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The Global Electric Vehicle (EV) Relays Market size is estimated to grow by USD 130.34 billion between 2022 and 2027 accelerating at a CAGR of 44.1%. Market growth is propelled by the long-term cost reduction of solid-state relays, alongside the rising demand for electronics and safety features. The increasing popularity of battery electric vehicles and plug-in hybrid type also contributes to this growth. However, market expansion faces obstacles such as recalls due to faulty relays and associated components, the presence of relay alternatives, and supply-demand imbalances amidst uncertainties across the supply chain.
Relays are switches that allow small current flow circuits to control higher circuits in automotive applications. The most common type of relay used is the electromechanical relay, which has a moving part to connect the contacts in the output component. Another type is the solid-state relay, which uses an electrically powered signal to generate an optical semiconductor signal and has no moving parts. Solid-state relays are expected to dominate the market due to their durability, despite being 45% more expensive than electromechanical relays. They have lower ownership costs over time as they experience less wear and require less service, repair, and replacement. As manufacturers increasingly prioritize durable components, solid-state relays are expected to drive the global market.
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This market report extensively covers market segmentation by Type (PCB and plug-in) and Geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The market share growth by the PCB segment will be significant during the forecast period. PCB relays, available as either electromechanical or solid-state relays, are compact devices that need to be mounted directly on a printed circuit board for power management operations in the control system design of EVs. They offer higher safety connections and disconnections of vehicle components compared to plug-in relays, despite carrying high current.
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The PCB segment showed a gradual increase in the market share of USD 1.99 billion in 2017 and continued to grow by 2021. Major manufacturers such as Panasonic, OMRON, and DENSO offer PCB relays, which can switch up to 200A for a system voltage up to 24V. With the increasing production of battery electric vehicles and plug-ins, there is an increasing demand for high-voltage relays to switch power in wired chargers, onboard chargers, and battery management systems. The growth of the market will be fueled by the increasing adoption of EVs and the high-power switching capabilities of PCB relays.
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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The growth of EV relays is linked to production volumes, which in turn depend on end-user demand. The major customers for EV relays are leading manufacturers such as Nissan Motor, Mitsubishi Motors, and BYD Auto. These manufacturers are located in APAC, where China, Japan, and South Korea dominate EV production and sales. The increasing demand for electric vehicles in the region has led to investments in new EV manufacturing plants and expansions of existing capabilities, which will contribute to market growth in the forecast period.
The market experiences significant growth driven by the increasing emphasis on vehicle safety and environmental concerns, particularly regarding CO2 emissions. With the rising demand for EVs, there is a heightened focus on enhancing safety features to meet stringent standards, such as those set by the Global New Car Assessment Program (GNCAP). Advanced safety features like Anti-lock Braking System (ABS), Electronic Stability Control (ESC), Tyre Pressure Monitoring System (TPMS), Lane Departure Warning System (LDWS), and Vehicle Stability Management are increasingly integrated into EVs, driving the demand for reliable and efficient relays.
Moreover, the transition to EV necessitates robust electrical systems, including relays, to manage DC voltage and ensure passenger comfort systems function seamlessly. Additionally, as EVs become more prevalent, the demand for reliable relay technology grows to support essential functions such as electromagnetism and electrical current management.
Furthermore, as the railway system adopts electric propulsion for trains, there's a parallel demand for electric relays to manage various systems critical for operation, including braking systems, inspection, and maintenance. This trend reflects a broader shift towards electrification in transportation systems, driving the growth of the market.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The global market is being propelled by the increasing integration of relays in various applications within EVs, encompassing both general and specialized functions. With the automotive industry transitioning from mechanical to electronic components, relays are finding expanded usage across systems such as electric power steering, power seats, climate control, and safety features like ABS, EBD, and airbags. Moreover, the proliferation of battery management and charging systems further contributes to the demand for relays in EVs. This includes onboard chargers, bi-directional chargers, and wireless charging solutions, which are anticipated to witness heightened adoption rates in the foreseeable future. As EVs continue to evolve with advanced electronic components and charging infrastructure, the demand for relays is poised to experience significant growth globally.
Consolidation of the relay market is a primary trend in the market. Market consolidation involves mergers, acquisitions, partnerships, and collaborations that can bring various benefits to organizations, including increased revenue, wider geographic reach, expanded product lines, and resource sharing. The global market witnessed consolidation through acquisitions between 2009-2011, but these had a limited impact on the market. However, the rise of EVs has increased demand for high-voltage relay applications, leading to further consolidation among vendors to strengthen their position in this market. A few examples of acquisitions by relay manufacturers are mentioned below:
Thus, consolidations through acquisitions are expected to have a positive impact on the global market in the years to come.
Increasing manufacturing costs is one the major challenge that hampers the growth of the market. Major automakers such as Volvo, Jaguar Land Rover, and BMW have entered the market, increasing competition and driving innovation. However, the complex nature of advanced features has raised manufacturing costs. To mitigate these costs, car manufacturers may pass them onto consumers or share them with upstream suppliers in the event of a recall. Defective relays have led to costly recalls for manufacturers and suppliers, negatively impacting revenue margins. Examples of such recalls include Hyundai Ioniq Hybrid, Nissan LEAF, and Kia Niro Hybrid. These recalls present a challenge to the global market market during the forecast period.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Electric Vehicle Relays Market. Some of the major players in the automotive relay market include:
Bosch- The company offers electric vehicle relays such as micro relays. Also, the company focuses on powertrain products and solutions, systems for active and passive driving safety, vehicle-to-vehicle and vehicle-to-infrastructure communication, services for the automotive aftermarket, steering systems for passenger cars and commercial vehicles, and connected mobility services.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
As the world shifts towards sustainable transportation solutions, the electric vehicle (EV) industry is experiencing a surge in innovation and demand. Key to the operation of these vehicles are electric vehicle relays, which play a crucial role in various systems and components. From passenger comfort features to power distribution, EV relays are at the heart of modern automotive technology.
One of the primary drivers of the EV relay market is the increasing adoption of electric vehicles globally. Governments and consumers alike are recognizing the environmental benefits of EVs, leading to significant incentives and initiatives to accelerate their uptake. This surge in demand has propelled the development of advanced relay systems capable of handling the complex power flow required in electric vehicles.
The evolution of EV technology has also led to advancements in relay design and functionality. Miniaturization of relays has become essential to accommodate the compact nature of electric vehicle components while maintaining high contact capability. Additionally, developments in high-voltage direct current (HVDC) relays and battery disconnect units (BDUs) ensure efficient power management and safety within EV systems. Passenger comfort is another area where EV relays play a vital role. Consolation systems such as heating, lighting, and electronic features rely on relays to function effectively. These relays not only ensure passenger comfort but also contribute to the aesthetic look and appeal of electric vehicles.
Moreover, as the transportation sector seeks to reduce its environmental impact, the shift from gasoline-powered vehicles to electric ones becomes increasingly imperative. Electric vehicles not only lower carbon emissions but also offer the potential for significant reductions in the carbon footprint of transportation systems, particularly when powered by renewable energy sources.
In addition to passenger vehicles, the application of EV technology extends to buses and other commercial vehicles. EV relays are integral to the operation of these vehicles, providing power distribution and control for various systems. Governments and municipalities are incentivizing the adoption of electric buses to further reduce emissions and improve air quality in urban areas. End-users, including original equipment manufacturers (OEMs) and consumers, are driving demand for advanced relay systems with enhanced capabilities. Sealed capsules, dustproof, and waterproof designs ensure the reliability and durability of relays in diverse operating conditions, including those encountered in off-road or harsh environments.
Furthermore, advancements in materials such as steel and the design of components like flanges and rail wheels contribute to the overall performance and longevity of electric vehicles. Forces and stresses exerted on these components are carefully managed through engineering and design, ensuring the safety and efficiency of EV systems.
Hydrogen fuel cell vehicles represent another frontier in the realm of sustainable transportation, where relays play a critical role in power distribution and control. As these vehicles gain traction, the demand for specialized relay systems capable of handling hydrogen gas and other unique requirements is expected to grow.
In conclusion, the electric vehicle relay market is witnessing rapid growth and innovation driven by the increasing adoption of electric vehicles, advancements in technology, and the urgent need to mitigate the environmental impact of transportation. As the industry continues to evolve, electric vehicle relays will remain at the forefront of innovation, enabling the transition towards a more sustainable future.
Electric Vehicle Relays Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 44.1% |
Market growth 2023-2027 |
USD 130.39 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
41.24 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, France, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., American Zettler Inc., Aptiv, BorgWarner Inc., Denso Corp., Fujitsu Ltd., Good Sky Electric Co. Ltd., HELLA GmbH & 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., Xiamen Hongfa Electroacoustic, and YM Tech Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, 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 |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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