PCB Is A Typical Fully Competitive Industry
Industry demand side: downstream dispersion, stable growth
PCB is a carrier for various electronic components and is widely used in communications electronics, consumer electronics, computers, automotive electronics, industrial control, medical devices, defense and aerospace. In 2018, the global PCB market was 61.1 billion US dollars, a year-on-year increase of 3.84%.
The downstream demand market has determined that the PCB industry is growing steadily and slowly. The downstream demand is scattered, and the proportion of a single sub-industry is less than 30%. In addition to the global financial crisis, the PCB industry has experienced a decline in overall demand in the following year (2008), and has maintained steady and slow growth for a long time. It is estimated that by 2022, the top four market segments will account for 79% of the total PCB market, while computers, communications, consumer electronics, and automotive electronics PCB account for 24%, 29%, 14%, and 10%, respectively.
Automotive electrification has driven steady growth in automotive PCB demand. The proportion of PCB in the cost of fuel car electronic devices is about 2%, the average PCB consumption per car is about 1 square meter, worth 60 US dollars; the high-end models are used in 2-3 square meters, worth about 100-150 US dollars; As explained above, the introduction of a large number of new electronic systems for electric vehicles will significantly increase the amount of bicycle PCB. It is expected that the value of bicycles for electric vehicles will reach 225-800 dollars.
In the 5G era, PCB will usher in volume and price. The number of PCB layers and area on the AAU and BBU increase. As the 5G frequency band increases, the frequency increases, the number of RF front-end components increases significantly, and Massive MIMO is integrated into the AAU. The PCB usage area on the AAU is greatly increased, the number of layers is increased, and the added value of the antenna AAU is transferred to the PCB board and the copper-clad board; As the 5G transmission data increases significantly, the data processing capability of the base station BBU has higher requirements, and the BBU will adopt a larger area and a higher layer of PCB.
Emerging areas will boost demand for high-end PCB. In 2017-2022, the growth rate of wearable devices, smart home devices, AR/VR head-mounted display devices, IOT, and AI market was 26.1%, 11.0%, 41.6%, 26.9%, and 60%, respectively. With the rise of emerging markets, the demand for high-end PCB such as multi-layer boards, carrier-like boards, hard and soft boards, and HDI will be further enhanced in the future.