Analysis of China’s PCB consumer electronics industry chain
The upstream of the consumer electronics industry chain is mainly components and assemblies, including chips, sensors, semiconductors, displays, plastics, lithium batteries, etc.; the mid-stream of the industry chain is the main products, including smartphones, tablet computers, notebook computers, wearable devices, automotive consumer electronics, etc.; the downstream of the industry chain includes sales channels such as specialty stores, self-operated stores, large supermarkets, and e-commerce platforms.
From the perspective of companies, upstream companies in the industry chain include Sunlord Electronics, Fenghua Hi-Tech, Weir, Avary Holding, BOE, FRD, Luxshare, Lens Technology, Ofilm, Desay Battery, Sunwoda, etc. Midstream companies mainly include Huawei, Xiaomi, VIVO, OPPO, DJI, and Transsion Holdings.
Chip market size
With the rapid rise of emerging industries represented by artificial intelligence, intelligent manufacturing, automotive electronics, the Internet of Things, and 5G, chips have become the core of China’s technological development. According to estimates by China’s semiconductor industry, China’s integrated circuit sales revenue will reach 884.8 billion RMB in 2020, and it is expected to reach 1,183.9 billion RMB in 2022.
PCB output value
The data shows that the overall output value of China’s PCB industry in 2020 will reach US$35.009 billion, accounting for 53.68% of the total output value of the global PCB industry; in 2021, the PCB market in mainland China will grow rapidly, reaching US$43.616 billion, an increase of 24.59%. Mainland China is the main PCB and PCBA production area in the world, and it is expected to maintain rapid growth in the future. By 2026, the output value of China’s PCB industry is expected to reach 54.605 billion US dollars.
LED panel market size
China’s LED industry shows an increasing trend year by year. From 635.8 billion RMB in 2017 to 862.7 billion RMB in 2020, the compound annual growth rate is 10.7%. It is predicted that the market size of China’s LED industry will exceed one trillion RMB in 2022 .
OLED panel market size
China’s OLED market will increase from US$25.5 billion in 2017 to US$36.2 billion in 2020, with a compound annual growth rate of 12.4%. It is predicted that the scale of China’s OLED market will exceed US$40 billion in 2022.
Competitive landscape of the display panel industry
In 2021, the market concentration of China’s display panel industry will be high, and the industry competition will be fierce. The main listed companies participating in China’s panel display market include BOE, TCL Group, Tianma Microelectronics, Rainbow Display, Infovision Optoelectronics, etc. Among them, the operating income of BOE and TCL Group’s panel display-related business in 2021 will be 202.219 billion RMB and 88.103 billion RMB respectively, far exceeding other companies in the industry, China’s panel industry has formed a duopoly competition pattern.
Optical device market size
Various spherical, aspherical, plane, special-shaped lenses, prisms, mirrors, filters, gratings, etc., which are processed from optical materials, are used for reflection, imaging, spectroscopy, filtering, and transmission. Optical components are the realization of imaging and the basis of imagery. Optical lenses and modules are the core of imaging and image transmission. They are the eyes of various downstream application fields, and their importance has become increasingly prominent.
The market size of China’s optical components has grown from 53.2 billion RMB in 2017 to 140 billion RMB in 2020, with an average annual compound growth rate of 38.06%. It is expected to reach a market size of 266.8 billion RMB in 2022.
Downstream applications of optics
In the downstream application field of optical components, mobile phone lenses and modules occupy the vast majority of the market, reaching 84%. Security surveillance cameras accounted for 5%, vehicle cameras accounted for 3%.
Consumer grade lithium batteries
From 2017 to 2021, China’s consumer lithium battery will grow from 32.5GWh to 72GWh at a compound annual growth rate of 22%, and it is expected to reach 86.8GWh in 2022.
Market competition pattern
The competitive landscape of the global small soft pack lithium battery market is relatively fragmented. According to statistics, the top 5 manufacturers of small soft pack lithium battery shipments in the world in 2020 are ATL, Samsung SDI, LG Chem, Zhuhai Cosmx Battery, and Murata, with market shares of 25.9%, 8.2%, 7.6%, 7.27% and 4.4% respectively. CR5 is about 50%.
Market scale of consumer electronics industry
In 2017, the scale of China’s consumer electronics market was 1,612 billion RMB, and it will increase to 1,811.3 billion RMB in 2021. The market size is huge. With the improvement of China’s epidemic situation and the recovery of market demand, it is expected that the size of China’s consumer electronics market will reach 1,864.9 billion RMB in 2022.
China’s smartphone market has continued to decline in the past three years. In June 2022, smartphone shipments reached 27.478 million units, a year-on-year increase of 9.1%, accounting for 98.1% of mobile phone shipments in the same period. From January to June 2022, smartphone shipments were 134 million units, down 21.7% year-on-year, accounting for 98.2% of mobile phone shipments in the same period.
After seven consecutive quarters of growth, Chinese PC shipments (including desktops, laptops and workstations) fell 1% to 11.7 million units in the first quarter of 2022, breaking a run of growth momentum .
Wearable device shipments
Wearable device refers to a portable device that is directly worn on the body or integrated into the user’s clothes or accessories. It can achieve powerful functions through software support, data interaction, and cloud interaction. In 2021, China’s wearable market will ship nearly 140 million units, a year-on-year increase of 25.4%. China’s wearable device shipments are expected to reach 157 million units in 2022 .
The 2020 Hurun China Top 10 Consumer Electronics Companies List shows that Huawei has become the most valuable consumer electronics company in China with a value of 1.1 trillion RMB, Xiaomi ranks second with a value of 434 billion RMB, and VIVO’s value surpasses OPPO for the first time, ranking with a value of 175 billion RMB third. OPPO, DJI, Transsion Holdings, Lenovo Group, Xiamen Intretech, RLX, and Edifier ranked 4th to 10th.
According to IDC data, in the fourth quarter of 2021, the sales volume of online and offline channels in China’s smartphone market accounted for 36.3% and 63.7% respectively. The proportion of sales by different channels in China’s smartphone market has been relatively stable in recent years. Although the proportion of online sales has increased during the epidemic in 2020 (38.7% in 2020Q1), it has since dropped to around 30%. The increase in 2021Q4 is mainly due to China Local outbreaks recur.
China’s personal computer market is still dominated by notebook computers. Shipments of notebook computers (including mobile workstations) continued to grow up 6% year-on-year to 7.7 million units, accounting for approximately 66% of the overall market. Shipments of desktops (including desktop workstations) fell 11% year over year to 3.9 million units, accounting for about 33% of the overall market.
Audio and video equipment
In April 2022, the retail sales of color TVs reached 1.918 million units, a year-on-year decrease of 7.8%; the sales of home smart projectors reached 348,000 units in April, an increase of 18% year-on-year; the sales of smart speakers in April was 1.88 million units, a year-on-year decrease of 34%, marking a new year the highest decline. The concentration of TOP 3 brands has reached 97%, which continues to reduce the living space of other brands. The online market of portable speakers sold 385,000 units, down 34.9% year-on-year; the online market of desktop speakers sold 262,000 units in April, down 22.7% year-on-year.