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Automotive Electronics Becomes the Focus of PCB IndustrySpotlighted at the 2016 HKPCA & IPC ShowVehicle electrification booms the automotive PCB industry
(Hong Kong, 14 November, 2016) The overall automotive electronics market is undergoing rapid growth in the trend of lightweight, miniaturized, intelligent and electrified automobiles. The market is expected to grow by 10% reaching a market value of $211 billion, nearly 10 times the growth of the vehicle market. There is no doubt that the PCB industry, as the cornerstone of automotive electronics, will also benefit from it.
Trends for Vehicle Electrification
Mandatory schemes for enhanced energy conservation are launched in European and American countries in order to improve the safety performance and emission standards of vehicles. In addition, the rising demands for consumer electronics raise the requirement for in-car entertainment and communication. All these will, in turn, increase car manufacturers’ demand for electronic products. It is anticipated to see a compound annual growth rate of 10.2% in the safety control aspect and an 8.9% in other areas from 2012 to 2016.
Driverless car and new energy vehicles are two major trends affecting the auto industry. Automotive industry has stepped into the era of automation. Automotive electronics is indeed an important trend, let alone the new energy vehicle is the representative of the automotive electronics. In 2015, the global total vehicle sales rose slightly by 1% to 91.65 million units, of which about 455k is the sale of electric cars. The sale of electric car may climb 50% to 700k in 2016, outranging the overall sales of vehicle. Electric car sales volume in 2015 in China reached 171.1k, for the first time surpassing 116.5k of the US, became the world's largest electric car market. Actually, new energy vehicles are included in the 10 Key Sectors of "Made in China 2025" initiative. As local vehicle manufacturers are thriving to develop electric vehicles, some Internet companies, on the other hand, are also testing the water. Few of them are even expecting a mass production next year. The Chinese electric vehicle supply chain may gain a foothold in the promotion of electric cars in “Made in China 2025”.
Automotive electronics can be classified into two categories of devices and six types of systems: the automotive electronic control devices i.e. electronic control unit, and the vetronics. The six types of systems classify into: power systems, chassis systems, body systems, telematics systems, security systems, and support systems. These six systems not only can independently develop its own new technologies, but also interconnect other systems providing more functional and informational services.
The type of automotive electronics products varies quite extensively from microcontrollers (MCUs), sensors, microwave radar, connectors, diodes to telematics systems. Although MCU technology is still controlled by the international big names, Chinese manufacturers still have robust results on products such as parking sensors, event data recorder, tire pressure detector, vehicle connectors, automotive generator diodes, telematics systems, etc. With the steady growth of global auto market and increasing market penetration of automotive electronics, automotive electronics will become the mainstream of auto parts in the long run while some automotive electronics has even occupied as high as 40% of the total cost. It is expected its occupation rate will be higher along with the boom of electric vehicles in the future.
Automotive PCB will become the Fastest Growing Sub-sector
The future development trend of automotive electronics will move towards six major functions: mobile communications, multimedia entertainment, driver assistance system (including driverless car), comfortable ride, energy saving (including electric vehicles), strong protection and security. All these will bring challenges as well as opportunities to PCB industry. For example, driverless car will cause large-scale application of millimeter-wave radar. Thus, there will be a significant rise of demand for high-frequency PCB for radar use and hence the higher value quantity than the traditional PCB. Another good example is the BMS of electric car. BMS is one of the core components in electric car while PCB is one of the basic components of BMS. Therefore, the PCB industry will also be beneficial from the development of electric vehicles. Automotive PCB currently accounts for about 2% of automotive electronics while occupies about 10% of the overall PCB market. This occupation rate is not the highest but its growth is the fastest. According to the estimation of Prismark, the auto PCB will undergo a compound annual growth rate of 5% in 2015 to 2019, a higher rate than the overall PCB growth.
Requirement of automotive electronics for PCB is varied: Low cost, high volume together with high reliability. Rigid boards are widely used in applications such as dashboard, car audio, driving computer, etc.. Therefore, 4-layer board occupies the largest share of 38% in terms of value; 2-layer and 6-layer PCBs account for 16% and followed by8-layer board of 8.5%. To satisfy the environment of high temperature engine bay and head dissipation of LED lighting, the radiating substrate accounts for 3%. In the area of high-frequency transmission and wireless radar detection, low-temperature co-fired ceramic (LTCC) accounts for 5%. Specific products developed for special requirements such as IC, flex boards, silver through-hole, etc. account for about 17% of the whole. On average, a square meter of PCB is required for manufacturing a car and it costs about US$60.
Driven by the mass electrification of automotive industry, significant influence will cause to the growth for auto PCB. Stable orders and high margins attract many PCB manufacturers turning into auto PCB production. As vehicles run in high speed and high temperature environment, the requirement for auto PCB is much higher than that in ICT industry regarding to temperature resistance, anti-electromagnetic, seismic and corrosion resistance. It explains the reason why all car manufacturers are concerned to ensure the quality of auto parts so as the safety of drivers and passengers. Finding spare parts suppliers to provide long-term stable quality products is far more important than cheap products. Vehicle manufacturers, in general, have three years validation requirement for all spare parts supply chain. So, for those PCB manufacturers who want to access the automotive electronics supply chain, sufficient patience and competitive power are needed.
One-stop Solutions on Automotive Electronics
As the leading indicator of the global industry development, the 2016 International Printed Circuit & APEX South China Fair (2016 HKPCA & IPC Show) not only covers the entire supply chain of PCB & EA products, technologies and solutions, it also keeps the industry staying on top with the hottest market trends as a focal point of technology breakthroughs and visionary innovations. Automotive electronics manufacturers can find the one-stop solutions including PCB tycoon and electronics assembly providers. With a whole host of innovative automotive electronics PCB technology, new materials, and electronics assembly production methods, we hope to help more enterprises to carry out automotive electronics which is the fastest growing sub-industry. The show will feature most of the industry famous names including TTM, Ellington, Aoshikang, Evertek (Kunshan), Gainbase, Sunshine, World Mastery, Atotech, Harvar, WKK, Rockent, Schmoll, PAL, Dow, Han’s CNC, C Sun, Topoint, Carl Zeiss, Jadason, Orbotech, Isola, Hitachi Chemical, MacDermid, Rogers, Schmid, Universal P.C.B., Protek, Joint Stars, Guangdong Guanghua, Farcien, JT Automation, Desen, and etc..
Expansion of the Show Scale Further Strengthens Its Leading Position
The 2016 HKPCA & IPC Show, with the theme of “Global Wisdom Shaping the Future”, gathers global industry elites and their latest products and technologies under one roof and provides an ideal platform for sourcing and information exchange which helps leading the industry into the future. With the continuous influx of exhibition applications, the Show is expected to reach a final number of over 2,500 booths by close to 550 exhibitors from around the world, covering an exhibition area over 50,000 sq.m of the Halls 1, 2 & 4 at Shenzhen Convention & Exhibition Center. A lineup of impressive exhibitors will showcase all of their newest and most innovative equipment & technologies on the industry’s premium platform for trading and information exchange, and be rewarded with vast business and networking opportunities.
All concurrent events during the show are also the attractive highlights. Industry experts will continue to share their insights on hot technical issues or solutions with the visitors at the “International Technical Conference”, these include Industrial 4.0, intelligent production, PCB development and market trend etc.. Details will be announced soon. Hit programs like HKPCA & IPC Hand Soldering Competition will bring its Hand Soldering World Championship to China. Visitors can check out top soldering craftsmanship at the Show! Besides, the Welcome Dinner and Golf Tournament also serve a purpose to provide networking opportunities for industry peers to foster friendships and strengthen business ties and partnerships under a relaxing environment.
Visitor Pre-registration System is Now Available
Please visit www.hkpca-ipc-show.org or scan the below QR code and follow official show WeChat (account: PCB_APEX_Show) to get the latest show information and pre-register for the show! Successful pre-registrants can enjoy fast admission and receive a free metro/bus ticket in Shenzhen (*while stock lasts). Act now and pre-register for the show!
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About Hong Kong Printed Circuit Association (HKPCA)
HKPCA is a non-profit-making association which was founded in Hong Kong during 2000. Being one of the members of World Electronic Circuits Council (WECC), it helps us to get not only closer connections with overseas printed circuit associations but also better communications. Other WECC members include: CPCA, EIPC, IPC, IPCA, JPCA, KPCA and TPCA.
As the unique representative of the Hong Kong PCB industry, we aim to promote and maintain the rights and interests for the industry. Performing the communication liaison role within the industry, a diversified communication platform is provided by HKPCA so that our members can be closely linked. Also, HKPCA represents the industry expressing our ideas and opinions to the government and relevant organizations.
HKPCA has more than 470 members. Total production values reach around 9.4 billion dollars which occupy 36% of the PCB industry in China. Member categories differ from PCB manufacturers, PCB equipment, suppliers of chemicals and raw materials and other trade and software companies. HKPCA member base will be broadened by recruiting more and more qualified members. With all our efforts, the China PCB industry develops more prosperously. For more information, please visit www.hkpca.org。
About IPC – Association Connecting Electronics Industries®(IPC)
IPC is a global industry association dedicated to the competitive excellence and financial success of its 3,500 member companies around the world which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training and certification, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2.17 trillion global electronics industry. IPC is headquartered in the United States with international offices in Qingdao, Shanghai, Shenzhen, Beijing and Suzhou, China; Taos, New Mexico; Wellington, Virginia; Stockholm, Sweden; Moscow, Russia and Bangalore, India. For more information, please visit www.ipc.org and www.ipc.org.cn.
About China Council for the Promotion of International Trade Guangzhou Sub-Council
CCPIT-GZ was established in 1985. Over the past 30 years, CCPIT-GZ has been abiding by the principle of promoting international trade and cooperation, in addition to enhancing international communication and friendship. CCPIT-GZ has successfully organized various trade shows and authentication of export documents, training, information, consultation, mediation and arbitration of business disputes. For more information, please visit www.gzccpit.org.cn。
Ms. Manda Wong
T: (852) 2155 5099
Ms. Amanda Li
T: (86-755) 8624 0033
Ms. Vivian Liu
T: (86-21) 2221 0078
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