Automotive PCB Market

The growing adoption of electric vehicles is driving the market growth

Market CAGR for the automotive PCB market is being fueled by the growing adoption of electric vehicles. The increasing tendency towards advanced technology-based vehicles, including lightweight ones, is estimated to be the fueling factor for the automotive printed circuit board market globally. The growing concern for the global emission from vehicles and rising government initiatives to increase the sales of electric vehicles. Electric vehicle has rising demand due to strict government norms in major countries related to Co2 emission and standards for emission.

The automotive manufacturers globally are beginning to adopt customer-eccentric needs and altering regional patterns of the customer's choices. The companies are increasing automotive electronic content for each vehicle significantly. As per the estimates, the electronic content per vehicle is anticipated to be 50% in 2030. 

The printed circuit board manufacturers and suppliers, with the development and change in application scenario of the auto industry, is, anticipated that the flexible board will benefit from the 5G era, smartphone upgrades, increasing IoT, and the rise in an automotive electronics companies. PCB is the backbone of electronic components; its manufacturers are adapting to the new changing environment and investing largely to match the frequency which will support the advanced features & comfort features. 

The recent demand for the safety features like collision avoidance systems, lane departure warnings, pedestrian protection systems, and telematics solutions has shown a prominent increase and will fuel the demand for PCB associated with these applications in the coming year.

The need for more features and accessories in cars that are powered by the rising complex electronic systems is expected to boost the growth of automotive PCB markets globally. The growing production of both passenger and commercial cars with features like the use of radar systems, such as millimeter-wave radar, in many ADAS(Advanced driver assistance systems) is going to fuel the PCB market. 

In order to promote the purchase of EVs and turn the region's Eco-drive zone by 2025, the government of Norway is providing different schemes. The request for the automotive PCB market is expected to rise throughout the forecast year because of the growing sales of electric vehicles and the adoption of DAS technology.

For instance, the government of Japan has begun to offer one-time incentives to electrical vehicle owners to promote its aim of eliminating the adoption of internal combustion engine vehicles in this nation by 2050. Similarly, the government of India has made compulsion use of advanced brake systems in all fresh models of commercial vehicles. Thus, driving the Automotive PCB market revenue.

The Global Automotive PCB Market Industry is experiencing notable trends and projections that reflect its dynamic nature. In 2024, the market is anticipated to reach 6.89 USD Billion, with expectations of growth to 12.1 USD Billion by 2035. The compound annual growth rate (CAGR) for the period from 2025 to 2035 is projected at 5.28%. These figures indicate a robust market trajectory driven by technological advancements, regulatory changes, and evolving consumer preferences. The increasing complexity of automotive electronics necessitates innovative PCB solutions, positioning the industry for sustained growth in the coming years.

The growth of connected vehicle ecosystems is reshaping the Global Automotive PCB Market Industry. As vehicles become more integrated with the Internet of Things (IoT), the demand for PCBs that facilitate connectivity and data exchange is increasing. This trend encompasses features such as vehicle-to-vehicle communication and real-time data analytics, which require advanced PCB technologies. The market is poised for growth as automotive manufacturers invest in connectivity solutions to enhance user experiences and operational efficiency. This shift towards connected vehicles is likely to contribute to the overall expansion of the automotive PCB market, aligning with the industry's digital transformation.

The rising demand for electric vehicles (EVs) is a primary driver of the Global Automotive PCB Market Industry. As governments worldwide implement stricter emissions regulations and consumers increasingly favor sustainable options, the production of EVs is expected to surge. This shift necessitates advanced PCB technologies that can support the complex electronic systems in EVs. In 2024, the market is projected to reach 6.89 USD Billion, with a significant portion attributed to the automotive electronics required for EVs. The transition to electric mobility is likely to propel the market further, as the industry adapts to new technological requirements.

Regulatory compliance and safety standards are critical factors driving the Global Automotive PCB Market Industry. Governments are increasingly enforcing stringent regulations regarding vehicle safety and emissions, compelling manufacturers to adopt advanced electronic systems that meet these standards. This necessity drives the demand for high-quality PCBs that can support safety features such as collision avoidance systems and electronic stability control. As the automotive industry adapts to these regulations, the market is expected to expand, reflecting the industry's commitment to safety and environmental responsibility. This trend indicates a growing investment in automotive electronics, further enhancing the PCB market.

The integration of smart technologies into vehicles is a notable driver for the Global Automotive PCB Market Industry. Features such as infotainment systems, connectivity solutions, and telematics are becoming standard in modern vehicles. This trend necessitates the use of advanced PCBs that can handle increased data processing and connectivity requirements. As consumers demand more sophisticated features, manufacturers are compelled to innovate, leading to a projected compound annual growth rate (CAGR) of 5.28% from 2025 to 2035. The growing expectation for smart features in vehicles is likely to sustain the demand for automotive PCBs, fostering a competitive landscape.

The development of autonomous driving technologies is significantly influencing the Global Automotive PCB Market Industry. As manufacturers invest in advanced driver-assistance systems (ADAS) and fully autonomous vehicles, the demand for high-performance PCBs is likely to increase. These systems rely on sophisticated electronic components that require reliable and efficient PCB designs. The market is expected to grow as automotive companies integrate more sensors, cameras, and computing power into vehicles. This trend suggests a robust growth trajectory, with projections indicating a market value of 12.1 USD Billion by 2035, driven by the need for enhanced safety and driving experiences.

By region, the study gives market insights into North America, Asia-Pacific, Europe, and the Rest of the World. The Asia Pacific Automotive PCB market, dominates this market, owing to an increase in the adoption of personal mobility and growing government initiative, utilization of electric vehicles, and autonomous vehicles. The presence of large manufacturing units, the increasing development and innovation, and the easy availability of devices and services via region-based suppliers are promoting the growth of the market.

Further, the main countries studied in the market report are The US, Canada, German, the UK, Italy, Spain, China, France, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive PCB Market Share By Region 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Europe's Automotive PCB market accounts for the second-largest market share as they are early adopters of new automotive PCB trends and the second manufacturing center of electronic components globally. Further, the German Automotive PCB market held the largest market share, and the UK Automotive PCB market was the rapid-growing market in the European region.

The  North American Automotive PCB Market is expected to grow at the frapid CAGR from 2023 to 2032, as the government is taking the initiative for the development related to automobile components promoting the manufacturing. Moreover, China’s Automotive PCB market held the largest market share, and the Indian Automotive PCB market was the rapid-growing market in the Asia-Pacific region.

Leading market participants are investing heavily in research and development in order to spread their product lines, which will help the Automotive PCB market grow even more. Market participants are also undertaking a various strategic activities to spread their global footprint, with important market developments including new product launches, mergers and acquisitions, contractual agreements, higher investments, and collaboration with other organizations. To enlarge and survive in a more competitive and increasing market climate, the Automotive PCB industry must offer cost-effective items.

Manufacturing locally to reduce operational costs is one of the key business tactics utilized by manufacturers in the global Automotive PCB industry to benefit clients and increase the market sector. In recent years, the Automotive PCB industry has provided some of the most significant advantages to the automotive industry. 

Major players in the Automotive PCB market, including PT Infineon Technologies Batam, Meiko Electronics Co. Ltd., STMicroelectronics N.V., Lumax Industries Limited, Samsung Electro-Mechanics, KCE Electronics Ltd., Amitron Corp., CMK Corp., TTM Technologies, Chin Poon Industrial, Tripod Technology., and others, are attempting to increase market demand by investing in research and development operations.

Samsung Electro-Mechanics is a multi-component manufacturer; globally, it develops and manufactures advanced electronic components to mechanical components. The company focuses on developing its business in high-frequency wireless materials and power/precision mechanics, boards, chip parts, camera modules, and communication modules. 

In February 2021, the company changed its expanding strategy through MLCC online promotion with a European electronic components medium. With this promotion strategy, the company aims to strengthen its global marketing capabilities, and firstly it started it from Germany, Spain, and Hungary with local online electronic components websites. In July 2020, they launched five types of Multi-Layer Ceramic capacitors ((MLCCs) for automotive powertrains and ABS.

Lumax Industries Limited, established in the year 1945, is the leading automobile lighting business in India. It has the capability to provide premium quality automotive lighting solutions for four-wheeler, two-wheeler, and commercial vehicles in Indian and global markets. The manufacturing plants are spread in six states of India; Haryana, Maharashtra, Gujarat, Uttarakhand, Karnataka, and Tamil Nadu; globally, it has collaborated with Stanley, Japan, a worldwide leader in vehicle lighting and illumination products for automobiles, and with SL Corporation of South Korea.

In February 2020, Lumax Industries Limited, to incorporate electronic parts and components, extended its joint venture business with Stanley Electric Co. Ltd. This extension helped the company to produce printed circuit boards for the automotive lighting application.