The PCB industry is huge, and global growth in 2017 exceeded expectations. PCB is an essential component of most electronic equipment products, covering a wide range of downstream applications, including communications, computers, aerospace, industrial control, consumer electronics, automotive electronics. Driven by strong demand for high-end smartphones, automotive electronics, continued development of new PCB technologies, China's 5G debut, and global economic recovery, China's PCBs will skyrocket and flourish in 2018!
According to the statistics of Prismark, the global PCB output value reached 54.207 billion US dollars in 2016, and the growth rate in 2017 is expected to exceed 7%, exceeding the original expectation.
Research institutions also believe that this is mainly due to the strong demand for high-end smartphones and automotive electronics, the continued development of new PCB technologies and the global economic recovery.
The trend of industrial transfer is clear, and domestic PCB companies are accelerating their rise. According to the data of Prismark, from 2008 to 2016, the global market share of China's PCB industry has increased steadily, reaching 50.04% in 2016, and the status of the largest PCB producing country has been steadily stable. From the perspective of capacity scale, from 2008 to 2016, the output value of China's PCB industry increased from US$15.037 billion to US$27.123 billion, with a compound annual growth rate of 7.65%, much higher than the global composite growth rate of 1.47%.
It is more meaningful to analyze the PCB industry transfer from the perspective of property rights. In 2016, the average annual growth rate of domestic PCB companies reached 13.5%, leading the world, while both Taiwanese and Japanese manufacturers experienced negative growth. The research institute believes that the main reasons for the growth of domestic PCB manufacturers to lead the world are: (1) location advantages; (2) enterprising spirit; (3) capital market support.
From the perspective of output value, the domestic share of domestic PCB companies in 2015 was 12.73%, and the proportion of high-end products in terms of product structure was also small, and there is still considerable room for growth.
According to Xinhua News Agency's news from the Ministry of Industry and Information Technology, in June 2018, it is expected to introduce 5G commercial or close commercial products, and the 5G era is approaching. The main application directions of PCB products in the communication field are wireless network, transmission network, data communication and fixed network broadband. Compared with 2G-4G communication system, 5G will make more use of 3000-5000MHz and millimeter wave frequency band (28GHz and 60GHz), and require data transmission rate to increase by more than 10 times, so the demand for high-frequency high-speed PCB will be greatly increased. .
The trend of increasing the level of automotive electronics has become very clear, bringing a solid and strong demand for PCB boards. According to Prismark data, the overall size of the automotive PCB market in 2017 was about 4 billion US dollars, with a growth rate of about 10%. The follow-up is still driven by the two booms of smart cars and new energy vehicles.
According to IDC's forecast data, the global HPC market will grow from US$23.121 billion in 2015 to US$31.403 billion in 2019, with a compound annual growth rate of 8.0%. Research institutes believe that this will drive the development of PCB technologies such as high-level, large-size, high-aspect ratio, high-density, and high-speed materials.
The supply-side reform is superimposed on environmental protection supervision, which is conducive to the improvement of industry concentration. The cost of the PCB company is sensitive to the price of the main raw materials such as electrolytic copper foil, fiberglass cloth, synthetic resin and prepreg. The price increase effect will exert greater pressure on the PCB company's gross profit margin. At the same time, the research institute believes that the PCB industry chain as a whole deposit risk risk industry, under the strong supervision pressure of environmental protection, a large number of small and medium-sized enterprises may withdraw from the game, raw material prices will remain at a high level for a long time, the overall imbalance of supply and demand in the industry chain will continue, the industry concentration It is expected to improve and benefit the leading enterprises in the industry.