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Emerging Demand Stimulates the PCB Industry to Benefit

Apr 26, 2018

PCB is a necessary component of most electronic equipment products, and its downstream application covers a wide range of areas, including communications and computers.


Clear trend of industrial transfer


According to Prismark's data, from 2008 to 2016, the global share of China's PCB industry's production value has steadily increased, reaching 50.04% in 2016, and the status of PCB's largest producer has remained steady. From the perspective of production capacity, from 2008 to 2016, the output value of China's PCB industry increased from US$150.37 billion to US$271.23 billion, and the CAGR was as high as 7.65%, which was much higher than the global compound growth rate of 1.47%.



It is more meaningful to analyze the PCB industry transfer from the perspective of property rights. In 2016, the average annual growth rate of domestic PCB companies reached 13.5%, leading the world. From the perspective of output value, the global share of domestic PCB companies in 2015 was 12.73%, and the proportion of high-end products in product structure was also small, so there is still considerable room for growth.


Emerging demand stimulates industry growth


According to news from the Ministry of Industry and Information Technology of Xinhua News Agency, 5G commercial or near commercial products are expected to be introduced in June 2018, and the 5G era is approaching. The main applications of PCB products in the field of communications include wireless networks, transmission networks, data communications, and fixed-line broadband. Compared with 2G-4G communication systems, 5G will make more use of the 3000-5000MHz and millimeter-wave frequency bands, and at the same time require that the data transmission rate be increased by more than 10 times. Therefore, the demand for high-frequency high-speed PCBs will greatly increase.



In addition, the trend of the increasing level of automotive electronics has become very clear, which has brought a solid and powerful demand for PCB boards. According to Prismark data, the overall size of the automotive PCB market in 2017 was approximately US$4 billion, with a growth rate of approximately 10%, and the follow-up is still driven by the two major upsurges of smart cars and new energy vehicles. According to IDC's forecast data, the global HPC market will grow from 23.112 billion US dollars in 2015 to 31.403 billion US dollars in 2019, a compound annual growth rate of 8.0%. This will drive the development of PCB technologies such as high-level numbers and large size.

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