The market has experienced rapid growth over the past few years, mainly due to the continuous development of consumer electronic devices and the increasing demand for PCBs in all electronic and electrical equipment.
The adoption of PCBs in connected cars is also accelerating the PCBs market. These are vehicles that are fully equipped with wired and wireless technology, which allows them to easily connect to computing devices such as smartphones. The technology allows drivers to unlock vehicles, remotely activate climate control systems, check the battery status of their electric cars and track their cars using smartphones.
In addition, the demand for electronic devices such as smartphones, smartwatches and other devices is also driving the growth of the market. For example, revenue generated by smartphones is worth $79.1 billion in 2018 and $77.5 billion in 2019, according to the U.S. Consumer Technology Sales and Forecasting Study conducted by the Consumer Technology Association (CTA).
Recently, 3D printing has proved to be one of the big innovations in PCB. It is expected that 3D-printed electronics or 3D PE will change the way electrical systems are designed in the future. These systems create 3D circuits by printing the substrate items layer by layer and then adding a liquid ink containing electronic functions on top of them. Surface mount techniques can then be added to create the final system. 3D PE can provide circuit manufacturing companies and their customers with a huge technical and manufacturing advantage, especially when compared to traditional 2D PCB.
With the outbreak of COVID-19, printed circuit board production was affected by restrictions and delays in the Asia-Pacific region, especially China, during January and February. The company's production capacity hasn't changed significantly, but weak demand in China has created some supply chain issues. In a February report, the Semiconductor Industry Association (SIA) noted the potential long-term business impact associated with COVID-19 outside of China. The impact of reduced demand is likely to be reflected in the company's earnings in the second quarter.
Key Market Trends
Consumer electronics are expected to capture a significant share of the market
The abundance of printed circuit boards (PCBs) in any electronic device, including calculators and remote controls, large circuit boards and, increasingly, white goods, is contributing to the growth of the market.
The increasing use of mobile phones is expected to drive the global PCB market. By early 2019, for example, almost every household (97 percent) had at least one mobile phone, compared with 94 percent at the beginning of 2014, according to the German Statistical Office. Mobile subscribers are expected to grow from 5.1 billion in 2002 to 5.8 billion in 2018 and 2025. (GSM 2019 report). Manufacturing of printed circuit boards (PCBs) has increased as mobile devices such as smartphones, laptops and tablets have become smaller and more convenient for consumers.
In addition, due to the growing demand in the market segment, some market participants cater specifically to the end user needs by offering multiple batches of PCB.
AT&S, for example, makes printed circuit boards used in smartphones and tablets and supplies major companies such as Apple and Intel. In addition, Apple plans to introduce two different sizes of the "iPhone SE 2" in 2020. The upcoming iPhone SE 2 model motherboard is likely to use 10 layers of baseboard-like PCB(SLP), which is likely to be manufactured by AT&S.
In addition, vendors in the market are focusing on geographic expansion, further driving PCB growth in this segment. For example, in February 2020, Apple supplier Wistron will soon start assembling iPhone PCBs locally in India. Apple's iPhone PCBs were first made abroad and then imported into India. In a new strategic move, the government is expected to opt to increase tariffs on PCB assembly.
North America is expected to have a significant market share
With the explosive growth of the consumer electronics industry, the rapid adoption of the Internet of Things and increasing applications in the automotive industry are identified as key factors that could have a positive impact on PCB sales in the region. The quality performance and excellent packaging flexibility of PCBs will contribute to their success in future interconnect solutions.
December 2019 TTM Technologies, Inc., a leading global manufacturer of printed circuit board products, radio frequency components and engineering solutions. Announced the opening of a new engineering center in New York. Following the acquisition of manufacturing and intellectual property assets from I3 Electronics, Inc., the company has hired many of the engineering experts previously employed by I3 to enhance its advanced PCB technology capabilities and expand its patent portfolio for emerging applications in the aerospace and defense sectors. The high-end commercial market.
In addition, vendors in the market are making strategic acquisitions to enhance their PC capabilities. For example, Summit Interconnect, Inc. recently announced a combination of the Summit Interconnect and streamline circuits. The acquisition of Streamline expanded Summit's headquarters to three California locations. Streamline Operations can significantly improve a company's PCB capabilities in situations where technology and time are of the essence.
The number of TV viewers in the region is expected to grow thanks to the introduction of online TV platforms such as Netflix, Amazon Prime, Google Pay and Sky Go. As the deployment of PCBs in TV sets increases, this will encourage market adoption.
The growing demand for small, flexible electronics will be a key trend in the market. The increasing use of flexible circuits in electronic wearable devices will have a positive impact on the market. Moreover, strong interest in foldable or rolled-up smartphones will soon create plenty of opportunities for key market players.
In addition, in May 2019, San Francisco Circuits announced an upgrade to its turnkey PCB assembly capabilities. Full-inclusive PCB assembly through SFC minimizes the responsibility of purchasing parts, managing bills of materials (BOM), inventory and associated logistics that customers may encounter when working with PCB assembly partners.
The competitive landscape
Due to Jabil Inc., Wurth Elektronik Group (Wurth Group), TTM Technologies Inc., With a few major players such as Becker&Muller Schaltungsdruck GmbH and Advanced Circuits Inc, the market for printed circuit boards is highly competitive. It has market share and is committed to expanding its customer base abroad. These companies are using strategic collaboration programs to increase their market share and improve their profitability. However, with technological advances and product innovation, SMEs are expanding their market share by securing new contracts and opening up new markets.
Latest Industry Development
March 2020 - Boardtek Electronics Corporation was acquired by Zhending Technology Holdings Limited in a share exchange. After the exchange, Boardtek will become a wholly owned subsidiary of Zhanding. Boardtek is engaged in the development, production and marketing of multilayer PCB, with a focus on high performance computing, high frequency microwave and higher heat dissipation efficiency.
February 2020 -- TTM Technologies Inc. announces the opening of an Advanced Technology Center in Chippewa Falls, Wis. The 40,000-square-foot facility at 850 Technology Way has been renovated to provide a variety of state-of-the-art PCB manufacturing solutions available in North America today, including the ability to manufacture baseboard-like PCB's. TTM acquired the assets of i3 Electronics, Inc.(i3) in June 2019 and soon thereafter began work on a rapid revamp of the device, with production beginning in January 2020.