Physical Vapor Deposition study determines the current status of the global market for physical vapor deposition (PVD) equipment, materials deposited and services, as well as to assess the worldwide growth potential for this deposition technology over the period 2009 through 2014. We were particularly interested in the types of equipment and materials being used for consumer and industrial applications. We were equally interested in the status of the industry in relation to the global economic crisis and recession, and the impact these events had and will have on PVD demand.
 
Our major objective is to present a comprehensive analysis of the current PVD market and project its future.
 
The PVD industry has expanded over the past several decades. More sophisticated manufacturing and fabrication techniques and smaller–sized products have broadened the demand for vapor–deposited materials. New and existing products require materials that can be delivered by vacuum deposition of films on a growing variety of substrates.
 
This report examines the current position of PVD technologies and materials in eight major industries with a focus on what materials and types of PVD systems are being used to meet the demands for more sophisticated products. We also analyzed the decline in PVD demand for particular industries caused by the economic downturn.

This report provides an overview of deposition technologies and future trends, along with a global industry structure, including leading manufacturers of equipment and service providers. Within each industry, there is an overview of key applications, the advantages of using PVD, an analysis of market factors that will impact demand, shipments for 2009 and estimated shipments for 2014.
 
This study will be of interest to those in the microelectronics business, manufacturers of cutting tools, specialty packagers, makers of storage equipment and media, companies in the solar energy business, manufacturers of automotive and aerospace parts, medical device makers, and those in the optics industry. It will also be of interest to companies engaged in the manufacture of deposition equipment and materials and to surface coaters.
 
This study encompasses PVD technologies and materials in terms of application, properties and processes. This reprot analyzes the major types of PVD systems and materials used to manufacture products in eight key industries. Applications are discussed, as are properties imparted by PVD. Trends in demand also are reviewed and their impacts on PVD are assessed.
 
Market drivers within each industry are identified. Materials deposited by PVD are analyzed according to basic functions (e.g. wear resistance, abrasion and corrosion resistance, conductivity and barrier protection). The value of PVD equipment shipments is projected within each industry by type of system. Material shipment values are projected, along with PVD service revenues. Technological issues and trends are reviewed, and other influential factors, such as economic conditions and standards, are discussed. 


This Report Highlights:

• Descriptions of various types of physical vapor deposition (PVD) equipment, and current and potential applications for each.
• The current market status of the PVD industry, with data for 2008, estimates for 2009 and projections, with compound annual growth rates, through 2014
• Technological issues, including important trends and a patent analysis
• An analysis of market factors that will affect demand
• A review of the PVD industry's competitiveness by sector
• A discussion of industry structure and company profiles.

TABLE OF CONTENTS 

CHAPTER ONE: INTRODUCTION 

    STUDY GOALS AND OBJECTIVES 1
    REASONS FOR DOING THE STUDY  1
    SCOPE OF REPORT  2
    METHODOLOGY . 2
    INFORMATION SOURCES . 2
    DISCLAIMER . 3

CHAPTER TWO: SUMMARY

  SUMMARY  4
  SUMMARY TABLE VALUE OF GLOBAL PVD INDUSTRY, THROUGH
    2014 ($ MILLIONS) . 5
  SUMMARY FIGURE VALUE OF GLOBAL PVD INDUSTRY, 2009 AND
    2014 ($ MILLIONS) . 5

CHAPTER THREE: OVERVIEW 

     PVD TECHNOLOGY  6
  TABLE 1 BASIC PHYSICAL VAPOR DEPOSITION TECHNOLOGIES  7
     CLASSIFICATION OF MATERIALS  7
  TABLE 2 TYPICAL MATERIALS DEPOSITED BY PVD AND THEIR
    PROPERTIES  8
     MAJOR APPLICATIONS . 8
  TABLE 3 LEADING PVD APPLICATIONS FOR INDUSTRY . 9

CHAPTER FOUR: PVD INDUSTRY STRUCTURE

  TABLE 4 KEY COMPANIES INVOLVED IN THE GLOBAL PVD BUSINESS
  INDUSTRY TRENDS . 13
           SOLAR SYSTEMS STILL EXPANDING  13
                Combining Technologies 14
                Flexible Product Support  14
           CONTINUED PVD EXPANSION IN ASIA  15
                Climate Change is a Factor . 15
  TABLE 5 FACTORS INFLUENCING GROWTH OF PVD IN CHINA
    AND INDIA  16
     GLOBAL PVD MANUFACTURING  16
  TABLE 6 REGIONAL SHARE OF GLOBAL PVD MANUFACTURING
    2009 AND 2014 (%)  17
FIGURE 1 REGIONAL SHARE OF GLOBAL PVD MANUFACTURING
      2009 AND 2014 (%)  17
   GLOBAL CONSUMPTION OF PVD EQUIPMENT . 18
   TABLE 7 REGIONAL SHARE OF GLOBAL PVD CONSUMPTION, 2009
      AND 2014 (%) . 19
   FIGURE 2 REGIONAL SHARE OF GLOBAL PVD CONSUMPTION,
      2009 AND 2014 (%)  20
       MARKET SHARES . 21
   TABLE 8 MARKET SHARES OF GLOBAL PVD MANUFACTURING
      COMPANIES, 2009 ($ MILLIONS/%) . 21
       COMPANY PROFILES  22
            AJA INTERNATIONAL INC.  22
            APPLIED MATERIALS . 23
            AVIZA TECHNOLOGY INC. . 24
            NV BEKAERT  25
            CHA INDUSTRIES  25
            DENTON VACUUM  26
            INTEVAC INC. . 27
            KDF ELECTRONICS AND VACUUM . 28
            KURT J. LESKER COMPANY . 29
            LEYBOLD OPTICS GMBH . 29
            NOVELLUS SYSTEMS INC.  30
            OERLIKON BALZERS AND LEYBOLD  31
            PENTA TECHNOLOGY  32
            RICHTER PRECISION INC. . 32
            SINOVACUUM TECHNOLOGY, LTD.  33
            SINGULUS TECHNOLOGIES . 33
            SYSTEM CONTROL TECHNOLOGIES. 34
            ULVAC TECHNOLOGIES  35
            VEECO INSTRUMENTS. 36

CHAPTER FIVE: PVD TECHNOLOGY 

     THE BASIC PHYSICAL VAPOR DEPOSITION PROCESS  37
          THE EVAPORATION PROCESS  38
  TABLE 9 PVD EVAPORATION SOURCES . 39
                 Key Advantages of Evaporation  39
  TABLE 10 KEY ADVANTAGES OF THE PVD EVAPORATION
    PROCESS . 40
                 Limitations of Evaporation . 40
  TABLE 11 MAJOR LIMITATIONS OF EVAPORATION  40
          THE SPUTTERING PROCESS . 41
  TABLE 12 MAJOR ADVANTAGES OF THE SPUTTERING PROCESS  42
                 Radio Frequency (RF) and Direct Current (DC) Diode
                      Sputtering . 42
           Magnetically Enhanced Sputtering  42
                    Magnetron Sputtering Can Produce High Rates. 43
              Reactive Sputtering . 43
TABLE 13 LIMITATIONS OF THE SPUTTERING PROCESS . 44
        ION­BEAM­ASSISTED DEPOSITION . 44
TABLE 14 ADVANTAGES/LIMITATIONS OF THE ION BEAM
  ASSISTED DEPOSITION PROCESS  45
        PULSED LASER DEPOSITION . 45
              Basic Components . 46
TABLE 15 KEY ADVANTAGES OF PULSED LASER DEPOSITION . 47
        CATHODIC ARC DEPOSITION . 47
              Key Components  48
TABLE 16 ADVANTAGES AND LIMITATIONS OF THE CATHODIC
  ARC PROCESS  48
        ROLL COATING  49
TABLE 17 BASIC ADVANTAGES OF ROLL COATING  49
   EQUIPMENT CONFIGURATIONS  50
        CLUSTER TOOLS . 50
              Technical Advantages 51
TABLE 18 TECHNICAL ADVANTAGES OF CLUSTER TOOLS  51
        IN­LINE SYSTEMS  52
              Advantages of In­line Systems . 53
TABLE 19 BASIC BENEFITS OF IN­LINE PVD SYSTEMS  53
   TECHNOLOGY TRENDS IN PVD  53
        THE IMPACT OF NANOTECHNOLOGY  54
              PVD's Early Success with Nanocoatings  54
              Increased Energy Efficiency with Nanocoatings  54
TABLE 20 INDUSTRIAL ENERGY EFFICIENCY APPLICATIONS OF
  NANOCOATINGS . 55
        HIGH­POWER IMPULSE MAGNETRON SPUTTERING
           (HIPIMS) . 55
              General Equipment Requirements . 56
TABLE 21 BASIC HIPIMS PROCESSING REQUIREMENTS  56
        FLAT GLASS COATING WITH ROTATABLE MAGNETRONS  57
        LARGE AREA DEPOSITION SYSTEMS . 57
              How the System Works . 58
TABLE 22 ADVANTAGES OF THE E­BEAM ENHANCED LARGE
  AREA DEPOSITION SYSTEM  59
        PERSPECTIVE ON TRADITIONAL AND EVOLVING
           TECHNOLOGIES . 59
   INDUSTRY COMPETITIVENESS  60
   PATENT ANALYSIS  60
        SCOPE OF PATENT ACTIVITY . 61
        OUR FOCUS ON PATENTS . 61
        PATENTS BY TECHNICAL SUBJECT . 61
   TABLE 23 PVD PATENTS BY TECHNICAL CATEGORY LATE 2007,
     2008 AND EARLY 2009 . 62
           PATENTS BY COMPANY . 63
   TABLE 24 PVD PATENTS BY COMPANY (TWO OR MORE PATENTS)
     LATE 2007, 2008 AND EARLY 2009  63
           SAMPLE PATENT ABSTRACTS  64
                 Nanostructured Low­Cr Cu­Cr Coatings for High
                    Temperature Oxidation Resistance . 64
                 Apparatus and Methods for Deposition and Etch
                    Selectivity . 64
                 Radiation Shield for Cryogenic Pump for High
                    Temperature PVD  65
                 PVD Process Depositing Mirror Layer with Improved
                    Reflectivity  65
                 Ionized Physical Vapor Deposition Apparatus using
                    Helical Self­Resonant Coil  66
                 Reactive Metal Sources and Deposition Methods for
                    Thioaluminate Phosphors  66
                 Method of Depositing a Metal Seed Layer on
                    Semiconductor Substrates . 66
                 Ceramic Coatings for Insulating Modular Fuel Cell
                    Cassettes in a Solid Oxide Fuel Cell Stack . 67

CHAPTER SIX: THE PVD MARKET 

      INDUSTRY APPROACH  68
           MARKET PERSPECTIVE . 68
  TABLE 25 ESTIMATED GLOBAL PHYSICAL VAPOR DEPOSITION
     EQUIPMENT REVENUES AND MARKET SHARE, 2009 AND 2014
     ($ MILLIONS/%) . 68
  FIGURE 3 ESTIMATED GLOBAL PVD EQUIPMENT REVENUE 2009
     AND 2014 ($ MILLIONS)  69
      MARKET ANALYSIS . 70
           MEASUREMENT OBJECTIVES  70

CHAPTER SEVEN: PVD IN THE MICROELECTRONICS MARKET

     PVD IN THE MICROELECTRONICS MARKET . 71
     MICROELECTRONICS PRODUCT DEFINITION  72
  TABLE 26 BASIC MICROELECTRONIC PRODUCTS THAT EMPLOY
    THE PVD PROCESS . 72
          CHANGING PRODUCT CHARACTERISTICS 73
  TABLE 27 CHARACTERISTICS OF INTEGRATED CIRCUITS  73
     INDUSTRY COMPETITIVENESS OF PVD IN
       MICROELECTRONICS  74
      GLOBAL ECONOMIC CONDITIONS AND EQUIPMENT
            DEMAND  74
TABLE 28 GLOBAL DEMAND FOR SEMICONDUCTORS THROUGH
  2009 ($ BILLIONS)  74
              Current Consensus on the Technology Industry  75
              What the Industry and the Economists Think . 75
              Long Term Look at the Economy and Microelectronic
                 Products  76
TABLE 29 ECONOMIC ASSUMPTIONS FOR THE GROWTH OF
  SEMICONDUCTOR AND PVD EQUIPMENT MARKETS  77
         GLOBAL INDUSTRY SUPPORT FOR MICROELECTRONICS  77
              Semiconductor Equipment and Materials International
                 (SEMI). 77
                    Globalization . 77
                    Standards  78
                               Benefits of Standards  78
TABLE 30 BASIC ADVANTAGES TO STANDARDS . 78
              Semiconductor Manufacturing Technology (SEMATECH) . 79
                    SEMATECH Objective 79
              International Technology Roadmap for Semiconductors . 80
              The Semiconductor Industry Association . 80
TABLE 31 CHALLENGES FACING THE SIA  80
   PVD TECHNOLOGY  81
         THE CHALLENGE OF TECHNOLOGY  81
         GLOBAL ENVIRONMENT . 81
TABLE 32 ESTIMATED GLOBAL FABRICATION CAPACITY, 2010 (%)  82
   MICROELECTRONICS GROWTH FACTORS . 83
         DRIVING FORCES FOR PVD INDUSTRY  83
         IMPACT OF MARKET GROWTH FACTORS  83
TABLE 33 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD
  IN THE MICROELECTRONICS INDUSTRY (%) . 84
   SEMICONDUCTOR APPLICATIONS  84
TABLE 34 BASIC SEMICONDUCTOR APPLICATIONS DONE BY PVD  84
         ADVENT OF COPPER METALLURGY . 85
         DEPOSITION OF THIN FILMS . 86
              Gate Dielectrics . 86
TABLE 35 DESIRED DIELECTRIC PROPERTIES FOR
  MICROELECTRONIC PRODUCTS . 86
              Interconnects . 87
              Barrier Layers . 88
              Contacts and Adhesion Layers 88
         TYPES OF PVD SYSTEMS . 89
TABLE 36 IMPACT ON PVD SYSTEMS BY CHANGES IN
  SEMICONDUCTOR APPLICATIONS . 90
          Combined Functions  90
        ADVANTAGES OF PVD IN SEMICONDUCTOR
           FABRICATION . 90
TABLE 37 ADVANTAGES OF PVD IN SEMICONDUCTOR
  FABRICATION  91
             PVD System Capabilities for Semiconductors . 91
        MAJOR MATERIALS USED IN PVD FOR SEMICONDUCTOR
           PRODUCTS . 92
TABLE 38 KEY MATERIALS DEPOSITED BY PVD FOR
  SEMICONDUCTOR FABRICATION . 92
             Sputtering Targets  93
   SEMICONDUCTOR MARKET DRIVERS AND TRENDS . 93
        SEMICONDUCTOR MARKET . (CONTINUED)  94
        PVD EQUIPMENT DEMAND. 95
TABLE 39 PVD FUNCTIONS VERSUS OTHER TECHNOLOGIES IN
  SEMICONDUCTOR FABRICATION . 95
             CMOS Business Model  95
             Growth Trends . 96
TABLE 40 GLOBAL GROWTH TRENDS FOR PVD IN THE
  SEMICONDUCTOR INDUSTRY, THROUGH 2009 (VALUE AND
  PERCENTAGE RATIO)  97
   OTHER MICROELECTRONIC APPLICATIONS  98
        FLAT PANEL DISPLAYS 98
        ELECTRONIC COMPONENTS  99
             MEMS Manufacturing. 99
TABLE 41 OVERVIEW OF OTHER MICROELECTRONICS PVD
  APPLICATIONS  100
             Advantages of PVD for Other Microelectronic Applications 100
TABLE 42 ADVANTAGES OF PVD FOR OTHER MICROELECTRONIC
  PRODUCTS 101
             Key Materials Used in Other Microelectronic Products  101
TABLE 43 MAJOR MATERIALS USED IN OTHER
  MICROELECTRONIC PRODUCTS . 101
             Market Drivers for Other Microelectronic Products  102
                      PVD Demand. 102
                      Impact of Other Production Methods . 102
        FORECAST ASSUMPTIONS--PVD IN MICROELECTRONICS. 103
TABLE 44 FORECAST ASSUMPTIONS--PVD GROWTH IN
  MICROELECTRONICS  103
TABLE 44 (CONTINUED) 104
TABLE 45 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
  THE SEMICONDUCTOR INDUSTRY, THROUGH 2014  104
        FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 105
TABLE 46 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
      EQUIPMENT FOR MICROELECTRONICS, THROUGH 2014 ($
      MILLIONS)  106
   FIGURE 4 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
      FOR THE MICROELECRONICS INDUSTRY, 2009 AND 2014 ($
      MILLIONS)  107
           FORECAST--VALUE OF DEPOSITED MATERIALS FOR
             MICROELECTRONICS . 107
                  Measurement Considerations . 108
                  Sputtering Target Materials . 108
   TABLE 47 FORECAST­­GLOBAL VALUE OF MATERIALS
      DEPOSITED BY PVD IN MICROELECTRONICS, THROUGH 2014 ($
      MILLIONS)  109
   FIGURE 5 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
      MICROELECTRONICS, 2009 AND 2014 ($ MILLIONS) . 110
           FORECAST--VALUE OF PVD SERVICES IN
             MICROELCTRONICS  111
   TABLE 48 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      MICROELECTRONICS INDUSTRY, THROUGH 2014 ($ MILLIONS) . 111
           SUMMARY . 112

CHAPTER EIGHT: PVD IN THE DATA STORAGE MARKET 

     PVD IN THE DATA STORAGE MARKET  113
     STORAGE PRODUCT DEFINITION  114
  TABLE 49 REPRESENTATIVE DATA STORAGE PRODUCTS . 114
     STORAGE INDUSTRY COMPETITIVENESS . 115
          DATA STORAGE ECONOMICS . 115
               The Cost Factor in Storage . 116
               Tape Drives  116
                      Tape Packaging . 116
               Storage Advances. 117
  TABLE 50 RECENT DEVELOPMENTS IN DATA STORAGE  117
          GLOBAL ECONOMIC CRISIS AND EQUIPMENT DEMAND  117
  TABLE 51 GLOBAL DEMAND FOR DATA STORAGE PRODUCTS,
    THROUGH 2009 ($ BILLIONS) . 118
               Storage Industry Outlook  118
                      Changes in Consumer Preferences  118
          GLOBAL INDUSTRY SUPPORT AND STANDARDS  119
  TABLE 52 MISSION OF THE IDEMA . 120
               Storage Manufacturing . 120
  TABLE 53 GLOBAL STORAGE MANUFACTURING COMPANIES BY
    REGION, 2009 (%) . 121
          STANDARDS 121
  TABLE 54 REPRESENTATIVE STANDARDS TOPICS  122
          DEVELOPMENTS IN PVD TECHNOLOGY . 122
     STORAGE GROWTH FACTORS  123
               Driving Force for PVD . 123
               Impact of Market Growth Factors  124
TABLE 55 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD
   IN THE DATA STORAGE PRODUCTS MARKET (%) . 124
    STORAGE APPLICATIONS  124
TABLE 56 KEY STORAGE APPLICATIONS BY SUBSTRATE
   MATERIAL. 125
        PVD SYSTEM TYPES . 126
        EMERGING APPLICATIONS. 126
               Tape Products  126
TABLE 57 DEVELOPMENT OF TAPE STORAGE AND DEPOSITION . 127
               Disk Products . 128
                         Optical Disks . 128
               Nanofilms . 129
        ADVANTAGES OF PVD IN THE STORAGE INDUSTRY  129
TABLE 58 KEY ADVANTAGES OF PVD FOR STORAGE PRODUCTS . 129
               Improvements in PVD Systems  129
    MAJOR MATERALS USED IN STORAGE MEDIA . 130
TABLE 59 MAJOR MATERIALS DEPOSITED BY PVD FOR THE
   FABRICATION OF STORAGE DEVICES . 130
TABLE 59 (CONTINUED) 131
    STORAGE MARKET DRIVERS AND TRENDS . 131
        STORAGE MARKET DRIVERS AND . (CONTINUED) . 132
        PVD EQUIPMENT DEMAND. 133
               Growth Trends . 133
TABLE 60 GLOBAL GROWTH TRENDS FOR PVD IN THE DATA
   STORAGE INDUSTRY, THROUGH 2009 (VALUE AND
   PERCENTAGE RATIO)  133
        FORECAST ASSUMPTIONS--PVD IN THE STORAGE
           INDUSTRY 134
TABLE 61 FORECAST ASSUMPTIONS--PVD GROWTH IN DATA
   STORAGE  135
TABLE 62 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
   THE DATA STORAGE INDUSTRY, THROUGH 2014 . 136
        FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 136
TABLE 63 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
   EQUIPMENT FOR THE STORAGE PRODUCTS INDUSTRY,
   THROUGH 2014 ($ MILLIONS). 137
FIGURE 6 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
   FOR THE DATA STORAGE INDUSTRY, 2009 AND 2014 ($
   MILLIONS)  138
        FORECAST--VALUE OF DEPOSITED MATERIALS FOR THE
           STORAGE INDUSTRY. 138
               Measurement Considerations . 139
                  Sputtering Target Materials . 139
   TABLE 64 FORECAST--GLOBAL VALUE OF MATERIALS
      DEPOSITED BY PVD IN THE STORAGE INDUSTRY, THROUGH
      2014 ($ MILLIONS) . 140
   FIGURE 7 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
      THE STORAGE INDUSTRY, 2009 AND 2014 ($ MILLIONS) . 141
             FORECAST--VALUE OF PVD SERVICES IN DATA STORAGE  141
   TABLE 65 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      DATA STORAGE INDUSTRY, THROUGH 2014 ($ MILLIONS)  142

CHAPTER NINE: PVD IN THE CUTTING TOOL MARKET

     PVD IN THE CUTTING TOOL MARKET  143
     PRODUCT DEFINITION . 144
  TABLE 66 BASIC TYPES OF CUTTING TOOLS COATED BY PVD  144
     CUTTING TOOL INDUSTRY COMPETITIVENESS  144
           IMPACT OF THE GLOBAL ECONOMIC CRISIS . 145
  TABLE 67 GLOBAL DEMAND FOR CUTTING TOOLS, THROUGH
    2009 ($ BILLIONS)  145
                     Industry Reaction  145
           CUTTING TOOL ECONOMICS  146
           INTERNATIONAL CONDITIONS 146
                     Changing Market Shares  147
  TABLE 68 GLOBAL CUTTING TOOL MARKET BY REGION, 2009 AND
    2014 (%)  147
           TECHNOLOGY  147
           CUTTING TOOL GROWTH FACTORS . 148
                     Driving Force for PVD . 149
                     Impact of Market Growth Factors  149
  TABLE 69 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD
    IN THE CUTTING TOOL INDUSTRY (%) . 149
     CUTTING TOOL APPPLICATIONS . 149
  TABLE 70 BASIC CUTTING TOOL PVD APPLICATIONS . 150
           TYPES OF PVD SYSTEMS . 151
                     PVD versus CVD Process  151
           ADVANTAGES OF PVD IN CUTTING TOOL COATING  152
     MAJOR MATERIALS DEPOSITED FOR CUTTING TOOLS . 153
  TABLE 71 KEY MATERIALS DEPOSITED BY PVD FOR CUTTING
    TOOL APPLICATIONS . 153
           NANOCOATINGS  153
           PVD COATED CARBIDES  154
     CUTTING TOOL MARKET DRIVERS AND TRENDS  154
           PVD EQUIPMENT DEMAND. 155
                     Growth Trends . 155
TABLE 72 GLOBAL GROWTH TRENDS FOR PVD IN THE CUTTING
      TOOL INDUSTRY, THROUGH 2009 (VALUE AND PERCENAGE
      RATIO) . 156
             FORECAST ASSUMPTIONS--PVD IN THE CUTTING TOOL
                INDUSTRY 156
   TABLE 73 FORECAST ASSUMPTIONS FOR PVD GROWTH IN
      CUTTING TOOLS . 157
   TABLE 74 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
      THE CUTTING TOOL INDUSTRY, THROUGH 2014  158
             FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 158
   TABLE 75 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
      EQUIPMENT FOR THE CUTTING TOOL INDUSTRY, THROUGH
      2014 ($ MILLIONS) . 159
   FIGURE 8 GLOBAL VALUE OF PVD EQUIPMENT SHIPMENTS FOR
      THE CUTTING TOOL INDUSTRY, 2009 AND 2014 ($ MILLIONS)  160
             FORECAST--VALUE OF DEPOSITED MATERIALS FOR
                CUTTING TOOLS  160
                      Measurement Considerations . 161
                      Sputtering Target Materials . 161
   TABLE 76 FORECAST­GLOBAL VALUE OF MATERIALS DEPOSITED
      BY PVD FOR CUTTING TOOL APPLICATIONS, THROUGH 2014 ($
      MILLIONS)  161
   FIGURE 9 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD
      FOR THE CUTTING TOOL INDUSTRY, 2009 AND 2014 ($
      MILLIONS)  162
             FORECAST--VALUE OF PVD SERVICES FOR CUTTING
                TOOLS . 163
   TABLE 77 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      CUTTING TOOL INDUSTRY, THROUGH 2014 ($ MILLIONS) . 164

CHAPTER TEN: PVD IN THE SOLAR INDUSTRY

     PVD IN THE SOLAR INDUSTRY . 165
     PRODUCT DEFINITION . 166
          THE PHOTOVOLTAIC EFFECT  166
          SOLAR THERMAL TECHNOLOGY. 166
               Our Focus . 166
          KINDS OF PHOTOVOLTAIC PRODUCTS  167
  TABLE 78 BASIC TYPES OF PHOTOVOLTAIC PRODUCTS. 167
     SOLAR INDUSTRY COMPETITIVENESS. 168
          ENERGY DEMAND, THE ENVIRONMENT AND COSTS  168
  TABLE 79 OVERVIEW OF SOLAR ENERGY STATUS . 169
          IMPACT OF GLOBAL ECONOMIC CONDITIONS  169
  TABLE 80 GLOBAL DEMAND FOR THIN FILM SOLAR CELLS
    THROUGH 2009 ($ BILLIONS) . 170
               Future Expectations  170
     GLOBAL RESEARCH AND DEVELOPMENT IN SOLAR
          ENERGY . 170
             North American Industry Activities . 171
TABLE 81 RESEARCH PROJECTS AT NREL . 171
             European Industry Activities  172
             Japanese Industry Activities  172
TABLE 82 KEY REASONS FOR JAPANESE INVESTMENT IN
  PHOTOVOLTAICS  173
             Other Asian and Chinese Activities 173
        TECHNOLOGY  173
             Nano­scale Solar Technology 174
        SOLAR INDUSTRY GROWTH FACTORS . 174
             Driving Force for PVD . 175
             Impact of Market Growth Factors  175
TABLE 83 IMPACT OF MAJOR FACTORS IN THE GROWTH OF PVD
  IN THE SOLAR INDUSTRY (%) . 175
   SOLAR INDUSTRY APLICATIONS . 176
TABLE 84 BASIC PVD SOLAR INDUSTRY APPLICATIONS  176
        EMERGING SOLAR APPLICATIONS . 177
TABLE 85 EMERGING PVD SOLAR APPLICATIONS  177
             Organic Solar Cells  177
             More Nanofilms . 177
             Traditional Materials  178
        TYPES OF PVD SYSTEMS . 178
        ADVANTAGES OF PVD IN SOLAR MANUFACTURING 178
TABLE 86 MAJOR ADVANTAGES OF PVD IN MAKING SOLAR CELLS  179
   MAJOR MATERIALS USED IN THE SOLAR INDUSTRY . 179
TABLE 87 MAJOR MATERIALS FOR SOLAR APPLICATIONS  180
        NEWER MATERIALS . 180
   SOLAR MARKET DRIVERS AND TRENDS  181
        PVD EQUIPMENT DEMAND. 182
             Growth Trends . 182
TABLE 88 GLOBAL GROWTH TRENDS FOR PVD IN THE SOLAR
  INDUSTRY THROUGH 2009 ($ MILLIONS). 182
        FORECAST ASSUMPTIONS--PVD IN THE SOLAR
          INDUSTRY 183
TABLE 89 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE
  SOLAR INDUSTRY . 183
TABLE 90 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
  THE SOLAR MARKET, THROUGH 2014 (VALUE AND
  PERCENTAGE RATIO)  184
        FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 185
TABLE 91 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
      EQUIPMENT FOR THE SOLAR INDUSTRY, THROUGH 2014 ($
      MILLIONS)  185
   FIGURE 10 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
      FOR THE SOLAR INDUSTRY, 2009 AND 2014 ($ MILLIONS)  186
            FORECAST--VALUE OF DEPOSITED MATERIALS FOR
               SOLAR . 186
                  Material Market Definition . 186
                  Measurement Considerations . 187
   TABLE 92 FORECAST--GLOBAL VALUE OF MATERIALS
      DEPOSITED BY PVD IN THE SOLAR INDUSTRY, THROUGH 2014
      ($ MILLIONS)  187
   FIGURE 11 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD
      IN THE SOLAR INDUSTRY, 2009 AND 2014 ($ MILLIONS) . 188
            FORECAST--VALUE OF PVD SERVICES FOR THE SOLAR
               INDUSTRY 189
   TABLE 93 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      SOLAR INDUSTRY, THROUGH 2014 ($ MILLIONS) . 189

CHAPTER ELEVEN: PVD IN THE OPTICS INDUSTRY

     PVD IN THE OPTICS INDUSTRY  190
     PRODUCT DEFINITION . 191
  TABLE 94 BASIC TYPES OF OPTICAL PRODUCTS  191
     OPTICAL INDUSTRY COMPETITIVENESS. 191
           ECONOMIC ENVIRONMENT 192
  TABLE 95 POSITIVE ECONOMIC FACTORS FOR THE OPTICS
    INDUSTRY  192
           IMPACT OF GLOBAL ECONOMIC CONDITIONS  193
  TABLE 96 GLOBAL DEMAND FOR OPTICAL PRODUCTS THROUGH
    2009 ($ BILLIONS)  193
           INDUSTRY AND GOVERNMENT SUPPORT. 194
           TECHNOLOGY  194
  TABLE 97 REQUIREMENTS FOR OPTICAL COATINGS  194
           OPTICAL MARKET GROWTH FACTORS  195
                Driving Force for PVD . 196
                Impact on Market Growth Factors . 196
  TABLE 98 IMPACT OF MAJOR FACTORS ON PVD GROWTH IN THE
    OPTICS INDUSTRY (%) . 196
     OPTICS INDUSTRY APPLICATIONS  196
  TABLE 99 OVERVIEW OF OPTICS APPLICATIONS  197
           PLASTIC LENSES . 197
           NANOCOATINGS  198
           TYPES OF PVD SYSTEMS . 198
     MATERIALS USED FOR OPTICAL APPLICATIONS  199
  TABLE 100 MAJOR MATERIALS USED FOR OPTICAL COATI . 199
    OPTICAL MARKET DRIVERS AND TRENDS  200
            PVD EQUIPMENT DEMAND. 201
                  Growth Trends . 201
   TABLE 101 GLOBAL GROWTH TRENDS FOR PVD IN THE OPTICS
      INDUSTRY THROUGH 2009 (VALUE AND PERCENTAGE RATIO) . 201
            FORECAST ASSUMPTIONS--PVD IN THE OPTICS
               INDUSTRY 202
   TABLE 102 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE
      OPTICS INDUSTRY . 202
   TABLE 103 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
      THE OPTICS INDUSTRY, THROUGH 2014 (VALUE AND
      PERCENTAGE RATIO)  203
            FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 203
   TABLE 104 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
      EQUIPMENT FOR THE OPTICS INDUSTRY, THROUGH 2014 ($
      MILLIONS)  204
   FIGURE 12 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
      FOR THE OPTICS INDUSTRY, 2009 AND 2014 ($ MILLIONS) . 205
            FORECAST--VALUE OF DEPOSITED MATERIALS FOR
               OPTICS . 205
                  Measurement Considerations . 206
                  Sputtering Target Materials . 206
   TABLE 105 FORECAST--GLOBAL VALUE OF MATERIALS
      DEPOSITED BY PVD IN THE OPTICS INDUSTRY, THROUGH 2014
      ($ MILLIONS)  207
   FIGURE 13 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
      THE OPTICS INDUSTRY, 2009 AND 2014 ($ MILLIONS) . 208
            FORECAST--VALUE OF PVD SERVICES FOR THE OPTICS
               INDUSTRY 208
   TABLE 106 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      OPTICS INDUSTRY, THROUGH 2014 ($ MILLIONS) 209

CHAPTER TWELVE: PVD IN THE MEDICAL EQUIPMENT MARKET

     PVD IN THE MEDICAL EQUIPMENT MARKET . 210
     PRODUCT DEFINITION . 211
  TABLE 107 BASIC TYPES OF MEDICAL DEVICES . 211
     MEDICAL INDUSTRY COMPETITIVENESS . 212
          GLOBAL PRESENCE  212
  TABLE 108 GLOBAL PRODUCTION OF MEDICAL EQUIPMENT AND
    SUPPLIES BY REGION, 2009 AND 2014 (%) . 212
          GLOBAL ECONOMIC CRISIS  213
  TABLE 109 GLOBAL DEMAND FOR MEDICAL PRODUCTS
    THROUGH 2009 ($ BILLIONS) . 213
          COST ISSUES  214
          TECHNOLOGY  215
     MEDICAL MARKET GROWTH FACTORS . 215
               Driving Force for PVD . 216
               Impact of Marketing Growth Factors . 216
TABLE 110 IMPACT OF MAJOR FACTORS ON THE GROWTH OF PVD
   IN THE MEDICAL EQUIPMENT INDUSTRY (%)  216
    MEDICAL EQUIPMENT APPLICATIONS  217
TABLE 111 OVERVIEW OF MEDICAL EQUIPMENT APPLICATIONS 217
        GROWING APPLICATIONS . 218
        TYPES OF PVD EQUIPMENT . 218
    MAJOR MATERIALS USED IN THE MEDICAL DEVICE INDUSTRY  218
TABLE 112 MAJOR THIN FILM MATERIALS USED FOR MEDICAL
   DEVICES AND EQUIPMENT  219
        NANOMATERIALS . 219
    MEDICAL DEVICE MARKET DRIVERS AND TRENDS . 220
        PVD EQUIPMENT DEMAND. 220
               Growth Trends . 220
TABLE 113 GLOBAL GROWTH TRENDS FOR PVD IN THE MEDICAL
   EQUIPMENT INDUSTRY, THROUGH 2009 (VALUE AND
   PERCENTAGE RATIO)  221
        FORECAST ASSUMPTIONS --PVD IN THE MEDICAL
           INDUSTRY 221
TABLE 114 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE
   MEDICAL EQUIPMENT MARKET . 222
TABLE 115 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
   THE MEDICAL EQUIPMENT INDUSTRY, THROUGH 2014 (VALUE
   AND PERCENTAGE RATIO) . 222
        FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 223
TABLE 116 FORECAST--GLOBAL VALUE OF SHIPMENTS OF PVD
   EQUIPMENT FOR THE MEDICAL INDUSTRY, THROUGH 2014 ($
   MILLIONS)  223
FIGURE 14 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
   FOR THE MEDICAL MARKET, 2009 AND 2014 ($ MILLIONS)  224
        FORECAST--VALUE OF DEPOSITED MATERIALS FOR
           MEDICAL INDUSTRY . 224
               Measurement Considerations . 225
               Sputtering Target Materials . 225
TABLE 117 FORECAST--GLOBAL VALUE OF MATERIALS
   DEPOSITED BY PVD IN THE MEDICAL EQUIPMENT MARKET,
   THROUGH 2014 ($ MILLIONS). 225
FIGURE 15 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
   THE MEDICAL EQUIPMENT INDUSTRY, 2009 AND 2014 ($
   MILLIONS)  226
        FORECAST--VALUE OF PVD SERVICES FOR THE
           MEDICAL INDUSTRY . 226
TABLE 118 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
     MEDICAL EQUIPMENT INDUSTRY, THROUGH 2014 ($ MILLIONS) 227

CHAPTER THIRTEEN: PVD IN THE FLEXIBLE PACKAGING MARKET

     PVD IN THE FLEXIBLE PACKAGING MARKET  228
     PRODUCT DEFINITION . 229
  TABLE 119 REPRESENTATIVE PRODUCTS USING FLEXIBLE
    PACKAGING  229
     PACKAGING INDUSTRY COMPETITIVENESS  230
          ECONOMIC CONSIDERATIONS AND THE RECESSION . 230
               Impact of the Economic Crisis  230
  TABLE 120 GLOBAL DEMAND FOR FLEXIBLE PACKAGING,
    THROUGH 2009 ($ BILLIONS) . 230
          INTERNATIONAL ACTIVITIES  231
               European Activity  231
               Increased Asian Activity . 232
  TABLE 121 POSITIVE FACTORS FOR INTERNATIONAL FLEXIBLE
    PACKAGING  232
          TECHNOLOGY  232
     FLEXIBLE PACKAGING MARKET GROWTH FACTORS . 233
          DRIVING FORCE FOR PVD . 233
          IMPACT OF MARKET GROWTH FACTORS  234
  TABLE 122 IMPACT OF MAJOR GROWTH FACTORS ON PVD FOR
    FLEXIBLE PACKAGING (%)  234
     PACKAGING INDUSTRY APPLICATIONS . 234
               Transparent Coatings 235
  TABLE 123 KEY ADVANTAGES OF GLASS COATINGS . 235
  TABLE 124 OVERVIEW OF FLEXIBLE PACKAGING APPLICATIONS . 236
          TYPES OF PVD SYSTEMS . 237
               Web Coating Process . 237
          ADVANTAGES OF PVD IN FLEXIBLE PACKAGING . 237
  TABLE 125 ADVANTAGES OF PVD IN FLEXIBLE PACKAGING . 238
     KEY MATERIALS USED FOR FLEXIBLE PACKAGING  238
          NANOMATERIALS . 239
  TABLE 126 KEY MATERIALS DEPOSITED BY PVD IN FLEXIBLE
    PACKAGING  239
     FLEXIBLE PACKAGING MARKET DRIVERS AND TRENDS  240
          PVD EQUIPMENT DEMAND. 240
               Growth Trends . 240
  TABLE 127 GLOBAL GROWTH TREND FOR PVD IN THE FLEXIBLE
    PACKAGING INDUSTRY, THROUGH 2009 (VALUE AND
    PERCENTAGE RATIO)  241
          FORECAST ASSUMPTIONS--PVD IN FLEXIBLE
             PACKAGING  241
TABLE 128 FORECAST ASSUMPTIONS FOR PVD GROWTH IN THE
      FLEXIBLE PACKAGING MARKET . 242
   TABLE 129 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
      THE SPECIALTY PACKAGING INDUSTRY, THROUGH 2014
      (VALUE AND PERCENTAGE RATIO)  242
   TABLE 130 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
      EQUIPMENT FOR THE FLEXIBLE PACKAGING INDUSTRY,
      THROUGH 2014 ($ MILLIONS). 243
   FIGURE 16 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
      FOR THE FLEXIBLE PACKAGING MARKET, 2009 AND 2014 ($
      MILLIONS)  244
           FORECAST--VALUE OF FLEXIBLE PACKAGING
              MATERIALS . 244
                  Measurement Considerations . 245
                  Sputtering Targets  245
   TABLE 131 FORECAST--GLOBAL VALUE OF MATERIALS
      DEPOSITED BY PVD IN THE FLEXIBLE PACKAGING INDUSTRY,
      THROUGH 2014 ($ THOUSANDS) 246
   FIGURE 17 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
      THE FLEXIBLE PACKAGING INDUSTRY, 2009 AND 2014 ($
      THOUSANDS) . 247
           FORECAST--VALUE OF PVD SERVICES . 247
   TABLE 132 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
      FLEXIBLE PACKAGING INDUSTRY, THROUGH 2014 ($
      MILLIONS)  248

CHAPTER FOURTEEN: PVD IN THE INDUSTRIAL MARKET

     PVD IN THE INDUSTRIAL MARKET . 249
     PRODUCT DEFINITION . 250
  TABLE 133 BASIC TYPES OF INDUSTRIAL PRODUCTS . 250
     INDUSTRIAL MARKET COMPETITIVENESS . 251
          AUTOMOTIVE MARKET 251
               Impact of the Economic Crisis  251
  TABLE 134 GLOBAL AUTO PRODUCTION, THROUGH 2009
    (MILLION UNITS)  251
                     Next Steps . 252
  TABLE 135 POSITIVE SIGNS FOR THE AUTO INDUSTRY'S FUTURE . 252
               Technology . 252
          AEROSPACE MARKET  253
               Impact of the Economic Crisis  253
  TABLE 136 U.S. AEROSPACE SALES, THROUGH 2009 ($ BILLIONS) . 253
               International Market. 254
               Technology . 254
          MARKET GROWTH FACTORS FOR INDUSTRIAL PVD  254
               Driving Force for PVD . 255
            Impact of Market Growth Factors  255
TABLE 137 IMPACT OF MAJOR FACTORS ON PVD GROWTH IN THE
   INDUSTRIAL MARKET (%) . 256
    KEY INDUSTRIAL APPLICATIONS  256
         AUTOMOTIVE . 256
         AEROSPACE  257
TABLE 138 OVERVIEW OF CURRENTR AND EMERGING
   INDUSTRIAL PVD APPLICATIONS . 258
         TYPES OF PVD SYSTEMS . 258
         ADVANTAGES OF PVD IN THE INDUSTRIAL MARKET 259
TABLE 139 ADVANTAGES OF PVD INDUSTRIAL COATINGS  259
    KEY INDUSTRIAL COATING MATERIALS . 260
TABLE 140 KEY MATERIALS DEPOSITED BY PVD FOR INDUSTRIAL
   APPLICATIONS  260
    INDUSTRIAL MARKET DRIVERS AND TRENDS . 261
         PVD EQUIPMENT DEMAND. 261
               Growth Trends . 262
TABLE 141 GLOBAL GROWTH TRENDS FOR PVD IN THE
   INDUSTRIAL MARKET THROUGH 2009 (VALUE AND
   PERCENTAGE RATIO)  262
         FORECAST ASSUMPTIONS--PVD IN THE INDUSTRIAL
           MARKET . 263
TABLE 142 FORECAST ASSUMPTIONS--PVD GROWTH IN THE
   INDUSTRIAL MARKET . 263
TABLE 143 PROJECTED GLOBAL GROWTH TRENDS FOR PVD IN
   THE INDUSTRIAL MARKET, THROUGH 2014 (VALUE AND
   PERCENTAGE RATIO)  264
         FORECAST--VALUE OF PVD EQUIPMENT SHIPMENTS . 264
TABLE 144 FORECAST--VALUE OF GLOBAL SHIPMENTS OF PVD
   EQUIPMENT FOR THE INDUSTRIAL MARKET, THROUGH 2014 ($
   MILLIONS)  265
FIGURE 18 GLOBAL VALUE OF SHIPMENTS OF PVD EQUIPMENT
   FOR THE INDUSTRIAL MARKET, 2009 AND 2014 ($ MILLIONS)  266
         FORECAST--VALUE OF DEPOSITED MATERIALS FOR THE
           INDUSTRIAL MARKET  266
               Measurement Considerations . 267
               Sputtering Target Materials . 267
               Nanomaterials . 267
TABLE 145 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
   THE INDUSTRIAL MARKET, THROUGH 2014 ($ MILLIONS)  267
FIGURE 19 GLOBAL VALUE OF MATERIALS DEPOSITED BY PVD IN
   THE INDUSTRIAL MARKET, 2009 AND 2014 ($ MILLIONS) . 268
         FORECAST--VALUE OF PVD SERVICES . 269
TABLE 146 FORECAST--VALUE OF GLOBAL PVD SERVICES IN THE
  INDUSTRIAL MARKET, THROUGH 2014 ($ MILLIONS) . 269