Automotive PCB Market Size Forecast to Reach $11.9 Billion by 2026

Automotive PCB Market Overview

The Automotive PCB Market size is forecast to reach $11.9 billion by 2026, growing at a CAGR of 5.3% from 2021 to 2026. Printed circuit boards (PCBs) are the foundational building block of most modern electronic devices. PCBs consist of printed pathways which connect different components on the PCB such as transistors, resistors and integrated circuits. PCB is used in several automotive applications such as power relays, in vehicle informational, antilock brake systems, digital displays, audio systems, engine timing systems, battery control systems and many more functions. 

Printed circuit boards are used in many ways in the automotive industry and have changed the way that people drive. The need for PCBs is increasing as vehicle owners and drivers demand more accessories in vehicles. A printed circuit board which is used in car or truck must be highly reliable and long-lasting. The improving electromagnetic shielding and electronic design automation capabilities will drive the adoption of Multi layer PCBs.

Key Takeaways

  • The demand for automotive PCBs is high in the forecast period due to growing demand for hybrid electric vehicles (HEV) and Battery electric Vehicles (BEV)
  • Printed circuit boards are used in several automotive applications like anti-lock brake systems, safety and security features, ECU systems, control engines and GPS navigation systems.
  • PCBs can be programmed to perform system essential commands irrespective of their sizes.
  • Asia-Pacific is projected to dominate the market share in the forecast period. Due to economies like China, Japan, South Korea and Taiwan is witnessing a high surge in automotive production due to availability of low labour and logistical costs.

Automotive PCB Market Segment Analysis – By Type

There are three types of printed circuit boards – single-sided, double-sided and multi-layer PCBs. Multi Layer PCB is projected to grow at the fastest rate from 2021-2026 at 7.2% CAGR driven by improving electromagnetic shielding and electronic design automation. Each type of PCB has various price points and uses and they are widely used in automotive applications such as in vehicle infotainment and audio systems. 

Single-sided PCB is something which comes with only one layer of conducting material on one side of the board and other side is used for incorporating different electronic components on the board. Double-sided PCBs are same as single-sided PCBs but the difference is they have two sided traces with top and bottom layer. Multi-layer PCB’s can support a high level of circuit complexity as they are made up of three or more copper layers laminated together.

Automotive PCB Market Segment Analysis – By Vehicle Type

Printed circuit boards are commonly used in vehicles these days in passenger cars and commercial vehicles. Passenger Vehicles dominate the market with a share of 67% in 2020. The main function of the PCB is to provide mechanical support and electric connection to different components of the vehicle which is helped by improving electromagnetic shielding and electronic design automation. 

One of the most common uses of printed circuit boards for vehicles deals with deployment of airbags which is necessary to prioritize safety. The circuit board is incorporated in the airbag deployment rate sensor which helps in dissipating static electricity and triggering the bag when needed. Likewise it is used in in-vehicle infotainment, GPS systems, and power converters and others.

Automotive PCB Market Segment Analysis – By Geography

Asia-Pacific is projected to dominate the market share in the forecast period with 35% share in 2020. The economies such as China, Japan, South Korea and Taiwan are witnessing a high surge in automotive production due to availability of low labor and logistical costs. Due to enhanced production capacities and the rise of digitalization together are driving the automotive PCB in this region. Additionally China and India are expected to grow much faster due frequent activities in construction, transportation and industrialization contributing to the market growth.

Automotive PCB Market Drivers 

Growing electric vehicles sales driving the market growth

The demand for electric vehicles is higher in the coming years than petrol and diesel vehicles. Unlike vehicle fuel types, battery electric vehicles have more demand due to increasing concern towards global emissions from vehicles as well as government initiatives to increase the sales of electric vehicles. As the move to electrically powered cars takes place the PCBs will play an important role in production and running of cars, buses and other electrically powered vehicles. Additionally increasing sales of electric vehicles as well as adoption of advanced driver assistance system and in vehicle infotainment technology in them are likely to drive the demand for automotive PCB market.

Automotive electronics drive growth of automotive PCB

With the continuous advancement of the automobile industry, the automobile has evolved from a complete electromagnetic shielding based mechanical device in the past to a combination of machinery and electronics. The use of electronic design automation technology in PCB manufacturing for automobiles has increased which has made comfort, safety and entertainment in automobiles more important. On the other hand proportion of automobile electronics in the manufacturing cost of the vehicle is continuously increasing which in turn demand for automotive PCB is increasing.

Automotive PCB Market Challenges

Failure in function of PCB

One of the major challenges faced by automotive PCB market globally is failure in function of PCBs. Typically, the most common causes of PCB failure happens due to incorrect placement of components, overheating due to lack of space on the PCB and more. Failure of function in PCB can even happen due to poor quality components like bad soldering to cold joints, poor-connectivity to circuit boards, insufficient board thickness and electromagnetic shielding, bending and breaking. Failure of PCB leads to malfunction of systems in automobile.

Automotive PCB Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the automotive PCB market. The automotive PCB market is dominated by major companies such Amitron, CMK, Chin Poon Industrial Co. Ltd, Daeduck Electronics, Delphi Technologies, Meiko Electronics Co. Ltd, Nippon Mektron Ltd, KCE Electronics, Samsung Electro-Mechanics, and Tripod Technology Corporation.

Acquisitions/Technology Launches/Partnerships

  • In Feb 2020, Lumax Industries extended a joint venture with Stanley Electric. The joint venture will provide a complete range of Stanley Electric products to the Indian automotive industry. Starting with production of printed circuit boards (PCBS) to core component of automotive lighting system for Lumax Company.
  • In Sep 2019, Delphi Technologies PLC partnered with Cree Incorporation, a leader in silicon carbide semiconductors to utilize silicon carbide semiconductor device technology to enable faster, smaller, lighter and more powerful electronic systems for future electric vehicles.

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