Market Trends of PCB Industry
Consumer Electronics Segment is Expected to Hold a Significant Market Share
- PCBs have proven to be highly suitable for portable consumer electronics due to their small size and lightweight characteristics. The growth and efficiency of the PCB assembly industry can be attributed to the significant reliance of consumer electronic products on well-designed and assembled printed circuit boards. By incorporating high-performance PCBs effectively, various consumer electronic devices can be optimized to carry out everyday tasks seamlessly. The indispensability of PCBs extends to a wide range of consumer electronics, such as smartphones, televisions, laptops, and gaming consoles, owing to their compact design and capability to accommodate intricate circuitry.
- As the evolution of consumer electronic devices progresses, the printed circuit boards (PCBs) and processing systems that drive them have also advanced. Today, users of consumer electronics prioritize practical aspects such as durability, processing speed, and battery life. They seek devices that are resistant to shattering, waterproof, and designed to withstand damage. Flexible printed circuit boards (PCBs), also referred to as flex circuit boards, are being incorporated into the designs of consumer electronic products to meet these demands.
- Flex circuit boards possess a higher degree of physical elasticity compared to conventional PCBs, enabling manufacturers to install them around corners and bends with minimal wiring. As a result, devices that incorporate flex PCBs can endure more severe conditions and minimize the risk of connection damage and contamination. While flex PCBs have been primarily utilized in medical, military, and aerospace fields, consumer electronics OEMs are now creating more robust devices with flex circuit boards.
- The integration of rigid-flex PCBs in folded mobile phones is expected to increase due to the flexible components that support the bending mechanism without affecting the device's functionality. Furthermore, the growth of the market for these PCBs may be driven by the rapid advancements in smartphone technologies. The increasing adoption of smartphones across the world and the continuous breakthroughs in smartphone technologies are expected to contribute to the growth of rigid-flex PCBs.
- Ericsson reported that the worldwide tally of its smartphone mobile network subscriptions was nearly 6.4 billion in 2022, and it is expected to exceed 7.7 billion by 2028. China, India, and the United States are leading in terms of the highest number of smartphone mobile network subscriptions. Ericsson's findings emphasize that although sales leveled off in 2022, the increasing average selling price of smartphones is predicted to strengthen the market in the coming years. These significant developments are set to enhance the market's prospects.
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Asia-Pacific Region is Expected to Witness Significant Growth
- The Asia-Pacific region has been dominating the PCB market, owing to the presence of top manufacturers and players in China, Taiwan, South Korea, and Japan. With the rapid development of China’s electronics industry, many Chinese PCB manufacturers have emerged as leading players in the global PCB market. Chinese PCB manufacturers hold a total market share of 54.76% in the Asia-Pacific region. These manufacturers offer a wide range of services and capabilities, including PCB design, fabrication, and assembly, along with competitive pricing and fast turnaround times. Some of the major players are JLCPCB, Graperain, Fulltronics, YMS PCB Assembly, and Hitech Circuits.
- At present, there are about 2,500 PCB manufacturers in China. The PCB industry in China is mainly distributed across the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim. These areas are the hubs of large market components, good transportation conditions, and smooth water and electricity conditions.
- The major reasons driving the growth of the PCB market in China are lower overall costs and higher management efficiencies. Although China’s demographic dividend is coming to an end, the labor cost is still lower than that of Japan, South Korea, Taiwan, the European Union, and the United States. China’s environmental protection schemes, trade unions, and welfare sectors consume relatively less funds. In addition, as the world’s largest manufacturing country, China’s PCB industry has a complete industrial chain ranging from copper foil to glass fiber, resin, copper-clad laminates, and PCBs.
- Benefiting from gaining its position as the world's largest PCB producer and the vigorous development of downstream electronic terminal products, China’s PCB industry is witnessing a rapid trend of development and growth. The electronic information industry is a strategic and leading pillar for China’s key industrial development. The PCB industry, being the cornerstone of the development of the electronic information industry, has become one of the most revered sectors in China. In recent years, China has promulgated policies such as “Encouraging Imported Technologies and Products (2016 Edition))" and “Industrial Structure Adjustment Guidance Catalog (2019 Edition)” to encourage the development of the PCB industry.
- Empirical data from reputable industry associations underscores Taiwan's continued dominance on the global PCB production values. Taiwan held a market share of 15.31% and a market revenue value of USD 11.05 billion in 2022, and the country is expected to register a CAGR of 3.66% during the forecast period. South Korean PCB manufacturers have now surpassed their Japanese counterparts, securing the third position in the regional market.
- According to the insightful analysis provided by the Taiwan Printed Circuit Association (TPCA), Japanese and South Korean PCB industries, by leveraging their design prowess in terminal products, have strategically transitioned from low to mid-range products. The focus has shifted toward high-technology realms, such as flexible boards and PCBs with elevated technical thresholds. Japan has now emerged as the second-largest global producer of flexible boards and the third-largest producer of traditional PCBs that are widely applied in critical sectors, such as semiconductors, communications, and automotive electronics.
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