Relay Market Research Report – Forecast till 2032

Relay Market Research Report Information By Product Type (Electromechanical, Solid State), By End-user Application (Aerospace, Defense and Military, Automotive, Communications, Energy and Power, Industrial, Other End-user Applications), And By Region (North America, Europe, Asia-Pacific, And Rest of the World) – Industry Forecast Till 2032

ID: MRFR/E&P/10809-HCR | 128 Pages | Author: Anshula Mandaokar | December 2023         

Relay Market Overview:

Relay Market Size was valued at USD 9.3 Billion in 2022. The Relay Market industry is projected to grow from USD 9.93 Billion in 2023 to USD 16.81 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% during the forecast period (2023 - 2032). The surge in adoption for electric and hybrid vehicles, along with an increasing need for enhanced safety features, are the key market drivers enhancing the market growth.

Relay Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Relay Market Trends

  • Increase in demand for electric vehicles and the growing adoption of relays in the automotive industry are driving the market growth

Market CAGR for the relay is being driven by the Increasing demand for electric vehicles and the Growing Adoption of Relays in the Automotive Industry. The electric vehicles (EV) market is experiencing exponential growth, primarily driven by critical factors such as the urgent need to address climate change and achieve net-zero emissions. Furthermore, the industry is benefiting from favorable incentives and policies enacted by governments worldwide to stimulate EV adoption. For example, in 2021, California's Clean Vehicle Rebate Project (CVRP) actively promoted the adoption of clean vehicles by offering rebates ranging from $1,000 to $7,000 for the purchase or lease of new zero-emission vehicles in the state. Additionally, in the same year, New Zealand proposed a clean car discount program, providing new car buyers with an $8,625 rebate for electric vehicles (EVs) priced under $80,000, inclusive of GST and road costs. The growing awareness of climate change and the surging demand for electric cars have led to a substantial increase in EV production. According to a report by the International Energy Agency (IEA) in 2022, global EV sales reached 6.7 million units in 2021, reflecting a remarkable increase of 3.7 million units compared to 2020, and capturing a 4.1% market share. These developments underscore the business opportunities and market dynamics within the rapidly expanding EV industry, positioning it as a key player in the global automotive sector.

The automotive industry is undergoing a significant shift, moving from hardware-centric vehicles to ones heavily reliant on software integration. This transformation is resulting in a substantial increase in the amount of software and electronics incorporated into each vehicle. Electronics play a pivotal role in enabling the integration of novel functions and features into automobiles, and as a result, their presence is rapidly expanding across critical applications such as powertrains, safety management, body systems, and convenience or infotainment offerings. This shift in focus toward software and electronics integration is a notable trend shaping the automotive business landscape.

As a result, the growing popularity of electric cars and the expanding use of relays in the automotive industry are expected to drive up demand for relays throughout the course of the projected period. Thus, driving the Relay Market revenue.

Relay Market Segment Insights:

Relay Market Product Type Insights

The Relay Market segmentation, based on Product Type includes Electromechanical and Solid State. The electromechanical segment dominated the market, accounting for 58% of market revenue (5.4 Billion). The electromechanical industry is presently witnessing a substantial surge in the demand for Relays, critical components that enable the electromagnetic switching of currents to control circuits. This increased demand is driven by the indispensable role Relays play in guaranteeing efficient and dependable operations across diverse sectors, encompassing manufacturing, automation, energy, and transportation. This heightened demand for Relays represents a significant trend within the business landscape of the electromechanical industry.

Figure 1: Relay Market by Product Type, 2022 & 2032 (USD Billion)

Relay Market by Product Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Relay Market End-user Application Insights

The Relay Market segmentation, based on End-user Applications, includes Aerospace, Defense and Military, Automotive, Communications, Energy and Power, Industrial, and Other End-user Applications. The automotive segment dominated the market, accounting for 55% of market revenue (5.12 Billion). The automotive industry is presently experiencing a notable surge in the demand for Relays, essential electromechanical switches responsible for regulating a wide array of electrical functions within vehicles. With the continuous technological advancement of automobiles, which increasingly rely on intricate electronic systems to manage critical tasks such as ignition, lighting, and safety features, there is a heightened need for reliable and efficient Relays. This demand for high-quality Relays has become increasingly pronounced within the automotive sector, reflecting a significant trend in the industry.

Relay Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American region is currently experiencing a substantial surge in the demand for Relays, essential devices employed for the control and regulation of electrical circuits. This pronounced uptick in demand can be attributed to the rising adoption of advanced technologies across diverse industries, including manufacturing, automation, energy, and telecommunications. According to data from the Association for Advancing Automation (AAA) 2022, companies in North America, comprising those from the United States, Canada, and Mexico, achieved a historic milestone by acquiring the highest number of robots in a single quarter. The impressive figure stands at 11,595 robots, marking a substantial 28% increase compared to the first quarter of 2021. Furthermore, this surge in robot purchases translated into significant financial gains, with reported revenues reaching USD 664 million. This represents a remarkable 43% upswing when compared to the revenue generated during the same period in 2021. The growth in the robotics industry directly correlates with the demand for relays, as these devices are crucial for ensuring the reliability and safety of robotic operations.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Relay Market Share By Region 2022 (USD Billion)

Relay Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Relay Market accounts for the second-largest market share as, In Europe, governments are making substantial investments to stimulate the demand for electric vehicles (EVs). For instance, the Norwegian government has implemented a series of incentives, including waiving vehicle import duties, and registration and sales taxes for EV buyers. Additionally, EV owners enjoy benefits such as exemption from road tolls and free access to ferries and bus lanes in congested city centers, incurring a cost of approximately USD 1 billion for the Norwegian government. These incentives have resulted in a significant dominance of electric cars in Norway, with EV sales reaching 42.4% in 2019, up from 31.2% in 2018, as reported by OFV. This represents a remarkable one-third increase in EV sales year-over-year. When considering plug-in hybrid sales, approximately 56% of Norway's new car sales in 2019 were electrified. Similarly, in France, electric vehicle sales experienced a 29% growth compared to 2018, reaching a total of 69,466 units sold. With the increasing adoption of electric vehicles in the region, there is an expected positive impact on the Relay market. This growth in EV sales underscores the business opportunities within the Relay market as it aligns with the broader trend towards electrification in the automotive sector. Further, the German Relay Market held the largest market share, and the UK Relay Market was the fastest-growing market in the European region

The Asia-Pacific Relay Market is expected to grow at the fastest CAGR from 2023 to 2032. The transport sector in India, as reported by the Bureau of Energy Efficiency, accounts for a substantial 18% of the nation's overall energy consumption, equivalent to approximately 94 million tons of energy (MTOE). However, maintaining the current energy consumption patterns within this sector would require India to secure an estimated annual energy supply of 200 MTOE by 2030 to satisfy its burgeoning industry demand. This surge in energy demand, particularly in the transportation sector, necessitates the development and implementation of advanced relay systems to enhance energy efficiency, grid management, and control, thereby driving the relay market in the broader Asia-Pacific region. The emergence of renewable energy generation projects throughout the Asia Pacific region presents significant opportunities for Relay manufacturers. Relays find extensive applications in this sector, offering advantages such as substantial contact gaps and robust switching capabilities. Furthermore, both government entities and regional companies have made substantial investments in the development of the renewable energy sector, creating a favorable business environment for Relay manufacturers operating in this region. This aligns with the broader trend of increasing renewable energy adoption, positioning Relay manufacturers for growth and collaboration in this expanding market. Moreover, China’s Relay Market held the largest market share, and the Indian Relay Market was the fastest-growing market in the Asia-Pacific region.

Relay Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Relay Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Relay industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Relay industry to benefit clients and increase the market sector. In recent years, the Relay industry has offered some of the most significant advantages to various sectors and industries, including automotive, aerospace, energy, manufacturing, and more. Major players in the Relay Market, including TE Connectivity, American Zettler, Churod Electronics, Omron Corporation, Panasonic Corporation, Circuit Interruption Technology, Inc., Fujitsu Limited, Song Chuan Group Company, KEMET Corporation, Phoenix Contact, are attempting to increase market demand by innovations and technological advancements.

TE Connectivity is a leading company specializing in the design and production of connectivity and sensor solutions. Their extensive product portfolio includes connector systems, terminals, sensors, Relays, heat shrink tubing, interventional medical components, wire and cable, and antennas. These high-quality products and solutions cater to a wide range of industries, including automotive, aerospace, defense, marine, industrial, medical, data and devices, appliances, and energy sectors. TE Connectivity markets its offerings under well-known brand names such as Agastat, Ampower, Buchanan, Citec, Cloudsplitter, Deutsch, Entrelec, Faston, Holsworthy, Interconnect, Kilovac, Kissling, and Madison Cable. The company employs a comprehensive distribution strategy, utilizing both a direct sales force and third-party distributors to reach customers effectively. With manufacturing facilities and distribution centers strategically located across Asia-Pacific, Europe, the Middle East, Africa, and the Americas, TE Connectivity maintains a global presence. Headquartered in Schaffhausen, Switzerland, the company remains committed to innovation and growth. Notably, in December 2021, TE Connectivity expanded its capabilities by acquiring narrow safety Relay (NSR) technology from Phoenix Contact, enabling it to engage in the manufacturing and marketing of NSR Relays through this strategic technology acquisition.

Panasonic Corporation is a prominent company engaged in the development, manufacturing, sales, and servicing of a diverse range of electric and electronic products. Their extensive product portfolio encompasses various categories, including room air-conditioners, televisions, fixed phones, digital cameras, video equipment, home audio equipment, rice cookers, lamps, wiring devices, air-conditioning equipment, air purifiers, and bicycles. Additionally, Panasonic offers a comprehensive array of electronic components, such as mounting machines, welding equipment, PCs, tablets, projectors, batteries, electric motors, electronic materials, semiconductors, and LCD panels. The company's global presence is facilitated through the management and operation of facilities and research and development centers across Japan, Asia, the Americas, and Europe. Panasonic is headquartered in Kadoma-shi, Osaka, Japan, and is committed to delivering innovative and high-quality solutions across various industries and markets.

Key Companies in the Relay Market include

Relay Industry Developments

April 2022:In April 2022, Panasonic Corporation launched the PhotoMOS CC TSON 1 Form B semiconductor Relays. These Relays come in a compact TSON package and are equipped with an integrated capacitor-coupled isolation driver IC and an oscillation circuit. A distinguishing feature of these Relays is their minimal current requirement and voltage flow at the input side, offering an efficient alternative to conventional Relays.

January 2020:In January 2020, Fujitsu Limited completed the acquisition of Consul Neowatt Power Solutions Private Limited (CNPS), a prominent power electronics manufacturer in India. This strategic move is part of the company's broader plan to enhance and expand its power electronics systems business within the Indian market.

Relay Market Segmentation

Relay Market Product Type Outlook

  • Electromechanical

  • Solid State

Relay Market End-user Application Outlook

  • Aerospace, Defense, and Military

  • Automotive

  • Communications

  • Energy and Power

  • Industrial

  • Other End-user Applications

Relay Market Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 9.3 Billion
Market Size 2023 USD 9.93 Billion
Market Size 2032 USD 16.81 Billion
Compound Annual Growth Rate (CAGR) 6.80% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
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 Application, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled TE Connectivity, American Zettler, Churod Electronics, Omron Corporation, Panasonic Corporation, Circuit Interruption Technology, Inc., Fujitsu Limited, Song Chuan Group Company, KEMET Corporation, Phoenix Contact
Key Market Opportunities The rising power demand and substantial investments in smart grid infrastructure.
Key Market Dynamics Increasing need for reliable switching solutions across a range of industries.

Frequently Asked Questions (FAQ) :

The Relay Market size was valued at USD 9.3 Billion in 2022.

The Relay Market is projected to grow at a CAGR of 6.80% during the forecast period, 2023-2032.

North America had the largest share of the global market

The key players in the market are TE Connectivity, American Zettler, Churod Electronics, Omron Corporation, Panasonic Corporation, Circuit Interruption Technology, Inc., Fujitsu Limited, Song Chuan Group Company, KEMET Corporation, Phoenix Contact

The Electromechanical type dominated the market in 2022.

Automotive had the largest share in the global market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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