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What are the most market prospect PCB products in the next three years

What-are-the-most-market-prospect-PCB-products-in-the-next-three-years

PCBs are an important part of electronic products and are the carriers of electronic devices and circuits. It is because of PCB that our mobile phones, computers and other electronic products have electrical properties. In recent years, the PCB industry continues to develop, according to the current global PCB output value, let us predict the next three years, what PCB products are more marketable?

Steady increase in global output value: China is the fastest-growing country

According to the forecast, the global PCB output value in 2021 is 80.449 billion US dollars, an increase of 23.4% over the previous year, and the PCB industry in all regions has shown a continuous growth trend. The expected compound annual growth rate of global PCB output value from 2021 to 2026 is 4.8%, and the global PCB industry output value will reach US$101.559 billion in 2026.
Steady-increase-in-global-output-value

1.1 US

The PCB products made in the United States are mainly high-level multi-layer, HDI and flexible boards. Most of other low-end PCBs have been transferred to the Asia-Pacific region for production. The competitive advantages of American products are mainly reflected in high-end products and some specific product areas, such as aviation and military. PCB, high-end PCB for medical electronics, etc.

1.2 Europe

Europe is dominated by high-value, low-volume PCB products, which are mainly for the European market and serve European industries such as industrial instrumentation and control, medical, aerospace and automotive industries.

1.3 Japan

Japan is also one of the global PCB production bases, leading in technology. Its market presents a situation of tripartite confrontation of multi-layer boards, flexible boards and packaging substrates. Manufacturers mainly use high technology to provide value-added services. Japan currently uses Qisheng, Sumitomo Electric and other major Mainly large-scale manufacturers, leading the global mid-to-high-end FPC market.

1.4 China

In addition to Europe, the United States, and Japan, Taiwan, China, mainly produces high-end HDI, IC substrates, similar substrates and other products, and occupies a certain position in the global PCB market. At present, global PCB production is mainly concentrated in mainland China, Japan, and Taiwan.

In 2021, the output value of China’s PCB industry will reach US$43.616 billion, a year-on-year increase of 24.6%. China’s PCB output value accounts for more than half of the global PCB output value. The compound growth rate in the next five years will still reach 4.6%. In 2026, the output value of China’s PCB industry will reach US$54.605 billion, with steady growth.

HDI and carrier boards are the fastest growing areas of PCB:Multilayer boards are still the main product of the PCB industry

HDI-and-carrier-boards-are-the-fastest-growing-areas-of-PCBAccording to the report, with the expansion of the industry scale, all kinds of products in the PCB industry are showing a growth trend. Among them, HDI PCB and carrier boards are the segments with the highest growth rate, reaching 4.90% and 8.60% respectively.

In terms of product structure, multilayer PCB will still account for the highest proportion of output value in the next five years. According to forecast, multi-layer boards will account for 36.6% of the total output value of the global PCB industry in 2026.

5G commercialization, automobile three modernizations, global consumption upgrade: Bring PCB volume and price increase

Driven by factors such as intelligence, digitization, and low carbonization, PCB downstream application industries such as communications, automobiles, consumer electronics, servers and data storage are expected to flourish, and the vigorous development of downstream application industries will drive the continuous growth of PCB demand.

Communication

CommunicationBenefiting from the commercial use of 5G, the base station as a wireless communication infrastructure will be built on a large scale, and the demand for PCB for communication equipment such as switches, routers, and optical transmission networks used in 5G networks will increase accordingly, and the output value and added value of communication PCB will be doubled. item promotion.

According to the forecast, the industrial output value of the communication field in 2021 is 631 billion US dollars, and it is expected to reach 828 billion US dollars in 2026, with a compound annual growth rate of 5.58% from 2021 to 2026.

Automotive

automotiveDriven by the three major trends of autonomous driving, digitization, and electrification, the value of single-vehicle automotive electronic components will continue to increase, including in-vehicle computing platforms, ADAS sensors (cameras, millimeter-wave radar, lidar, etc.), smart cockpits, electric power systems, and batteries.

The demand for automotive electronic products such as management systems will continue to grow rapidly and drive the rapid growth of related PCB demand.

According to statistics and forecasts, the output value of the global automotive electronics industry will be US$240 billion in 2021, and it is expected to reach US$337 billion in 2026, with a compound annual growth rate of 7.0% from 2021 to 2026.

Consumption

ConsumptionAs smartphones, tablet computers, smart homes, VR/AR and wearable devices have frequently become hot spots in the consumer electronics industry, it has brought opportunities for the development of consumer electronics PCB.

At the same time, the thinning and miniaturization of consumer electronic products also puts forward higher requirements on the performance of PCB products. With the general trend of global consumption upgrading, the consumer electronics industry has broad market prospects.

According to statistics, the global consumer electronics output value in 2021 is 365 billion US dollars, and it is expected that the consumer electronics output value will reach 423 billion US dollars in 2026, with a compound annual growth rate of about 2.99% from 2021 to 2026.

Server and data storage

Server-and-data-storageWith the rapid development of global cloud computing, the demand for cloud infrastructure such as servers and data centers continues to expand, and the corresponding PCB usage also increases.

It is estimated that the output value of the server and data storage field will reach US$192 billion in 2021, and the output value is expected to reach US$290 billion in 2026, with a compound annual growth rate of 8.6% from 2020 to 2026.

There are many manufacturers in the PCB industry:Market competition is more intense

There are many manufacturers in the PCB industry, the market competition is relatively fierce, and the overall concentration of the industry is not high. At the same time, the downstream industry of the PCB industry has a high degree of marketization, with a large number of customers and a wide range of distribution fields. Therefore, the competition among PCB companies mainly focuses on technical strength, quality stability, product delivery time, price and other aspects.

4.1 Automotive electronics field

automotive-fieldFrom the perspective of industry segments, the service life of PCB boards in the field of automotive electronics is usually more than 15 years. The use environment is complex and changeable, and it needs to withstand high and low temperature cycles in various ways. The working temperature needs to withstand the test of -40 to 80 degrees. It needs to withstand the shock of various frequencies, long-term power-on and various loads.

To enter the automotive field, PCB manufacturers must pass the IATF16949 automotive quality management system certification. Customers in the field of automotive electronics have very strict requirements on the quality of products.

It takes a long time (1-3 years) of strict testing and verification to pass the certification of qualified suppliers of auto parts manufacturers. Once the suppliers enter the supply of auto parts manufacturers In general, auto parts manufacturers will not easily replace them, so the overall competition pattern of the automotive PCB industry is relatively stable.

4.2 Communication electronics field

communication-electronics-fieldThe communication electronics field is the largest downstream application field of PCB. The market segment of the communication electronics field has high requirements for the R&D capabilities and upgrade and iteration capabilities of PCB manufacturers.

In the context of the further transfer of global production capacity to mainland China, high pressure on environmental protection policies and technology upgrades have promoted this sector.

The concentration of the PCB industry in the field has increased, the industry competition has become increasingly fierce, and there is a clear localization trend of PCB manufacturers in the field of communication electronics. The Chinese market space comes from increased downstream investment, product upgrade iterations and import substitution.

4.3 Industrial control and consumer electronics field

industrial-control-and-consumer-electronics-fieldProducts in the fields of industrial control and consumer electronics are more diverse, with different requirements for PCB form, technical indicators and performance, and the market concentration is low. Each PCB manufacturer focuses on its own areas of expertise. There are many manufacturers in this field, and the market competition is fierce.

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