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The industrial relays market size is estimated to grow at a CAGR of 6.39% between 2022 and 2027. The market size is forecast to increase by USD 1,401.63 million. The growth of the market depends on several factors such as the increasing adoption of programmable logic controllers (PLCs) in industries, enhanced reliability and durability of industrial relays, and the increasing importance of smart grid systems. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by product (electromechanical relays, solid-state relays, hybrid relays, reed relays, and general-purpose relays), end-user (process industries and discrete industries), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Industrial Relays Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Manufacturers are developing industrial relays with longer lifespans to reduce the need for frequent replacement and maintenance. These long-life relays provide long service life and minimize disruption to industrial processes. Relays are designed with increased resistance to factors such as dust, moisture, chemicals, and electromagnetic interference (EMI) to ensure continued operation in demanding environments.
Therefore, the increased reliability and durability of industrial relays coincide with the increasing demand for uninterrupted, efficient, and safe industrial processes. The industry is focused on minimizing downtime and improving business continuity, which is likely to lead to an increase in demand for industrial relays. These factors will drive the growth of the market during the forecast period.
Industry 4.0 increases the need for intelligent relays that can communicate and exchange data with other components of the industrial automation ecosystem. Smart relays are essential for real-time monitoring and control of processes. Industrial relays are now integrated into Internet of Things (IoT) platforms, allowing for remote monitoring and control. This integration increases the efficiency and flexibility of industrial processes and facilitates the implementation of digitalized relay solutions.
Additionally, Industry 4.0 will significantly increase the automation of industrial processes. Industrial relays play a central role in this automation by controlling machines, sensors, actuators, and other components involved in the automation process. Digitalized industrial relays can contribute to energy-efficient operations by optimizing power distribution and reducing energy waste in automation processes. Therefore, the emergence of digitalization and Industry 4.0 will drive the growth of the market during the forecast period.
Solid-state triac devices can be used to disrupt current flow in synchronization with the AC waveform. A triac is a three-terminal solid-state semiconductor device that allows alternating current to flow through two terminals as long as the third terminal (trigger) is powered. Semiconductor triac devices ensure that circuit interruptions only occur in unpowered situations, eliminating the risk of high-voltage switching transients.
Moreover, solid-state triac devices have the potential to replace industrial relays in safety functions in various industries in the future. This disruption is expected to reduce the use of industrial relays in the discrete industry in the future. The emergence of semiconductor triac devices will have a negative impact on the growth of the global industrial relay market during the forecast period.
The electromechanical relays segment will account for a major share of the market's growth during the forecast period. Electromechanical relays support a wide range of signal characteristics, from low voltage/current to high voltage/current, and frequencies from DC to GHz. This means that they can always find an electromechanical relay whose signal characteristics correspond to the specific system requirements. This is the reason why electromechanical relays have a high market share in the global industrial relays market.
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The electromechanical relays segment was valued at USD 1,234.05 million in 2017. Electromechanical relays have a shorter mechanical life than other types of relays. Although advances in technology have extended the mechanical life of relays, electromechanical relays do not have as much operational capability as comparable reed relays. Additionally, their robustness and ability to operate at signal levels in excess of their rated values ??make electromechanical relays a superior choice over other relays in high-performance applications. The prevalence of electromechanical relays in the industry is expected to drive the growth of the electromagnetic segment and the growth of the market during the forecast period.
Based on end-users, the market has been segmented into process industries and discrete industries. The process industries?segment will account for the largest share of this segment. In the food and beverage industry, the number of switching cycles in food and beverage equipment is of great importance, and a reliable switching solution that guarantees maintenance-free operation can only be guaranteed by relays, especially solid-state relays. In addition, the power industry requires relays that detect faults in electrical circuits and significantly reduce damage to personnel and equipment. Demand for electricity is rapidly increasing due to increasing urbanization and increased use of electronic devices. In addition, increasing industrialization in various regions is increasing the demand for electricity. Power plant restructuring and establishment of new power plants are expected to increase the adoption of industrial relays in the process industry segment, accelerating the growth of the market during the forecast period.
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APAC is estimated to contribute 52% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The power industry in the APAC region is expected to be driven by increased demand for electricity due to increased urbanization in countries such as China and India. APAC's food and beverage industry is driven by the region's large population. APAC's electronics and semiconductor industry is mainly dominated by players from China, Taiwan, and Japan.
Moreover, China, India, and Japan are expected to be the top three countries in the industrial relay market in APAC. The growth rate of the APAC industrial relay market is expected to accelerate year-on-year. Continuous use of industrial relays in both process and discrete industries to protect circuits from overloads and short circuits is expected to accelerate YoY growth in the APAC industrial relays market during the forecast period.
The COVID-19 outbreak in 2020 negatively affected the growth of the industrial relays market in the APAC region. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities in the end-user industries. Therefore, increasing activities in end-user segments, such as the automotive, electronics, and semiconductor industries, will raise the growth of the industrial relays market in the region during the forecast period.
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 market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Broadcom Inc., Coto Technology, Eaton Corp. Plc, Electroswitch Power Switches and Relays, Fujitsu Ltd., General Electric Co., IMO Precision Controls Ltd., Littelfuse Inc., Nissin Electric Co. Ltd., OMRON Corp., Panasonic Holdings Corp., Phoenix Contact GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, TE Connectivity Ltd., Teledyne Technologies Inc., WEG Equipamentos Eletricos S.A., and Standex International Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial relays market 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.
Industrial Relays Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.39% |
Market growth 2023-2027 |
USD 1,401.63 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.55 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Broadcom Inc., Coto Technology, Eaton Corp. Plc, Electroswitch Power Switches and Relays, Fujitsu Ltd., General Electric Co., IMO Precision Controls Ltd., Littelfuse Inc., Nissin Electric Co. Ltd., OMRON Corp., Panasonic Holdings Corp., Phoenix Contact GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, TE Connectivity Ltd., Teledyne Technologies Inc., WEG Equipamentos Eletricos S.A., and Standex International Corp. |
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, and Market condition analysis for the forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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