HVAC Relay Market size is slated to grow at a considerable pace in the coming years driven by its increasing demand across construction, automotive, healthcare, and other industries. A surge in investment and expansion in non-residential construction is expected to boost the demand for HVAC systems and indoor air quality management solutions, supporting the market progression over 2021-2027.
The escalating trend of the green building concept worldwide, due to the implementation of stringent government regulations and policies would have a potential impact on the global HVAC relay market through the coming years. These buildings demand more effective energy management systems thus enunciating the need for smart HVAC systems which are being largely deployed to augment the efficiency of the buildings, thereby saving significant amount of money.
Ongoing R&D activities regarding HVAC systems in the construction industry are as well likely to stimulate the growth curve for HVAC relay market share in the ensuing years. For instance, in a 2021 study led by researchers from the Harvard TH Chan School of Public Health it was revealed that the deployment of HVAC systems with effective filtration can help protect the building occupants from negative impacts of carbon dioxide and fine particulate matter.
An upsurge in the technological developments in HVAC systems across various industries would further bolster the market progression through 2027. Citing an example, Nomad GO has recently announced using AI-enabled intelligent vision sensor, IMX500 by Sony Semiconductor, in HVAC systems to reduce energy use by 30%.
However, the high installation and maintenance costs of HVAC systems is expected to cause hinderance to the global HVAC relay market value over the analysis period.
Based on the type, demand for hybrid HVAC relays is rising worldwide. These relays combine solid-state and mechanical technologies to deliver the best experience for the customers in different industries. These relays also make it easier to comply with the latest legislations for energy-using devices. Hybrid relays also combine the best features of electromechanical relays to offer minimal contacts resistance and high speed.
In terms of application, HVAC relay market is touted to observe notable growth from the automotive application segment. This growth is expected to come from the rising demand for electric vehicles worldwide. As of 2019, electric vehicles accounted for 2.6% of global car sales and nearly 1% of global car stock. With the performance of EVs depending solely on battery life, HVAC systems deployed in EVs are estimated to demonstrate high energy efficiency. Various OEMs in the industry are relentlessly working towards the installation of HVAC systems in EVs, impelling the market demand through the coming years.
Regionally, North America HVAC relay market would record remunerative growth over the forecast period, driven by the rising demand for energy-efficient residential as well as commercial buildings. In addition, the region is witnessing a huge demand for electric vehicles from United States, Canada, and other countries, supporting the development of the market.
Some of the prominent companies operating in the global HVAC relay industry are Siemens AG, Control & Switchgear Electric Limited, General Electric, TE Connectivity Limited, ABB Ltd., Eaton Corporation plc, Mitsubishi (Mitsubishi Group, Renault–Nissan–Mitsubishi Alliance), and more.
These industry players have been taking up significant measures like mergers and acquisitions, partnerships, and product developments to gain a competitive edge in the market.
The outbreak of the global COVID-19 pandemic has severely impacted the construction industry. This is because most of the construction activities around the world were paused due to the lack of workforce and imposition of stringent lockdown measures. Besides, the economic slowdown caused by the pandemic has led to a significant fall in the demand for automobiles, negatively impacting the market growth.