Contactors Market Size was valued at USD 0.32 billion in 2021. The Contactors market industry is projected to grow from USD 0.34 Billion in 2022 to USD 0.52 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.30% during the forecast period (2024 - 2030). Rising application of Contactors within HVAC system are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The demand for EVs and HEVs is increasing owing to the rising fuel prices and incentives rolled out by government bodies. The government across various countries is encouraging the usage of e-mobility to cut down the dependency on crude oil and reduce vehicle pollutions. Numerous automotive manufacturers have started producing electric vehicles or hybrid electric vehicles, subsequently supporting the growth of the market. These contactors are used in EVs or HEVs to isolate the high voltage battery from the high voltage network.
The growing awareness towards maintaining a clean environment has propelled the growth of renewable energy projects. Solar energy is considered the fastest-growing application in renewable energy. In addition, the continuously increasing demand for growing green energy shares is also supporting the growth of solar energy. The main application for contactors in PV plants is disconnecting the inverter from the PV strings when the required output is low. In addition, these contactors are used to change the PV strings configuration to increase the plant efficiency by diverting other strings to an optimal converter. Therefore, such condition has enhanced the Contactors market CAGR across the globe in the recent years. The growing industrialization and urbanization in the Asia Pacific region, especially in China and India, have boosted the electricity demand. The growing population in the region has increased per capita electricity consumption, thus providing an opportunity for the contactor market as these contactors can play important role in controlling the flow of electricity. Rising population and growing urbanization rates are likely to increase energy demand across the globe. According to the United Nations report, in 2018, 55% of the world’s population lives in urban areas, projected to increase to 68% by 2050. In addition, rapid urbanization is also supporting the growth of these connectors/.
However, increasing use of Contactors in the power distribution network for switching an electrical power circuit for smooth functioning of electrical equipment is another factor driving the growth of the Contactors market revenue.
The Contactors Market segmentation, based on product type, includes DC contractors and AC contractors. The DC contractors segment held the majority share in 2021 contribution to around ~56% in respect to the Contactors Market revenue. The Increasing demand for end-use applications of DC contactors and the growing use of contractors in the power distribution network for switching an electrical power circuit for the smooth functioning of electrical equipment are some of the major factors driving the growth of the DC Contactor Market. The rise in the production of automobiles across the globe has led to an increase in the use of DC contractors for maintaining the effective demand-side load in automotive systems. Such developments are anticipated to increase the use of DC contractors to maintain stability and ensure sound demand-side load management.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Contactors Market segmentation, based on End User, includes electric vehicles {passenger vehicles, commercial vehicles, buses}, renewable energy & storage, aerospace & defense, industrial machinery, and others. The electric vehicles segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030 owing to their increasing demand. Electric vehicles are less harmful to the environment, less expensive, and are cheaper to maintain. Therefore, many vehicle manufacturers are producing electric vehicles and hybrid electric vehicles.. Hence, rising applications of for Contactors positively impacts the market growth.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Contactors market accounted for USD 0.13 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. According to the American Automotive Policy Council report 2018, the total vehicles manufactured in the US is expected to reach 12 million, per year by 2025. The rise in production of the automotive in the region has led to an increase in the use of Contactors for maintaining the effective demand side load in automotive systems. Such developments are expected to increase the use of Contactors to maintain stability and ensuring sound demand side load management. Therefore, the increase in the demand for Contactors is driving the global Contactor market demand during the forecast period.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Contactors market accounts for the second-largest market share. In the European region, various countries such as Germany, Argentina, France, and others have set their target of zero-emission of carbon-dioxide by 2050, which has increased the renewable energy projects in the region and has bolstered market growth. In addition, the region has some of the world's largest automotive manufacturers such as Volkswagen Group, BMW, Daimler, Delphi, Ford, Hyundai, Renault, and many others, who are shifting towards EVs and HEVs promoted the usage of these types of contactors in the region. Further, the Germany Contactors market held the largest market share, and the UK Contactors market was the fastest growing market in the European region
The Asia-Pacific Contactors Market is expected to grow at the fastest CAGR from 2022 to 2030. Moreover, the increase in demand due to the growing population and per capita income creates a huge market opportunity for the growth of renewable energy sources in the Asia-Pacific region. Moreover, China Contactors market held the largest market share, and the India Contactors market was the fastest growing market in the Asia-Pacific region
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Contactors market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Contactors industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Contactors industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Contactors industry has provided with some of the most significant benefits. The Contactors market major player such as Medtronic Inc (Ireland), Abbott Laboratories (US), Stryker Corporation (US), and others are working to expand the market demand by investing in research and development activities.
Siemens AG (Siemens) is engaged in the production and supply of systems for power generation, power transmission, and medical diagnosis. It operates through the power and gas, wind power and renewables, energy management, building technologies, mobility, digital factory, process industries and drives, healthcare, and financial services business divisions. The company offers smart building solutions through its building technology segment. The energy management segment covers high voltage products, low voltage power distribution, power transmission, smart grid solutions and services, transformers, medium voltage switchgear and devices, and energy automation. The building technologies segment comprises automation technologies and services for commercial, industrial, and public buildings and infrastructure. In May 2021, Siemens Electric and Allied Electronics & Automation launched the Easy TeSys product line with a short-circuit ratings range up to 35kA at 480V. This product line is targeted at small OEMs, panel builders, and low-capacity motors.
Also, Trombetta combines industry-leading engineering and innovation with quality manufacturing and unsurpassed customer service. Their products are designed to perform in the harshest conditions across a broad range of markets and industries. In May 2019 Trombetta Inc., a leading automotive parts manufacturer, and distributor have introduced fully sealed full Silver PowerSeal contactors for high-performance and intermittent duty applications.
October 2020: As the electrical energy requirement increases, renewable energy sources have become essential means for electricity generation. Hotson International is a leading manufacturer of high voltage contactors in China, has introduced the new Direct current contactors for wind turbine systems. These contactors are ideal for wind energy application to ensure the connection is maintained under strict conditions.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 0.32 billion |
| Market Size 2022 | USD 0.34 billion |
| Market Size 2030 | USD 0.52 billion |
| Compound Annual Growth Rate (CAGR) | 6.30% (2024-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Siemens (Germany), Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Mitsubishi Electric (Japan), TE Connectivity (Switzerland), Toshiba (Japan), LSIS Co. Ltd (South Korea), CG Power and Industrial Solutions Limited (India), Larsen & Toubro Limited (India), Phoenix Contact (Germany), Rockwell Automation, Inc. (US), Fuji Electric FA Components & Systems Co., Ltd. (Japan), Crydom Inc. (Japan), and Panasonic Corporation of North America (US) |
| Key Market Opportunities | Rising Demand for EVs and HEVs |
| Key Market Dynamics | Growing awareness towards maintaining a clean environment |
Contactor Market Highlights:
Frequently Asked Questions (FAQ) :
The Contactors Market size was valued at USD 0.32 Billion in 2021.
The global market is projected to grow at a CAGR of 4.7% during the forecast period, 2024-2030.
North America had the largest share in the global market
The key players in the market are Siemens (Germany), Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Mitsubishi Electric (Japan), TE Connectivity (Switzerland), Toshiba (Japan),etc.
Power, automotive, food & beverages, oil & gas, mining, construction, FA Robots, and Data Centers are end-users of contractors.
The DC contractors category dominated the market in 2021.
The electric vehicle had the largest share in the global market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
