EV Push and ADAS Adoption Fuel Global Surge in Automotive PCB Demand

 

The global automotive PCB market is projected to reach a value of US$ 10,397.2 Mn by 2025, with a forecasted growth of US$ 15,680.4 Mn between 2025 and 2032, at a CAGR of 6.1%. This growth is primarily driven by the rising demand for connected and electric vehicles, as well as the adoption of advanced driver assistance systems (ADAS) and vehicle electrification. The Asia Pacific region, accounting for 38% of the market share in 2025, leads the market due to the strong automotive manufacturing base in China, South Korea, and Japan. Additionally, collaborations like the one between 5GAA and ITS India aim to push forward connected mobility through AI, 5G, and C-V2X technologies, which will drive innovation in vehicle safety systems. However, high costs of advanced materials, such as ceramic and aluminum substrates, may pose challenges to growth, particularly in low-cost vehicle markets.

The automotive industry is undergoing a profound transformation, with electrification and autonomous driving technologies at the forefront. As vehicles become more sophisticated, so too do the electronic systems that power them. One critical component driving this evolution is the Printed Circuit Board (PCB), a key element in connecting the various electronic systems in modern automobiles. The global automotive PCB market is poised for significant growth, projected to reach $15.7 billion by 2032. This surge is being fueled by the increasing adoption of Electric Vehicles (EVs) and Advanced Driver Assistance Systems (ADAS).

In this article, we will delve deeper into the factors driving the growth of the automotive PCB market, explore the role of EVs and ADAS, and analyze the trends shaping the future of automotive electronics.

EV Push and ADAS Adoption Fuel Global Surge in Automotive PCB Demand

The automotive PCB market is experiencing substantial growth, driven by several factors related to the advancement of vehicle technologies. In 2023, the market was valued at approximately $7.9 billion, and experts predict that it will grow at a compound annual growth rate (CAGR) of 9.4% through 2032. This growth can largely be attributed to the increasing demand for electronic components in vehicles, particularly in the context of electric mobility and autonomous driving.

PCBs are used in a wide array of automotive applications, ranging from power management and battery systems to infotainment and safety technologies. As vehicles evolve to incorporate more advanced features, the need for reliable and high-performance PCBs will continue to rise, pushing the market toward new heights.

Electric Vehicles (EVs) Drive PCB Demand

The shift toward Electric Vehicles (EVs) is one of the most significant drivers of growth in the automotive PCB market. Unlike traditional internal combustion engine vehicles, EVs rely heavily on advanced electronic systems for powertrain management, energy storage, and charging. These systems are integral to the efficient operation of EVs and require highly specialized PCBs to ensure performance and safety.

One key application of PCBs in EVs is in the battery management system (BMS), which monitors the performance of the vehicle's lithium-ion battery pack. The BMS relies on PCBs to provide accurate data on voltage, temperature, and charge levels, ensuring the battery operates optimally and safely. Additionally, PCBs are used in the power inverters, motor controllers, and charging systems that form the backbone of EV powertrains.

As the global EV market expands, so too will the demand for PCBs. The International Energy Agency (IEA) forecasts that by 2030, there will be over 200 million electric vehicles on the road. This boom in EV production will undoubtedly lead to a surge in PCB demand, as manufacturers seek to meet the needs of this rapidly growing sector.

ADAS: The Role of Advanced Driver Assistance Systems

Advanced Driver Assistance Systems (ADAS) are another key factor driving the growth of the automotive PCB market. ADAS encompasses a range of safety and convenience technologies, including adaptive cruise control, lane-keeping assist, automatic emergency braking, and parking assistance. These systems rely on a network of sensors, cameras, radar, and lidar to collect data and make real-time decisions.

PCBs play a crucial role in the functionality of ADAS by connecting the sensors, processors, and other electronic components within the system. For example, in autonomous vehicles, PCBs are used to transmit data from the vehicle’s radar and lidar sensors to the central processing unit (CPU), where algorithms analyze the information to detect obstacles, predict traffic patterns, and navigate the vehicle.

The growing demand for ADAS technologies is closely tied to the increasing push for greater vehicle safety and autonomy. According to a report by MarketsandMarkets, the global ADAS market is expected to reach $83.3 billion by 2026, up from $28.6 billion in 2021. This growth in ADAS adoption will undoubtedly drive an increase in demand for automotive PCBs, as these systems require complex, high-performance circuit boards to function effectively.

The Role of 5G and Connectivity in the Automotive PCB Market

Another factor contributing to the expansion of the automotive PCB market is the increasing focus on connectivity and communication technologies, particularly the rollout of 5G networks. As vehicles become more connected, they rely on a variety of communication systems to interact with other vehicles, infrastructure, and cloud-based platforms. These communication systems require advanced PCBs to ensure seamless data transfer and secure connections.

For example, in connected cars, PCBs are used in the integration of 5G modules, which allow for faster and more reliable data exchange. This enables features such as real-time navigation, over-the-air software updates, and vehicle-to-vehicle communication (V2V). Additionally, the implementation of 5G will pave the way for more advanced ADAS applications, such as vehicle platooning and remote driving.

The growth of the connected car ecosystem, driven by 5G and other communication technologies, is expected to further boost the demand for automotive PCBs. As automakers continue to develop new features and services for connected vehicles, the role of PCBs will become increasingly critical in enabling these innovations.

Trends Shaping the Future of Automotive PCBs

As the automotive industry continues to evolve, several trends are emerging that will shape the future of the automotive PCB market.

  1. Miniaturization and Integration: As vehicles become more compact and feature-rich, the demand for smaller, more integrated PCBs is growing. Automakers are looking for ways to reduce the size and weight of electronic components without sacrificing performance. This trend is driving innovation in PCB design and manufacturing, leading to the development of more compact, multi-layered, and flexible circuit boards.

  2. Automated Manufacturing: The increasing complexity of automotive PCBs is pushing manufacturers to adopt more automated processes. Automation allows for greater precision and efficiency in the production of PCBs, ensuring that they meet the high standards required for automotive applications. This trend is expected to continue as demand for automotive electronics rises.

  3. Sustainability: As sustainability becomes a more prominent concern, both consumers and automakers are placing greater emphasis on eco-friendly production practices. Manufacturers are increasingly focusing on reducing the environmental impact of PCB production by using more sustainable materials and processes. This trend is likely to gain momentum as the automotive industry works to meet stricter environmental regulations.

Conclusion

The automotive PCB market is on the verge of a major boom, with projections suggesting it will reach $15.7 billion by 2032. The rise of Electric Vehicles (EVs), the adoption of Advanced Driver Assistance Systems (ADAS), the rollout of 5G networks, and several other technological advancements are all contributing to this growth. As the automotive industry continues to evolve, the demand for high-performance, reliable, and sustainable PCBs will only increase.

Automakers and PCB manufacturers alike must stay ahead of these trends to remain competitive in a rapidly changing market. With the right investments in technology, innovation, and production capabilities, the automotive PCB market is set to play a pivotal role in the future of the automotive industry.


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