PCB Industry Outlook for 2024

The printed circuit board (PCB), as an indispensable component in electronic devices, primarily serves to support and connect electronic components, enabling circuit connections and signal transmission. In recent years, with the continuous miniaturization and functional integration of electronic devices, the PCB industry has undergone rapid development.

Market Size and Production Value

1. Global Market Size: According to forecasts by authoritative institutions such as Prismark, the global PCB production value in 2024 is expected to increase by approximately 5.0%, reaching approximately $73 billion. This growth is mainly attributed to the rapid development of emerging technologies such as artificial intelligence and automotive electronics, as well as the cyclical recovery of the electronics industry.

2. Chinese Market Size: China is the largest PCB producer and consumer globally. In 2023, China's PCB production value was approximately 37.8billion,adecreaseofabout13.239.3 billion in 2024, representing a year-on-year increase of about 4.1%.

Competitive Landscape

1. International Competition: The global PCB market is highly competitive, with international software companies such as Siemens, Altium, and Cadence occupying leading positions in the market due to their advanced technology, diverse product lines, and excellent services.

2. Domestic Competition: A number of competitive PCB enterprises have emerged in mainland China, including Dongshan Precision, Shennan Circuits, and Kingwon. These enterprises have achieved remarkable results in technology research and development, market expansion, and possess strong competitiveness in the global market.

Technological Trends

1. High-Density Interconnect (HDI) Technology: With the increasing demands for thinner and more high-performance electronic devices, HDI technology has been widely adopted. HDI boards can have more connection points in a smaller space, improving the overall performance and efficiency of the circuit.

2. Flexible Circuit Boards: Flexible circuit boards, due to their unique bendability, are increasingly used in wearable devices, medical equipment, and other fields.

3. Package Substrates: Package substrates play a crucial role in the packaging process of high-performance chips. Currently, domestic PCB enterprises are expanding their production capacity of package substrates to meet market demand.

Market Demand and Driving Factors

1. Emerging Technologies: The rapid development of emerging technologies such as 5G, the Internet of Things, cloud computing, and big data has placed higher demands on high-performance, high-density PCB products.

2. Consumer Electronics and Automotive Electronics: The continuous innovation and intelligent development of consumer electronics products, especially the popularity of electric vehicles and autonomous driving technology, have significantly increased the demand for PCBs.

3. Data Centers and Servers: With the increase in global data center capital expenditures, particularly the accelerated deployment of AI servers, the demand for PCBs is also continuously rising.

Challenges and Opportunities

1. Challenges: The PCB industry faces challenges such as insufficient technological innovation capability, low market concentration, and international competition pressure.

2. Opportunities: With the continuous emergence of emerging technologies and the diversification of market demands, the PCB industry is also presented with new development opportunities. For example, the popularization of AI technology will promote the integration of more intelligent elements into PCB products, enhancing their added value.

Industry Trends Forecast

1. Sustained Growth: It is expected that the global PCB market size will maintain steady growth in the coming years. Especially in Asia, particularly mainland China, will continue to maintain its position as the largest PCB producer and consumer globally.

2. Structural Upgrades: Driven by high-end consumer electronics industries such as servers/data storage and mobile phones, the proportion of high-end PCB products such as HDI boards and IC substrates will gradually increase.

3. Environmental Development: The increasing awareness of environmental protection and stricter environmental regulations will drive the PCB industry to develop in a green and environmentally friendly direction.

In summary, the PCB industry in 2024, driven by the global economic recovery and emerging technologies, demonstrates strong development momentum. However, the industry also faces numerous challenges and opportunities. PCB enterprises need to continuously improve production efficiency, reduce production costs, ensure product quality, and shorten delivery cycles to cope with market changes and seize development opportunities.