April 8, 2009 -- Reports from Henderson Ventures reveal that equipment expenditures are on hold for many electronics assemblers, and the military electronics sector is growing. Overall, global electronic equipment production is predicted to fall by a massive 11.9% this year versus a 0.2% gain in 2008, reports Research and Markets in updates of its forecasts for flex and flex-rigid PCBs by region, product, and end-use sector through 2013.
Henderson Ventures reports that the financial crisis prompted banks to cut back their lending to corporations and consumers. The resultant economic slowdown is being amplified by spending reductions by companies and families who are building up cash reserves. In effect, potential purchases of electronic equipment have been postponed. Moreover, the large declines in unit deliveries of PCs and cellphones forecast for this year will be accompanied by big price cuts, thereby creating deep double-digit declines for the corresponding revenue streams. The computer and communication sectors will not be the only areas impacted. For example, drops of as much as 50% are forecast for the semiconductor manufacturing equipment sector. Consumer retrenchments will also create double-digit drops in both entertainment and automotive electronics. In the latter case, the sharp 2008 US vehicle downturn will spread to the rest of the world during 2009. That is, global car sales, which fell by about 5% in 2008, are slated for a 9% drop in 2009.
Henderson also notes that military electronics is the only major equipment sector expected to post positive growth during 2009. But the only significant gains outside of the US will be in China and Russia. Overall, global electronic equipment production is predicted to fall by a massive 11.9% this year versus a 0.2% gain in 2008. What's more, the recovery will be tepid. Only a 4.6% advance is slated for 2010, followed by a respectable 8.3 percent gain in 2011.
Research and Markets released "Flex and Flex-Rigid Printed Circuits 2008-2013: A Market and Technology Review," with updated market forecasts to 2013 for Europe, North America, Japan, China, and the rest of Asia; updated market forecasts to 2013 for flexible laminates, coverlays and coverfilms; updated and expanded review of the key market sectors: automotive, mobile phones, notebook computers, data storage, medical, military and aerospace. It also offers updated technology roadmaps for the key applications for flex and flex-rigid printed circuits, pointing out that flexible and flex-rigid substrates are key technologies in future generation electronic system design and development.
Research and Markets found that the market for flex and flex-rigid printed circuit boards for all sectors has increased from $4 billion in 2001 to more than $8 billion in 2007 and is forecast to be >$11 billion by 2013. The higher-value segment ? medical, military and aerospace ? accounts for one-fifth of this. The analysts project that flex and flex-rigid production in China will increase from $1.8 billion in 2007 to nearly $3 billion by 2013 accounting for 25% of worldwide production. Asia in total will account for nearly 90% of worldwide flex production by 2013.
The report states the size of markets for flexible and flex-rigid substrates, how fast they are growing, and how they will develop over the next five years. It also shows next emerging applications for flex and flex-rigid substrates and which new flexible and flex-rigid substrate technologies will emerge as mainstream approaches. Other topics include new materials, process equipment and assembly services, players in these markets, end-market demand distributed worldwide, trade considerations, and how EMS providers and ODMs impact the supply base.
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