Our strategy is based on the following six strategic objectives:
Our ALD business is a key priority. ALD will continue to grow as a core technology as our customers transition to the next nodes. We expect the ALD market to be the fastest-growing segment in the deposition market in coming years. We are focused on maintaining our leading position in the logic/foundry segment, and increasing our market share in the memory segment. Supported by a strong increase in our R&D engagements in DRAM and 3D-NAND applications for the next nodes, we aim to meaningfully increase the contribution of our memory business over time. We estimate that the single-wafer ALD market will grow to US$3.1-3.7 billion in 2025. Our goal is to have a market share larger than 55% in 2025.
Epitaxy has become a second growth engine in our product portfolio. Our Intrepid product has enabled us to make successful inroads in the advanced CMOS part of the Epi market, while increasing our presence in the analog/power market. In R&D, we are working with multiple customers on new Epi applications for the next nodes, which should contribute to further growth of our market share. We estimate the Epi market will grow from US$0.8 billion in 2020 to US$1.5-1.8 billion in 2025. Our goal is to have a market share of more than 30% by that time.
In vertical furnaces and PECVD, we want to further develop our current niche positions by addressing targeted growth opportunities. Vertical furnace applications for the analog/power market is an example of a niche position we have selectively been investing in.
We aim to accelerate the growth of our spares & service business through continued expansion of our installed base, and growing our offerings to include differentiated outcome-based services. These are in addition to our existing offering of spare parts, maintenance and support services. The focus of the new offerings will be on creating value for our customers. An example is the development of new surface technologies for the parts we use to improve our system performance, lower costs, and reduce the resources required to keep our systems running. We are positioning service packages designed to improve our customers’ entire ASM installed base on wafer performance, and system uptime and output. The benefit for the customer is lower operations costs. For us, it means being able to expand our service to our entire installed base, not all of which is maintained by ASM today. Through approaches like this, we are able to unlock our latent installed base as a solid business-growth driver.
Our focus is to deliver long-term sustainable value creation for all our stakeholders and have a positive impact on the world. We aspire to be a sustainability leader in our industry, evidenced for example by: our recent Net Zero by 2035 target which is among the most ambitious in our industry, being consistently recognized and awarded as an industry safety leader by key customers, and by improving our CDP Climate and Water scores. Furthermore, we will do so by continuing to address the key ESG topics and opportunities that are aligned with and responsive to our stakeholder priorities.
Healthy profitability will allow us to continue investing in growth. To this end, we have formulated our profitability targets for the period 2021-2025. We strive to achieve sustainably higher gross margins between 46% and 50%, and an improved operating margin of 26% to 31%, generating strong free cash flow.