Like many other industries, the wet process equipment industry has struggled to cope with the sudden market changes brought about by the COVID-19. The pandemic has impacted the operations of these various manufacturing companies. The low demand for equipment due to lockdown measures has had a global market impact on production. The continuous fall in the global demand and export of shipments has also negatively impact the wet chemical process equipment market.
Many wet process equipment companies are struggling to overcome this crisis while faced with challenges such as reduced demand, monetary losses, more stringent workforce safety requirements, and dynamic consumer behavior. Therefore, industry leaders are now focusing on heading into the post-COVID era with new strengths. By gaining a deeper understanding of their market and the necessary support needed, many top companies are preparing for the new normal. This will help strategize for upcoming market trends, gain insights into consumer behavior, and prepare for forecasted market challenges.
Will the Wet Process Equipment Market Bounce Back?
Although, the market for wet process equipment is expected to rebound owning to increasing demand from the semiconductor sector. Increasing demand for personal monitoring devices is expected to drive the market even during these times of pandemic. The market has promising growth potential due to several factors, including the increasing investments in R&D facilities due to COVID-19 impact, a growing consumer electronics market, and a high demand for chips to provide computation power and connectivity for AI applications
Upsurge in the use of the semiconductor due to rise in demand of electronics products across the world is driving the growth of the semiconductor wet process equipment market. However, the high initial and maintenance cost may restrain the growth of the market as well. Additionally, rise in research and development regarding technological advancement in wet process equipment is anticipated to create market opportunities for the semiconductor market during future forecast periods.
Nevertheless every facet of the business model for production of wet process equipment could be subject to change, including the structure of product portfolios, capital expenditures, R&D strategy, demand forecasts, supply-chain footprints, and production decisions. However, with so much uncertainty ahead, many companies may have difficulty making strategic decisions. To move forward, they should first establish a solid criterion for their company. With a solid foundation, companies can chart a path to the next normal by focusing on the following questions:
- What recovery scenarios are most likely, considering evolving demand, economic developments, and other global changes?
- What is the impact of the COVID-19 crisis on long-term trends and demand?
- How can we emerge even stronger from the crisis?
Past Wet Process Equipment Recoveries
In past recessions, companies that thought about strategic questions early in the crisis were most likely to recover quickly and become market leaders. Although the COVID-19 pandemic is unprecedented in modern times, the need for long-term planning will still clearly establish where companies are headed and how they are going to get there in the future. It has also accelerated the transformation of many businesses and that has, in turn, considerably increased consumption of semiconductor content to the benefit of the entire wet process equipment manufacturing system. Companies need to keep the uncertainty of the future in mind, even if the market is positioned for healthy growth ahead and begins to adjust to a new post-pandemic normal.