Intense competition and new government regulations will put downward pressure on printed circuit board prices.
San Francisco, CA (PRWEB) October 03, 2012
Over the five years through 2012, revenue for the Printed Circuit Board Manufacturing industry in China has been increasing at an average annualized rate of 11.4% to total $54.8 billion, says IBISWorld. As printed circuit boards are an intermediate product, the majority of industry revenue is derived from sales to downstream wireless and consumer electronic manufacturing industries. Growing household income in China has led to increasing demand for electronic products, boosting demand for printed circuit boards.
The industry has a low-to-moderate market share concentration level with several mid-sized enterprises and a large number of smaller firms operating in the industry. The industry's top four companies, Flextronics, Celestica, Tripod Technology, and United Microelectronics Corporation, are expected to generate over a quarter of industry revenue. The acquisition of Solectron by Flextronics in 2007 significantly increased concentration levels within the industry. As the Printed Circuit Board Manufacturing industry in China enters the mature stage of its life cycle and growth slows down, mergers and acquisitions will become more common, increasing industry concentration and competition.
Despite product and technology advances and an improved industry product mix, high industry competition and new government regulations will continue to put downward pressure on product prices. Intense competition and product saturation across low-end markets will result in research and development becoming increasingly important for industry players, says IBISWorld. Also, new regulations and standards will lead to a short period of adaptation in the industry.
For more information, visit IBISWorld’s the Printed Circuit Board Manufacturing industry in China industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Businesses in the Printed Circuit Board Manufacturing industry in China manufacture printed circuit boards and specialized electrical components. Printed circuit boards (PCBs) and specialized components are made of conducting components, inductor contacts or devices, resistors, capacitors, and other components on insulation boards through conventional or non-conventional printing procedures.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.