PCB Materials Market Overview
The PCB Materials Market is forecast to reach
US$18.3 billion by 2026, after growing at a CAGR of 5.3% during the forecast
period 2021-2026. The PCB Materials play a major role in the manufacturing of the PCB (Printed Circuit Boards) since the performance of the
PCB primarily depends on the materials used to produce it. The materials that
are primarily used to fabricate the PCBs include polytetrafluoroethylene, copper-clad laminate with fiberglass reinforcing material, and thermoset resin
encapsulation and insulation of PCB. According to recent insights from the
Semiconductor Industry Association, China imported around US$378 billion in
semiconductors, accumulated 35% of the world’s electronic devices, and was
responsible for 30% to 70% of the global PC, TV, and mobile phone exports in
2020. The increasing demand for PCB materials from the electronics industry and
the automotive industry act as major drivers for the market. On the other
hand, frequent functional failure of PCBs may act as a major constraint for the
market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced construction, and production activities which in
turn, has resulted in the country-wise shutdown of construction sites, shortage of
labor, and the decline of supply and demand chain all over the world, thus,
affecting the market. Studies show that the outbreak of COVID-19 sharply
declined the production of raw materials in 2020 due to a lack of operations
across multiple countries around the world. However, a slow recovery in the electronic industry has been witnessed across many countries around the world
since 2021. An increase in work from home and e-learning practices during
COVID-19 has significantly led to high demand for laptops, tablets, and
smartphones which have resulted in the higher production of these electronics.
For instance, according to the Retailers Association of India (RAI), consumer
electronics net sales increased by 2 % in September and 8% in October 2020, in
comparison to 2019, owing to the increase for electronic devices for remote
practices during COVID-19.
In this way, a slow and steady increase in
electronics production activities will require the use of PCB Materials like
polytetrafluoroethylene, copper clad laminate with fiberglass reinforcing
material, and other materials for the production of PCBs used in these
electronic gadgets. This will eventually lead to an increase in demand for PCB
Materials which indicates a slow and steady recovery of the market in the
upcoming years.
PCB Materials Market Report Coverage
The report: “PCB Materials Market – Forecast (2021-2026)”, by IndustryARC
covers an in-depth analysis of the following segments of the PCB Materials Industry.
By Type: FR-4, PTFE
(Polytetrafluoroethylene), Metal, Others.
By Product Type: Single-Sided PCBs, Double-Sided PCBs,
Multi-layer PCBs, Rigid PCBs, High-Frequency PCBs, Aluminum backed PCBs,
Others.
By Type of Raw
Materials:
Pre-preg (pre-impregnated materials), Copper foil, Substrate, Ink, Others.
By End-Use
Industry:
Consumer Electronics, Industrial Electronics, Healthcare, Aerospace &
Defense, Automotive, IT & Telecom, Marine, Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- The Consumer Electronics in PCB Materials Market is expected to see the fastest growth, especially during the forecast period. The major reason behind this is the increasing demand for PCB materials required for the production of electronic equipment, such as calculators, circuit boards, remote control units and other electronic components.
- FR-4 material segment in PCB Materials Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand and benefits over other types of PCB materials such as PTFE (Polytetrafluoroethylene), Metal, and other PCB materials.
- Asia-Pacific dominated the PCB Materials Market in 2020, with countries like China, Japan, South Korea, and India most likely to drive the market growth, owing to the increasing demand from the electronics and automotive sectors from the region.
Figure: Asia-Pacific PCB Materials Market Revenue, 2020-2026 (US$ Billion)
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PCB Materials Market Segment Analysis – By Type
The FR-4 material type held the largest share
in the PCB Materials Market in 2020, and is expected to grow at a CAGR of 5.4%
between 2021 and 2026, owing to the increasing demand for FR-4 for the
production of PCBs. FR-4 is composed of fiber glass-reinforced epoxy laminate
sheet which makes it water-resistant and flame retardant in comparison to PTFE
(Polytetrafluoroethylene), Metal, and other PCB materials. Moreover, FR-4 also
delivers good strength in proportion to weight ratios, offers a very high
tensile strength, offers good electrical insulation properties, and it is a
cost-effective or low cost material in comparison to PTFE (Teflon), Metal, and
other PCB materials, which makes it ideal for use in the production of PCBs for
electronic equipment and devices. Hence, all of these factors are most likely
to boost market growth in the upcoming years.
PCB Materials Market Segment Analysis – By Product Type
The Multi-Layer PCBs held a significant share
in the PCB Materials Market in 2020, owing to its increasing demand due to the
properties and advantages they offer. Multi-Layer PCBs are composed of more
than two layers of copper clad laminate, in which the layers are separated by
the different layers of insulating materials and substrate board. Moreover, Multi-Layer PCBs offers high
flexibility in design, are more compact in size, are faster and provides high
speed circuits, offers advantage of weight and space, along with providing more
space for conductor power and pattern in comparison to Single Sided, Rigid,
High Frequency, Aluminium Backed and other PCBs. All of these factors will
eventually increase the demand for PCB materials required in the production of
Multi-layer PCBs, thus, boosting the market growth.
PCB Materials Market Segment Analysis – By Type of Raw Materials
The Substrate segment held a significant share
in the PCB Materials Market in 2020, owing to a range of advantages they offer. The substrate is responsible for providing a structure that physically
holds the printed wires and circuit components in place along with electrical insulation between its conductive parts. The substrate that is most
commonly used in PCBs is composed of a fiber glass reinforced epoxy resin along
with a copper foil that is attached on one or both sides. Substrates are soft
and flexible materials and offer a wide range of benefits such as corrosion
resistance, water resistance, shock resistance, low dissipation, temperature
stability, high chemical resistance, good electric properties, and good
resistance to radiation and high temperatures in comparison to pre-preg
(preimprenated materials), copper foil, substrate, ink and other raw materials.
All of these properties makes them ideal for use in PCBs for applications such
as power
amplifiers, instrument panels, antennas, cameras, calculators, automotive
cruise control, x-ray machines, electronic systems on
airplanes, and gamma ray devices for
medical applications, thus, leading to the growth of the PCB Materials Market
in the upcoming years.
PCB Materials Market Segment Analysis – By Application
The Consumer Electronics held the largest share in the PCB Materials Market in 2020 and is expected to grow at a CAGR of 5.5% between 2021 and 2026, owing to the increasing demand for PCB materials during the production of electronic gadgets across the globe. For instance, a recent study published on PricewaterhouseCoopers (PwC) states that the GDP growth rate of consumer electronics which includes electronic appliances and gadgets such as washing machines, televisions, computers, laptops, smartphones, tablets, and refrigerators in countries like India, China, US, and region like Europe is expected to increase up to 8.1%, 5.7%, 1.4%, and 1.7% respectively by 2022. According to recent insights published on Growth from Knowledge (GRK) in September 2021, the global consumer electronics industry obtained a total sales growth of $42.8 billion during the first quarter of 2021, an increase of 18% in comparison to 2020. This in turn, will increase the demand for PCB materials required for the production of PCBs to be installed in such electronic devices, hence, leading to market growth in the upcoming years.
PCB Materials Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
PCB Materials Market in 2020 up to 30%. The consumption of PCB Materials is
particularly high in this region due to the increasing demand of PCB materials
from the electronics sectors. For instance, according to a recent study
published in the Economic Times (Telecom) in 2021, electronic manufacturing and
production is valued around $ 100 billion in India currently. It further states
that the mobile manufacturing in India is estimated to surpass INR 90000 crore
($12 trillion) by the end of 2021 as per the statement made by the Indian IT
Minister. Likewise, according to the annual reports published by Samsung during
the fourth quarter of 2020, the total revenue of the consumer electronics
division was valued at KRW 13.6 trillion ($ 11.3 billion) with an operating
profit of KRW 0.8 trillion ($ 668 million).
Hence, an increase in demand for the production of consumer electronics devices will require the use of PCB Materials such as polytetrafluoroethylene, copper clad laminate with fiber glass reinforcing material for the production of PCBs to be installed in such electronic devices. This is most likely to lead the growth of the PCB Materials Market.
PCB Materials Market Drivers
An increase in demand from the electronics industry is most likely to increase demand for the product
The demand for PCB Materials has been increasing rapidly as it is primarily used for fabrication and encapsulation of PCBs in the electronic equipment and devices. For instance, the Statistical Handbook of Japan 2021, states that the production and shipments of electronic equipment reached up to $52.6 billion during the fourth quarter of 2020, and is expected to increase in the upcoming year. According to the annual reports published by Samsung during the fourth quarter of 2020, the semiconductors division obtained a total revenue of $15.1 billion. Furthermore, Lenovo Group, a leading brand in consumer electronics and media, published the annual report for the fiscal year that ended in March 2021, which stated that the total revenue of the company reached up to $60,742 million in the fiscal year 2020/21, an increase by 20% in comparison to the fiscal year 2019/20. Recent insights from the Semiconductor Industry Association (SIA) states that the U.S invested around US$ 142.2 billion on computers, and US$ 53 billion on consumer electronics such as cell phones, TV and other similar applications. It also states that China’s National IC Fund has invested US$39 billion until July 2021, among which 69.7% has been allotted for front-end manufacturing with the aim of increasing China’s share of global semiconductor production. In this way, an increase in demand for use of electronics products, components, and semiconductors will also increase the demand for PCB materials required to produce the PCBs installed in such devices. This is most likely to drive market growth in the upcoming years.
An increase in demand from the automotive industry is most likely to increase demand for the product
According to a recent study published by the
German Association of Automotive Industry during the fourth quarter of 2020, the
new registration of motor vehicles reached up to 16,763 units in Europe, 37,467
units in Asia, 3080 units in South America, 17,421 units in North America,
12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, a recent study published by the International Netherlands Group (ING) states that
the demand for the production and development of Electric Vehicles has been
increasing since the beginning of pandemic. It states that the global sales of new Electric
Vehicles have increased by 50% in 2021, and is expected to increase by 8% further in
2022. It further states that the sales of Electric Vehicles have increased by 14%
in Europe, 9% in China, and 4% in the US.
Hence, an increase in demand and production of
vehicles will also increase the demand for PCB materials required for the
production of PCBs to be installed for automotive applications such as
anti-lock brake systems, airbag controls, digital displays, audio-video
systems, power steering, ignition systems, transmission sensors, windshield
wipers, anti-theft systems, and other similar applications. This is most likely
to drive the growth of the market in the upcoming years.
PCB Materials Market Challenges
Frequent functional failure of PCBs may cause an obstruction to the market growth
PCBs are crucial components of any electronic
equipment or devices. However, PCBs can face a functional failure in many cases
due to multiple reasons such as Component Design Failure due to incorrect
placement of components, breakage of component barrier or chemical leakage,
Material Defects due to the use of poor quality components, along with bending
and breaking of PCBs due hike in power load or due to environmental factors
such as over exposure to dust or heat. All of these factors may affect the
increasing trend of PCB, which may confine the market growth.
PCB Materials Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the PCB Materials Market. PCB Materials Market top companies are:
- Atlas Fibre Company
- Ventec International Group
- Gabriel Benmayor S.A.
- San Francisco Circuits, Inc.
- Nippon Graphite Fiber Co. Ltd.
- Arlon Electronic Materials Division
- Panasonic Corporation
- Nan Ya Printed Circuit Board Corporation
- ITEQ Corporation
- Denka Company Limited
Acquisitions/Technology Launches
- In March 2020, Zhen Ding Technology Holding Limited completed the acquisition of Boardtek Electronics Corporation. It primarily focuses on the R&D, production, and sales of multilayer PCB to support high-performance computing, along with higher efficiency of thermal dissipation.
- In February 2020, TTM Technologies Inc. opened the Advanced Technology Center in Wisconsin, in order to provision a wide range of advanced solutions for PCB manufacturing in North America, which includes the facility to manufacture substrate-like PCBs as well.
Relevant Reports
Automotive
PCB Market
– Forecast (2021 - 2026)
Report Code: AM 55270
European
Printed Circuit Board Market – Forecast (2021 - 2026)
Report Code: ESR 0625
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