Lithography Equipment Market to Hit USD 103.9 Billion by 2035 — Growth Fueled by EUV and Advanced Packaging

Lithography Equipment Market

Global lithography equipment market to grow from USD 46.4B in 2025 to USD 103.9B by 2035 at 8.4% CAGR, driven by EUV and semiconductor expansion.

NEWARK, DE, UNITED STATES, November 10, 2025 /EINPresswire.com/ -- The global lithography equipment market is on track to grow from USD 46.4 billion in 2025 to approximately USD 103.9 billion by 2035, expanding at a robust CAGR of 8.4%. This growth underscores the industry’s vital role in powering the semiconductor revolution and next-generation chip manufacturing worldwide.

During the early adoption phase (2020–2024), the market grew gradually from USD 31.0 billion to USD 46.4 billion as semiconductor manufacturers began integrating advanced lithography systems for high-precision chip fabrication. With production lines scaling and standardization across fabrication plants, the market enters its rapid expansion phase (2025–2030) before consolidating into a mature landscape by 2035.

EUV Technology Leads the Transformation

Among all technologies, Extreme Ultraviolet (EUV) Lithography is expected to command 42.6% of total market revenue in 2025, marking it the dominant segment. EUV enables chipmakers to achieve sub-10nm patterning, supporting next-generation processors and high-density memory. Its scalability and precision reduce defect rates and enhance manufacturing efficiency, making it indispensable for advanced semiconductor nodes.

ASML Holding N.V., the global leader in EUV systems, continues to drive breakthroughs in optics, source power, and throughput, solidifying its position as the market frontrunner. Other key players including Nikon Corporation and Canon Inc. focus on advancing immersion and deep ultraviolet (DUV) lithography to complement EUV’s high-end applications.

Optical Lithography Remains a Workhorse in Fabrication

While EUV dominates the high-end segment, Optical/Photolithography equipment will maintain the largest revenue share—47.9% in 2025—thanks to its cost-effectiveness, reliability, and adaptability. Its use in multi-patterning and legacy node production ensures continued relevance in high-volume manufacturing.

Manufacturers like SCREEN Holdings Co., Ltd. and SUSS MicroTec AG are investing in enhanced optical systems and immersion technologies that boost resolution and process stability, ensuring the technology’s sustained competitiveness in mature fabs.

Advanced Packaging Drives Market Demand

The Advanced Packaging segment, accounting for 38.4% of total revenue in 2025, is fueling the need for precision lithography tools. The rise of 3D stacking, wafer-level packaging, and system-in-package (SiP) technologies demands ultra-accurate patterning for miniaturized, high-performance devices.

Applications across AI, 5G, automotive electronics, and data centers are expanding the adoption of lithography systems capable of fine feature printing. These trends align with global initiatives toward miniaturization and energy-efficient devices, strengthening the market outlook.

Regional Growth Insights: Asia-Pacific at the Forefront

The Asia-Pacific region dominates the global lithography equipment landscape, fueled by robust semiconductor manufacturing ecosystems in China, Japan, South Korea, and Taiwan.

- China leads with a projected CAGR of 11.3%, supported by aggressive investments in domestic chip production and government-backed semiconductor programs.
- India, growing at 10.5% CAGR, benefits from national initiatives promoting electronics manufacturing and semiconductor self-reliance.
- In Europe, Germany (9.7%) and the UK (8.0%) sustain steady growth driven by strong R&D investment and automotive electronics.
- The United States, with 7.1% CAGR, remains a mature yet vital market focusing on innovation, automation, and fab modernization.

Market Dynamics: Precision, Reliability, and Integration

Resolution and throughput remain the key differentiators across regional markets. North America and Europe prioritize EUV and advanced DUV systems for sub-5nm node production, while Asia-Pacific emphasizes cost-effective mid-range tools for mass-market electronics.

Reliability and uptime are critical factors influencing purchasing decisions. Global fabs seek systems with predictive maintenance, remote diagnostics, and energy-efficient operation to ensure continuous production. Suppliers focusing on automation, integrated software compatibility, and low maintenance designs are gaining competitive advantage.

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Top Companies Shaping the Market

The competitive landscape features both established leaders and regional innovators:
ASML Holding N.V., Nikon Corporation, Canon Inc., Veeco Instruments Inc., SUSS MicroTec AG, EV Group, SCREEN Holdings Co., Ltd., Onto Innovation Inc., JEOL Ltd., Neutronix Quintel Inc. (NXQ), Advantest, and Shanghai Micro Electronics Equipment (Group) Co., Ltd.

These companies are pioneering next-generation photolithography systems, nanoimprint tools, and inspection technologies essential for modern semiconductor fabrication. ASML leads in EUV, while Nikon and Canon innovate in immersion lithography. Meanwhile, Veeco, SUSS MicroTec, and EV Group are advancing wafer bonding and MEMS lithography capabilities.

Future Outlook: Accelerating the Semiconductor Frontier

The lithography equipment market’s trajectory reflects the broader transformation of the global semiconductor ecosystem. As demand for AI chips, IoT devices, and advanced memory continues to surge, lithography remains the technological backbone enabling finer geometries and higher efficiency.

Rising capital expenditure on fabs, ongoing R&D in optical and electron-beam lithography, and government-backed manufacturing initiatives will further drive the market through 2035. The integration of AI-driven process control, automation, and metrology will define the next era of precision manufacturing.

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