Global Market outlook on Printed Circuit Boards

Shift in manufacturing base of major electronic and communication manufacturers to low cost countries like China, Taiwan, South Korea is expected to support the demand for PCBs and PCBAs in the APAC during 2017–2018.Environmental rules and laws set by governments of various countries are expected to support the growth in recycling of PCBs during 2017–2020

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PCBA Market Overview

  • APAC, contributing to more than 90 percent of the global production, is expected to be a key influencing factor for the PCBA market during 2017-2020. Recent trend in the shift of manufacturing bases of major electronic producers to Asian countries is expected to support the growth during the period
  • The global PCB and PCBA market is expected to grow at a CAGR of 3–4 percent, between 2017 and 2020, driven by the likely rise in demand from automotive and electronic industries in the Asian countries 
  • Demand growth in end-use sectors in China, Japan, Taiwan, and South Korea are expected to be the key driving factors for the global PCB and PCBA market during 2018–2020. Presence of major electronic manufacturers like Samsung, Sony, Panasonic, etc., in these countries is expected to contribute to the growth. Other emerging countries in the APAC, in terms of PCB production include Singapore, Thailand, and Vietnam

Global PCB and PCBA Demand by Application

  •  Communications (Business/Retail/Computers/Telecom) together account for ~60 percent of the global PCB market and are expected to retain the dominance, considering the technological innovations and growing demand for these products in emerging economies. PCB’s application in the automotive industry is expected to be the fastest -growing segment during 2018–2020, primarily due to the growing integrated and sophisticated features required in vehicles
  • Technological advancements in product types and expected increase in demand for substrates are expected to be a key support factors for growth in the global PCBA market.

Industry Drivers and Constraints 

Drivers

  • Widespread Digitalization: Growing demand for digitalization in developing and under developed countries is expected to drive the demand for PCBs and PCBAs in the consumer and industrial fronts
  • Growth in Recycled PCBs: Environmental and sustainability measures taken by various governments are expected to support a growth in the recycling of PCBs, thereby supporting the market
  • PCB Design Developments: Development of PCB designs, which can maximize the utilization and minimize cost, including replacement of base materials (shift from traditional FR4 to BT-epoxy and polymides), are expected to support competition and growth in the global PCB market

Constraints 

  • The US Restrictions on External Sourcing : President Trump has imposed a restriction on manufacturers in the US to source from domestic suppliers, thereby providing job opportunities in the country. Considering the fact that more than 90 percent of the global PCB production is concentrated in APAC, this restriction is likely to be a key challenge for the PCB manufacturers
  • Rising Labor and Utility Cost: Labor and utility cost accounts for 65–80 percent of the total production cost of PCB, depending on the layers, size, and other specifications. Rising cost of labor and electricity is a factor of high concern for PCB manufacturers, as it might affect their margin and profitability