Photolithography Equipment Market size to reach USD 29.8 Billion by 2034

Selbyville, DE. - The global photolithography equipment market was estimated at USD 14.41 billion in 2024 and is expected to grow from USD 15.5 billion in 2025 to USD 29.8 billion by 2034, at a CAGR of 7.5%, according to the latest report published by Global Market Insights Inc.  

The global surge in demand for smaller, faster, and more energy-efficient chips used in smartphones, data centers, AI processors, and automotive electronics is fueling investment in cutting-edge photolithography equipment, particularly for nodes below 7nm.

Key Insights:

Market Size & Growth:

• 2024 Market Size: USD 14.41 billion  
• 2025 Market Size: USD 15.5 billion  
• 2034 Forecast Market Size: USD 29.8 billion  
• CAGR (2025–2034): 7.5%  

• Regional Insights:

• Largest Market: Asia Pacific  
• Fastest Growing Market: Asia Pacific  
• Emerging Countries: India, Vietnam, UAE  

• Key Growth Drivers:

1. Growth of the consumer electronics and IoT sectors: As consumer electronics and Internet of Things (IoT) devices proliferate, chipmakers are expanding fabrication capacity, which increases the demand for photolithography systems essential to the chip production process.  
2. Transition to EUV lithography: The shift toward extreme ultraviolet (EUV) lithography for sub-7nm and future nodes is a major driver.  
3. Expansion of foundries and IDMs: Foundries (like TSMC and GlobalFoundries) and integrated device manufacturers (IDMs like Intel and Samsung) are scaling up fab capacity worldwide in Asia and the U.S., boosting the need for photolithography equipment across multiple process nodes.  
4. Government support and strategic chip investments: National governments, particularly in the U.S., EU, and East Asia, are funding semiconductor manufacturing through subsidies, grants, and policy incentives, directly contributing to increased demand for high-end lithography systems.  
5. R&D in advanced packaging and 3D integration: Advanced packaging techniques, such as chiplet designs and 3D stacking, require precise lithography at both wafer and substrate levels.  

• Key Players:

• ASML Holding N.V. and Nikon Corporation led the market with over 84.1% share in 2024.  
• Some of the top players in this market include Canon Inc., ASML Holding N.V., Applied Materials, Inc., Nikon Corporation, Veeco Instruments Inc., which together held a 90.6% share in 2024.  

• Key Challenges

1. High cost of EUV equipment: Extreme Ultraviolet (EUV) lithography machines, critical for advanced semiconductor nodes, are extremely expensive, often exceeding USD 150 million per unit.  
2. Complexity in technology and maintenance: Photolithography systems are among the most complex machines ever built, requiring ultra-precise alignment, vacuum conditions, and regular calibration.  
3. Supply chain constraints: The photolithography supply chain depends on a limited number of ultra-specialized components, such as high-numerical-aperture lenses, light sources, and masks. Delays or shortages in any of these critical parts can disrupt production timelines globally.  
4. Limited vendor ecosystem: The market is dominated by a handful of players, most notably ASML in the EUV space.  
5. Technical bottlenecks at advanced nodes: As chipmakers push beyond 5nm and 3nm, achieving precision at such minuscule scales introduces new challenges in pattern fidelity, defect control, and mask complexity, placing enormous pressure on lithography equipment performance.  

Browse key industry insights spread across 180 pages with 600 market data tables and figures from the report, “Photolithography Equipment Market Size - By Technology Type, By Equipment Type, By Wavelength, By Light Source, & By Application - Global Forecast, 2025 - 2034” in detail, along with the table of contents:  

https://www.gminsights.com/industry-analysis/photolithography-equipment-market  

Rising Demand for Contact Lithography

The contact lithography segment held a significant share in 2024, driven by semiconductor and microfabrication applications, particularly where high throughput and lower costs are prioritized over extreme resolution. While it lacks the precision of more advanced lithography methods, contact lithography is widely used in MEMS production, printed circuit boards (PCBs), and certain compound semiconductor processes.  

Increasing Adoption of Stepper Systems

The stepper systems segment generated a substantial share in 2024. These systems expose one die at a time, providing precise alignment and overlay control, which is critical for mature process technologies used in analog, RF, and power devices. Despite the rise of EUV, steppers remain in strong demand due to their affordability and reliability across legacy and specialty fabs.  

Memory Devices to Gain Traction

The memory devices segment held a sizeable share in 2024, driven by the need for higher density and faster performance, which is driving demand for advanced photolithography equipment capable of handling increasingly complex patterns. DRAM and NAND flash manufacturers rely on both DUV and EUV systems to push scaling limits and enable innovations such as 3D NAND and DDR5.  

Asia Pacific to Emerge as a Lucrative Region

Asia Pacific photolithography equipment market will grow at a decent CAGR during 2025-2034, driven by the presence of semiconductor manufacturing powerhouses such as Taiwan, South Korea, China, and Japan. These countries host the world’s largest foundries and memory producers, making the region a critical hub for both advanced and legacy node manufacturing.  

Major players in the photolithography equipment market are Gigaphoton Inc., Canon Inc., Hamamatsu Photonics K.K., Veeco Instruments Inc., EV Group (EVG), SCREEN Semiconductor Solutions Co., Ltd., Hitachi High-Tech Corporation, ASML Holding N.V., Xenics NV, Applied Materials, Inc., KLA Corporation, Cymer LLC, SUSS MicroTec SE, Nikon Corporation, Ushio Inc., Lam Research Corporation, and Onto Innovation Inc.  

To solidify their position in the photolithography equipment market, companies are executing strategies focused on innovation, scalability, and regional expansion. Leading firms are investing heavily in next-generation technologies such as high-NA EUV and advanced optical systems to maintain their technological edge. At the same time, they are diversifying their offerings to cater to both leading-edge and legacy fabs, ensuring relevance across the full spectrum of chip production.