Global Flexible PCB Market Rebounds in 2024, Driven by New Device Demand and Electric Vehicles

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Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute (ITRI) recently released the "2024 Global Flexible PCB Industry Overview and Development Trends" report. It forecasts that the global flexible PCB market will gradually recover from the downturn in 2023, with the market size (including rigid-flex PCBs, the same below) expected to reach USD 19.7 billion in 2024, representing a 7.3% year-on-year growth. As AI applications become more prevalent in the smartphone and computer markets, the demand for flexible PCBs is expected to continue to rise, with the market projected to grow by 5.2% in 2025, reaching USD 20.72 billion, returning to the level seen in 2021.

The global flexible PCB market has experienced significant fluctuations over the past few years. From 2020 to 2022, the COVID-19 pandemic drove a surge in demand for consumer electronics, which in turn spurred rapid growth in the flexible PCB industry. However, with the pandemic-driven boom fading, inventory adjustments in the end market, and global economic uncertainties, the global flexible PCB market saw a significant decline in 2023, shrinking by 7.9% from the previous year to USD 18.36 billion. Nevertheless, over the past five years, the global flexible PCB market has generally exhibited steady growth, with market size increasing from USD 13.0 billion in 2019 to USD 18.36 billion in 2023, reflecting a compound annual growth rate (CAGR) of 8.9%. The market share of flexible PCBs in the global PCB industry also increased from 20.4% in 2019 to 24.6% in 2023.

In terms of vendor capital types, Taiwanese companies are the largest suppliers of flexible PCBs, accounting for approximately 34.5% of the total market value, followed by Japan and China. Together, vendors from these three regions command nearly 90% of the global flexible PCB market. Looking at individual companies, the top five flexible PCB manufacturers in 2023 were Taiwan's Zhen Ding Technology (19.5%), China's Dongshan Precision (14.4%), Japan's Mektron (14.0%), South Korea's BH (6.7%), and Taiwan's Flexium Interconnect (5.7%). These five companies collectively hold a 60% share of the global market.

Despite the market downturn in 2023 due to shrinking consumer spending, most flexible PCB manufacturers have remained committed to capital expenditures, expanding capacity or improving technology to meet future market demand. Future development in the flexible PCB sector will continue to focus on applications in smartphones (including AI smartphones, foldable phones, etc.) and automotive uses (including in-vehicle displays and battery flex circuits). Regarding expansion into Southeast Asia, unlike PCB rigid board manufacturers, flexible PCB manufacturers are mostly taking a wait-and-see approach to overseas expansion. Currently, companies planning to set up factories in Southeast Asia include Taiwan's Career Technology, Flexium Interconnect, and Zhen Ding Technology (primarily for rigid board production), Japan's Nitto Denko, China's Dongshan Precision, and South Korea's BH, with raw material suppliers including Taiwan's Taiflex Scientific. Overall, the flexible PCB market in Southeast Asia remains dominated by Japanese companies, with Thailand and Vietnam serving as the main production bases in the region.

While the market outlook is optimistic, the flexible PCB industry also faces challenges. Notably, the European Union plans to implement a ban on PFAS chemicals in 2025, which could impact the development of flexible PCB materials, particularly high-frequency materials. Although the regulation of PFAS presents challenges, it also offers new business opportunities. Since advanced high-frequency materials are mainly monopolized by a few suppliers from the U.S. and Japan, the PFAS ban may drive downstream customers to seek PFAS-free materials, providing a rare opportunity for new entrants to penetrate the high-end materials market.

Looking ahead, as the global economy gradually recovers and the consumer electronics market rebounds, the global flexible PCB market is expected to perform well in 2024 and 2025. The continued expansion of AI and electric vehicles will be key drivers of market growth. Despite facing challenges from environmental regulations and market competition, Taiwan's flexible PCB industry is actively responding with technological innovation and market positioning, which is likely to create more development opportunities.