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The automotive relay market share is expected to increase by USD 3.27 billion from 2021 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.63%.
This automotive relay market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive relay market segmentation by product (PCB relays and plug-in relays) and geography (APAC, Europe, North America, South America, and MEA). The automotive relay market report also offers information on several market vendors, including American Zettler Inc., Delphi Technologies Plc, DENSO Corp., Eaton Corporation Plc , Fujitsu Ltd., Infineon Technologies AG, OMRON Corp., Panasonic Corp., Robert Bosch GmbH, and TE Connectivity Ltd. among others.
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The adoption of PCB relays to enhance fuel efficiency is notably driving the automotive relay market growth, although factors such as the replacement of automotive relays by powered switches may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive relay industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Relay Market Driver
The adoption of PCB relays to enhance fuel efficiency is a major driver fueling the automotive relay market growth. The PCB relays are available in a broad range of single, double, and latching relays and are suitable to be used for multiple applications in vehicles. PCB relays are compact in size and volume as compared to solid-state relays. They have a current switching capacity of up to 200A, and even though they have a wide voltage range, their proven standards ensure that the best quality product is provided to customers. Even though PCB relays are costlier than solid-state relays, customers prefer them, as they can carry higher current, have a larger volume, and are relatively easier to install and replace. Their high-power resistance and the dustproof and waterproof enclosure ensure that they can work efficiently in any extreme condition. The coating present on PCB relays ensures that they are kept clean of moisture. The small and compact size of PCB relays ensures that they save the space present on the PCB and decrease the overall weight of the circuit. As they can carry a high amount of current, they are also equipped with high shock resistance, which ensures that the PCB is not damaged when exposed to extreme conditions. PCB relays to meet the industry standards as they can withstand a lead-free solder reflow process. As they have high insulation resistance, the relays have a long life, making their overall operating cost much lesser. As PCB relays are present in the form of a circuit board, they can be customized to meet the set requirements of customers. This ensures that only the required operations are performed by using a PCB relay. As the size of the relay is optimized, there is a reduction in the overall weight of the relay, which, in turn, decreases the weight of the automotive and makes it more fuel-efficient.
Key Automotive Relay Market Trend
Technological innovation in the global automotive relay market is a major trend driving the automotive relay market growth. The semiconductors/solid-state relays and the numerical digital relays are now being replaced by conventional electromechanical relays. Various thermal management factors, such as heat sink, cooling measures like forced cooling, have been taken care of while designing the solid-state relays. This is making solid-state relays more reliable, safe, and durable. Cost controlling plays a crucial factor in the global automotive relay market, as customers expect the best quality relays at reasonable prices. Relays are primarily made of copper, silver, and other precious metals, which are expensive. Thus, a balance needs to be struck between the quality of the relays and their overall manufacturing cost. The constant effort to decrease the price and ensure that the product is compact and lightweight is a major task for the manufacturers. The innovation in the global automotive relay market is broadly categorized into four areas: Contact resistances of relays: This mainly focuses on the reduction of contact resistance by finding new coatings and materials for the contacts. This is done by constant research into complex metallic alloys and surface coats, which play a significant role in the low power relays where room for contact losses is not present. Reduction in the consumption of coal power: This mainly focuses on the improvement in the magnetic characteristics and polarization of fluxes. It helps in the reduction of power and undue heating. Involves arc management: This involves finding a complex alloy that can withstand repeated arcing with minimum deterioration. These innovations will make the relays more cost-efficient, durable, and improve their overall performance.
Key Automotive Relay Market Challenge
The replacement of automotive relays with powered switches is a major hindrance to the automotive relay market growth. Relays play a significant role in connecting the various components in an automotive and regulating the electric voltage and current between those components to ensure that no product is damaged due to excess current supply. A typical vehicle is equipped with around 20 to 30 relays, as they are used to perform various functionalities. With the latest technological advancements, the powered switch is being used as a replacement for relays. A powered switch is an integrated system, which can perform the task of all the relays combined. The powered switch is an ultra-low ohmic protected high-side switch inbuilt with smart integrated protection functions, which can be used for the automotive industry. A powered switch is designed such that it can drive a high current load ranging from 5A to 40A DC. It also protects the components from overload, over-voltage, short-circuits, excessive temperature, power supply loss, and electrostatic discharge (ESD). Various powered switches, such as PROFET and KIBES, are steadily replacing relays in automotive. Powered switches also have diagnostic features, such as status or current sense or a combination of both. In case of a malfunction, the status feature helps to determine if the powered switch is suffering from excess temperature or overload. These diagnostic features provide the user with precise information about the switches and loads. It offers higher reliability, improved energy efficiency, and extended functionality at lower overall system cost compared with the relays and fuses.
This automotive relay market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.
Technavio categorizes the global automotive relay market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive relay market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive relay market encompasses successful business strategies deployed by the key vendors. The automotive relay market is concentrated and the vendors are deploying growth strategies such as organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive relay market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive relay market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global automotive components and accessories market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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41% of the market's growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for automotive relays in APAC. Market growth in APAC will be faster than the growth of the market in other regions.
The increase in sales of PVs and medium and heavy commercial vehicles (M&HCVs) will facilitate the automotive relay market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020 due to COVID, stringent lockdowns and social distancing regulations led many business owners to shut down their facilities temporarily. Production of vehicles also witnessed a decline throughout the year. This has affected the demand for automotive relays in the region. However, as the pandemic recedes, the recovery of all the key industrial sectors, which witnessed a slump in 2020, will pick up the pace. Moreover, capital spending is expected to grow, which is expected to drive the demand for commercial vehicles. This, in turn, will positively impact the growth of the regional automotive relay market over the forecast period.
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The automotive PCB relays market is experiencing steady growth. This is mainly due to the compact structure of PCB relays and their high switching capacity of up to 200A for a system voltage, which ranges up to 24V. Even though a PCB relay carries high current, it provides increased safety connections and disconnections of vehicle components compared to a plug-in relay. This is pushing the automotive PCB relays market toward growth.
Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the automotive relay market size and actionable market insights on post COVID-19 impact on each segment.
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Automotive Relay Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2019 |
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Forecast period |
2020-2024 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.63% |
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Market growth 2020-2024 |
$ 3.27 billion |
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Market structure |
Concentrated |
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YoY growth (%) |
4.04 |
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Regional analysis |
APAC, Europe, North America, South America, and MEA |
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Performing market contribution |
APAC at 41% |
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Key consumer countries |
US, China, Germany, Japan, and France |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
American Zettler Inc., Delphi Technologies Plc, DENSO Corp., Eaton Corporation Plc , Fujitsu Ltd., Infineon Technologies AG, OMRON Corp., Panasonic Corp., Robert Bosch GmbH, and TE Connectivity Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Product
Customer Landscape
Geographic Landscape
Vendor Landscape
Vendor Analysis
Appendix
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