Increasing use of consumer electronics and IoT devices is one of the key trends fueling demand for PCBs, according to a report by BCC Research.
BOSTON—Global demand for printed circuit boards (PCBs) is projected to grow from $70.9 billion in 2024 to $92.4 billion by the end of 2029, registering a compound annual growth rate (CAGR) of 5.4 percent during the forecast period, according to a study from market research firm BCC Research.
The report, “Printed Circuit Boards: Technologies and Global Markets,” looks at current trends in the global PCB market, using data from 2023 and forecasts from 2024 to 2029. It breaks down revenue by market segments such as assembly technology and PCB type, and by region, including North America, Europe, and Asia-Pacific, BCC Research stated in a release outlining the findings of its report.
The report also illuminates what’s driving and challenging the market’s growth, identifies leading PCB manufacturers, and reviews new technologies and competitive factors in the industry. Additionally, the report assesses the impact of environmental, social, and governance (ESG) issues on the PCB sector, BCC Research said.
“Even after the pandemic ended, its effects were still being felt in 2023,” the release stated. “The global PCB market suffered a significant decline due to factors like destocking and rising interest rates to curb inflation. The automotive and consumer electronics industries faced severe shortages of PCBs, which were in high demand because of 5G and the Internet of Things (IoT). This shortage led to higher prices, longer lead times, and stock-outs, affecting PCB manufacturers’ production.”
The report identifies China, the U.S., Taiwan, and South Korea as major PCB producers. In 2023, China is reported to have produced 53.3 percent of the world’s PCBs, thanks to its large production capacity, cost-effective manufacturing, and strong supply chain.
According to BCC Research, the trade conflict between the U.S. and China has significantly impacted the PCB market. U.S. imports from China dropped by 20.4 percent in 2023. As a result, the U.S. is shifting some PCB production to other regions, including Southeast Asia. Countries such as Vietnam and Taiwan are becoming popular choices to avoid tariffs and diversify supply chains.
“Multilayer and high-density interconnection (HDI) are the most popular types of PCBs,” the company stated in the release. “They offer more design flexibility and higher circuit density, making them suitable for complex and compact electronics. They also provide better signal integrity, which is essential for high-speed communication in computer motherboards, smartphones, medical devices, and aerospace electronics.”
Factors contributing to market growth
One of the factors contributing to the market’s growth is the increasing use of autonomous and electric vehicles (AVs/EVs). More vehicles are being designed to drive themselves and run on electricity instead of gasoline. This shift is driven by the desire for safer, eco-friendly transportation, and it is transforming the automotive industry by introducing new technologies and reducing reliance on fossil fuels, the company said.
Another factor contributing to market growth is the demand for consumer electronics and IoT devices. These devices are becoming increasingly central to modern lifestyles, homes, and workplaces as more and more people purchase gadgets like smartphones, smartwatches, and smart home products. The devices are seen as making life easier and more connected by allowing us to control and monitor various aspects of our lives through the internet.
The rising adoption of 5G technology is also fueling demand for printed circuit boards. Growing numbers of people and businesses are starting to use the latest mobile network, which is faster and more reliable than previous networks (4G and LTE). This improved connectivity supports faster internet speeds, better streaming, and the ability to connect many devices at once, the company said.
In 2023, the Asia-Pacific region is reported to have accounted for 89.5 percent of the global PCB market, due to the presence of numerous major semiconductor producers in the region, especially in China, Taiwan, Japan, and South Korea. In addition, favorable government policies, incentives to boost local manufacturing and expansion of the electronics manufacturing sector, and rising internet penetration with the adoption of smart electronic devices are expected to drive further growth in the Asia-Pacific market, according to the release.
Source: BCC Research LLC, publisher of “Printed Circuit Boards: Technologies and Global Markets.”