Thin film technologies continue to evolve and their use is broadening. In fact, with the growing need for component and assembly miniaturization, well-established thick film processes are rapidly approaching their technological limits. As a result, more and more manufacturers of electronic, mechanical, chemical, optical, and energy supply devices are now considering replacing conventional thick film processes with thin film technologies to manufacture smaller components and parts. In addition, thin film technology allows the creation of new families of products, modifying and enhancing the properties of bulk material by the deposition of a top thin layer having different composition and morphology.

According to a soon-to-be-released report from Business Communications Company, Inc, RGB-300 Thin Films: Raw Materials, Technologies and Applications, the worldwide market for thin film raw materials is estimated at $7.1 billion in 2004 and is projected to reach $13.5 billion by 2009, rising at a healthy AAGR (average annual growth rate) of 13.7%.

During the last couple of years, chemical deposition methods (including chemical vapor deposition, chemical solution deposition, plating type methods, and others) has accounted for over 70% of the global market for thin film raw materials, driven by large sales of plating chemicals. The largest field of application for raw materials for chemical processes is represented by the electronic sector, which accounts for 66% of the total sales for this group of raw materials. After the 2000-2001 economic downturn, the electronic sector experienced a healthy rebound, resulting in increased consumption of electronic components and equipment. For this reason, overall sales of thin film materials for chemical processes increased during the period 2002-2004, from $4.1 billion to $5.1 billion. This positive trend is expected to continue during the next five years. Together with growing applications within the mechanical/chemical sector and particularly within the energy supply/management sector, projected growth for these types of raw materials is expected to reflect an AAGR of 12.9% over the next five years, resulting in sales of $9.3 billion by 2009.

Raw materials for physical processes (including evaporation, sputter deposition, and ionic deposition) increased from 24.8% to 28.6% of the total market for thin film materials during the period 2002-2004. The largest share of this market segment is also represented by the electronic sector, which accounts for 58% of the sales for this category. Other important applications of these raw materials are for the mechanical/chemical sector (accounting for 15% of the total) and optical and energy supply/management sectors, each representing approximately 10% of total sales for this category. Physical processes are the preferred deposition methods for the manufacturing of devices (flat panel displays, OLEDs, and optical data storage media are just a few examples) for which very high growth is expected during the next five years. In addition, utilization of these materials for the production of wear- and corrosion-resistant coatings and particularly newer generations of photovoltaic cells is expected to favor high market growth during the next five years. As a result, sales of raw materials for physical processes are projected to grow at an AAGR of 15.7% for the next five years and reach $4.2 billion by 2009.

Relevant factors that will positively affect the future expansion of thin film raw materials markets are the following:

• Technological advancements related to numerous development activities progressing at a fast pace throughout the world.


• Ongoing need for components and assemblies miniaturization, which make traditional thick film technologies inadequate for use in certain fields.


• Development of newer devices with a higher degree of integration and functionality.


• Technological versatility, allowing choice among a vast array of raw materials and deposition methods for designing the best process for the best application.


• Good availability of raw materials and equipment.


• Increasing market penetration of thin film devices in developing countries.