Research Outline

PCB Market & EMS Market

Goals

In order to help prepare for a meeting, provide an overview of the printed circuit board (PCB) manufacturing industry and the electronics manufacturing services industry, including market size, growth, future trends, and opportunities/threats.

Early Findings

Global Printed Circuit Board Market

  • The global printed circuit board market was valued at $60.42 billion in 2017.
  • The market was predicted to grow at a CAGR of 4.2% from 2018-2024.
  • By 2024, the market is expected to reach $89.7 billion.
  • The market is growing due to the "rising adoption of automation in various end-user industries, growing demand for wireless devices, increasing miniaturization of devices, surging need for more efficient interconnect solutions, and rapid growth in flexible circuits."
  • Current challenges in this industry include the environmentally unfriendly manufacturing process and challenges with recycling of printed circuit boards, which is lowing the adoption rate.
  • The industry is concentrated in the Asia-Pacific, which accounts for about 77% of the market, followed by North America.
  • In terms of end use, the communication segment is seeing the fastest growth, due to "increasing adoption of digital devices such as mobiles, networking equipment, power distribution system, and amplifiers routers". Automotive end use products are also seeing growth.
  • Opportunities exist in the PCB market in the following industries: computer/peripherals, communications, consumer electronics, industrial, automotive, and military/aerospace.
  • Key players in the market include AT&S; Nippon Mektron, Ltd.; Unimicron Corp.; Samsung Electro-mechanics.; Dynamic Electronics Co., Ltd.; Daeduck Electronics Co., Ltd.; CMK Corporation; Nan Ya PCB Co., Ltd.; TTM Technologies; Shenzhen Kinwong Electronic Co., Ltd.; among others.

Electronic Manufacturing Services (EMS) Market

  • The global EMS market was valued at $1.1 billion in 2016, with a CAGR of 5%.
  • The growth is mostly fueled by the increasing demand for electronic automotive parts and communication systems (smartphones, wireless speakers and smart home devices).
  • The market is concentrated in the Asia Pacific, which supplies the rest of the world.
  • There are opportunities in the market for vendors that focus on quality, rather than quantity, and apply rigorous tests to their products before shipment.
  • Challenges in the industry include slim margins, fluctuations in material prices and labor costs, and strong competition. Vendors struggle to enter the market due to the large volumes required for profitable production and massive capital expenses.