Relays Market Definition
The relays market consists of sales of relays and related services by entities (organizations, sole traders and partnerships) that produce relays that are used in various applications such as in industrial automation, electronics, automotive, military and aerospace and similar other applications. Relays are electric switches that use electromagnetism to convert small electrical stimuli into larger currents. Relays make and break circuit contact with the help of a signal without any human involvement in order to switch it ON or OFF. They are used mostly to control a high-powered circuit using a low power signal.
Relays Market Size
The global relays market reached a value of nearly $29,265.8 million in 2019, having increased at a compound annual growth rate (CAGR) of 6.0% since 2015. The market is expected to decrease from $29,265.8 million in 2019 to $27,416.7 million in 2020 at a rate of -6.3%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 9.8% from 2021 and reach $34,423.4 million in 2023.
Growth in the historic period resulted from increase in renewable capacity additions, adoption of IEC61850 standard for substation automation, replacement of electromechanical and static relays with numeric relays, favorable government initiatives and economic growth in emerging markets. Factors that negatively affected growth in the historic period were political uncertainties and geopolitical tensions, and lack of investment in grid stability in developing countries.
Going forward, rise in power consumption; implementation of smart power grids; increasing adoption of electric vehicles; and growing adoption of the vehicular safety technology will drive the market for relays. Factors that could hinder the growth of the relays market in the future include volatility in raw material prices, high operating temperatures and COVID-19 outbreak.
Relays Market Drivers
The key drivers of the relays market include:
Implementation Of Smart Power Grids
Developed and developing countries across the world are investing in the construction of smart power grids and this factor is expected to drive the market for relays in the forecast period. Smart grids?are modern electric power grid infrastructure for enhanced efficiency and reliability, and operate through automated control, high-power converters, modern communications infrastructure, sensing and metering technologies, and modern energy management techniques. The scope of relays in an automated power grid is massive because they can help in monitoring transformers and can protect from transformer overload, through-fault and overexcitation, as well as standard protection functions such as differential, overcurrent, and earth faults.i For instance, Western Europe plans to invest $133.7 billion in smart grid infrastructure through 2027, according to a study published by Northeast Group LLC., a smart infrastructure market intelligence firm.ii Such investments are expected to increase the demands for relays in the smart grid market, thus driving the relays market during the period.
Relays Market Restraints
The key restraints on the relays market include:
Volatility In Raw Material Prices
Volatility in raw material prices is expected to limit the growth of the relays market in the forecast period. Copper, steel, iron, nickel and silver are the major raw materials used in manufacturing relays and they constitute around 75% of the total manufacturing costs. Prices of raw materials such as steel are highly volatile and are dependent on several factors such as world economic activity, strength of the US dollar, trade tariffs, and several other political and environmental factors. Steel prices are expected to increase in the near future owing to the adverse effects of the COVID-19 pandemic and supply chain interruptions. Volatile prices will negatively affect the market for relays in the forecast period.
Relays Market Trends
Major trends influencing the relays market include:
Development Of Eco-Efficient Relays
Relay manufacturing companies are increasingly manufacturing eco-efficient relays. For instance, Fujitsu’s eco-efficient latching relay is an alternative to cadmium for improved eco-efficiency and a lower environmental impact. The eco efficient relays use gold-plated silver tin oxide as the contact material instead of cadmium and adopt green measures such as lead free solder so as to confirm to the Restriction of Hazardous Substances (RoHS) directives. These types of relays aim to prevent global warming by using green design
Specialized Relays In Specific Projects
Companies in the relay industry are increasingly investing in specialized relays for specific industries or projects, thus resulting as an emerging trend in the relays market. Industries, such as Solar Energy Systems, have increased demand for specialized relays that can utilize available power and shut off some lines to keep others running. For instance, companies such as Fujitsu, have the product range in relays which are highly recommended to be used in Solar Energy Systems. Fujitsu’s solar relays have two target functions within the solar converter. The DC relays, to switch the DC voltage generated by the solar panel, and the AC relays with big contact gap, to switch the generated electricity to the power grid to provide the necessary safety “circuit-break-function.
Opportunities And Recommendations In The Relays Market
Opportunities – The top opportunities in the relays market segmented by type will arise in the automotive relays market segment, which will gain $2,334.8 million of global annual sales by 2023. The top opportunities in the relays market segmented by application will arise in the others segment, which will gain $2,106.5 million of global annual sales by 2023. The top opportunities in the relays market segmented by voltage will arise in the relays < 60 volts segment, which will gain $3,936.3 million of global annual sales by 2023.The relays market size will gain the most in the China at $1,538.2 million.
Market-trend-based strategies for relays market include investing in in eco-efficient solutions for minimizing the impact on the environment and attaining sustainability, investing in electromagnetic relays to ensure optimum utilization of resources, developing and promoting specialized relays for specific industries, developing multipurpose relays and focusing on mergers and acquisition activities to increase market share by having access to a wider consumer base.
Recommendations – To take advantage of the opportunities, the business research company recommends the relays companies to focus on investing in eco-efficient relays, focus on investing in manufacturing of multipurpose relays, adoption of mergers and acquisitions strategies, focus on investing in electromagnetic relays, expanding in emerging markets, focus on competitive pricing and leveraging social media.
Relays Market Segmentation
The relays market is segmented by type, by application, by voltage, and by geography.?
The relays market can be segmented by type
The automotive relays market was the largest segment of the relays market segmented by type, accounting for 38.9% of the total in 2019. Going forward automotive relays segment is expected to be the fastest growing segment in the relays market, at a CAGR of 4.8% during 2019-2023.
- a. Latching Relay
- b. Solid State Relay
- c. Automotive Relay
- d. Electromechanical Relay
- e. Others
By Application –
The relays market can be segmented by application
The others segment was the largest segment of the relays market segmented by application, accounting for 46.4% of the total in 2019. Going forward, industrial automation segment is expected to be the fastest growing segment in the relays market, at a CAGR of 4.9% during 2019-2023.
- a. Military
- b. Industrial Automation
- c. Electronics
- d. Others
By Voltage –?
The relays market can be segmented by voltage
The relays < 60 volts segment was the largest segment of the relays market segmented by voltage, accounting for 51.3% of the total in 2019. Going forward, it is also expected to be the fastest growing segment in the relays market, at a CAGR of 6.0% during 2019-2023.
- a. Relays < 60 Volts
- b. Relays > 60 Volts
By Geography-?The relays market is segmented into
Asia Pacific was the largest region in the global relays market, accounting for 46.6% of the total in 2019. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the relays market will be Eastern Europe, and Middle East, where growth will be at CAGRs of 9.1% and 8.2% respectively. These will be followed by Africa, and Asia Pacific, where the markets are expected to grow at CAGRs of 6.9% and 4.2% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- South Korea
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Relays Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Siemens AG
- • Schneider Electric
- • TE Connectivity
- • ABB Ltd.
- • Eaton Corporation
- • Toshiba
- • Mitsubishi Electric Corporation
- • Omron Corporation
- • General Electric
- • Fujitsu Ltd.
- • Xiamen Hongfa Electroacoustic Co.,Ltd
- • Shanghai?Hugong?Auto-Electric?Co.,?Ltd.
- • Hitachi, Ltd.
- • Areva T&D?India?Ltd.
- • Alstom SA
- • Song?Chuan?Group
- • Dongguan?Sanyou?Electrical?Appliances?Co.,?Ltd
- • Zhejiang?HKE?Relays?Co.,?Ltd.
- • Ningbo?Forward?Relays?Co.,?Ltd.
- • Audix?Technology
- • Guizhou?Tiani?Electrical?Appliances?Co.
- • DARE Electronics, Inc.
- • Leone Systems
- • Ashida Electronics Pvt. Ltd.
- • Control &Relays Electric Limited
- • Tatsumi Industry
- • Kamigumi CO
- • Nissin Corp.
- • Crydom Corp
- • Panasonic Electric group
- • Crouzet
- • Finder
- • Wieland
- • Relematika
- • S&C Electric Company
- • Powell Industries
- • G&W Electric
- • Abunayyan Holding Company
- • Afcon
- • Matelec Group
- • German Electrical Manufacturing Co.