with budgetary restrictions or practitioners using basic technologies face significant hurdles to acquire advanced lithography tools because of their high installation expenses along with recurrent operational expenses.

Opportunities

Increasing research and development expenditure – The increased demand for semiconductors drives both public and commercial enterprises to construct brand new fabs and enhance their existing facilities. The establishment of these strategic investments serves to enhance manufacturing output as well as maintain current semiconductor technological progress. The strategic need for local semiconductor production has driven governments from the United States and Europe together with Asian countries to provide financial support through incentives with additional funding for building domestic semiconductor facilities. Governments worldwide are investing in semiconductor production due to supply chain needs including EUV lithography technology for making small-scale chips. Private semiconductor and electronics firms increase their R&D expenditures to advance the manufacturing of chips through innovative means. The synergy of public funding support with private industrial investments accelerates the deployment of advanced lithography tools to guarantee semiconductor manufacturing will support emerging technologies as well as global high-tech applications.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global lithography equipment market, with a 38% market revenue share in 2024.

The Asia-Pacific (APAC) region leads the market for lithography equipment because it operates as the fundamental core of worldwide semiconductor production systems. The APAC region houses the three largest semiconductor manufacturing corporations Taiwan Semiconductor Manufacturing Company (TSMC) Samsung and GlobalFoundries who lead the market demand for advanced lithography systems. Photolithography and extreme ultraviolet (EUV) lithography equipment receives substantial orders from these companies to meet the ever-growing need for microchips which power consumer electronics as well as automotive systems together with emerging technologies such as 5G and AI.

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• Two of the biggest semiconductor companies in South Korea, Samsung Electronics and SK Hynix, have taken different approaches to extreme ultraviolet (EUV) lithography technology, garnering a lot of interest from the industry. This change occurs as both businesses seek to become more competitive in the fiercely competitive and dynamic semiconductor industry. In its year-end organizational restructure, Samsung Electronics created a new task force (TF) team called the "EUV Synergy TF," which is housed under the Global Manufacturing & Infrastructure General Division. This action is thought to be an attempt to increase yield rates at 3-nanometer (nm) foundries, which manufacture ultra-fine semiconductors.
• An extreme ultraviolet (EUV) lithography technology has been presented by Professor Tsumoru Shintake of the Okinawa Institute of Science and Technology (OIST), who asserts that it is better than the technique currently employed in the production of semiconductors. Shintake and his team's approach uses smaller EUV light sources, which lowers costs and makes the technique more environmentally friendly because it requires less than a tenth of the power of traditional EUV lithography machines.

Technology Segment Analysis

The technology segment is divided into photolithography and extreme ultraviolet (EUV) lithography. The photolithography segment dominated the market, with a market share of around 57% in 2024. Photolithography maintains its status as the top technology in lithography equipment markets because it demonstrates reliable functionality while offering scalability together with cost-efficient semiconductor manufacturing processes. Ultraviolet light serves as the principal technology for semiconductor devices manufacturing through photolithography by imprinting complex circuit designs onto semiconductor wafers. Chip production has existed through photolithography technology for multiple decades because it efficiently supports diverse semiconductor node scales and production methods. Photolithography demonstrates outstanding precision by enabling the production of small-sized semiconductor chips. The semiconductor industry can rely on these systems because they function at high production volumes while being established and commercially offered. Photolithography systems provide better value compared to the advanced EUV lithography system due to its higher equipment costs and operational difficulties.

• The Hong Kong University of Science and Technology (HKUST) School of Engineering has created the first-of-its-kind deep-ultraviolet (UVC) microLED display array for lithography equipment, a development that is poised to transform the semiconductor industry. By offering a sufficient light output power density, this more efficient UVC microLED has demonstrated the feasibility of a less expensive maskless photolithography, allowing photoresist films to be exposed in less time.

Application Segment Analysis

The application segment is divided into semiconductor manufacturing and display manufacturing. The semiconductor manufacturing segment dominated the market, with a market share of around 61% in 2024. Semiconductor manufacturers use lithography technology to create microchip patterns and circuits that power all electronic products including mobile phones and computers as well as automobiles and internet-connected devices. The semiconductor foundries TSMC and Samsung along with Intel buy advanced lithography systems primarily to make high-performance microprocessors and integrated circuits and memory chips. New technologies including artificial intelligence (AI) and 5G connectivity and autonomous vehicles depend on exceptional semiconductor parts for their operation. Market demand for high-precision lithography tools in semiconductor manufacturing will support continuous advancement of the industry due to growing requirements for more powerful and complex chips.

End use industry Segment Analysis

The end use industry segment is divided into semiconductor industry and electronics and automotive industries. The semiconductor industry segment dominated the market, with a market share of around 58% in 2024. Lithography equipment finds its primary market application in semiconductors because these components drive various present-day technological systems. Gas and electronic chips make up basic components across all product categories including consumer gadgets as well as industrial devices and automotive systems and revolutionary technologies including AI systems and IoT infrastructure. The increase in electronic device purchases worldwide leads the semiconductor industry to become the biggest market for lithography equipment. Semiconductor producers including TSMC, Samsung and Intel depend on advanced lithography systems for manufacturing integrated circuits together with memory chips and microprocessors because these companies determine the market demand. The massive scale of the semiconductor industry together with escalating high-performance chip requirements from various sectors gives it primacy in advancing global lithography equipment markets.

• With the manufacturing of 28nm lithography equipment set for the near future, China is poised to achieve a big advancement in its chipmaking capabilities. Given the current geopolitical environment and technological obstacles, many analysts have been caught off guard by this development. China's semiconductor technology is developing quickly in spite of strict US restrictions intended to hinder it. Although the upcoming 28nm lithography equipment is not state-of-the-art by international standards, it represents a significant turning point in China's technical development.

Some of the Key Market Players

• ASML
• Nikon Corporation
• Canon Inc.
• SUSS MicroTec
• Ultratech
• Toppan Photomasks
• Zeiss
• JENOPTIK AG
• SMEE (Shanghai Micro Electronics Equipment Co.)
• Leica Microsystems
• Global Foundries
• Taiwan Semiconductor Manufacturing Company (TSMC)

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players