The development of the global PCB industry now sees a significant eastward-moving tendency. In general, foreign-funded enterprises still dominate the market of high-end products, but the rise of the downstream local brands, such as Huawei, ZTE, Xiaomi, and Hikvision, leads to a new industry development theme in which domestic-funded enterprises shall prevail with localized alternatives. In terms of product structure, the industry sets increasingly higher requirements on the "light, thin, short, and small" features of PCB products; as a result, the downstream industry turns to gradually demand high-end products. FPC, HDI, and high-level multilayer PCB technologies become the major future direction. The downstream applications of the PCB industry are extensive. We believe the current growth of the industry mainly relies on the construction of communications infrastructure driven by 5G, which leads to a large-scale increase of the high frequency, high-speed board, multilayer board, and HDI board markets. It is expected that the pulling effect of communications infrastructure will continue until 2021. Meanwhile, as the 5G communications infrastructure tends to reach completion, the consumer electronics sector will see in a wave of changing 5G phones in 2020, which will fuel accelerated dramatic increase of HDI, FPC and SUB. The PCB industry is about to witness a new upsurge.
There are extensive applications with the downstream PCB industry, it has taken over a variety of fields in recent years, including communications, consumer electronics, automotive electronics, computer, health care, aviation and defense. Communications, computer, and consumer electronics accounted for nearly 70%. According to Prismark statistics and forecast, the compound annual growth rate of PCB output value of global single/double-sided PCBs and multi-layer PCBs in the downstream field is likely to reach about 3.7% from 2020 to 2023, of which wireless infrastructure will have the highest compound growth rate, i.e., 6.0 %, followed by server/storage (data center) and automotive electronics, both to grow by more than 5%.
From the perspective of segments, the multilayer market represented by communications and server/storage is generally the largest and fastest-growing market. According to figures of Prismark, the PCB market for wired and wireless devices reached US$6.6 billion in 2018, and the server/storage PCB market reached US$5 billion. The three are all related to the development of the communications industry, driven by technological innovation and investment in the communications industry. And, the product form is similar, mostly multilayer PTH boards, which are considered to be of the communications PCB market. Its total market space, amounting to US$11.6 billion, was second only to the mobile phone PCB market.
Source: pcbshijie.com-5G consumer electronics upgrade to be accelerated, touching off new upsurge with PCB industry