The automotive relay market is projected to grow from USD 12.2 billion in 2022 to USD 15.5 billion by 2027, at a CAGR of 5.0% for the same period. The rapid growth of the electric vehicles and the need for advanced electronic systems for various features is expected to drive the global automotive relay market.
The automotive relays, based on the type of relays are broadly segmented into PCB relay, plug-in- relay, high voltage relay, protective relay, signal relay, and time relay. Relays for automotive applications are used to enable a low ampere circuit to switch a higher ampere circuit on or off. Some of the basic applications of automotive relays included the door lock, lighting and others. However, with the increasing demand for more premium, comfort, and safety features in the vehicles, has resulted in increased number of electronic components and relays per vehicle. Furthermore, each applications demands particular type of relays for its proper functioning. The industry players focus on technological advancements in their vehicles has resulted in the incorporation of a greater number of PCB relays. Also, features of PCB relays such as compact size helps save space in the automobile junction box, making them a favorable choice over plug-in relays. For these reasons, the PCB relays are predicted to have the largest market in the automotive relay market.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=13970338
Efforts to reduce emissions and constantly increasing crude oil prices in the global market have shifted the global OEMs and regional authorities focus on green technologies. This resulted in the exponential growth of electric and hybrid vehicles in last 3-4 years in Europe, US, and certain markets of Asia Pacific. Asia Pacific and Europe held the largest share with more than 97% for 2021 in which some Asian countries such China, Japan, South Korea, and European countries mainly drive the EV sales in the region. These vehicles are installed with batteries, traction motors, and other power electronic modules which require high a higher current ranging from ~100A to 200A. These relays can be used for battery junction box, start stop system and others. The number of high voltage relays used in circuits of electric and hybrid vehicles may remain the same, but the current rating would change. Additionally, growing R&D efforts to develop cars with high voltage battery and fast charging capabilities will further boost the demand for high voltage relay for this vehicle segment. In line with this, relay manufacturers such as Fujitsu, Panasonic Corporation etc. are investing in R&D to offer more efficient relays to support vehicle electrification. This would prompt other relay suppliers to work towards development of high power efficient relay and reap benefits in the years to come
The demand for increased safety and comfort features in automobiles has greatly increased in recent years. This demand for better safety and comfort features has led automakers to offer advanced technologies and features in their vehicles. This has increased the usage of relays in such electronic systems. For instance, incorporating advanced driving assistance systems (ADAS) has also increased the number of electronic components in vehicles. In addition, electromechanical relays have been replaced with electronic relays that are compact and efficient.
In recent years, Asia Pacific has emerged as an automotive hub and has witnessed a tremendous increase in vehicle production and sales. China has emerged as the largest producer and consumer of automobiles across the globe. Japan and South Korea have a well-established automotive industry. The demand for budget cars is maximum in developing countries of China, India, Indonesia, and Thailand. The relays are installed for some basic safety and comfort features such as ABS, air conditioning, head lamp, tail lamp, cabin heater, EPS, and engine module among others in economy cars. On the other hand, the increasing per capita income leads to improved lifestyle and purchasing power, migration of youth population to urban areas and consumers are demanding more safety and advanced features in vehicles would prompt demand of medium and premium range cars. These cars are installed with higher number of electronics and relays and are expected to grow at a similar rate which will drive relays market for passenger vehicles segment. Further, heavy commercial vehicles segment has also show considerable growth in recent years and expected to remain constant during the forecast period as well. Also, China, South Korea, and Japan are expected to make stringent regulation for vehicle and road safety and installation of ADAS in vehicles. Thus, the market of relay for applications like lighting, air conditioning systems, car trunk, and horn, powered seats, electronic power steering and some ADAS features would grow in the region across all vehicle segments
Key Market Players & Start-ups
The automotive relay market is led by globally established players such as TE Connectivity (Switzerland), Omron Corporation (Japan), Panasonic Corporation (Japan), Hongfa Technologies Co. (China), and Fujitsu Component Limited (Japan).
Request Free Sample Report @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=13970338