PCB is called “the mother of electronic products “, and its function is indispensable in electronic products. According to prison mark, the global PCB industry has maintained a compound annual growth rate of about 4% in the past year. In 2017, global PCB output value was 58.8 billion usd, with a year-on-year growth rate of 8.60%. China’s PCB output value was 29.7 billion usd, with a year-on-year growth rate of 9.70%, higher than that of the world. From the perspective of the regional distribution of PCB output value, the industry center of gravity of PCB keeps shifting to Asia. China has become the most important player in the global PCB output value, accounting for more than 50% of the global PCB output value. In 2018, the leading growth rate of domestic investment is maintained at an average of 20% to 25%, and the growth rate of output value is far higher than the industry average.
New demand leads the PCB industry to steady growth and 5G will be the biggest new engine for industry growth
The downstream applications of PCB mainly focus on the four major fields of computer, communication, consumer electronics and automotive electronics, accounting for nearly 70% of the downstream applications. Although the overall growth rate of the mobile phone and computer market has slowed down, the accelerated growth of servers and upgrade of mobile phone structural demand have driven the demand for high-end PCB and FPC products. Smart cars and new energy vehicles have greatly increased the market demand for vehicular PCB, and the development of 5G drives the demand for communication base stations and related equipment. Prismark expects the global PCB market to reach $68.8 billion by 2022, with a compound annual growth rate of about 4%.
The rising price of raw materials coupled with the high pressure of environmental protection policies aggravate the effect of domestic PCB industry chain Matthew
Since the year of raw materials such as copper foil, epoxy resin start up the price cycle. As of July 18, the price of copper foil is up about 20% compared with the beginning of 17 years, and the price of epoxy resin is up about 44% compared with the beginning of 17 years. As the base material price rises, the copper clad plate of PCB core raw material also rises in line with the trend, with an average annual price increase of 10% to 20%, leading to a sharp rise in the cost of PCB raw material. Local governments strictly implemented emission targets to control the total amount of pollution discharge, and implemented environmental protection tax in 18 years. Affected by environmental protection policies, PCB manufacturers in many regions of China were forced to limit production and stop production. A large number of PCB industry related manufacturers were forced to close their plants due to the lack of emission indicators. Under the dual pressure of strict environmental protection and rising raw material price, small and medium-sized manufacturers in the PCB industry chain gradually withdraw from the market. Leading enterprises, such as shennan electric circuit, jingwang electronics, shengyi technology, hold the advantage of environmental protection index and capital scale, expand production capacity to seize market share, and the concentration degree of PCB industry will further increase.