SERVER PCB MARKET ANALYSIS

The Global Server PCB Market size is expected to grow from US$ 45.22 Bn in 2023 to US$ 75.23 Bn by 2030, at a CAGR of 7.5% during the forecast period. The growth of the server PCB market is driven by the increasing demand for servers in data centers, cloud computing, and artificial intelligence (AI).

The server PCB market is segmented by usage/application, technology, end user industry, size, customer type, price range, component integration, environmental sustainability, purchase channel, and region. By usage/application, the market is segmented into multilayer PCBs, rigid-flex PCBs, and flexible PCBs. By technology, the market is segmented into Conventional single-layer and multi-layer PCBs, High-Density Interconnect (HDI) PCBs, Flexible PCBs, Rigid-Flex PCBs, and Microvia technology-based PCBs. By end user industry, the market is segmented into Information Technology (IT) & Telecommunications, Healthcare & Life Sciences, Financial Services, Retail & E-commerce, Government & Public Sector, Manufacturing & Automotive, and Aerospace & Defense. By size, the market is segmented into Small form factor servers, Medium-sized servers, Large-scale enterprise servers. By customer type, the market is segmented into Original Equipment Manufacturers (OEMs), Electronic Manufacturing Services (EMS) providers, and Aftermarket sales. By price range, the market is segmented into Low-cost server PCBs, Mid-range server PCBs, and High-end server PCBs. By component integration, the market is segmented into Single-board servers, and Multi-board servers. By technology, the market is segmented into Eco-friendly/recycled materials PCBs, and Energy-efficient PCB designs. By environmental sustainability, the market is segmented into Eco-friendly/recycled materials PCBs, and Energy-efficient PCB designs. By purchase channel, the market is segmented into Direct sales to manufacturers, Distributors and resellers, and Online retail platforms.

Server PCB Market Regional Insights

• North America is the largest market for server PCBs, accounting for 38% of the global market in 2023. This is due to the presence of a large number of data centers and cloud computing providers in the region. The U.S. is the largest market in North America, followed by Canada.
• Europe is the second-largest market for server PCBs, accounting for 27.1% of the global market in 2023. This is due to the increasing adoption of cloud computing and artificial intelligence in the region. Germany is the largest market in Europe, followed by the U.K. and France.
• Asia Pacific is the third largest market for server PCBs, accounting for 24.7% of the global market in 2023. This is due to the growing demand for servers in China and other emerging economies in the region. China is the largest market in Asia Pacific, followed by Japan and South Korea.

Figure 1. Global Server PCB Market Share (%), by Region, 2023

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Analyst Viewpoint: The server PCB market is expected to witness steady growth in the coming years. North America dominated the market in 2021 owing to increasing data center deployments in the region. Asia Pacific is likely to grow at the fastest pace due to rising investments by major cloud service providers in countries such as China and India. In terms of technology, multilayer PCBs are anticipated to remain the largest segment of the market. However, rigid-flex PCBs will gain more traction considering their increasing usage in advanced server designs. The replacement of aging servers will drive demand. Moreover, the rising adoption of hyperscale data centers and significant investment in cloud infrastructure by major tech giants are key growth drivers.

Server PCB Market Drivers

• Growth in Data Centers: The increasing demand for data centers to store and process vast amounts of data drives the demand for server PCBs. As cloud computing, big data, artificial intelligence, and other data-intensive applications grow, data centers require more powerful and efficient servers, leading to a higher demand for advanced server PCBs. According to the IEA (International Energy Agency), in July 2023, the proportion of mobile data traffic attributable to 5G is anticipated to increase to almost 70% by 2028, marking a significant rise from approximately 17% in 2022.
• Demand for Energy-Efficient Solutions: Energy efficiency is a critical concern in data centers and server infrastructure. PCB manufacturers are pressured to develop server boards that consume less power and generate less heat without sacrificing performance. As per the Environmental and Energy Study Institute, in 2022, there is a drive to improve the energy efficiency of power generation, aiming to elevate it significantly from approximately 33% to as much as 80%.

Server PCB Market Opportunities

• Emerging Memory Technologies: The introduction of new memory technologies, such as DDR5 and High Bandwidth Memory (HBM), creates opportunities for server PCB manufacturers. These technologies require specialized PCB designs to handle higher data rates and provide better power delivery to memory modules. According to data from the UN COMTRADE database, global trade in integrated circuits, including memory chips, grew by 13% year-on-year in 2022, reflecting rising global demand.
• Optical Interconnects: Optical interconnects offer advantages over traditional copper-based interconnects in terms of speed, bandwidth, and reduced latency. As data centers and servers demand faster communication between components, optical interconnect PCBs become more attractive. According to UNECTAD, in 2022, global data flows increased by over 45% annually from 2020 to 2022, and this growth is projected to accelerate further.

Server PCB Market Trends

• High-Speed and High-Density Interconnects: Server PCBs were experiencing an increasing demand for high-speed and high-density interconnect solutions to support faster data transfer rates and accommodate the growing number of components in modern servers. High-Density Interconnect (HDI) technology was gaining popularity due to its ability to provide higher routing density and improved signal integrity in a compact form factor. According to the United Nations' ITU agency, in 2022, global IP traffic grew by 26% in 2021 alone and is projected to grow fourfold between 2020 and 2025, primarily driven by bandwidth-intensive distributed applications.
• DDR5 Memory Support: The transition from DDR4 to DDR5 memory modules in servers was gaining momentum. DDR5 memory offers higher data transfer rates and improved power efficiency, but it also requires specialized PCB designs to handle the increased signaling complexity. According to the UN Economic and Social Commission for Asia and the Pacific (ESCAP) report, in 2022, data usage in Asia and the Pacific rose by more than 600% between 2015 and 2020 as digitalization accelerated. With the region forecasted to account for 30% of global data center infrastructure by 2023, there will be substantial demand for high-performance servers optimized for memory-intensive workloads.

Server PCB Market Restraints

• Component Miniaturization: The demand for smaller and more powerful servers led to increased component miniaturization. However, miniaturization can pose challenges in PCB manufacturing, as it requires higher precision and may increase production costs.

Counterbalance: Using new substrate materials that can handle denser layouts and higher temperatures, which are a consequence of component miniaturization.

• Complexity of High-Speed Designs: With the rising data rates and demand for high-speed servers, PCBs needed to handle increasingly complex designs. Designing PCBs for high-speed applications requires careful consideration of signal integrity and EMI, making the design process more challenging.

Counterbalance: At high frequencies, the integrity of electrical signals can be compromised by factors such as reflection, crosstalk, and attenuation. Maintaining signal integrity requires careful PCB layout, impedance matching, and the use of quality components.

Recent Developments

• In February 2023, TTM Technologies, Inc. - global manufacturer of technology solutions, has unveiled a new series of 0603 radio frequency components designed for 5G transceivers and power amplifiers. This release comes from the company's Radio Frequency and Specialty Components Business Unit.
• In 2023, SEMCO launched its new line of server PCBs for AI applications. The new PCBs are designed to meet the demanding requirements of AI systems, such as high-speed signal processing and low power consumption.
• Young Poong Group launched its new line of server PCBs for cloud computing applications. The new PCBs are designed to meet the high reliability and high performance requirements of cloud computing systems.

Key Strategic Initiatives:

• In 2022, Sanmina Corporation - Electronics manufacturing services company, acquired PCB maker Tripod Technology for US$ 1,100 million. This acquisition gave Sanmina a significant presence in the high-growth server PCB market.
• In 2021, Compeq Co., Ltd. – PCBs manufacturer, acquired PCB maker TTM Technology for US$ 1,400 million. This acquisition gave Compeq a major foothold in the server and networking PCB markets.
• In 2020, JCET Group - integrated-circuit manufacturing and technology services provider acquired PCB maker Unimicron Technology for US$ 3,400 million. This acquisition gave JCET a major presence in the server and networking PCB markets.

Figure 2. Global Server PCB Market Share (%), by application, 2023

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Top companies in Server PCB Market

• Nanya PCB (Taiwan)
• Tripod Technology Corporation (Taiwan)
• Unimicron Technology Corporation (Taiwan)
• Ibiden Co., Ltd. (Japan)
• Compeq Manufacturing Co., Ltd. (Taiwan)
• TTM Technologies, Inc. (U.S.)
• Kingboard Holdings Limited (Hong Kong)
• Shennan Circuits Company Limited (China)
• AT&S Austria Technologie & Systemtechnik AG (Austria)
• Multek (a subsidiary of Flex Ltd.) (U.S.)

Definition: The server PCB market refers to the industry involved in the design, manufacturing, and distribution of printed circuit boards (PCBs) specifically tailored for server systems. These PCBs are crucial components that facilitate the interconnection of various electronic components within servers, enabling them to function effectively in data centers and other computing environments. The market focuses on providing high-performance and reliable PCBs to support the increasing demand for data processing, storage, and networking capabilities in modern server infrastructure.