Electric Vehicle Relays Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, France, UK - Size and Forecast 2024-2028

Electric Vehicle Relays Market Size 2024-2028

The electric vehicle relays market size is forecast to increase by USD 377.32 billion at a CAGR of 63.49% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing adoption of electric transportation, particularly in the bus sector, as a means to reduce carbon footprint. Governments and organizations are offering incentives to Original Equipment Manufacturers (OEMs) to produce more auto parts for EVs and phase out gasoline-powered vehicles, leading to a surge in demand for EV components such as relays. In contrast, solid-state relays operate using an electrically powered signal to generate an optical semiconductor signal, eliminating the need for any physically moving parts. Solid-state relays are becoming increasingly popular due to their cost-effectiveness in the long run. However, the market faces challenges such as the recall of electric vehicles over defective relays and related components, which can negatively impact the power flow and carbon emissions of these vehicles. Consolidation of the relay market is also a trend, with major players aiming to increase their market share and improve product offerings. Lamps & filter capacitors are essential components in EVs, and the reliability and efficiency of these components directly impact the overall performance of the vehicle.

What will be the Electric Vehicle Relays Market Size During the Forecast Period?

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• The market is witnessing significant growth due to the increasing adoption of EVs to reduce CO2 emissions and ensure vehicle safety. Advanced safety features such as vehicle stability management, 3-point seatbelts, and electromagnetism-based systems are driving the demand for automotive relays in EVs. These relays are essential for managing DC voltage in passenger consolation systems, electrical current flow, and electromagnetic forces in various vehicle components.
• Moreover, in the railway system, relays play a crucial role in managing forces and stresses on flanges, rail wheels, axles, and braking systems. They are used for inspection and maintenance purposes to ensure the safe and efficient operation of the railway system. The vehicle type, whether it is a passenger EV or a railway system, determines the specifications and requirements of the automotive relays. The electrical current flow through these relays is critical for the proper functioning of various vehicle systems, making them an indispensable component in the transportation industry.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • PCB
  • Plug-in
• Vehicle Type
  • PLDVs
  • LCVs
  • Buses and trucks
• Geography
  • APAC
    • China
  • Europe
    • Germany
    • UK
    • France
  • North America
    • US
  • South America
  • Middle East and Africa

By Type Insights

• The PCB segment is estimated to witness significant growth during the forecast period.

Electric vehicles (EVs), including battery electric vehicles (BEVs) and hybrid military electric vehicles (HEVs), are increasingly gaining popularity due to the global push towards reducing carbon emissions. The adoption of EVs necessitates the use of various electrical components, including relays. HVDC relays and PCB relays are crucial for managing electrical current in EV systems. PCB relays are compact devices that are mounted directly on the printed circuit board for power management operations in control system designs. These relays are essential in EV applications for both body control electronics and powertrain electronics. The PCB relays segment is anticipated to grow steadily during the forecast period due to their compact structure and high switching capacity, up to 200A for a system voltage that can range up to 24V.

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The PCB segment was valued at USD 2.58 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 55% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Electric vehicle relays play a crucial role in the electrical infrastructure of electric and hybrid vehicles, managing the flow of electrical current to motors, pumps, and other components. The demand for electric vehicle relays is directly linked to the production volumes of electric vehicles, with OEMs such as Nissan Motor Co. Ltd., Mitsubishi Motors Corp., and BYD Auto being significant buyers. APAC, particularly China, Japan, and South Korea, leads in electric vehicle manufacturing and sales, driven by increasing consumer demand. Consequently, investments in new and expanded manufacturing facilities continue to rise in the region to meet the growing demand for battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). In this context, HVDC relays, PCB relays, and plug-in relays are essential components in the electric vehicle value chain.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Electric Vehicle Relays Market?

Solid-state relays to become low-cost in the long run is the key driver of the market.

• Electric Vehicle (EV) relays are essential components in automotive applications, particularly in managing various systems that prioritize CO2 emissions reduction and vehicle safety. Advanced safety features, such as Vehicle Stability Management (VSM), 3-point seatbelts, and passenger consolation systems, rely on these relays to function effectively. Electromechanical relays, the most common type, utilize a physically moving part to connect contacts within the output component. As solid-state relays offer advantages like faster response times and higher reliability, they are increasingly being adopted as alternatives to electromechanical relays.
• Moreover, this transition is expected to significantly drive the market's growth in terms of value. DC voltage is another critical factor influencing the market's dynamics, as electric vehicles primarily operate on DC power. Overall, the market is poised for significant growth due to the increasing demand for advanced safety features and the shift towards more eco-friendly transportation solutions.

What are the market trends shaping the Electric Vehicle Relays Market?

Consolidation of relay market is the upcoming trend in the market.

• The market is witnessing significant growth due to the increasing adoption of electric vehicles to reduce CO2 emissions and enhance vehicle safety. Advanced safety features such as Vehicle Stability Management (VSM), 3-point seatbelts, and passenger consolation systems require the use of automotive relays to function efficiently. These relays operate on DC voltage and are essential for the proper functioning of various electrical systems in EVs. Market consolidation through acquisitions has been a notable trend in the global market. For instance, American Zettler Inc.'s acquisition of Greenwich Electronics' relay business in 2009 and Hella GmbH and Co.
• Moreover, KGaA's acquisition of Xiamen Hongfa Electroacoustic in the same year expanded their product offerings and geographic reach. These strategic moves have contributed to the growth and development of the market. Electromagnetism plays a crucial role in the functioning of automotive relays. The increasing demand for electric vehicles and the integration of advanced safety features in them are expected to drive the growth of the market in the coming years. The market is expected to witness significant growth due to the increasing focus on reducing CO2 emissions and enhancing vehicle safety.

What challenges does Electric Vehicle Relays Market face during the growth?

Recall of electric vehicles over defective relays and related components is a key challenge affecting the market growth.

• Electric vehicles (EVs) have gained significant traction in the automotive industry due to their environmental benefits in reducing CO2 emissions. Prominent manufacturers, such as Volvo Cars, Jaguar Land Rover Automotive PLC (Jaguar Land Rover), and BMW, have integrated EVs into their product offerings to meet growing consumer demand and stay competitive. Advanced safety features, including Vehicle Stability Management and 3-point seatbelts, are increasingly being integrated into EVs to enhance vehicle safety. Manufacturing electric vehicles involves the use of automotive relays and DC voltage systems for passenger consolation systems and other electromagnetic applications. The complexity of designing and manufacturing EVs has led to increased costs, which are being offset by cost savings from procurement and partially transferred to end-users.
• In addition, For instance, Toyota Kirloskar Motor Pvt. Ltd. (Toyota Kirloskar Motor) raised car prices in 2019 due to rising manufacturing costs. Moreover, as EVs continue to evolve, they are becoming more advanced, with features like Vehicle Stability Management and passenger consolation systems becoming standard. These advancements have made the manufacturing process more intricate, leading to higher costs. However, the benefits of reduced CO2 emissions and improved safety features are driving the growth of the electric vehicle market.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ABB Ltd.
• American Zettler Inc.
• Aptiv Plc
• BorgWarner Inc.
• DENSO Corp.
• Fujitsu Ltd.
• Good Sky Electric Co. Ltd.
• HELLA GmbH and Co. KGaA
• IDEC Corp.
• Littelfuse Inc.
• OMRON Corp.
• Panasonic Holdings Corp.
• Robert Bosch GmbH
• Schneider Electric SE
• Sensata Technologies Inc.
• Shanghai Hu Gong Auto electric
• Siemens AG
• TE Connectivity Ltd.
• HONGFA
• YM Tech Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market is witnessing significant growth due to the increasing adoption of electric vehicles (EVs), including battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs. The miniaturization of relays is a key trend in the market, as the demand for compact and lightweight components in EVs grows. DC voltage is a crucial factor in the market, as these vehicles require specialized relays to manage power flow from the battery to the motors and pumps. Advanced safety features such as vehicle stability management, 3-point seatbelts, and airbags are becoming standard in EVs, driving the demand for automotive relays in passenger and commercial vehicles.

Moreover, the railway system also utilizes EV relays in trains for various applications, including heating, lamps, and braking systems. Environmental impact is a significant factor in the EV market, as EVs produce fewer CO2 emissions compared to gasoline-powered vehicles. Governments and organizations are offering incentives to encourage EV adoption, further boosting the market. The market caters to various vehicle types, including passenger and commercial vehicles, buses, and trains. The market comprises HVDC relays, PCB relays, plug-in relays, and others. These relays are used to manage electrical current and ensure the proper functioning of various systems in EVs, such as motors and pumps, lighting, and heating.

In addition, the market is expected to grow due to the increasing demand for EVs and the need for advanced electrical components to support their complex systems. The market is subjected to various forces and stresses during vehicle operation, including those from the rail wheels and axle. Relays must be designed to be durable and resilient to withstand these conditions, as well as be dustproof and waterproof to ensure reliable performance in various environments. The spending capacity of consumers and the availability of advanced features are also important factors influencing the market.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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