Thermal Evaporation System Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application
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Introduction
The thermal evaporation system market encompasses a widely utilized physical vapor deposition (PVD) technology for forming thin films on substrates. This method is particularly effective for depositing single metals such as silver or gold, as well as more complex materials through co-deposition processes. Operating in high vacuum environments, source materials are heated until vaporization occurs, forming vapor streams that deposit onto substrates. The process involves critical components including vacuum chambers, vacuum pumps, and energy sources such as resistive or electron beam heating. Thermal evaporation is essential for manufacturing electronic and optical devices, including solar cells, OLED displays, and MEMS devices.
Market Size and Growth Forecast
The global thermal evaporation system market is projected to reach 2.5-3.0 billion USD by 2025, with an estimated compound annual growth rate (CAGR) of 12%-15% through 2030. This growth trajectory is supported by increasing demand for OLED display production, expanding solar cell manufacturing requirements, advancing semiconductor fabrication technologies, and growing applications in optical coating systems for various industrial and consumer applications.
Regional Analysis
Asia Pacific dominates the thermal evaporation system market with estimated growth rates of 13%-16%, primarily driven by massive OLED display production capacity in China and South Korea, expanding semiconductor manufacturing facilities across the region, and substantial investments in solar energy infrastructure. China represents the largest consumption market with significant domestic demand from display manufacturers, while South Korea maintains leadership in advanced OLED production technologies. Japan contributes through high-precision equipment manufacturing and technological innovation in vacuum deposition systems.
North America follows with growth rates of 10%-13%, led by the United States where advanced semiconductor research and development activities drive significant equipment demand. The region benefits from established technology companies, growing solar energy installations, and increasing investments in next-generation display technologies. Canada contributes through research institutions and specialized manufacturing applications.
Europe exhibits growth rates of 9%-12%, with Germany, Switzerland, and the Netherlands leading in precision equipment manufacturing and advanced material research applications. The region emphasizes high-quality optical coating applications, aerospace component manufacturing, and sustainable energy technology development.
South America shows growth potential of 8%-11%, with Brazil and Mexico experiencing increasing demand driven by expanding electronics assembly operations and growing solar energy projects. The region benefits from increasing technology adoption and rising industrial automation requirements.
The Middle East and Africa region demonstrates growth rates of 7%-10%, driven by expanding electronics manufacturing capabilities and growing investments in renewable energy infrastructure across major urban centers.
Application Analysis
Anti-reflective Coating Application: This segment demonstrates projected growth of 13%-16%, driven by expanding solar cell production, growing demand for optical devices, and increasing requirements for high-performance display technologies. The segment benefits from advancing photovoltaic technology requiring enhanced light transmission efficiency and growing consumer electronics market demanding superior optical properties.
Reflective Surface Films Application: Expected to grow at 11%-14%, this segment encompasses specialized mirror coatings for optical systems, decorative applications, and advanced lighting technologies. Growth drivers include expanding automotive lighting applications, increasing architectural glass requirements, and advancing aerospace optical systems.
Dielectric Filters Application: Growing at 14%-17%, this segment serves telecommunications equipment, optical communication systems, and advanced display technologies. The segment benefits from expanding 5G infrastructure deployment, increasing optical fiber communication networks, and growing demand for high-performance optical filtering applications.
Key Market Players
Canon Tokki Corporation: The Japanese subsidiary of Canon Inc. maintains near-monopoly leadership in OLED material deposition equipment through advanced vacuum evaporation technology and comprehensive manufacturing capabilities. Canon Tokki operates specialized production facilities and serves major display manufacturers globally with high-precision deposition systems, including the innovative ELVESS system combining OLED evaporation and encapsulation processes.
Ulvac: This Japanese vacuum equipment manufacturer focuses on comprehensive vacuum technology solutions for semiconductor, display, and solar applications. Ulvac maintains strong technical capabilities across multiple deposition technologies and serves diverse industrial customers requiring reliable vacuum processing equipment.
SNU Precision: This Korean company specializes in precision vacuum equipment manufacturing for display and semiconductor applications. SNU Precision focuses on cost-effective solutions and maintains growing market presence in Asia Pacific through competitive pricing and technical support capabilities.
Sunic System: The Korean equipment manufacturer provides comprehensive vacuum deposition solutions for OLED and semiconductor manufacturing. Sunic System emphasizes technological innovation and maintains strong relationships with major display manufacturers through customized equipment solutions.
YAS: This equipment manufacturer focuses on specialized vacuum deposition systems for advanced manufacturing applications. YAS maintains technical expertise in precision equipment design and serves niche market segments requiring customized deposition solutions.
AIXTRON: The German equipment manufacturer specializes in deposition equipment for compound semiconductor, silicon, and organic semiconductor applications. AIXTRON provides advanced process technologies and maintains strong presence in research and development applications requiring high-precision deposition capabilities.
Industry Value Chain Analysis
The thermal evaporation system industry value chain extends from specialized component manufacturing through sophisticated system integration and comprehensive application support. Upstream operations involve high-precision vacuum component production, specialized heating element manufacturing, and advanced control system development. Critical components include vacuum chambers manufactured from high-grade stainless steel, precision vacuum pumps providing ultra-high vacuum conditions, and sophisticated heating systems utilizing electron beam or resistive technologies.
Manufacturing integrates precision mechanical components with advanced electronic control systems and sophisticated software for process optimization. System assembly requires specialized clean room environments, comprehensive performance testing, and extensive quality assurance protocols. Technical integration encompasses vacuum system design, thermal management optimization, and advanced process control algorithms.
Distribution channels focus on direct sales to major industrial customers, specialized technical support organizations, and comprehensive aftermarket service capabilities. Technical service providers offer installation support, process optimization assistance, and ongoing maintenance services ensuring optimal system performance across diverse applications.
End applications span OLED display manufacturing, solar cell production, semiconductor device fabrication, and optical coating applications. Professional technical support ensures optimal deposition performance through application-specific process development, customized equipment configurations, and continuous process improvement services.
Market Opportunities and Challenges
Opportunities
●Advanced Display Technology Growth: Expanding OLED display production for smartphones, televisions, and emerging flexible display applications creates substantial long-term growth opportunities. Next-generation display technologies including microLED and quantum dot displays represent high-value market segments requiring specialized deposition equipment.
●Solar Energy Expansion: Global renewable energy initiatives and declining solar cell costs drive increasing demand for high-efficiency photovoltaic manufacturing equipment. Advanced solar cell architectures including perovskite and tandem technologies create opportunities for specialized deposition systems.
●Emerging Applications Development: Growing demand for advanced optical coatings, specialized electronic devices, and innovative material applications creates opportunities for customized deposition solutions. Applications in augmented reality, autonomous vehicles, and advanced sensor technologies represent expanding market opportunities.
●Technological Innovation: Advancing deposition technologies including atomic layer deposition integration, in-situ process monitoring, and intelligent process control create premium market segments with enhanced value propositions.
Challenges
●Technology Complexity: Thermal evaporation systems require sophisticated engineering expertise, extensive process knowledge, and continuous technological advancement. Maintaining competitive differentiation requires substantial research and development investment and specialized technical capabilities.
●Market Concentration: Heavy dependence on major display manufacturers and semiconductor companies creates customer concentration risks and pricing pressure. Economic cycles in electronics industries significantly impact equipment demand and investment patterns.
●Capital Intensity: High equipment costs and long development cycles create significant barriers to entry and require substantial customer investment commitments. Equipment lifetime and technology obsolescence concerns influence customer purchasing decisions.
●Supply Chain Management: Specialized component requirements and precision manufacturing standards create supply chain complexity and potential disruption risks. Global component sourcing and quality assurance requirements demand sophisticated supplier management capabilities.
Chapter 1 Executive Summary
Chapter 2 Abbreviation and Acronyms
Chapter 3 Preface
3.1 Research Scope
3.2 Research Sources
3.2.1 Data Sources
3.2.2 Assumptions
3.3 Research Method
Chapter 4 Market Landscape
4.1 Market Overview
4.2 Classification/Types
4.3 Application/End Users
Chapter 5 Market Trend Analysis
5.1 introduction
5.2 Drivers
5.3 Restraints
5.4 Opportunities
5.5 Threats
Chapter 6 industry Chain Analysis
6.1 Upstream/Suppliers Analysis
6.2 Thermal Evaporation System Analysis
6.2.1 Technology Analysis
6.2.2 Cost Analysis
6.2.3 Market Channel Analysis
6.3 Downstream Buyers/End Users
Chapter 7 Latest Market Dynamics
7.1 Latest News
7.2 Merger and Acquisition
7.3 Planned/Future Project
7.4 Policy Dynamics
Chapter 8 Trading Analysis
8.1 Export of Thermal Evaporation System by Region
8.2 Import of Thermal Evaporation System by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Thermal Evaporation System Market in North America (2020-2030)
9.1 Thermal Evaporation System Market Size
9.2 Thermal Evaporation System Demand by End Use
9.3 Competition by Players/Suppliers
9.4 Type Segmentation and Price
9.5 Key Countries Analysis
9.5.1 United States
9.5.2 Canada
9.5.3 Mexico
Chapter 10 Historical and Forecast Thermal Evaporation System Market in South America (2020-2030)
10.1 Thermal Evaporation System Market Size
10.2 Thermal Evaporation System Demand by End Use
10.3 Competition by Players/Suppliers
10.4 Type Segmentation and Price
10.5 Key Countries Analysis
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Chile
10.5.4 Peru
Chapter 11 Historical and Forecast Thermal Evaporation System Market in Asia & Pacific (2020-2030)
11.1 Thermal Evaporation System Market Size
11.2 Thermal Evaporation System Demand by End Use
11.3 Competition by Players/Suppliers
11.4 Type Segmentation and Price
11.5 Key Countries Analysis
11.5.1 China
11.5.2 india
11.5.3 Japan
11.5.4 South Korea
11.5.5 Southest Asia
11.5.6 Australia
Chapter 12 Historical and Forecast Thermal Evaporation System Market in Europe (2020-2030)
12.1 Thermal Evaporation System Market Size
12.2 Thermal Evaporation System Demand by End Use
12.3 Competition by Players/Suppliers
12.4 Type Segmentation and Price
12.5 Key Countries Analysis
12.5.1 Germany
12.5.2 France
12.5.3 United Kingdom
12.5.4 Italy
12.5.5 Spain
12.5.6 Belgium
12.5.7 Netherlands
12.5.8 Austria
12.5.9 Poland
12.5.10 Russia
Chapter 13 Historical and Forecast Thermal Evaporation System Market in MEA (2020-2030)
13.1 Thermal Evaporation System Market Size
13.2 Thermal Evaporation System Demand by End Use
13.3 Competition by Players/Suppliers
13.4 Type Segmentation and Price
13.5 Key Countries Analysis
13.5.1 Egypt
13.5.2 Israel
13.5.3 South Africa
13.5.4 Gulf Cooperation Council Countries
13.5.5 Turkey
Chapter 14 Summary For Global Thermal Evaporation System Market (2020-2025)
14.1 Thermal Evaporation System Market Size
14.2 Thermal Evaporation System Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Thermal Evaporation System Market Forecast (2025-2030)
15.1 Thermal Evaporation System Market Size Forecast
15.2 Thermal Evaporation System Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Canon Tokki Corporation
15.1.1 Company Profile
15.1.2 Main Business and Thermal Evaporation System Information
15.1.3 SWOT Analysis of Canon Tokki Corporation
15.1.4 Canon Tokki Corporation Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Ulvac
15.2.1 Company Profile
15.2.2 Main Business and Thermal Evaporation System Information
15.2.3 SWOT Analysis of Ulvac
15.2.4 Ulvac Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 SNU Precision
15.3.1 Company Profile
15.3.2 Main Business and Thermal Evaporation System Information
15.3.3 SWOT Analysis of SNU Precision
15.3.4 SNU Precision Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 Sunic System
15.4.1 Company Profile
15.4.2 Main Business and Thermal Evaporation System Information
15.4.3 SWOT Analysis of Sunic System
15.4.4 Sunic System Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 YAS
15.5.1 Company Profile
15.5.2 Main Business and Thermal Evaporation System Information
15.5.3 SWOT Analysis of YAS
15.5.4 YAS Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 AIXTRON
15.6.1 Company Profile
15.6.2 Main Business and Thermal Evaporation System Information
15.6.3 SWOT Analysis of AIXTRON
15.6.4 AIXTRON Thermal Evaporation System Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope of Thermal Evaporation System Report
Table Data Sources of Thermal Evaporation System Report
Table Major Assumptions of Thermal Evaporation System Report
Table Thermal Evaporation System Classification
Table Thermal Evaporation System Applications List
Table Drivers of Thermal Evaporation System Market
Table Restraints of Thermal Evaporation System Market
Table Opportunities of Thermal Evaporation System Market
Table Threats of Thermal Evaporation System Market
Table Raw Materials Suppliers List
Table Different Production Methods of Thermal Evaporation System
Table Cost Structure Analysis of Thermal Evaporation System
Table Key End Users List
Table Latest News of Thermal Evaporation System Market
Table Merger and Acquisition List
Table Planned/Future Project of Thermal Evaporation System Market
Table Policy of Thermal Evaporation System Market
Table 2020-2030 Regional Export of Thermal Evaporation System
Table 2020-2030 Regional Import of Thermal Evaporation System
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 North America Thermal Evaporation System Demand List by Application
Table 2020-2025 North America Thermal Evaporation System Key Players Sales List
Table 2020-2025 North America Thermal Evaporation System Key Players Market Share List
Table 2020-2030 North America Thermal Evaporation System Demand List by Type
Table 2020-2025 North America Thermal Evaporation System Price List by Type
Table 2020-2030 United States Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 United States Thermal Evaporation System Import & Export List
Table 2020-2030 Canada Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Canada Thermal Evaporation System Import & Export List
Table 2020-2030 Mexico Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Mexico Thermal Evaporation System Import & Export List
Table 2020-2030 South America Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 South America Thermal Evaporation System Demand List by Application
Table 2020-2025 South America Thermal Evaporation System Key Players Sales List
Table 2020-2025 South America Thermal Evaporation System Key Players Market Share List
Table 2020-2030 South America Thermal Evaporation System Demand List by Type
Table 2020-2025 South America Thermal Evaporation System Price List by Type
Table 2020-2030 Brazil Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Brazil Thermal Evaporation System Import & Export List
Table 2020-2030 Argentina Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Argentina Thermal Evaporation System Import & Export List
Table 2020-2030 Chile Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Chile Thermal Evaporation System Import & Export List
Table 2020-2030 Peru Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Peru Thermal Evaporation System Import & Export List
Table 2020-2030 Asia & Pacific Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Asia & Pacific Thermal Evaporation System Demand List by Application
Table 2020-2025 Asia & Pacific Thermal Evaporation System Key Players Sales List
Table 2020-2025 Asia & Pacific Thermal Evaporation System Key Players Market Share List
Table 2020-2030 Asia & Pacific Thermal Evaporation System Demand List by Type
Table 2020-2025 Asia & Pacific Thermal Evaporation System Price List by Type
Table 2020-2030 China Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 China Thermal Evaporation System Import & Export List
Table 2020-2030 India Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 India Thermal Evaporation System Import & Export List
Table 2020-2030 Japan Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Japan Thermal Evaporation System Import & Export List
Table 2020-2030 South Korea Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 South Korea Thermal Evaporation System Import & Export List
Table 2020-2030 Southeast Asia Thermal Evaporation System Market Size List
Table 2020-2030 Southeast Asia Thermal Evaporation System Market Volume List
Table 2020-2030 Southeast Asia Thermal Evaporation System Import List
Table 2020-2030 Southeast Asia Thermal Evaporation System Export List
Table 2020-2030 Australia Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Australia Thermal Evaporation System Import & Export List
Table 2020-2030 Europe Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Europe Thermal Evaporation System Demand List by Application
Table 2020-2025 Europe Thermal Evaporation System Key Players Sales List
Table 2020-2025 Europe Thermal Evaporation System Key Players Market Share List
Table 2020-2030 Europe Thermal Evaporation System Demand List by Type
Table 2020-2025 Europe Thermal Evaporation System Price List by Type
Table 2020-2030 Germany Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Germany Thermal Evaporation System Import & Export List
Table 2020-2030 France Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 France Thermal Evaporation System Import & Export List
Table 2020-2030 United Kingdom Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 United Kingdom Thermal Evaporation System Import & Export List
Table 2020-2030 Italy Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Italy Thermal Evaporation System Import & Export List
Table 2020-2030 Spain Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Spain Thermal Evaporation System Import & Export List
Table 2020-2030 Belgium Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Belgium Thermal Evaporation System Import & Export List
Table 2020-2030 Netherlands Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Netherlands Thermal Evaporation System Import & Export List
Table 2020-2030 Austria Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Austria Thermal Evaporation System Import & Export List
Table 2020-2030 Poland Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Poland Thermal Evaporation System Import & Export List
Table 2020-2030 Russia Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Russia Thermal Evaporation System Import & Export List
Table 2020-2030 MEA Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 MEA Thermal Evaporation System Demand List by Application
Table 2020-2025 MEA Thermal Evaporation System Key Players Sales List
Table 2020-2025 MEA Thermal Evaporation System Key Players Market Share List
Table 2020-2030 MEA Thermal Evaporation System Demand List by Type
Table 2020-2025 MEA Thermal Evaporation System Price List by Type
Table 2020-2030 Egypt Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Egypt Thermal Evaporation System Import & Export List
Table 2020-2030 Israel Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Israel Thermal Evaporation System Import & Export List
Table 2020-2030 South Africa Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 South Africa Thermal Evaporation System Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Thermal Evaporation System Import & Export List
Table 2020-2030 Turkey Thermal Evaporation System Market Size and Market Volume List
Table 2020-2030 Turkey Thermal Evaporation System Import & Export List
Table 2020-2025 Global Thermal Evaporation System Market Size List by Region
Table 2020-2025 Global Thermal Evaporation System Market Size Share List by Region
Table 2020-2025 Global Thermal Evaporation System Market Volume List by Region
Table 2020-2025 Global Thermal Evaporation System Market Volume Share List by Region
Table 2020-2025 Global Thermal Evaporation System Demand List by Application
Table 2020-2025 Global Thermal Evaporation System Demand Market Share List by Application
Table 2020-2025 Global Thermal Evaporation System Key Vendors Sales List
Table 2020-2025 Global Thermal Evaporation System Key Vendors Sales Share List
Table 2020-2025 Global Thermal Evaporation System Key Vendors Revenue List
Table 2020-2025 Global Thermal Evaporation System Key Vendors Revenue Share List
Table 2020-2025 Global Thermal Evaporation System Demand List by Type
Table 2020-2025 Global Thermal Evaporation System Demand Market Share List by Type
Table 2020-2025 Regional Thermal Evaporation System Price List
Table 2025-2030 Global Thermal Evaporation System Market Size List by Region
Table 2025-2030 Global Thermal Evaporation System Market Size Share List by Region
Table 2025-2030 Global Thermal Evaporation System Market Volume List by Region
Table 2025-2030 Global Thermal Evaporation System Market Volume Share List by Region
Table 2025-2030 Global Thermal Evaporation System Demand List by Application
Table 2025-2030 Global Thermal Evaporation System Demand Market Share List by Application
Table 2025-2030 Global Thermal Evaporation System Key Vendors Sales List
Table 2025-2030 Global Thermal Evaporation System Key Vendors Sales Share List
Table 2025-2030 Global Thermal Evaporation System Key Vendors Revenue List
Table 2025-2030 Global Thermal Evaporation System Key Vendors Revenue Share List
Table 2025-2030 Global Thermal Evaporation System Demand List by Type
Table 2025-2030 Global Thermal Evaporation System Demand Market Share List by Type
Table 2025-2030 Thermal Evaporation System Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Thermal Evaporation System Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Thermal Evaporation System Market Size and CAGR
Figure 2020-2030 North America Thermal Evaporation System Market Volume and CAGR
Figure 2020-2030 South America Thermal Evaporation System Market Size and CAGR
Figure 2020-2030 South America Thermal Evaporation System Market Volume and CAGR
Figure 2020-2030 Asia & Pacific Thermal Evaporation System Market Size and CAGR
Figure 2020-2030 Asia & Pacific Thermal Evaporation System Market Volume and CAGR
Figure 2020-2030 Europe Thermal Evaporation System Market Size and CAGR
Figure 2020-2030 Europe Thermal Evaporation System Market Volume and CAGR
Figure 2020-2030 MEA Thermal Evaporation System Market Size and CAGR
Figure 2020-2030 MEA Thermal Evaporation System Market Volume and CAGR
Figure 2020-2025 Global Thermal Evaporation System Market Volume and Growth Rate
Figure 2020-2025 Global Thermal Evaporation System Market Size and Growth Rate
Figure 2025-2030 Global Thermal Evaporation System Market Volume and Growth Rate
Figure 2025-2030 Global Thermal Evaporation System Market Size and Growth Rate
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1)Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2)Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1)PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2)Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3)Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4)SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
Primary Sources | Secondary Sources |
---|---|
Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |