UK Market Trends in 2024
Automotive Sector: The shift towards electric vehicles (EVs) has fuelled the need for advanced PCBs, especially for battery management systems and electronic control units (ECUs), and emerging autonomous driving technologies. Innovations in chiplet-based designs are reshaping the industry by improving power management and interconnect density.
Medical Devices: High-quality, biocompatible PCBs are increasingly used in diagnostic equipment, implants, and wearable devices. Growing investments in miniaturised and flexible PCBs are key to meeting stringent regulatory and performance requirements.
Telecommunications: The rollout of 5G networks has amplified demand for specialised PCBs in 5G equipment such as antennas, base stations and network slicing hardware. The transition toward 6G is already influencing long-term PCB design priorities.
Consumer Electronics: Smart home devices, wearables, and gaming hardware continue to drive growth, with a focus on customisation, modular design, and improved energy efficiency to meet consumer preferences.
Challenges in 2024
Ongoing Global Tensions and Trade Policies
- Geopolitical Conflicts: Instability in regions like the Democratic Republic of the Congo, a major cobalt source, led to a 15% reduction in cobalt availability, raising costs and delaying production timelines.
- Trade Barriers: Ongoing U.S.-China tensions resulted in tariffs and export restrictions on chip-critical materials, increasing component costs by 20% and lead times by 30%, disrupting global supply chains.
Rising Costs
Inflation, energy prices, and increased demand for copper have raised production costs significantly. Mining constraints and stricter environmental regulations have reduced global copper output by 10%, further driving up costs.
Increasingly Complex PCB Layouts
Design Rule Checking (DRC) alone is insufficient for modern manufacturing. Advanced practices like Design for Manufacturing (DFM), Design for Test (DFT), and DFx are crucial to addressing real-world production challenges. Automation tools and AI-driven design solutions are enhancing speed and accuracy for complex layouts.
Environmental Regulations and Production Challenges
- Stricter regulations on mining and production activities have raised costs by 12%, pushing companies to adopt sustainable manufacturing practices and explore biodegradable or alternative materials like gallium nitride (GaN) and silicon carbide (SiC).
- Circular economy principles are gaining traction, emphasising recycling and waste reduction.
Emerging Trends and Developments
Reshoring and Regional Manufacturing
In response to geopolitical risks, manufacturers are increasingly nearshoring production to reduce reliance on single-source suppliers. This trend is reshaping global production dynamics.
Supply Chain Diversification
Companies are mitigating risks by adopting diversified sourcing strategies to enhance resilience against climate disruptions, geopolitical tensions, and material shortages.
Capacity and Lead-Time Issues
Murata Recovery
Production at the Anamizu plant resumed after earlier damage, stabilizing chip inductor and choke coil supplies. Lead times remain stable but may tighten as capacity strains grow.
Capacitor Lead-Times
While lead times for multilayer ceramic and tantalum capacitors have decreased slightly, exceptions remain, with delays up to 26 weeks.
DRAM Shortages
Shifting dynamics in DRAM production balanced supply and demand, avoiding severe shortages despite rising prices. Localised shortages in high-bandwidth memory (HBM) emerged due to AI-driven investments.
Looking Ahead: What’s Next for 2025?
Electric Vehicles: The EV market will continue driving demand for sophisticated PCBs, including high-performance boards for power management, control systems and connectivity in autonomous vehicles.
5G and 6G: The continued rollout of 5G and early preparation for 6G will boost demand for high density, high-speed PCBs capable of handling high data transfer speeds and enhanced connectivity.
AI and Machine Learning: AI-driven tools in design, testing, and production will revolutionise PCB manufacturing, optimising design, improving yields, and automating quality control. Predictive analytics will help mitigate component shortages, optimise designs, and ensure better yields. Machine learning applications will also be critical in automating testing and quality control.
DFx, DFM, and DFT: The importance of DFx, DFM, and DFT is expected to grow further in 2025 as manufacturers strive to optimise production, cut costs, and improve product reliability. These practices will be essential for meeting the demands of advanced technologies like EVs, 5G, and customised electronics.
Memory Market Troubles: The memory market is expected to remain volatile:
- DRAM Pressure: Experts predict the market will remain under pressure throughout 2025, with a potential rebound linked to artificial intelligence-driven demand.
- NAND Flash Challenges: The NAND flash market will continue to struggle with price pressures due to sluggish demand in consumer electronics. Market recovery may not occur until mid-2025, despite strong demand from AI applications.
Technological Advancements: Innovation in semiconductors, particularly in materials like gallium nitride (GaN) and silicon carbide (SiC), will enable more efficient and powerful devices.
Customisation: Rising consumer demand for personalised electronics will drive the adoption of 3D printing and modular design, enabling cost-effective customisation at scale.
Sustainability: The focus on sustainable manufacturing practices, including recycling and waste reduction, is gaining momentum. Circular economy principles will become more prevalent, reducing environmental impact while offering economic benefits. Manufacturers will also explore energy-efficient PCB designs and production processes to align with global sustainability goals.
For Gemini Tec we've had a very busy 2024 with lots of exciting developments, here are our top 5 company milestones for the year.
As we wrap up 2024, we hope this article and our other insights have been helpful in keeping you informed. We wish you a successful start to 2025, and look forward to staying connected
