Global ABF Substrate Market Size By Type (4-8 Layer, 8-16 Layer, and Others), Application (PC & laptops, AI Chip, Server and Switch, Game Consoles, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global ABF Substrate Market was valued at USD 998.7 million in 2022 and is projected to reach USD 4,399.5 million by 2030, growing at a CAGR of 20.10% from 2023 to 2030.

ABF substrates, short for Ajinomoto Build-up Film substrates, are advanced printed circuit board materials known for their exceptional electrical properties and high-performance characteristics. These substrates find applications in a wide range of electronic devices, including smartphones, tablets, automotive electronics, and others. They are particularly favored in the semiconductor industry due to their unique attributes, such as high critical electric field strength and bandgap. The growing demand for smaller, more functional electronic devices is a key factor boosting the growth of the ABF substrate market. As consumers increasingly prefer compact and high-performing gadgets, ABF substrates become crucial for improving electrical performance and interconnect density.

Several key factors are contributing to the growth trajectory of the market. These factors include the increasing global population, rising demand for consumer electronics, and the growing adoption of advanced digital technologies such as 5G communication, artificial intelligence, and cloud computing. These factors are creating a strong demand for enhanced computing power that is constantly growing and evolving.

According to the Semiconductor Industry Association (SIA), global semiconductor industry sales for August 2023 reached USD 44.0 billion, reflecting a 1.9% growth compared to the previous month's sales of USD 43.2 billion. However, there was a 6.8% decline in sales compared to August 2022, which recorded a total of USD 47.2 billion.

Key Insights

• Based on type, the 4-8 Layer segment is projected to grow at a robust CAGR of 21.69% through the projection period
• By application, the PC & laptops segment acquired the highest market share of 48.05% in 2022
• On the basis of region, Asia Pacific accounted for the largest market share of 53.52% in 2022

Miniaturization and Enhanced Functionality to Fuel ABF Substrate Market Growth

Miniaturization and enhanced functionality are major factors driving the growth of the market. As consumer electronics and other electronic devices continue to evolve, there is a growing demand for smaller, more powerful components. ABF substrates play a significant role in meeting this demand by providing improved electrical performance and interconnect density. The trend toward more compact and feature-rich devices necessitates the use of ABF substrates to ensure the effective functioning of high-speed circuits and data transmission.

Complex Manufacturing Processes and Increased Costs Hinder ABF Substrate Market Growth

The use of ABF substrates comes with its own set of challenges. One significant restraint impeding market development is the complex manufacturing processes involved. These substrates require intricate fabrication techniques involving multiple layers and fine-pitch wiring, which demand precise and controlled procedures. These complexities result in longer production times and increased manufacturing costs. This can pose a hindrance for manufacturers who are considering adopting ABF substrates in their products, especially in cost-sensitive markets.

Recent Developments

June 2021: Unimicron Technology established a new facility in Yangmei, located in northern Taiwan, to expedite full operations for ABF substrate production.

Segmentation Analysis

Based on type, the market is segmented into 4-8 layer, 8-16 layer, and others. The 4-8 layer segment dominated the market with a share of 48.05% in 2022 due to its versatility and compatibility. These substrates are capable of supporting several layers of circuitry, enabling greater functionality and complexity in electronic devices. This versatility makes them highly prominent for various applications, such as in PCs and laptops, where they can withstand demanding conditions and offer improved electrical performance.

Based on application, the market is classified into PC & laptops, AI chip, servers and switch, game consoles, and others. The PC & laptops segment is expected to witness significant growth, acquiring a staggering CAGR of 21.69% through the estimated timeframe. This growth is primarily driven by the ever-increasing consumer demand for high-performance personal computing devices. As consumers seek more powerful, compact, and feature-rich laptops and PCs, the importance of ABF substrates, which offer improved electrical characteristics and interconnect density, becomes paramount in meeting these demands.

Asia Pacific Held the Highest Market Share of 53.52% Due to Booming IT Manufacturing

Asia Pacific dominated the market in 2022 with the highest revenue of USD 534.5 million, mainly driven by the region's rapid industrialization and transformation into a thriving hub for IT manufacturers. Major economies in Asia-Pacific, such as China, Japan, and India, generate substantial demand for ABF substrates. The growing electronics manufacturing sector in the region, along with the rising adoption of advanced technologies and components, contributes significantly to the expansion of the market in Asia Pacific.

North America to Witness Considerable Growth Owing to Increased Early Adoption of Advanced Technologies

North America is likely to grow at the highest CAGR of 17.09% over 2023-2030. This growth is primarily fueled by the region's ongoing technological advancements and its pivotal role in the development of cutting-edge electronic devices. With a strong focus on innovation and a robust tech ecosystem, North America remains a key region in driving the adoption of ABF substrates, especially in applications that demand high-performance computing.

Competitive Landscape

The global ABF substrate market is fragmented with key players such as Ajinomoto Co. Inc., Unimicron Technology Corp, Nan Ya Printed Circuit Board Corporation, Samsung Electro-Mechanics Co., Ltd., Kyocera, LG Inno Tek, Shennan Circuit, ASE Material, TOPPAN, AT&S, and IBIDEN, among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

The global ABF Substrate Market is segmented as follows:

By Type

• 4-8 Layer
• 8-16 Layer
• Others

By Application

• PC & laptops
• AI Chip
• Server and Switch
• Game Consoles
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America