In 2023, the PCB market will face big environmental challenges. Consumer electronics, PC/NB, and mobile phones have not yet seen a recovery. The industry expects that the business will improve in the second half of the year, and the annual output value of PCBs will have the opportunity to grow compared with last year. In the first half of the year, the growth momentum of the PCB industry was the clearest, and the automotive PCB, which suffered from material shortage in the past two years, was the most positive, and the relevant industry players had the most optimistic view on the automotive PCB.
Global PCB production value is expected to grow
According to industry associations, due to the poor outlook for the overall economy, the demand forecast for terminal electronic products tends to be conservative. The destocking in the first half of this year may lead to a continued slump in overall sales, and there is a chance to gradually increase in the second half of the year. Overall, In 2023, the volatility of global terminal products will slow down, generally showing a slight decline.
For the electronic supply chain, if the economic and consumer demand is expected to resume growth in the second half of the year, it is estimated that the global PCB output value will still maintain a slight growth of 3%, and the total output value will be 90.8 billion US dollars. The economies of the world are in recession, and the overall PCB output value cannot be ruled out to face a shrinking dilemma. It is prudently estimated that the global PCB output value will decline by 4% (about 84.7 billion dollars).
Relevant agencies stated that, on average, the global annual demand for car replacements is about 90 million units, which did not reach this level last year or the year before last, mainly due to supply chain problems. This year, both wars and epidemics have slowed down, so we will be more optimistic about the smoothness of shipments this year.
The demand for automotive PCB is expanding
Relevant companies also said that the current demand for automotive panels is still good, and customers have a strong momentum to purchase goods. Looking at the outlook for this year, due to the small number of working days, it is estimated that the first quarter will be the bottom of this year, but it can also maintain an annual growth posture. This year will be a quarter-to-quarter performance.
Dynamic’s market share in the automotive sheet market has also reached 60%. The company believes that consumer electronics, PC-related market demand is still conservative, and the first quarter seems to be the bottom. If you look at the whole year, this year is still a car The user market, as well as the Netcom and server markets will have growth momentum.
In the field of electric vehicles, the industry said that 30-40% of the PCBs of electric vehicles are different from those of fuel vehicles. The main difference lies in the power system. Because electric vehicles consume a lot of electricity and a large amount of current, they need 2-3oz China’s heavy copper plate manufacturer Hi-Tech also believes that customer demand has gradually improved since the fourth quarter of last year.
Supported by the growth of automotive and Internet business, although the number of working days decreased in the first quarter overall, the demand for orders remained strong. Poor, the revenue in the first quarter was the same as that of the previous quarter, and the automotive sheet is the product line with relatively better and clearest growth rate for Hi-Tech this year.
2023-2028 prospect forecast of China’s automotive PCB
PCB is an important electronic component, which is mainly composed of two types of materials, insulating substrate and conductor, and plays a supporting and interconnecting role in electronic equipment. Automotive PCB refers to the PCB specially used in the field of automotive electronics. PCB mainly includes four major systems in automotive electronics: power control system, safety control system, body electronic system, and entertainment communication. Therefore, the requirements for PCB include both high-volume and low-priced products and high reliability requirements.
The growth rate of global automotive PCB demand is higher than the overall PCB demand. The demand for automotive PCBs will increase from 6.5 billion USD in 2020 to 9.5 billion USD in 2025, with a CAGR of 7.6%, which is 1.8pct higher than the overall growth rate of PCBs. It is expected that the proportion of automotive PCBs will increase from 10% in 2020 to 2025 Annual will be 11%.
Most of the automotive PCB market share is concentrated in Japan and the United States, and it is expected to further transfer to the mainland, and manufacturers with first-mover advantages will fully benefit. In 2020, global automotive PCB companies will be dominated by companies from Japan, the United States, and Taiwan, and Jingwang Electronics is the only CR10 company in mainland China.
The mainland has accounted for more than 50% of the overall PCB output value, and the share of China’s automotive PCBs is far lower than the overall PCB share. The new energy vehicle market has continued to expand in the Chinese market in recent years, and the main demand for PCBs required for electrification also comes from the Chinese market.
Mainland manufacturers can better adapt to the needs of downstream customers by virtue of their quick response and strong service capabilities. It is expected that the production capacity of automotive PCBs will be further transferred to the mainland, and manufacturers with first-mover advantages will fully benefit.
Conclusion
In recent years, the Chinese government has issued a series of laws and policies related to PCBs. The main purpose is to promote the PCB industry to provide more convenient and faster machinery and equipment, and to support the high-quality and rapid development of the industry and field. The gradual implementation of industrial policies and the continuous introduction of new policies will have a positive and beneficial impact on the business development of companies in the industry. Having the policies support from the government, how to select a reliable automotive PCB manufacturer is important. We have accumulated the top 10 automotive PCB manufacturers for you to refer. If you have any other recommendations, please feel free to leave your message below.
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