Global PCB Market to Reach $68B by 2020, CAGR of 3%

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Technavio analysts expect the global printed circuit board market to exceed USD 68 billion by 2020, growing at a CAGR of 3%, according to their latest report.

Global printed circuit board market to exceed USD 68 billion by 2020, growing at a CAGR of 3%.

The global printed circuit board (PCB) market is expected to grow at a steady pace since the mobile devices and automobile market is undergoing a huge market growth.

According to Asif Gani, a lead research analyst at Technavio for semiconductor equipment, “The semiconductor industry is driven by growth in sales of mobile devices, automobiles, and other industrial devices. In addition the growing popularity of emerging technologies, such as IoT and wearables (smartwatches and smart eye-wears) will further boost the demand for PCBs.”

Technavio’s lead hardware and semiconductor market research analysts have identified the following three factors that will drive the growth of the global printed circuit board market:

• Advent of HDI technology
• Growing electronics market in APAC
• Vehicular safety requirements in automotive segment
• Advent of HDI technology

The growing trend for compact devices is resulting in an increased need for faster data transfer, thinner packaging, and low power consumption. This has led to the miniaturization of electronic components.

High-density interconnect (HDI) substrates comprise of high density circuits, making them ideal for internal electronic components to be mounted on the PCB and transmit signals among themselves. HDI eases the PCB design flow, making it compatible for the latest electronic devices. This technology also reduces the total cost of manufacturing PCBs.

HDI will have a relatively high impact on the customer segment as it makes PCBs compatible with the trend of miniaturization of components for electronics.

Growing electronics market in APAC

The growth of the electronics market in APAC is expected to have a moderately high impact on the PCB market, as electronics manufacturing companies will have high demand for PCBs. APAC is the largest manufacturer and consumer of the electronic devices. China, Japan, South Korea, and Taiwan are the key countries contributing to the growth of PCB industry.

The major reason behind the growth of the electronics market in this region is the availability of cheap land, labor, and lower manufacturing costs. In addition, countries like Singapore, Thailand, and Vietnam are also showing a high growth rate in production of electronics, thus increasing the demand for PCBs.

Presence of dominant players in the consumer electronics and mobile devices industry, such as Samsung, Sony, LG, Toshiba, and Panasonic, boosts the consumption of PCBs in this region. This trend is expected to continue over the forecast period.

Vehicular safety requirements in automotive segment

Due to increasing awareness about vehicle safety and demand for vehicle automation, the automotive segment is witnessing a significant increase in the usage of PCBs. PCBs are used in applications such as anti-lock braking systems (ABS), electronic computer unit (ECU)/car computers, global positioning systems (GPS).

“Therefore, as the automotive products market is expected to grow during the forecast period, it will indirectly trigger the demand for PCBs,” says Asif.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.