by The global server PCB market is estimated to be valued at US$45.22 billion in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023-2030, according to a new report published by Coherent Market Insights
Market Overview:
Server printed circuit boards (PCBs) are essential components used in servers for electrically connecting various electronic components and devices. They play a crucial role in ensuring the smooth functioning and performance of servers. These PCBs offer advantages such as high reliability, improved heat dissipation capabilities, and enhanced signal integrity. With the increasing demand for advanced servers in data centers, cloud computing, and network infrastructure, the server PCB market is witnessing significant growth. The need for high-performance computing, efficient data processing, and storage capabilities is driving the adoption of advanced servers, thereby boosting the demand for server PCBs.
Market Key Trends:
One key trend in the server PCB market is the increasing focus on multi-layer PCBs. Multi-layer PCBs offer higher circuit density, enabling the integration of more components within a smaller footprint. This results in improved performance, reduced power consumption, and enhanced signal transmission. The demand for multi-layer PCBs is driven by the need for miniaturization in servers, as it allows for compact and space-saving designs without compromising on functionality. Additionally, multi-layer PCBs offer better thermal management and electromagnetic compatibility, further fueling their adoption in server applications.
In conclusion, the global server PCB market is expected to witness significant growth due to the increasing demand for advanced servers and the trend towards multi-layer PCBs. These developments address the need for high-performance computing and efficient data processing, driving the market’s expansion in the forecast period.
Porter’s Analysis:
Threat of New Entrants: The threat of new entrants in the server PCB market is relatively low. This is mainly due to high barriers to entry, which include the need for significant capital investment, specialized knowledge, and established relationships with key suppliers. Additionally, existing players in the market benefit from economies of scale and strong brand recognition, making it difficult for new entrants to gain a significant foothold.
Bargaining Power of Buyers: The bargaining power of buyers in the server PCB market is moderate. While buyers have the ability to negotiate pricing and terms, they are limited by the importance and complexity of server PCBs in their operations. Switching costs for buyers can be high, as they may need to reconfigure their entire server infrastructure if they switch suppliers. However, intense competition among suppliers gives buyers some leverage in negotiations.
Bargaining Power of Suppliers: The bargaining power of suppliers in the server PCB market is high. Suppliers of raw materials and components, such as copper, epoxy resin, and electronic components, have a significant impact on the overall cost and quality of server PCBs. As a result, suppliers can exert pressure on manufacturers to secure favorable pricing and terms. Additionally, the concentration of suppliers in certain regions, such as Asia-Pacific, further strengthens their bargaining power.
Threat of New Substitutes: The threat of new substitutes in the server PCB market is low. Server PCBs are essential components in server systems, and there are limited alternatives available. While advances in technology may result in new form factors or materials, the core function of server PCBs remains unchanged. Thus, the threat of new substitutes disrupting the market is minimal.
Competitive Rivalry: The competitive rivalry in the server PCB market is intense. The market is highly consolidated, with a few major players holding significant market share. These key players, such as Nanya PCB, Tripod Technology Corporation, and Unimicron Technology Corporation, compete based on factors such as price, quality, technology, and customer relationships. Additionally, there is a moderate level of product differentiation and innovation, further driving competition.
Key Takeaways:
The Global Server PCB Market Demand is expected to witness high growth, exhibiting a CAGR Of 7.5% over the forecast period from 2023 to 2030. This growth can be attributed to increasing demand for high-performance servers in data centers, cloud computing, and artificial intelligence applications. The expansion of the Internet of Things (IoT) and the need for efficient data processing and storage are also driving the demand for server PCBs.
In terms of regional analysis, the Asia-Pacific region is expected to be the fastest-growing and dominating region in the server PCB market. This can be attributed to the presence of major manufacturers and suppliers in countries like Taiwan, China, and Japan. These countries have a strong electronics manufacturing industry and are key players in the global server PCB market.
Key players operating in the server PCB market include Nanya PCB, Tripod Technology Corporation, Unimicron Technology Corporation, Ibiden Co., Ltd., Compeq Manufacturing Co., Ltd., TTM Technologies, Inc., Kingboard Holdings Limited, Shennan Circuits Company Limited, AT&S Austria Technologie & Systemtechnik AG, and Multek (a subsidiary of Flex Ltd.). These companies have a strong market presence and focus on innovative solutions, quality manufacturing, and customer relationships to maintain their competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
