Smart electric vehicles are the new frontier of the automotive industry, and their emergence is reshaping the entire automotive supply chain. For instance, the value of semiconductors installed in a single vehicle has steadily increased, jumping from approximately $450 in traditional internal combustion engine cars to over $700 in electric vehicles. Moreover, the more features and high-end capabilities a car possesses, the higher this figure may go.
In addition, whether it’s chips or components, the focus is increasingly on integrating more functionalities within a smaller unit area while achieving lower power consumption. In this evolving landscape, automotive semiconductors undoubtedly present significant growth opportunities. Correspondingly, automotive PCBs (Printed Circuit Boards) are entering a new era of accelerated development.
PCBs: The “Wired Radio” of Cars
PCBs, also known as printed circuit boards, play a crucial role in connecting and supporting various electronic components. From small smartwatches to massive supercomputers, their applications are ubiquitous.
In the automotive domain, PCBs are essential components of engine control/electronics systems, infotainment systems, driver assistance systems, positioning systems, and lighting systems, among other electronic systems in a vehicle. More precisely, PCBs serve as carriers for power and signal transmission, and their design determines optimal electrical performance. Take the example of ADAS (Advanced Driver Assistance Systems); the reliable electrical connections and signal transmission they require are pivotal in ensuring the safety of drivers and passengers. Hence, PCBs play a critical role.
Of course, the growth of PCBs is closely tied to the increasing penetration of electric vehicles.
In the first half of 2023, China’s production and sales of new energy vehicles reached 3.788 million and 3.747 million units, respectively, representing year-on-year growth rates of 42.4% and 44.1%, with a market share of 28.3%. While demand for consumer electronics products has slowed down, the automotive sector is propelling PCBs to soar against the odds.
The value of automotive PCBs is expected to grow by 14% to $10.5 billion in 2023 compared to the previous year, and their share in the overall PCB industry value will rise from 11% to 13%.
By 2026, the value of automotive PCBs is projected to reach $14.5 billion, accounting for 15% of the total PCB industry value. The Compound Annual Growth Rate (CAGR) of automotive PCBs between 2022 and 2026 is estimated to be approximately 12%, indicating tremendous market potential.
Opportunities from Electric Vehicle Development
Looking at the development trends, automotive PCBs are continuously upgrading and iterating under the twin thrusts of electrification and intelligence.
On one hand, with the increase in electronic components, PCBs are evolving towards higher integration, higher density, and multi-layer configurations. Additionally, the widespread adoption of the 800V high-voltage platform places higher demands on PCB voltage tolerance.
According to market research, the average value of PCBs per unit in pure electric vehicles is approximately 5 to 6 times that of traditional internal combustion engine vehicles. Among these, the electronic control system represents about half of the total PCB value in a vehicle.
In the context of lightweighting, electric vehicles are increasingly using Flexible Printed Circuit (FPC) boards, further increasing the value of PCBs in the electronic control system. On the other hand, the advancement of vehicle intelligence and autonomous driving is demanding higher transmission rates. This has led to the adoption of high-frequency, high-speed PCBs, besides upgrading the electronic and electrical architecture.
For instance, millimeter-wave radar requires high-frequency PCBs, while power batteries and cameras necessitate FPCs. At the same time, the more intricate circuits of lidar, ECU, and autonomous driving systems call for higher-end HDI (High-Density Interconnect) PCBs.
Currently, the majority of automotive PCBs consist of 4 to 8 layers, with HDI boards costing about three times that of the former, with some even reaching several tens of dollars.
Furthermore, as PCBs move towards networking and intelligence, domestic PCB manufacturers may have the opportunity to take advantage of this transformation and surpass expectations.
