Steady growth in the PCB market
China gradually realizes domestic substitution, and high-end PCB products become the focus of development
The PCB market scale is growing steadily, and the industry concentration is low. According to Prismark statistics disclosed by Zhen Ding, the global PCB market size has increased from US$58.843 billion in 2017 to US$80.449 billion in 2021, with a year-on-year growth rate of 23.35% in 2021. Prismark predicts that the global PCB market will exceed $100 billion in 2026. The CAGR from 2021 to 2026 is 4.77%.
In 2021, the CR10 of global PCB manufacturers is only 36%, the industry concentration is low, and the market share of Zhen Ding (Avary Holding), which has the largest market share, is only 7%.
Asian countries including China and Japan, lead the growth rate of output value
In the medium and long term, the global PCB industry will still show a growth trend in the future. In terms of regional growth rate, China will continue to maintain the industry’s leading manufacturing center position. However, due to the product structure and some production transfers of China’s PCB industry, Prismark predicts that in 2021- In 2026, the compound growth rate of China’s PCB output value is about 4.6%, which is slightly lower than that of the world.
It is estimated that by 2026, China’s PCB output value will reach 54.605 billion US dollars. The growth rate of output value in Asian countries and regions including China and Japan is significantly higher than that in the Americas and Europe.
High speed, high frequency and high system integration will become the main development direction of PCB products
The increasing demand for capacity makes the frequency and speed of communication products higher and higher, and the complexity of optoelectronic interconnection is rapidly increasing. The PCB supporting the development of communication technology will also develop in the direction of high speed and large capacity. Higher requirements are put forward in terms of size and optoelectronic integration.
From the current 25Gbps bus speed to a higher 56Gbps, the core equipment high-speed PCB line card board is developing towards 30-40 layers, and the number of backplane layers reaches more than 60 layers. Industry technology will be further differentiated and refined.
The output value of high-end products grew rapidly
From the perspective of product structure, the global PCB industry is moving closer to high precision, high density and high reliability, optimizing the industrial structure to adapt to the development of downstream communications, servers and data storage, new energy and smart driving, consumer electronics and other markets. High-speed, high-frequency and high-heat applications for packaging substrates, HDI, and multilayer boards will continue to expand.
Taking China as an example, according to the statistics of Prismark, the CAGR of packaging substrates will reach 11.60% in 2021-2026, the CAGR of HDI boards will reach 5.30%, the CAGR of FPC will reach 5.10%, and the CAGR of high-layer boards with more than 18 layers will reach 4.90%. Both are higher than the overall CAGR4.60% of China’s PCB output value.
The industrial chain of the printed circuit board manufacturing industry is relatively long
The upstream of the printed circuit board manufacturing industry is mainly copper foil, glass fiber cloth, resin and other raw material industries, and its direct upstream is copper clad laminate materials; the downstream is mainly consumer electronics, automobiles, communications, aerospace, medical equipment and other industries.
From the perspective of suppliers in the printed circuit board industry chain, in the various industrial chains of printed circuit boards: suppliers of upstream raw materials include Mitsui Metals, Honghe Technology, Hitachi Chemical, and Mitsubishi Gas; representatives of midstream copper clad laminates include: Nanya New Materials, Goldenmax International, Sytech, etc.
Representative printed circuit board companies include Avary Holding, Dongshan Precision, Shennan Circuits, and Wus Printed Circuit; downstream companies include consumer electronics, automotive electronics, communication equipment and other related companies.
Automobiles and communications are important growth areas in PCB downstream applications
Consumer electronics, communications, servers, automobiles, industrial control, and medical care are all important downstream application scenarios for PCBs. Among them, communications and computers accounted for a relatively high proportion, both exceeding 30%, and automobiles accounted for 10%. From the perspective of market growth in various application fields, the automotive field has the fastest growth, with a CAGR of 7.52% in 2026 compared to 2021.
Secondly, the growth of communication and consumption is relatively fast, with CAGR of 5.59% and 4.89% respectively. Changes in the PCB sector are closely related to changes in demand in individual important application areas.