The Commercial Landing Of 5G, And The Future Will Focus On The High-order HDI And Packaging Substrates

The strong development of 5G communication and the high growth of the server industry drive the demand for a communication board

According to Prismark, the downstream communications industry’s PCB market size was $11.692 billion in 2018 and will reach $13.747 billion in 2022, with a compound annual growth rate of 6.2 percent in 2017-2022. We estimate that the global PCB market for 5G wireless base station construction will reach 13.365 billion yuan in 2019 and reach a peak of 45.163 billion yuan in 2022. In 2018, the server market exploded, driving the demand for high-rise boards.

In the future, 5G construction will further expand the demand for servers, promote the upgrade of server products, and the server PCB market is expected to continue to expand. Communication board business manufacturers in the next 2-5 years considerable revenue.

The electrification and intelligentization of automobile bring new growth space for the automobile PCB market

The output value of automotive PCB in 2018 is 7.6 billion US dollars, and it is expected that the global output value of automotive PCB in 2023 will reach 10.171 billion US dollars, and CAAGR will be 6%. It is estimated that in 2023, PCB production of conventional fuel vehicles will drop to $4.149 billion and CAAGR will be -5%. The output value of the new PCB for electric vehicles was $5.437 billion, and CAAGR was as high as 23.61%. The demand for new PCBs for automotive intelligent network connectivity was $585 million, and CAAGR was 10.54%. Safety auto panel production threshold is high, the domestic market competition is small, manufacturers in the future profit space is huge.

In recent years, consumer electronics keeps innovating, creating new growth space for CONSUMER Electronics PCB

PCB production for consumer electronics was $24.171 billion in 2018 and is projected to reach $28.087 billion in 2022, according to Prismark. CAAGR is 4.2 percent. In the segment, the smart wearable device market is experiencing explosive growth, with shipments of 135 million units in 2018, 205 million units in 2023, and CAAGR of 23% in 2018-2023, driving the growth of FPC demand.

5G will also become a new growth point of smartphones. It is estimated that the shipments of 5G mobile phones will reach 725 million units in 2023, driving the demand for high-end PCB boards such as SLP and high-order HDI. With FPC as the main business, manufacturers with SLP and advanced HDI production capacity will see new growth in revenue.

It is suggested to pay attention to the domestic FPC leader and Pengding Holding with SLP mass production capacity, Dongshan Precision, a major domestic FPC manufacturer, and Zhongjing Electronics with potential small-batch high-order HDI mass production capacity.

At present, China mainly focuses on middle and low-end products and is expected to realize domestic substitution in the high-end product market. Manufacturers of high-end PCB products have a good development prospect in the future.

The global high-end PCB product market is dominated by overseas enterprises, but due to trade friction and strong demand for Chinese independent electronic brands, Chinese high-end PCB manufacturers have a promising market prospect. By broadening financing channels, increasing investment in production and research and development, and continuously expanding production capacity, domestic leading PCB enterprises will continuously increase their market share in high-end PCB products worldwide.