Printed Circuit Board Market Trends

Growth Drivers:

•  Advanced automotive electronics drive PCB innovation- Over the years, the rising sales of electric vehicles have resulted in a high demand for printed circuit boards (PCB) market. As automotive manufacturers profoundly increase their focus toward electrification, so does the requirement for sophisticated PCBs that control and manage power distribution, advanced infotainment systems, and battery management systems. With governments around the world putting more rigorous emission regulations into effect, this trend is only expected to increase. The drive of these regulations is for innovative solutions like advanced PCBs that help in achieving efficiency and environmental friendliness in different industries.

• 5G infrastructure expansion to foster demand for high-performance PCBs- Essentially intended for the installation of the 5G network are high-frequency and high-speed PCBs characterized by higher data transmission rates and lower latency. The demand is not influenced singularly by telecommunication equipment but rather spans any device designed to empower the capabilities of 5G. This goes beyond just smartphones to include IoT devices and edge computing hardware. This growth has resulted in a huge demand for PCB production and innovation.
  
  For instance, AT&S announced in July 2023 that it is expanding PCB manufacturing facilities. This expansion is likely to boost the production of such specialized PCBs by AT&S by 50% while at the same time creating approximately 700 new jobs by the year 2026. This investment specifically targets the growing requirement for high-frequency, fast PCB technology used in 5G infrastructure and advanced applications.

• Industrial IoT proliferation fueling PCB market growth- There has been a significant increase in demand for powerful PCBs that are equipped with sensors as manufacturing plants and their associated industrial processes go digital. The quest for highly reliable and efficient PCBs necessitates advanced monitoring and control systems during the transition to digitization. For example, in July 2024, PCBWay, announced a free upgrade in the material for its multilayer PCBs, which can increase product quality and performance significantly. This can essentially help IIoT-based industries where high-quality and reliable PCBs are required to achieve efficient performance and connectivity. 

Challenges:

• Raw material price volatility - The Printed Circuit Board (PCB) Market is influenced by the significant changes in prices of raw materials like copper. Volatility in copper prices may result in more costly production and disruptions in supply chains, eventually affecting the overall stability and price dynamics within the PCB sector. This challenge turns into a roadblock for manufacturers to maintain their profit margins due to unpredictable costs in this competitive printed circuit board (PCB) market.

• Environmental regulations resulting in costly manufacturing adaptations-  According to the fourth edition of the Global E-waste Monitor 2024, e-waste is now being generated at alarming rates: in 2022, 62 billion kg of e-waste was produced, which equates to 7.8 kg per capita. Nevertheless, only 22.3 percent—13.8 billion kg—is reported as properly collected and recycled. This mounting e-waste problem is met with common and equally growing challenges PCB manufacturers worldwide face when it comes to fighting stringent environmental regulations. Such regulations are meant to lessen the ecological impacts of electronic waste and ensure that the manufacturing methods are environmentally friendly.
  However, results in huge investments in new equipment and processes. The manufacturers have to face restrictions on hazardous substances, enforcing more energy-efficient methods of production, and developing recyclable designs of PCBs.