The popularity of automotive electronics will drive the demands and price of automotive PCBs to rise

New energy vehicles and smart driving components will greatly enhance the value of automotive PCBs

In recent years, the trend of electrification and the electronification of automobiles has become more apparent. As the backbone of electronic products, the importance of PCB manufacturing in the automotive supply chain is also increasing. Compared with the traditional fuel vehicles, the new energy vehicles will increase the charging, energy storage, and energy conversion equipment, which will bring a lot of new application scenarios to the PCB.

However, in smart driving devices, the millimeter-wave radar must be fabricated using high-frequency PCB. The automotive millimeter-wave radar mainly uses two frequency bands of 24 GHz and 77-79 GHz, and the frequency is much higher than that of the general circuit. The characteristics of high-frequency circuits determine, that the requirements for the manufacturing of key components of high-frequency PCBs, from copper-clad to PCB, are much higher than those of general PCBs:

What’s more, the application of domestic millimeter-wave radar continues to grow at a high rate, with an increase of approximately 54% in 2018. In 2018, the domestic production of millimeter-wave radar is equivalent to about 720,000 vehicles, and the penetration rate is around 3%. Among them, the domestic shipment of 77GHz millimeter-wave radar in 2018 exceeded the 24GHz for the first time and became the mainstream. The 77GHz has higher requirements for PCBs due to its higher frequency.

 

DOMESTIC AUTOMOTIVE PCB WILL INCREASE IN VOLUME AND PRICE, FAR EXCEEDING THE GROWTH RATE OF THE INDUSTRY

The main drivers for the increase in the value of PCB in automotive electronics include:

  • The popularity of new energy vehicles
  • Intelligent driving equipment, especially the application of millimeter-wave radar
  • Perfection of a human-computer interaction system

Driven by new energy vehicles, the automotive PCB market will usher in long-term stable growth. The production and sales volume of China’s new energy passenger vehicles will continue to grow rapidly in the next few years. It is expected that the CAGR will be around 40% in 2018-2025. The sales volume of domestic new energy passenger vehicles exceeded 1 million in 2018. It is expected to exceed 2.5 million by 2020 and close to 12 million by 2025. The market share is over 40%.