Automotive Relay Market Size By Product (PCB Relay, Plug-in Relay), By Application (Powertrain Systems, Body & Chassis, Convenience, Safety & Security, Driver Information) Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: Sep 2017 | Report ID: GMI619 | Authors: Preeti Wadhwani, Shubhangi Yadav
Automotive Relay Market size surpassed USD 13 billion in 2016 and is projected to grow at over 4% CAGR between 2017 and 2024. High-power requirement for heavy equipment that operates in harsh environment will escalate the penetration of automotive relays.
Desire to possess lighter, faster, less energy consuming, smaller, and devices with enhanced functionality makes the users more productive in designing the vehicles. Rising interest in clean energy, electrification of auxiliary loads, and need to meet energy efficiency standards will induce immense potential to the automotive relay market growth.
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Highly customized, technology driven, and integrated nature of these devices has forced the manufacturers to invest heavily in certification and ensure proper functioning of the system they are embedded in. Industry penetration is further strengthening owing to advancements in vehicles such as connected car, autonomous driving, and vehicle electrification. Advancements in premium cars involves development of highly customized tools and specialized expertise.
Various government bodies have taken favorable steps to curb the number of road fatalities by incorporating safety products in the vehicles. For instance, Federal safety standards are written in terms of minimum safety performance requirements for motor vehicles and products. Government funding across world will further fuel the industry growth.
Products used to ensure passenger safety includes air bags, backup sensing system, energy absorbing steering system, seat belts, heads up display, head restraints, and passenger sensing system. Relays are used to turn these devices on or off.
|Base Year:||2016||Market Size in 2016:||13 Billion (USD)|
|Historical Data for:||2013 to 2016||Forecast Period:||2017 to 2024|
|Forecast Period 2017 to 2024 CAGR:||4%||2024 Value Projection:||14 Billion (USD)|
|Pages:||365||Tables, Charts & Figures:||369|
|Geographies covered (25):||U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Russia, Poland, Switzerland, Netherlands, China, India, Japan, South Korea, Vietnam, Australia, Thailand, Brazil, Argentina, Egypt, Iran, South Africa, Turkey|
|Segments covered:||Product, Application and Region|
|Companies covered (33):||ABB, American Zettler Inc, Beta Electric Industry Co. Ltd., Coto Technology, Inc., Crydom Inc., Cynergy, Components Corporation, Daesung Electric, Deltrol Controls, Denso Corporation, Eaton Corporation, Fujitsu, Good Sky Electric Co. Ltd., Guardian Electric Manufacturing Company, Idec Corporation, International Rectifier Corporation, Littelfuse, Inc., Megatone Electronics Corp., Microsemi Corp., Naidian Group, NEC Corporation, Nippon Aleph Corporation, OEN India, Omron Corporation, Panasonic Corporation, Relpol S.A., Salzer Electronics, Sanyou Relays, Sharp corporation, TE Connectivity, Teledyne Relays, TianBo Relay, Vishay Intertechnology, Weidmuller Interface|
|Pitfalls & Challenges:||
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Market by Product
PCB relays are predicted to exhibit highest market revenue share and will register 5% growth through 2024 owing to rising investments for continuous development and innovation of the products possessing the capability to carry higher current loads.
Additionally, miniaturized size helps in saving considerable space in the automobile junction box. Major application areas of these products are power steering, sunroof, power windows, ABS, cruise control, and doors. Government initiatives for adoption of electric vehicles is likely to further propel the automotive relay market revenue.
Plug-in relays in the market were estimated at USD 4 billion in 2016. These relays are installed in applications where the requirement to sustain high temperatures, voltage fluctuations, and extreme vibrations arise, for instance, the powertrain systems. Multiple relays are deployed in engine compartment due to its ability to function properly in varying temperatures and moisture. These products will witness considerable demand.
Market by Application
Driver information application segment is anticipated to witness a demand of more than 300 million units by 2024. The growth is attributed to emergence of advanced technologies including weather & traffic information, GPS, location, and navigation services in vehicles.
Relay usage in convenience application is estimated to record around 5% growth during the next few years propelled by increasing demand from these systems such as electronic power steering, mirror control, seat control, communication systems, keyless entry systems, sunroof control, and infotainments systems.
High implementation of these products in safety and security systems will result in increased production. Mandatory installation of safety devices such as theft protection equipment, defogging systems, power windows, air bags, and windshield wiping systems is likely to propel the market growth.
Smartphone proliferation coupled with increasing communication speeds is expected to further bolster the adoption of these systems, which in turn is expected to increase automotive relay installation.
Market by Region
Europe is poised to account for more than 20% market share through 2024 due to stringent regulations pertaining to driver safety. Well-established business has strengthened the product penetration across the region. Rising implementation of the product in safety and security is gaining prominence which will drive the regional growth.
Asia pacific automotive relay market is expected to register a growth of over 4.5% during the forecast period impelled by rising awareness of safety and security in the vehicle. Emergence of various market participants in developing economies such as China and India will strengthen the business. Moreover, rising investments of the OEM’s in these countries and favorable regulatory landscape will fuel the regional demand.
For instance, Made in China 2025 initiative by Chinese government addresses usage of home build products. This leads various auto makers in the country to focus on building new manufacturing units that will increase the production in the country, further escalating the industry size. Increasing infotainment, communication, and telematics applications will also fuel the regional growth.
Competitive Market Share
Automotive relay industry players include Denso, Eaton, Fujitsu, ABB Ltd., Idec Corporation, Littelfuse Inc., TE Connectivity, and Omron Corporation. Other notable players include Sharp Corporation, NEC Corporation, Nippon-Aleph, and Daesung Electric.
The industry participants focus on alliances and strategic partnerships for strengthening their foothold. They are engaged in operational improvement, driven by cost reduction initiatives and capturing mergers and acquisitions synergies.
For instance, in March 2016, Littelfuse acquired circuit protection business of TE Connectivity by investment of USD 348 million. The company’s acquisition increased its presence in Japan and strengthened the product portfolio by expanding its business in auto electronics. Later in that year, the company acquired Menber headquartered in Italy and specializes in design, manufacturing, and selling of vehicle components.
The automotive relay market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in million units and revenue in USD million from 2012 to 2024, for the following segments:
- PCB Relay
- Plug-in Relay
- Powertrain systems
- Body and chassis
- Safety & Security
- Driver information
The above information is provided on a regional and country basis for the following:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- South Africa
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