Shortage of Raw Materials Challenges CCL Market Amidst Strong Demand for Electronic Devices

Estimated reading time: 3 minutes

The "Global Copper Clad Laminates Market (by Type, Application, Reinforcement Material, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)" report has been added to ResearchAndMarkets.com's offering.

The global copper-clad laminates (CCL) market is set to achieve a market value of US$15.96 billion by 2023, experiencing a steady Compound Annual Growth Rate (CAGR) of 5.84% during the forecasted period.

Understanding Copper-Clad Laminates (CCL)

Copper-clad laminates (CCL) are board-like materials created by embedding electronic fiberglass cloth or other reinforcing materials in resin and then covering them with copper foil on one or both sides before hot pressing. These laminates play a pivotal role in the production of printed circuit boards (PCBs), providing mechanical support and connectivity for electronic components.

Market Segmentation

The global CCL market is segmented as follows:

Type: Segmented into rigid and flexible CCL, where rigid CCL currently dominates the market. The increasing demand for electric vehicles and innovations in electronic devices are expected to boost the demand for rigid copper-clad laminate in the coming years, while flexible laminates are preferred for their lightweight, thinness, and flexibility in various applications.

Application: This segment includes communication systems, computers, consumer electronics, automotive electronics, industrial electronics, medical equipment, and others. Communication systems lead the market due to the growing demand for 5G infrastructure, while automotive electronics is projected to be the fastest-growing segment driven by auto electrification and intelligentization.

Reinforcement Material: The market offers CCL based on reinforcement materials, including fiberglass, special substrates base, compound, and paper base. Fiberglass-focused CCL includes FR-5 and FR-4, with FR-4 being widely used for its performance and cost-effectiveness. Special CCLs are expected to gain market share as high-frequency and high-speed applications like 5G and IoT become more common.

Geographic Coverage

The global CCL market is divided into four regions: Asia Pacific, North America, Europe, and the Rest of the World. Asia Pacific holds the largest share and is expected to be the fastest-growing region due to the rise of Chinese server manufacturers, IoT growth, and increased spending on 5G infrastructure.

Drivers: Increasing Demand for Consumer Electronics

The surge in demand for smartphones, artificial intelligence, and voice recognition technologies, along with falling device prices and replacement cycles, is driving consumer electronics growth. As most consumer electronics devices rely on printed circuit boards (PCB), CCL, being a raw material for PCBs, experiences growth in demand.

Challenges: Shortage of Raw Materials

Shortages of copper foils used in CCL manufacturing have become a significant challenge. Extended order visibility, driven by strong demand for notebooks, handsets, and automotive electronics, has strained the supply chain. This shortage impacts manufacturers across material types and hampers production.

Trend: Increasing Auto Electrification

The electrification and intelligentization of automobiles have created opportunities for PCB and CCL applications in electrical control systems for new energy vehicles (NEVs), advanced driver assistance systems (ADAS), and intelligent cockpits. As NEVs have a higher proportion of automotive electronics, PCB and CCL demand increases.

The COVID-19 Impact

The COVID-19 pandemic initially slowed the CCL industry's growth due to trade disruptions, raw material supply issues, rising equipment prices, transportation bans, and supply chain fallout. However, the demand for edge computing and the deployment of 5G infrastructure have stimulated the server market, boosting PCB and CCL demand.

Analysis of Key Players

The global CCL market is highly concentrated, with the top five CCL manufacturers holding over half of the market share. Key players include Doosan Corp., Elite Material Co. Ltd. (EMC), Showa Denko K.K./Resonac Holdings Corporation, Rogers Corporation, Kingboard Laminates Holdings Ltd., ITEQ Corporation, Mitsubishi Gas Chemical Company, Inc., Nan Ya Plastics Corporation, Goldenmax International Group Ltd., Shengyi Technology Co., Ltd., Taiwan Union Technology Corporation (TUC), and Isola Group.