Automotive Relay Market worth over $18bn by 2024
Published Date: September 27, 2017 Authors: Preeti Wadhwani, Shubhangi Yadav
Automotive Relay Market size is estimated to cross USD 18 billion by 2024; according to a new research report by Global Market Insights, Inc.
Continuously rising demand for innovative products along with growing automobile production is boosting the market growth. Industry gains are credited to advancements in miniaturization and high contact capability development to address limitations during its employment in the vehicles’ ECU. Ongoing developments in PCBs have led to replacement of complex and traditional relays. Technological advancements also support in weight reduction and ease of installation.
Government norms to enhance safety and security will generate revenue for the automotive relay market. Mandating on the installation of automobile safety systems is anticipated to fuel the industry size. Several regulatory bodies such as National Highway Traffic Safety Administration (NHTSA) in the U.S. has addressed on obligatory installation of these security devices in the vehicles.
European Directives regarding incorporation of road safety features into automobiles and fuel efficiency standards will further gain advantage in the industry revenue generation. Additional number of relays are required for ensuring total road safety and is likely to drive the market size.
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Advent of nascence technology in the automobile industry may introduce advanced electronic device in the next few years. This product improves the intelligent transportation systems, automobile safety, and space consumption. Innovations will aid in improving quality, flexibility, production time tables, functionality, and efficiency. Developments in Internet of Things and semiconductors will further drive the market demand.
Browse key industry insights spread across 365 pages with 360 market data tables & 9 figures & charts from the report, “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 (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), Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024” in detail along with the table of contents:
In 2016, convenience systems hold the highest market share of over 34% in terms of unit shipments and will continue its dominance till 2024. The modern HVAC systems in vehicles are equipped with numerous switches for the ease of driver.
Electronic power steering is one of the convenience systems that is witnessing high adoption owing to its specifications such as large switching capacity, space saving, compact size, and high level of compatibility. Due to these notable features, the product acceptance is also high in other convenience applications including infotainment, interior lights, and keyless entry systems, supporting the automotive relay market size.
Powertrain systems are anticipated to account for approximately 23.5% market revenue share through 2024 owing to high usage of plug-in relays in these systems. Plug-in relays are preferred in powertrain systems due to its features such as ability to sustain in elevated temperatures, fluctuations, and vibrations. The powertrain systems are susceptible to frequent voltage fluctuations along with high surge loads, thus require high switching capacity, and escalating the industry demand.
North America automotive relay market valued at over USD 2 billion in 2016 and is expected to exhibit 5% CAGR from 2017 to 2024 driven by matured automobile industry in the region. Moreover, the presence of well-established players will strengthen the regional business position over the next eight years. Rising product aftermarket demand from countries like Mexico will further induce immense potential to the market growth.
Asia Pacific region is anticipated to dominate the market during the forecast timeframe. This growth is attributed to increased vehicle manufacturing across the region, especially in emerging economies including India, China, and Indonesia. China is a substantial contributor in the regional industry revenue generation. Increasing automobile production coupled with rising domestic demand will propel the country’s share over the projected time span.
ABB, TE Connectivity, Cynergy3 Components Corporation, Denso Corporation, Fujitsu, Eaton Corporation, Omron Corporation, Littelfuse, and NEC Corporation are among the prominent players in the automotive relay market. Other notable players include Idec Corporation, Panasonic Corporation, Relpol, Sharp Corporation, Salzer Electronics, Microsemi Corporation, and Rectifier Corporation.
Industry players witness intense competition owing to design expertise, innovation, and strong distribution channels. Players focus on product enhancement that will lead to efficient automobile functioning and improves driver experience. Many automakers have substantially improved fuel efficiency and reduced carbon footprint as a corporate priority. Numerous manufacturers are accredited with standards such as ISO/TS16949, that covers total quality management system and addresses cost performance, along with ongoing improvements.