By: Beroe Inc. --
31 January, 2019
The global Printed Circuit Board (PCB) and Printed Circuit Board Assembly (PCBA) market is expected to grow at a CAGR of 3–4 percent until 2020, driven by the likely rise in demand from the automotive and electronic industries in the Asian countries.
Technological advancements in product types and the expected increase in demand for substrates can also drive the growth of the global Printed Circuit Boards Assembly (PCBA) market.
The global market for Printed Circuit Boards is expected to grow at a CAGR of 3 - 4 percent to reach $66.6 billion by 2020.
The APAC region contributes to more than 90 percent of the global production of PCBs and is expected to be an essential influencing factor for the PCBA market until 2020. Moreover, the presence of major electronics manufacturers in China, Japan, Taiwan, and South Korea such as Samsung, Sony, Panasonic, etc., is expected to contribute to the growth of the PCBA market by 2020.
Labor and utility cost accounts for 65 - 80 percent of the total production cost of PCB, which includes processes such as drilling, plating, finishing, and photo etching. The increasing cost of labor and electricity is a hindrance for the PCB manufacturers, as it might affect their margin and profitability. However, the growth of PCB designs can maximize the utilization and minimize cost. This includes replacement of base materials, which is said to support the development of the global PCB market.
The PCB market is fragmented with the top 10 suppliers accounting for 33 percent of the global market, and nearly 91 percent of the global PCB and PCBA production is directed in APAC. With a shift in the manufacturing base of end-use industries to countries such as China, Taiwan, South Korea, etc., there is going to be an additional application of PBCs on a global scale.
Consumers of high volume PCBs have high negotiating power due to the fragmented nature of the market. On the other hand, consumers of low volume PCBs have low to moderate negotiating power due to the criticality and design complication of the PCBAs.
The sourcing channels differ by the high volume and low volume based applications.
High volume industries are expected to opt for Model I, which encompasses the contract manufacturers along with inventory maintained by them.
Model II is typically followed by low volume, high critical, high-cost PCBs, which are typically used in industries such as the automobile industry, military, and industrial electronics.
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