Automotive PCB Market Trends

Navigating the Automotive PCB Market Landscape

At the beginning of 2024, the Automotive PCB Market is experiencing significant change, driven by a combination of macroeconomic factors. Technological progress, particularly in the field of electric and self-driving vehicles, is reshaping the demand for advanced printed circuit boards to support the increased functionality and connectivity of these vehicles. Regulations aimed at ensuring the safety and environmental performance of vehicles are also driving the adoption of advanced PCB technology. The changing consumer preferences for smart and connected vehicles is also forcing manufacturers to adopt new production methods and to adjust their product offerings. These trends are strategically important to all market participants, influencing not only product development and supply chain dynamics but also their competitive positioning in an increasingly complex automobile market.

Top Trends

1. Increased Demand for Electric Vehicles (EVs)
   ELECTRIC VEHICLES ARE CHANGING AND BECOMING MORE COMPLEX. Several governments have set ambitious goals for a high EV penetration. Some countries like Norway want to be all-electric by 2025. This trend is pushing the PCB industry to develop new products and to design high-density boards. EVs are causing the industry to invest more in R&D and to partner with the carmakers to meet the new standards.
2. Integration of Advanced Driver-Assistance Systems (ADAS)
   ADAS systems are becoming standard equipment on new cars. This requires complex printed circuit boards that combine multiple sensors and data processing units. These are a major investment for the industry and the trend is to increase the penetration of ADAS to a projected 70% by 2025. This trend is pushing the printed circuit board industry to increase their capabilities in miniaturization and cooling. Further developments in ADAS may lead to more self-driving features.
3. Focus on Sustainability and Eco-Friendly Materials
   The growing importance of the field of sustainable development in the automobile industry has led to a demand for materials that are more friendly to the environment. Regulations are pushing companies to find alternatives to traditional materials. For example, the European Union’s RoHS directive has an impact on the choice of materials used in the manufacture of printed circuit boards. This trend is likely to drive innovation in the field of biodegradable and recyclable materials, which will have an impact on supply chains and production processes.
4. Rise of Connected Vehicles and IoT Integration
   The Internet of Things in cars is changing the landscape of the car, requiring a new generation of printed circuit boards with the IoT function. The forecast is that 75 percent of all new cars will be connected by 2025. And so the carmakers are changing their layouts to accommodate the trend. This is resulting in closer collaboration between printed circuit board manufacturers and IT companies. Vehicles need to communicate with each other in the future. The communication will be via the vehicle-to-everything (V2X) standard, which requires robust and secure printed circuit board design.
5. Advancements in PCB Manufacturing Technologies
   The evolution of manufacturing technology, such as additive manufacturing and automation, is reshaping the landscape of the printed circuit board. These new techniques are enabling companies to increase productivity and reduce lead times. For example, 3D printing is gaining ground in the prototyping of products, allowing for rapid design iterations. This trend will reduce the cost of manufacturing and increase the level of personalization of the automobile.
6. Growing Importance of Thermal Management Solutions
   As the power of the car's on-board equipment increases, effective heat dissipation is becoming increasingly important to ensure the reliability of the printed circuit boards. And the heat generated by the high-performance components has prompted the development of new thermally conductive materials. According to industry reports, the lifespan of printed circuit boards can be extended by as much as 30 per cent by a heat management solution. However, the next step is to integrate the cooling technology into the printed circuit board.
7. Shift Towards Modular and Scalable PCB Designs
   Modular pcbs are getting more popular as they allow for easier repair and upgradation in the vehicle. The trend is a result of the growing need for flexibility in the vehicle's electrical and electronic systems. The trend is driven by the need for the manufacturers to reduce costs and time-to-market. The pcbs are being designed to be scalable across a range of vehicle models. The result is more efficient production and increased customer satisfaction from better serviceability.
8. Enhanced Focus on Safety and Reliability Standards
   The safety and reliability of the products is paramount in the automobile industry, which is why it is important to test and certify them properly. The authorities are implementing more demanding standards, such as ISO 26262, for ensuring functional safety. This is a trend that is driving manufacturers to invest in quality assurance and testing. It may also lead to the development of more rigorous testing procedures to meet the requirements of evolving standards.
9. Emergence of 5G Technology in Automotive Applications
   In the future, the 5G cellular network is expected to revolutionize automobile communications, requiring printed circuit boards that can support extremely fast data transmission. The boards are to be incorporated into the design of the vehicle itself, enabling it to connect with other vehicles and the cloud, as well as with other smart devices. The industry expects that by 2025, 5G-equipped vehicles will be the norm. The trend toward higher data transmission rates will, in turn, increase the demand for printed circuit boards that can handle greater data volumes.
10. Increased Collaboration Between Automotive and Electronics Industries
    Automobile and electrical engineering are collaborating ever more closely to make innovations in vehicle technology. Common research and development is becoming the norm. The trend is reflected in such initiatives as the Automotive Electronics Council, which aims to standardize practices. Future developments could lead to an even more integrated design, which would improve the performance and functionality of the vehicle systems.

Conclusion: Navigating the Automotive PCB Landscape

In 2024 the Automotive PCB market will be characterized by intense competition and significant fragmentation. Both the established and the new players will compete for market share. In the regions of North America and Europe, the trend towards sustainable and advanced manufacturing is gaining momentum. This trend is driven by a strong regulatory push. The vendors are strategically investing in automation and artificial intelligence to increase production efficiency and quality. The flexible design and manufacturing capabilities will be the key to leadership in the future market. The companies that will be able to successfully integrate the new production methods and remain committed to the principles of sustainable development will likely emerge as the leaders in the rapidly changing market.