The German market for printed circuit boards (PCBs) will see revenues grow by 16% to nearly EUR 1.3 bn in 2010, while revenues for integrated circuits (ISS) will increase by 8% to nearly EUR 600m, according to a new report by Germany's ZVEI PCB and Electronic Systems Association (ZVEI, Frankfurt; www.zvei.org). Electronic subassembly (in-house manufacturers and electronic manufacturing services providers) sales are expected to expand by nearly 15% to EUR 23.6 bn.

In fact, ZVEI expects the industry to recover throughout the entire world this year, predicting that global revenues will grow by nearly 20%. Market insiders attribute the turnaround to the slow economic recovery of some customer industries such as vehicle electronics, and to the renewed willingness of some industrial nations to invest. There also has been an increasing stimulus from industrial production in Asia, especially China, where double-digit growth rates have once again been sighted. "Although the growth is taking place on a low production base, we are optimistic that we can put the crisis behind us," says Wolfgang Bochtler, chairman of ZVEI’s PCB and Electronic Systems Association.

A direct outcome of the global recession, 2009 production capacities were reduced throughout the world. Now that demand is picking up again, delivery times for base materials and construction elements especially are lengthening, and some customers have even been forced to halt production. At the same time, the rising price of energy, crude oil, metals and chemicals is taking its toll, with increases likely to be passed down the chain.