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The market of over 100 billion yuan is about to erupt- PCB industry

The market of over 100 billion yuan is about to erupt- PCB industry

2020-05-27

The recent price rise of PCB raw materials indicates the improvement of industry prosperity

All kinds of printed circuit boards with different forms and functions are selectively processed, etched, drilled and plated on copper clad plates to make different printed circuits. Therefore, the performance, quality, machinability in manufacturing, manufacturing level, manufacturing cost and long-term reliability and stability of printed circuit board depend on copper clad plate to a great extent. The rising price of raw materials indicates the prosperity of the industry.

PCB industry downstream covers almost all electrical circuit products, the most core, the largest value of application areas including communication equipment, computers, consumer electronics and automotive electronics. With the development of human society to electrification and automation, PCB has been widely used, and there is no other alternative.


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Why is the printed circuit board (PCB) industry about to erupt?

It is mainly because the downstream of PCB is subject to the explosion of 5G, Internet of things, cloud computing and other demands, and the industry boom shows an accelerated trend.  At present, the PCB industry is developing rapidly. The previous applications in home appliances, desktops, laptops, smartphones to 5G, the Internet of things, cloud computing and other applications have entered the fifth period. China, Japan and some Asian countries have become the main contributors of pcb board production capacity. The output value of PCB in China has also increased from 31% in 2008 to more than 50% at present. It occupies half of the world. Therefore, the downstream prosperity of PCB industry drives the development of PCB.


Specific application requirements of printed circuit board (PCB)


5G and demand driven by high growth of server industry

With the construction of 5G base station, cloud computing, Internet of things and other accelerated applications, the application demand of PCB has increased significantly. In 2018, the server market exploded, driving the demand of high multilayer PCBs. In the future, 5G construction will further expand the server demand, promote the upgrading of server products, and the server PCB market is expected to continue to expand

Automobile electric and intelligent bring new space for automobile PCB

It is estimated that in 2023, the global PCB output value will reach US $10. 171 billion, with a compound growth rate of 6%. For example, the start and popularization of smart cars and driverless technology have brought many new opportunities to PCB industry.


PCB for consumer electronics has great growth space

With the large-scale commercial development of 5G, the trend of 5G mobile phone replacing 4G mobile phone will also come, which will greatly drive the demand of PCB.

All in all, PCB market demand is in the eve of the outbreak, and the scale of this market is extremely large. According to the forecast, in 2022, the global PCB output value demand will reach about 52 billion US dollars, about 350 billion RMB, another huge market.


Printed circuit board (PCB) industry chain

We can see that the demand for downstream communication equipment, consumer electronics, automobiles, computers and peripheral equipment, aviation and national defense, etc.  is increasing, and the prosperity of relevant industrial chains in the middle and upper reaches is likely to increase.


At present, China is in the stage of economic structural transformation, from high growth to high-quality development.  In this stage, the competitiveness of science and technology has been promoted to an unprecedented height.

At present, there are many A-share PCB concept stocks, nearly 40, with a total market value of about 510 billion yuan. Most stock markets are worth less than 10 billion yuan. The scale is still relatively small. However, it is precisely because the overall scale of China's PCB companies is not large enough, which may give birth to growth opportunities. 

 


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