PCB technology plays a critical role in the electronics industry, serving as an essential component across various sectors such as computers, consumer electronics, telecommunications, medical devices, automotive electronics, aerospace technology, and more. Among these, the primary applications are found in consumer electronics, communications, automotive sectors, and servers.
Today, mainland China has emerged as a dominant hub for global PCB production, contributing significantly to worldwide supply. The demand for PCBs is largely driven by four key sectors.
First, **consumer electronics**, particularly smartphones, are a major contributor. The advent of 5G technology has sparked a significant replacement cycle for smartphones, and the increasing popularity of wearable devices like TWS headphones and smartwatches has further amplified the need for specialized PCBs. According to Prismark, the PCB market for smartphones is expected to reach approximately $19.4 billion by 2025, driven by both the replacement cycle and the rise of new device categories.
Second, **servers and data storage** are experiencing substantial growth. The rapid expansion of cloud computing globally has led to a surge in demand for cloud infrastructure, including servers and data centers. This, in turn, has significantly increased the demand for PCBs used in these applications. Prismark forecasts that by 2025, the market for PCBs in servers and data storage will reach $8.9 billion, reflecting a compound annual growth rate (CAGR) of 8.5% from 2020 to 2025.
In summary, the PCB market is growing rapidly across various sectors, driven by advancements in consumer electronics and cloud computing. As these industries continue to evolve, the demand for PCBs is expected to remain robust, with significant opportunities for growth in the coming years.
### Automotive Electronics
The automotive electronics sector, especially with the rise of new energy vehicles (NEVs), offers significant growth potential for PCB manufacturers. GF Securities projects global shipments of new energy vehicles will reach 12 million units by 2025, with a compound annual growth rate (CAGR) of over 30% from 2020 to 2025. This surge in NEV production is driving increased demand for mid-to-high-end PCBs, which has substantially raised the value of PCBs per vehicle. Estimates suggest that while the PCB value for traditional internal combustion engine (ICE) vehicles is around 500 yuan, the value for new energy vehicles exceeds 4,500 yuan, representing an 800% increase. As a result, the global automotive PCB market is expected to grow significantly, reaching 59.18 billion yuan in 2021 and 67.39 billion yuan in 2022.
### Communication Infrastructure and 5G
Another key driver for PCB growth is the expansion of communication infrastructure, particularly with the rollout of 5G networks. Despite short-term challenges due to factors like US-China trade tensions and the ongoing global pandemic, the long-term outlook for communication PCBs remains strong. Guojin Securities forecasts a 22% decline in the PCB market for 5G base stations in the short term, but factors such as the continued 5G infrastructure buildout and the recovery of global economies will support a rebound in demand. By 2025, the market for PCBs in wireless infrastructure construction is expected to reach $3.7 billion, with an average annual growth rate of about 6.8% from 2020 to 2025.
China Business Industry Research Institute predicts the global PCB industry output will reach $68 billion in 2021. Among the various types of PCBs, HDI (High-Density Interconnect) and FPC (Flexible Printed Circuit) products will dominate. From 2020 to 2025, the compound annual growth rate for HDI and FPC PCBs is projected to be 6.7% and 4.2%, respectively. By 2025, their combined output value is expected to reach $13.74 billion and $15.36 billion, representing 15.9% and 17.8% of the total global PCB market, respectively.
### Conclusion
The automotive and communication sectors present immense opportunities for PCB manufacturers. While short-term challenges may impact growth in specific areas like 5G infrastructure, the long-term trajectory for both industries remains positive, driven by the growth of new energy vehicles and the ongoing expansion of 5G networks. These trends are expected to significantly influence the demand and value of various PCB technologies in the coming years.
Today, mainland China has emerged as a dominant hub for global PCB production, contributing significantly to worldwide supply. The demand for PCBs is largely driven by four key sectors.
First, **consumer electronics**, particularly smartphones, are a major contributor. The advent of 5G technology has sparked a significant replacement cycle for smartphones, and the increasing popularity of wearable devices like TWS headphones and smartwatches has further amplified the need for specialized PCBs. According to Prismark, the PCB market for smartphones is expected to reach approximately $19.4 billion by 2025, driven by both the replacement cycle and the rise of new device categories.
Second, **servers and data storage** are experiencing substantial growth. The rapid expansion of cloud computing globally has led to a surge in demand for cloud infrastructure, including servers and data centers. This, in turn, has significantly increased the demand for PCBs used in these applications. Prismark forecasts that by 2025, the market for PCBs in servers and data storage will reach $8.9 billion, reflecting a compound annual growth rate (CAGR) of 8.5% from 2020 to 2025.
In summary, the PCB market is growing rapidly across various sectors, driven by advancements in consumer electronics and cloud computing. As these industries continue to evolve, the demand for PCBs is expected to remain robust, with significant opportunities for growth in the coming years.
### Automotive Electronics
The automotive electronics sector, especially with the rise of new energy vehicles (NEVs), offers significant growth potential for PCB manufacturers. GF Securities projects global shipments of new energy vehicles will reach 12 million units by 2025, with a compound annual growth rate (CAGR) of over 30% from 2020 to 2025. This surge in NEV production is driving increased demand for mid-to-high-end PCBs, which has substantially raised the value of PCBs per vehicle. Estimates suggest that while the PCB value for traditional internal combustion engine (ICE) vehicles is around 500 yuan, the value for new energy vehicles exceeds 4,500 yuan, representing an 800% increase. As a result, the global automotive PCB market is expected to grow significantly, reaching 59.18 billion yuan in 2021 and 67.39 billion yuan in 2022.
### Communication Infrastructure and 5G
Another key driver for PCB growth is the expansion of communication infrastructure, particularly with the rollout of 5G networks. Despite short-term challenges due to factors like US-China trade tensions and the ongoing global pandemic, the long-term outlook for communication PCBs remains strong. Guojin Securities forecasts a 22% decline in the PCB market for 5G base stations in the short term, but factors such as the continued 5G infrastructure buildout and the recovery of global economies will support a rebound in demand. By 2025, the market for PCBs in wireless infrastructure construction is expected to reach $3.7 billion, with an average annual growth rate of about 6.8% from 2020 to 2025.
China Business Industry Research Institute predicts the global PCB industry output will reach $68 billion in 2021. Among the various types of PCBs, HDI (High-Density Interconnect) and FPC (Flexible Printed Circuit) products will dominate. From 2020 to 2025, the compound annual growth rate for HDI and FPC PCBs is projected to be 6.7% and 4.2%, respectively. By 2025, their combined output value is expected to reach $13.74 billion and $15.36 billion, representing 15.9% and 17.8% of the total global PCB market, respectively.
### Conclusion
The automotive and communication sectors present immense opportunities for PCB manufacturers. While short-term challenges may impact growth in specific areas like 5G infrastructure, the long-term trajectory for both industries remains positive, driven by the growth of new energy vehicles and the ongoing expansion of 5G networks. These trends are expected to significantly influence the demand and value of various PCB technologies in the coming years.
