Automotive Printed Circuit Board (PCB) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Automotive Printed Circuit Board (PCB) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive Printed Circuit Market was valued at USD 6.22 Billion in 2021 and is expected to reach USD 8.41 Billion by 2027, registering a CAGR of 6.03% during the forecast period (2022-2027).

The market was severely affected due to manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic in the year 2020. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. Since automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases in the year 2021, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, increasing investments in R&D by major industry players and a rise in sales of electric and hybrid vehicles as well as rising demand for connected vehicles fare creating demand in the automotive and transportation industry with a surge in sales of automotive printed circuit boards.

Key players in the market are expanding their production capacity to cater to the increased demand for automotive printed circuit boards. For instance, In July 2022 Denkai America Inc. announced to unvest USD 430 million in Augusta, Georgia, to setup its North American HQ and manufacturing facility. The manufacturing facility will include an USD 150 miilion production line to manufacture ED copper foils for EV batteries. In March 2022 Ather Energy and Bharat FIH, a Foxconn Technology Group subsidiary signed an agreement wherein Bharat FIH will develop and manufacture elctric components for Ather Energy including printed circuit boards (PCBs) in India.

Asia-Pacific region expected to be largest market becuase of the large presence of automobile manufacturers and automotive printed circuit boards OEMs, high sales of connected vehicles and growing electric and autonomous vehicle sales. North America and Europe are the next biggest markets owing to increasing market share of advanced electronics in vehicles, growing purchasing power of the consumers, and good consumer awareness for safety features in the developing countries are the key factors driving the PCB market for automotive in Asia Pacific Region.

Key Market TrendsGrowing Electric Vehicles Sales Driving the Market Growth

Many governments in some of the largest automotive markets like China, India, and Europe are relentlessly promoting the adoption of electric vehicles through various government incentives and policies aimed at boosting the sales of EVs to meet the carbon reduction goals under the Paris Climate Change Accord 2015 to which all these markets are signatories.

ICE engine vehicles and road transport contribute to about 25% of the total greenhouse gas emission worldwide. Thus the adoption of electric vehicles on a very large scale is imperative to mitigate the risks associated with climate change and to smoothen the transition to a greener future.

Various countries in Asia-Pacific and Europe have announced to ban the sales of new ICE vehicles by 2040 in favor of battery electric vehicles. Rising oil prices, growing pollution levels, increasing environmental consciousness, and a number of government incentives to promote electromobility are all contributing to very healthy growth in sales of EVs around the world. For Instance,

• In China EV sales rose to 3.66 million units in 2022 (till September) posting a YoY growth of 119% while in India EV sals stood at 390399 units (till July) in 2022 registering a YoY increase of 333%.

An automotive PCB controls all the functions of a battery which the core component in an EV. Thus the massive growth in sales of EVs is providing a very high impetus to the growth of automotive PCB industry, worldwide. For instance

• In June 2021 Changchun HELLA Automotive Lighting Co. Ltd. signed a joint venture with Danyang ENOR Photoelectric Co. Ltd. to develop, manufacture and sell automotive componenets like lighting modules, PCBs and control modules.
• In October 2021 NOK Corporation launched several new products for elctromobility like sealing parts, flrxible printed boards (FPCBs) and anti vibration rubber materials at Automotive Engineering exposition Online 2021 in Jaoan.

Asia-Pacific Region Anticipated to Grow at Significant Level During the Forecast Period

The Asia -Pacific is the most dominant market followed by North America and Europe.

Asia -Pacific is home to India, China, Japan, and South Korea, the world's largest automobile manufacturing countries. India and China are some of the world's largest markets for electric vehicles, contributing to almost 60% of the worldwide electric vehicle sales, thus making Asia-Pacific the most lucrative market for automotive printed circuit boards. Automotive printed circuit boards are employed in the majority of these vehicles within the region to control the essential functions of an electric vehicle.

Europe and North America are also major markets due to the large presence of automotive OEMs and the rising electrification of the automotive industry, leading to high electric vehicle sales in these geographies. Thus, with companies coming up with innovations in this segment, the market for automotive Printed Circuit Boards is expected to grow over the forecast period for the electric vehicles segment. For instance,

• in June 2022 PCB Technologies launched iNPACK a System in Package (SIP) solution which offers improved signal integrity and a significant reduction in unwanted inductance effects. The SIP solution can be utilized for a variety of applications in automobiles, consumer electronics, and medical devices industries.
• In May 2021 Mahle AG premired new type of Printed Circuit Board based hydrogen fuel cell technology named Printed Circuit Board Fuel Cell (PCBFC) which will be integrated in a Renault Kangoo ZE.

Competitive Landscape

The automotive PCB market is moderately consolidated. The market is characterized by the presence of some gloabl and local players who have secured long-term supply contracts with major automotive OEMs in their respective regions. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.

Some of the major players dominating the global market are Samsung Electro-Mechanical Ltd., Infineon Corp, CMK Corp., KCE Electronics Ltd., and Amitron Corp. Many players are expanding their manufacturing capacity to secure their market position and stay ahead of the market curve. For instance,

• In April 2022, PT Infineon Technologies Batam, Indonesia, a wholly owned subsidiary of Infineon Technologies Corp announced to expand the backend production capacity in Indonesia by 2024. This expansion will see the Batam site become the second biggest one for Infineon Technologies Corp after their Melaka, Malaysia plant for automotive PCBs.
• In June 2022, STMicroelctronics N.V. introduced new high voltage Printed Circuit Board based op amplifier for automotive and industrial applications.

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