As we all know, China has the largest automobile market in the world. In addition to the rapid growth of the traditional automotive electronics market, automatic driving and new energy vehicles have also flourished this year, driving the orders of leading automotive PCB manufacturers. At the same time, due to the strict audit of the automotive industry chain and higher requirements for stability, the gross profit margin of automotive electronics is higher than that of consumer electronics, which drives the profitability of automotive PCB manufacturers to improve.

1. China's automobile plate market

With the gradual evolution and development of automobiles from traditional mechanical products to intelligent, information-based, electromechanical high-tech products, electronic technology will be widely used in automobiles, and electronic products will be used without exception in engine systems, chassis systems, safety systems, information systems, interior environment systems, etc. The vigorous development of the automotive electronics industry has not only brought about strong demand in the downstream supporting parts market, but also driven the demand for automotive PCB.

In recent years, the global automobile shipment volume has maintained a growth rate of about 4%~5%, which has driven the stable growth of the automobile plate market. In addition, the rapid development of automobile electronics has increased the demand for high-level multilayer boards, HDI boards or ceramic substrates. The global demand for automobile plates is growing rapidly. In the global automotive market, the Chinese market is a star place and the focus of attention. Compared with the global growth rate, China has maintained a growth rate of about 15%~20% in recent years, and the Chinese automotive panel market has become a battleground.

2. Rapid growth in demand for automobile panels

(1) The usage of automobile PCB has been greatly increased

With the continuous development of traditional automobiles towards intelligence and electronics, as well as the promotion of new energy vehicles, the penetration rate of automotive electronics is constantly increasing, and the use of automotive PCB is becoming more and more extensive. It is expected that in the future, with the maturity and popularization of technology, the level of automotive IT will improve, and various functions will become more and more rich and practical, and will continue to penetrate from high-end to low-end.

(2) Millimeter wave radar promotes huge demand for high frequency PCB of automobiles

At present, the automotive millimeter wave radar is in rapid development. It is expected that the average number of millimeter wave radars used by single vehicle will continue to grow in the future, and the demand for automotive radar PCB will also grow rapidly. And radar high-frequency circuit has high requirements for PCB board and manufacturing process. Therefore, automotive radar PCB will bring higher value.

(3) New energy vehicle power battery BMS

As one of the hardware bases of BMS, PCB components will benefit from its industry development. At this stage, the area of PCB used by luxury vehicles is about 2-3 square meters. We conservatively assume that the PCB used by new energy vehicles is 2 square meters, with 2000 yuan per square meter. In 2020, the global PCB market size of new energy vehicles will also reach 16.4 billion yuan.

3. Huge market space for automobile plate

The global PCB industry has been in a small growth trend since 2013. In 2014, the global PCB total output value was US $56.2 billion, with a year-on-year growth of 3%. According to Prismark's prediction, the global PCB compound annual growth rate from 2015 to 2017 is 3.9%