The Global PCB Output Value Compound Annual Growth Rate Will Reach 4.8% in The Next Five Years

According to Prismark's report in the fourth quarter of 2021, affected by various factors such as the increase in commodity prices, the depreciation of the U.S. dollar and the increase in terminal demand, the output value of the global PCB industry in U.S. dollars in 2021 will increase by 23.4% year-on-year (the output value denominated in RMB will increase by 15.6% year-on-year). ; Unless otherwise specified, the following refers to the price in U.S. dollars).
In the medium and long term, the industry will maintain a steady growth trend. The expected compound annual growth rate of global PCB output value from 2021 to 2026 is 4.8%. From a regional perspective, the PCB industry in all regions of the world has shown a continuous growth trend. Among them, with a relatively high base in 2021, the compound growth rate of mainland China will still reach 4.6%, and the growth will remain stable. From the perspective of product structure, packaging substrates, 8-16 layers of high multi-layer boards, and HDI boards will still maintain a relatively high growth rate. The compound growth rate in the next five years will be 8.6%, 4.4%, and 4.9%, respectively.

2021-2026 PCB industry development forecast (by region)

Unit: US$ million

2021-2026 PCB industry development forecast (by product)

Unit: US$ million

From the perspective of downstream demand, with the continuous upgrading and application of 5G communication, artificial intelligence, cloud computing, smart wear, smart home and other technologies, the global demand for chips and chip packaging has grown significantly. As an important material for chip packaging, packaging substrates have also entered a period of rapid development with the continuous increase in demand in various downstream application fields, with good market prospects. At the same time, affected by factors such as Sino-US economic and trade frictions and the new crown epidemic, the investment and construction of the domestic semiconductor industry chain has increased, and the demand for packaging substrates has continued to increase. According to Prismark's forecast, from 2021 to 2026, packaging substrates will have the highest growth rate in the printed circuit board industry. Among them, the compound growth rate of packaging substrates in mainland China is 11.6%, which is higher than that of other regions.

For PCB products, markets such as wireless communications, servers and data storage, new energy and intelligent driving, and consumer electronics will remain important long-term growth drivers for the industry. With the continuous emergence of new application scenarios such as the Internet of Things, AI, and smart wear in the 5G era, various terminal applications have also brought about a surge in data traffic. While downstream electronic products have increased PCB usage, they have further driven PCBs to high-speed, high-speed frequency and integration, miniaturization, and thinning. The demand for mid-to-high-end PCB products such as high-multilayer, high-frequency, high-speed, HDI, and rigid-flex will continue to grow.