High Density Interconnect Market

High Density Interconnect Market Outlook (2022 to 2032)

The high density interconnect market is expected to experience impressive growth in the coming decade, with a projected CAGR of 9.2% between 2022 and 2032.

The market is set to grow from a value of USD 13.4 billion in 2021 to a value of USD 36.0 billion by the end of the forecast period. Key drivers of this growth include technological advancements, increasing demand for consumer electronics, and the growing popularity of wearable devices.

Consumers in this market are focused on multidimensional products. In the case of wearable devices, products in demand from consumers are small and compact, but with powerful features and unique designs.

The rise of 5G and Internet of Things (IOT) has created a need for more advanced and efficient electronic components. High density interconnect technology can provide the necessary performance while also making the final product compact.

This technology can reduce the size and weight of electronic devices, which can in turn reduce the number of raw materials required for production. This can lead to sustainable and eco-friendly manufacturing processes, which is important to consumers and manufacturers alike.

The printed circuit board (PCB) segment in the high density interconnect market is changing drastically because of technical advancements. These range from traditional low-density PCBs to high-density interconnect boards, which represent huge development potential for the PCB sector.

Attributes	Key Insights
High Density Interconnect Market Estimated Size (2022E)	USD 15 billion
Projected market Valuation (2032F)	USD 36 billion
Value Based CAGR (2022 to 2032)	9.2%
USA Value Based CAGR (2022 to 2032)	8%

2017 to 2021 High Density Interconnect Sales Outlook Compared to Demand from 2022 to 2032

As per Future Market Insights (FMI), historically, from 2017 to 2021, the value of the high density interconnect market increased at around 12.0% CAGR. With an absolute USD opportunity of USD 21 Billion, the market is projected to reach a valuation of USD 36.0 billion by 2032.

The automotive sector has been at the forefront of incorporating high density interconnect market technology in recent years. The demand for high density interconnect in this industry vertical is expected to grow significantly between 2022 and 2032.

High power boards, high-density connection boards, flex PCBs, PTFE materials for high-frequency PCBs, miniaturization of PCBs, and green PCBs have recently marked an uptick in demand. They are expected to continue trending in the PCB business.

The PCB sector is primarily pushed by increased demand for PCBs in the communication industry, advancements in connected devices, and in automotive electronics.

Top High Density Interconnect Trends Listed by Future Markets Insights (FMI)

• The key factors that are increasing the demand for high density interconnect market products are the expanding use of automotive electronics and wearable devices.
• Advanced electronics are being rapidly used by the car industry for safety, entertainment, and other purposes.
• Wearable gadgets such as smartwatches, fitness trackers, and medical devices are boosting demand for high density interconnect technology.
• This technology is perfect for producing compact and lightweight circuit boards for use in wearable devices.
• It enables the development of less bulky, but durable mobile devices with improved performance.
• The global demand for smartphones and other mobile devices is increasing, which is boosting the requirement for high density interconnect technology.
• The cost of generating high density interconnect circuit boards has decreased due to developments in PCB manufacturing technologies.
• This has increased production of high density interconnect technology and has made it accessible to a broad variety of sectors.
• High density interconnect technology has become a popular alternative for circuit board designers due to their compact nature.

Which Factors are Restraining the Growth of the High Density Interconnect Market?

The factors restraining the growth of the high density interconnect market are the high cost and limited application areas. High production expenses are experienced due to this technology's need for sophisticated manufacturing processes and expensive materials. Traditional PCBs are less sophisticated than high density interconnect technology, necessitating specialist design, and manufacturing knowledge. Its acceptance in quick-paced sectors is constrained by its complexity. This can also lead to lengthier development durations and thus restrain market growth.

The designs and production methods used by several firms to create high density interconnect technology are exclusive.

Due to this, competition is restricted, and it is challenging for new competitors to enter the market which restrains the market growth. Often exclusive, high-end applications like smartphones, tablets, and other portable electronic devices typically utilize high density interconnect technology.

Which Region is Projected to Offer Significant Opportunities for High Density Interconnect Market Manufacturers?

Asia Pacific to Exhibit Significant Demand for High Density Interconnect Products by 2032

Asia Pacific is considered to have the predominant high density interconnect market throughout the projection period. The growing need for high density interconnect market products in the consumer electronics and automotive electronics sector has led to the expansion of this market in Asia Pacific.

This region is a hub for consumer electronics and is poised to grow with a high demand over the forecast years. This can be attributed to the rising demographic contribution towards digitalization and the entertainment sector.

Prominent players, like China, India, Japan, South Korea are keen on manufacturing and innovation in the sector to attract the global market. This has led to multiple opportunities for businesses willing to utilize the South Asian markets.

Country-wise Insights

Why would the United States High Density Interconnect Industry Witness a Steady Growth Over the Forecast Period?

Wide Proliferation of Performance-Intensive Electronic Devices to Push Voluminous Growth of the High Density Interconnect Market

As per the recent Future Market Insights (FMI) report, the United States market will have continued growth in technological advancements and will witness increased competition.

With a projected CAGR of 8% from 2022 to 2032, the high density interconnect industry in the United States is expected to continue its growth trajectory. This is likely to be driven by increasing demand for miniaturization and high-performance electronic devices in various industries. For instance, consumer electronics, automotive, and healthcare.

Industry growth will likely push for technological advancements in high density interconnects, including new materials and manufacturing techniques. This could lead to improved performance, increased reliability, and reduced costs, further driving demand for high density interconnect solutions.

With the industry expected to reach USD 5.2 billion by the end of the forecast period, several companies are likely to enter the market. An absolute USD growth opportunity of USD 2.8 billion is further likely to increase competition. This could drive down prices and increase innovation as companies try to differentiate themselves and gain market share.

In March 2020, Sanmina Corporation, a United States company, expanded its Thailand facility. The facility now offers sophisticated bespoke packaging and assembly capabilities. It is utilized in the production of advanced optical, high-speed, and radio frequency (RF) microelectronic assemblies and products, enhancing its existing mission-critical products.

With this increase, the networking, 5G, data center, automotive/LIDAR, aerospace, and military industries will all experience significant growth for new technological items.

Why is the United Kingdom Witnessing Skyrocketing Sales for High Density Interconnect Solutions?

Presence of Well-Established Electronic Device Manufacturers Will Fuel Market Expansion

The high density interconnect market in the United Kingdom is projected to continue its steady growth trajectory, with a CAGR of 7.6% from 2022 to 2032. This is slightly more than the growth rate from 2017 to 2021, indicating a positive trend for the industry.

The absolute USD growth of the United Kingdom high density interconnect market is expected to be USD 483.2 million from 2022 to 2032. This indicates a strong potential for market expansion and development.

By 2032, the market is projected to be worth USD 933.8 million, indicating a significant growth potential for the industry in the region.

In June 2022, Kestrel International Circuits Ltd was acquired by NCAB Group. Kestrel will be integrated into NCAB Group UK, which, in turn, is a part of the Europe segment within the NCAB Group. Synergies are expected in the areas of factory management, suppliers, payment terms as well as in logistics.

Will China be a Prominent Market for High Density Interconnect Technology?

The Versatile Production Systems and High Capacity to Boost Sales for China Manufacturers

The market is expected to continue growing, with a projected absolute USD growth of USD 6.1 billion and a CAGR of 10.6% from 2022 to 2032. By 2032, the market is projected to be worth USD 9.5 billion, which represents significant growth from its value in 2021.

The high CAGR 14.2% from 2017 to 2021 indicates that there is strong demand for high density interconnect solutions in China. This is a key factor likely to continue driving market growth ovr the forecast period.

In September 2022, Unimicron, a Chinese company, invested heavily in the manufacturing of the latest PCB technology. Copper plating technology enables the use of a wide range of materials for multilayers, as well as high density interconnect PCBs and integrated circuit (IC) substrates.

The new 48-meter-long line is outfitted with a completely automated loading and unloading mechanism as well as RFID recognition for internal traceability. It provides great versatility in terms of production capacity, copper layer thicknesses, circuit board technologies, and dimensions.

Category-wise Insights

Which Product Type of the High Density Interconnect Market is Projected to Witness Significant Growth?

Technology Innovation in 10+ Layers HDIs to Pave Way for Enhanced Demand in the Market Segment

10+ Layers high density interconnect is projected to witness significant growth. The application of 10+ Layers HDIs is found in a variety of devices, including high-reliability automotive goods. High-density mobile devices, and Internet of Things (IoT) modules are also found to be responsible for this rise.

Benefits of 10+ Layers high density interconnect include its compact size, lightweight design, and increased flexibility. This kind of PCB is utilized in high density applications where greater performance and reliability are needed. It is constructed out of several smaller boards that are bonded together.

While expensive, it provides a higher level of security and dependability. It works well for applications that need a lot of power and rapid processing. The CAGR for 10+ Layers high density interconnect was around 11.8% from 2017 to 2021, and is forecasted to grow at around 9.1% through the end of 2032.

Which Application of the High Density Interconnect Market is Expected to be Highly Lucrative?

The Pressing Need by Industry 4.0 Opens Up Opportunity for Wearable Device Manufacturers

A widely used application of the high density interconnect market is wearable devices. The CAGR for wearable devices was around 11.6% from 2017 to 2021 and is forecasted to grow by 9% by the end of 2032.

The increased component density is made feasible by high density interconnect PCBs, which have extraordinary technical properties. The lightweight design and great performance of high density interconnect boards make them perfect for supplying power to wearable technology.

Additionally, the development of the high density interconnect market is anticipated to present further profitable prospects. Technical improvements, the rise in demand for industry 4.0 standards, and the emergence of industry 5.0 will be significantly responsible for this.

Competitive Analysis

The global demand for smartphones and other mobile devices is increasing, which is boosting the requirement for high density interconnect technology. Innovative solutions, patents and acquisitions are frequently employed by manufacturers to gain a competitive edge.

The players, who currently hold a small market share, are constantly aiming to grow their revenues in the high density interconnect market.

For instance

• In December 2022, TTM Technologies, Inc. and Raytheon Missiles & Defense agreed to Buy SPY-6 Radar Components. The Beam Forming Network (BFN), PCBs, and specialty assemblies are all created and produced by TTM for the SPY-6 series of radars. This kind of multi-year supply commitment enables TTM, and its supply chain partners, to improve value for the customer. It also changes the way TTM supplier partners do business and increases supply chain efficiency.
• In September 2021, Redboard Circuits was acquired by NCAB Group. RedBoard Circuits will help NCAB Group achieve its goal of being a market leader in the US PCB industry. RedBoard Circuits has increased its capacity to provide clients with personalized quality and service. It has also been expanding volume for current facilities, adding value to the North American division.

Scope of the Report

Attribute	Details
Estimated Market Size (2022)	USD 15.0 billion
Projected Market Valuation (2032)	USD 36.0 billion
Value-based CAGR (2022 to 2032)	9.2%
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	Value (USD billion)
Key Regions Covered	North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East and Africa
Key Countries Covered	The United States, United Kingdom, Germany, France, Spain, Italy, Japan, China, Singapore, Malaysia, Sri Lanka, Kingdom of Saudi Arabia, United Arab Emirates, South Korea, Finland, Hungary, Rest of the World
Key Segments Covered	Product, Application, Region, Technology
Key Companies Profiled	Unimicron; Compeq Co.; TTM Technologies; Austria Technologies and Systemtechnik ; Zhen Ding Tech.; IBIDEN; MEIKO ELECTRONICS; FUJITSU INTERCONNECT TECHNOLOGIE; Tripod Technology Corp.; SAMSUNG ELECTRO-MECHANICS; Daeduck GDS Co; DAP Corp.; Korea Circuit
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives

High Density Interconnect Market Outlook by Category

By Product:

• 4-6 Layers high density interconnect
• 8-10 Layers high density interconnect
• 10+ Layers high density interconnect

By Application:

• Automotive Electronics
• Computer and Display
• Communication Devices and Equipment
• BFSI
• Connected Devices
• Wearable Devices

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

Frequently Asked Questions

What was the global high density interconnect market size for 2021?

The high density interconnect industry was reported at USD 13.4 billion in 2021.

What high density interconnect value is the industry estimated to reach in 2022?

The high density interconnect market industry is estimated to be valued at USD 15 billion in 2022.

What valuation is the high density interconnect segment expected to reach by 2032?

The high density interconnect industry is expected to reach a valuation of USD 36 billion by 2032.

What CAGR did the high density interconnect market exhibit over the last 4 years?

The high density interconnect market registered a CAGR of 12% over the last 4 years.

What is the projected CAGR for the high density interconnect market from 2022 to 2032?

The high density interconnect market is projected to witness a CAGR of 9.2% from 2022 to 2032.

Which product type will garner significant value share by 2022?

10+ Layers high density interconnect product type is expected to garner significant value share by 2022.

At what percentage growth is sales in the high density interconnect industry expected in China?

Estimates predict that between 2022 and 2032, the high density interconnect industry in China would increase at a CAGR of around 10.6%.

At what percentage growth is sales in the high density interconnect industry expected in the United States?

Between 2022 and 2032, it is anticipated that sales of high density interconnect industry in the USA will increase at a CAGR of around 8%.

What do Statistics for South Korea and Japan Reveal?

The estimates predict that between 2023 and 2032, the high density interconnect industry in South Korea will increase at a CAGR of around 9.6% and there will be a CAGR growth of 9.4% In Japan.

What was the Market Value in 2022?

The market was valued at USD 15 billion in 2022.

How was the Market’s Historical Performance?

The market rose at a 12.0% CAGR from 2017 to 2021.

What is the Market Growth Outlook for 2032?

Until 2032, the market is projected to experience a 9.2% CAGR.

What will be the Market Value in 2032?

The market is estimated to reach USD 36.0 billion in 2032.

What is China's Expected CAGR over the Forecast Period?

China’s market is expected to record a CAGR of 10.6% over the forecast period.