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A copper-clad laminate (CCL) is a board-like material created by immersing electronic fibreglass cloth or other reinforcing materials in resin and then covering it with copper foil on one or both sides before hot pressing. Copper-clad laminates are widely used in the production of printed circuit boards (PCBs), which are used to mechanically support and connect electronic components.
The copper-clad laminate market is expected to benefit in the coming years from the ongoing construction of 5G base stations, the rapid development of cloud computing, and auto electrification. Server platform upgrades have also increased the demand for high-performance PCBs and CCLs. Furthermore, automobile electrification and intelligentization have created scenarios for PCB and CCL applications, resulting in market growth. The global copper-clad laminates market value is expected to reach US$15.96 billion in 2023, growing at a CAGR of 5.84% over the projected period.
Segment Covered
By Type: In terms of type, the report offers insights of the global copper-clad laminates market into two segments: Rigid and Flexible. The rigid CCL held the highest share of the market. The increasing demand for electric vehicles and the innovations in electronic machines are expected to boost the demand for rigid copper-clad laminate in the forthcoming years. Whereas flexible laminates have lesser weight, thinness, and better flexibility as compared to rigid laminates, and hence is used in different applications like electronic products, including cellphone, digital camera, automotive GPS, and laptop.
By Application: On the basis of construction type, the report provides the segmentation of the global copper-clad laminates market as follows: Communication Systems, Computers, Consumer Electronics, Automotive Electronics, Industrial Electronics, Medical Equipment, and Others. Communication systems held the largest share in the market, whereas automotive electronics is expected to be the fastest-growing segment in the forecasted period. The demand for copper-clad laminates in communication systems is driven by the swelling demand for 5G infrastructure. Further, server upgrades have jacked up demand for high-performance PCBs and CCLs that can offer high frequencies and high speeds. Therefore, as an investment in 5G infrastructure increases, it is expected that global server construction to boost PCB and CCL market demand during forthcoming years.
By Reinforcement Material: The report further provides a glimpse of the global rigid copper-clad laminates market based on the following reinforcement materials: Fiberglass, Special Substrates Base, Compound, and Paper Base. Fiberglass cloth-focused CCL includes FR-5 and FR-4. FR-4 (Flame Retardant-4) is a material consisting of a woven glass fiber cloth and an epoxy resin laminate material that is self-extinguishing (flame resistant). FR-4 has excellent performance and is cheaper than some special materials. Meanwhile, this material has been fully studied, so it can be modified to produce a wide range of benefits such as a halogen-free type. On the other hand, as high-frequency and high-speed applications such as 5G, IoT, and data centers became commonplace, the market share of special CCLs is expected to rise in the coming years.
Geographic Coverage
According to this report, the global copper-clad laminates market is divided into four regions, namely, Asia Pacific, North America, Europe, and the Rest of the World. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes Germany, Italy, UK, France, Spain, and Rest of Europe. Moreover, China, Taiwan, South Korea, Japan, and Rest of the Asia Pacific are included in the Asia Pacific region. Asia Pacific held the major share of the copper-clad laminates market. It is also expected to be the fastest-growing region in the forthcoming years. With the rise of Chinese mainland server manufacturers and a growing domestic server market, development opportunities have opened up for local providers of high-frequency and high-speed CCLs. The Internet of Things (IoT) is one of the most promising innovation accelerators for digital enterprises. The increase in IoT spending would generate demand prospects for PCB and CCL manufacturers in the coming years.
Top Impacting Factors
Growth Drivers
- Increasing Demand for Consumer Electronics
- Increasing Demand For Vehicles
- Growing Use of Medical Devices
- Growing Industrial Robot Industry
Challenges
- Shortage of Raw Materials
- Chip Shortage Crisis
Trends
- Rapid Development of Cloud Computing and Server Market
- Increasing Auto Electrification
- Rising IoT Market
- Increasing Construction of 5G Base Station
Driver: Increasing Demand for Consumer Electronics
Rising demand for smartphones, artificial intelligence, and voice recognition technologies, as well as the replacement cycles and falling prices of various electronic devices, are some of the primary drivers of future consumer electronics growth. Most consumer electronics devices use printed circuit boards (PCB). Copper-clad laminate (CCL) is used in the PCB as their raw material. Thus, the surge in demand for consumer electronics impacts the growth in the CCL market, especially due to the growth in demand for the PCB market, which is a major end-user of the CCL market. Therefore, the CCL market has been growing in the past few years.
Challenge: Shortage of Raw Materials
The scarcity of raw materials is one of the main obstacles facing the global copper-clad laminate industry. Shortages of copper foils for making copper-clad laminates (CCL) have become severe in the past few years. CCL and PCB manufacturers have seen order visibility extended, driven by robust demand for notebooks and handsets, coupled with a substantial pull-in of orders for automotive electronics applications. Shortages across different material types are not a new problem for manufacturers, but the rapid pace of deterioration across the board is a big red flag for global economies. The lack of relief from China’s power cut has simultaneously impacted the production operations of raw materials. Delivery lead times for copper foils have been increasingly prolonged, adding that rising copper prices are another challenge copper foil suppliers face.
Trend: Increasing Auto Electrification
The electrification and intelligentization of automobiles have created scenarios for PCB and CCL applications, including electrical control systems for new energy vehicles (NEVs), advanced driver assistance systems (ADAS), and intelligent cockpits. On the other hand, traditional internal combustion engine (ICE) vehicles use only a small number of PCBs. According to Gasgoo, the automotive electronic content of a traditional ICE vehicle is about 15%, but this climbs to 47-65% for NEVs. As key function-bearing components of automotive electronics, PCBs would benefit substantially from the increase in automotive electronic content resulting from auto electrification and intelligentization. This would further increase the demand for CCL in the coming years.
The COVID-19 Analysis
The COVID-19 pandemic slowed the copper-clad laminates industry's growth in 2020. Due to blockage in trade and services across the globe, disruption in raw material supply, the surge in instrument and equipment prices, and a ban on transportation, the market was impacted heavily. Moreover, the COVID-19 outbreak has negatively affected PCB demand due to the supply chain fallout and a decline in demand from the industrial and automotive sectors, which has further decelerated the CCL market growth. However, the demand for edge computing emerges as the new driving force of the server market and would evolve and develop with the deployment of 5G infrastructure. This would stimulate the demand for PCB and CCL in the coming years, simultaneously.
Analysis of Key Players
The global copper-clad laminates market is highly concentrated. In 2022, the world’s top five CCL manufacturers (Kingboard Laminates, SYTECH, Nan YaPlastics, Elite Material (EMC), and ITEQ) had a combined market share of around 51%. The key players in the global copper-clad laminates market are Doosan Corp., Elite Material Co. Ltd. (EMC), Showa Denko K.K./ Resonac Holdings Corporation, Rogers Corporation, Kingboard Laminates Holdings Ltd., ITEQ Corporation, Mitsubishi Gas Chemical Company, Inc., Nan Ya Plastics Corporation, Goldenmax International Group Ltd., Shengyi Technology Co., Ltd., Taiwan Union Technology Corporation (TUC), and Isola Group.
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Table of Contents
1. Executive Summary
Companies Mentioned
- Doosan Corp.
- Elite Material CoLtd(EMC)
- Goldenmax International Group Ltd.
- ITEQ Corporation
- Isola Group
- Kingboard Laminates Holdings Ltd.
- Mitsubishi Gas Chemical Company, Inc.
- Nan Ya Plastics Corporation
- Rogers Corporation
- Shengyi Technology Co., Ltd.
- Showa Denko K.K./ Resonac Holdings Corporation
- Taiwan Union Technology Corporation (TUC)
