Automotive PCB Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Type (Single or Double layer, multi-layer, HDI, FPC, and Others), By Application (ADAS, Body & Comfort, Infotainment, and Others) and Regional Forecast, 2023-2030

The global automotive PCB market size was valued at USD 8.84 billion in 2022. The market is expected to grow from USD 9.15 billion in 2023 to USD 13.39 billion by 2030, exhibiting a CAGR of 5.6% during the forecast period.

The printed circuit board in automotive is a complex circuit system used in cars/trucks to control most electronic operations. Moreover, it is used in automotive, consisting of printed pathways connecting multiple components, including ICs, transistors, and resistors. In addition, this type of circuit board is used in several automotive applications such as entertainment and navigation systems, HUD ADAS system control modules (engine management systems and fuel regulators), antilock brake systems, and many other advanced features.  The automotive original equipment manufacturers and electronic component manufacturers companies are increasing their use in vehicles.

The PCB circuit boards were only used for basic headlights, wipers, and many other applications in the past decade. Still, it’s been seen in every feature, application, and part of the vehicles, including powertrain components, to make the driving experience safer and easier. Moreover, the leading automotive manufacturing companies use flexi-rigid, HDI-type printed circuit boards for various applications because they can withstand extreme temperatures and vibrations.   

COVID-19 IMPACT

Decline in the New Vehicles Production amid COVID-19 to Hampered Market Growth

The COVID-19 pandemic, due to the lockdown globally, severely affected the automotive industry. The lockdown and economic crisis-induced due to the COVID-19 pandemic have severely impacted many electronic component provider companies. Many suppliers have experienced significant resource bottlenecks in the global supply and logistics chains in the year that negatively affected their businesses. Many PCB manufacturers faced challenges due to factory shutdowns, reduced production capacities, and logistics issues. This resulted in the delay of the supply of PCB’s affecting the market.

Moreover, electronic component supply to the industry was already facing a severe challenge due to the U.S. and China trade and tariff war. As most of the global key players are dependent on the Chinese players for the raw material of the electronic system/components, more than 70% of the companies have faced delays in their shipments.

LATEST TRENDS

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Increasing Demand for Connected and Electric Vehicles to Transform Market Outlook

The demand for connected cars & electric vehicles is rising rapidly. The automotive industry is substantially transforming with the rise of connected and electric vehicles. For instance, in December 2022, Polaris signed a contract with AT &T to connect select off-road 2023 models in North America via the RIDE COMMAND+ Plug-In accessory device. RIDE COMMAND+ allows riders to remotely monitor key vehicle information through the Polaris app. This development drives the automotive PCB market growth during the forecast period.

The connected and electric vehicle requires an advanced electronic system to support the features such as an infotainment system, GPS Navigation, advanced driver assistance system (ADAS), and electric powertrain components. PCBs play a crucial role in integrating these complex electronic systems. The growth is attributed to increasing features; the automotive industry is increasingly integrating connectivity features into vehicles, such as vehicle-to-vehicle communication, in-car Wi-Fi, and smartphone integration. The proliferation of IoT technology in automotive applications drives the demand for automotive PCB.

DRIVING FACTORS

Increasing Use of Advanced & Comfort Features in Vehicles to Boost Market Growth

The growing inclination towards advanced technology-based vehicles, including lightweight ones, is projected to drive the global automotive printed circuit board market growth. As a backbone of electronic components in the vehicle, PCB manufacturers are also adapting to the changing environment and investing heavily to match the frequency that will support the advanced features & comfort features that will be used in vehicles in the future. Moreover, the new energy vehicles, connected vehicles, and upcoming autonomous vehicles will add a lot of new application/features scenarios to the charging, energy storage, power distribution, voltage conversion equipment, and others.

Automotive manufacturers and consumers are placing greater importance on vehicle safety and reliability. PCBs in automotive applications are designed to meet stringent safety standards and withstand harsh operating conditions such as temperature fluctuation, vibrations, and moisture. These boards are engineered to provide high reliability and long-term performance, ensuring the safe operation of various vehicle systems. These steps and features compulsion is anticipated to spur the market globally.

RESTRAINING FACTORS

Complex Design Structure, Supply Chain Challenges, and Cost Considerations May Hamper the Market Growth

Printed circuit board varies according to the vehicle’s design and application requirements. The increase in features leads to a higher vehicle cost and adds extra expenses in terms of installation, serviceability, and others. The complex structure of these circuit boards reduces the shelf life of vehicles. Thus, these factors are expected to have a significant impact on the growth of the market. The cost is a significant factor in the automotive industry. PCBs with advanced features and technologies may come at a higher cost than traditional PCBs. Cost consideration can limit the adoption of advanced PCB technologies in the vehicle. Thus, it hampers market growth. The manufacturer/OEM depends on a complex global supply chain, with components and materials sourced from various regions. Disorders in the supply chain, such as natural disasters or a pandemic, can lead to shortages, delays, or increased costs. These challenges can affect the production capacity and availability of automotive PCBs, limiting market growth.

SEGMENTATION

By Vehicle Type Analysis

Growing Adoption of Electric & Hybrid Passenger Vehicles Boost the Market Growth

The market is projected into passenger car and commercial vehicle based on vehicle type. The passenger car segment holds the highest automotive PCB market share globally and is anticipated to dominate during the forecast period. The rising need for safety, comfort features among millennials, and rising need for a safe and comfortable driving experience, the growing demand for electric and autonomous vehicles, etc., are all factors propelling the growth of the global market. The passenger vehicle segment is also witnessing a significant shift towards electric and hybrid vehicles due to environmental concerns and government regulations; this development drive market growth during the forecast period.

By Type Analysis

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Advanced Features of Multi-Layer Type Segments Drive Market Growth

Based on the type, the market is segmented into single or double-layer, Multi-layer, HDI, FPC, and others. The multi-layer segment holds the largest share globally. This multi-layer printed circuit board type offers dual transmission and is about 50 layers thick, suitable for various complicated electrical tasks. Moreover, HDI and flexible PCB are light and flexible, which meets the development trend of electronic products toward miniaturization, thinning, and wearability, especially because of their winding and folding characteristics. Due to the increasing application of sensor technology and the gradual penetration of the Internet of Things (IoT) into automobiles, a few EV manufacturers companies started using HDI and flex PCB for powertrain solutions, chassis control systems, and automobile electronic control systems.

By Application Analysis

Increasing Adoption of ADAS Feature in Vehicles Boost the Market Growth

The market is segmented into ADAS, body & comfort, Infotainment, and others based on application type. The advanced driver assistance system segment holds the largest market share worldwide and is expected to lead throughout the forecast period. ADAS features and vehicle implementation development has risen over the past few years. Moreover, multiple government bodies have mandated the safety features and already have regulations related to the anti-brake system, airbags, tire pressure monitoring, and many others.

Further, the rising disposable income and consumers' inclination toward luxury features propel the ADAS market growth. They will help to boost demand for the printed circuit board in the automotive market. In addition, infotainment systems, body & comfort also contribute significantly to the market's growth. The growing demand for interior features such as dashboard switches, stereo and audio components, digital screens and HUD display systems, onboard radar systems, navigation systems, and onboard diagnostics will grow significantly over the coming years.

REGIONAL ANALYSIS

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The market is analyzed across North America, Asia Pacific, Europe, and the Rest of the world.

Asia Pacific stood at USD 4.83 billion in 2022 and will likely dominate the market. The increasing preference for personal mobility after COVID-19 will boost the need for automotive sales and printed circuit boards. The growing adoption of vital governmental initiatives and the use of electric and autonomous vehicles will likely encourage market development in the region during the forecast period.

Europe holds the second-largest share as they are an early adopter of the new market trends and the second manufacturing hub for electronic components globally. Moreover, rising demand for electric vehicles in the countries such as Norway, Germany, the U.K., and the Netherlands. The Netherlands is occupying major sales of all types of vehicles coupled with higher adoption of technologically advanced vehicles in the country are the factors responsible for boosting the market in Europe.

KEY INDUSTRY PLAYERS

Companies Focus on a Wide Range of Product Offerings to Gain Competitive Edge

Major players in the market include Meiko Electronics, Nippon Mektron, and TTM Technologies. The PCB manufacturers focus on providing technologically advanced Automotive PCBs for various vehicle customers worldwide.

Meiko Electronics is one of the leading PCB manufacturers that provides state-of-the-art products to the automotive industry for applications such as powertrains, safety systems, ADAS, lighting systems, and ITS (navigation). The company has pioneered the design, manufacturing, and sales of printed circuit boards and auxiliary electronics business. The company started offering a wide range of products, including PCBs such as double-sided/multi-layer through-hole, HDI, flexible, flex-rigid, high electric current, heat dissipation, embedded devices, solder stencils, PCB testers, imaging devices, imaging systems to support vehicle manufacturers of the global market.

List of Key Companies Profiled: 

•  Chin Poon Industrial (Taiwan)


•  Meiko Electronics (Japan)


•  Nippon Mektron (Japan)


•  TTM Technologies (U.S.)


•  KCE Electronics (Thailand)


•  Tripod Technology (Taiwan)


•  Unimicron Technology (Taiwan)


•  Kingboard Chem GRP (China)


•  Amitron Corp (U.S.)


•  CMK Corp. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2022, Medico Electronics Co., Ltd. announced that the company acquired the shares (100% equities) of NEC Embedded Products, Ltd. Under the acquisition, the company will provide customers with the best products and services. NECEP is capable of handling orders for a wide variety of electrical and electronic equipment utilizing its embedded product development capabilities and cutting-edge technologies.


• January 2022, Panasonic Corporation announced it had developed MEGTRON 8 Multi-Layer Circuit Board Materials Featuring Low Transmission Loss, designed for high-speed communication networking equipment such as routers and switches. MEGTRON is an industry-leading multi-layer circuit board material for high-speed and large-capacity transmission in many fields, such as high-speed communication networking equipment such as servers, routers, supercomputers, automobiles, and aerospace.


• June 2021, Meiko Electronics announced plans to make total investments of USD 453.72 million in the 2021 to 2024 fiscal years, focusing on expanding the capacity for automotive PCB to meet robust demand for ADAS and electrical vehicle applications. Meiko continued it will also build a brand-new automotive PCB manufacturing plant in Vietnam over the next four fiscal years.


• February 2021– Samsung Electro-Mechanics Company has changed its expansion strategy through MLCC online promotion via a European electronic components medium. Starting with this promotion, Samsung Electro-Mechanics plans to strengthen its global marketing capabilities. Initially, this is being carried out in Germany, Spain, and Hungary through local online electronic components websites.


• February 2020 –Lumax Industries Limited announced that the extension of its current joint venture business with Stanley Electric Co. Ltd. Further, this extension company is starting with the production of the printed circuit board for the automotive lighting market and further will expand its product line to Heating, Ventilation Air Conditioning (HVAC) panel in the near future.

REPORT COVERAGE

An Infographic Representation of Automotive PCB Market

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The report provides a detailed automotive PCB market analysis and focuses on key aspects such as leading market players, competitive landscape, and vehicle type. Besides, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

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