The Global Automotive Relay Market Growth, COVID-19 impact and Forecast (2021-2025)
Global crane market is segmented based on Relay type as PCB Relay and Plug-In Relay; based on application as Capacitive loads, Inductive loads and Resistive Loads; based on geography as APAC, Europe, North America, and ROW.
Introduction
Automotive relays are the common type of electromechanical relay that are used in all types of vehicles, like car, trucks, vans and trailers. They enable a small current flow circuit to control and operate a higher current circuit in vehicular applications.
Various government bodies have taken favorable steps to curb the number of road fatalities by incorporating safety products in the vehicles. For instance, Federal safety standards are written in terms of minimum safety performance requirements for motor vehicles and products. Government funding across world will further fuel the industry growth
Products used to ensure passenger safety includes air bags, backup sensing system, energy absorbing steering system, seat belts, heads up display, head restraints, and passenger sensing system. Relays are used to turn these devices on or off.
Table of Contents
Market Overview
The global automotive relay market is expected to grow to $20.10 billion by 2025 at a CAGR of 5%
High-power requirements for heavy equipment that operates in a harsh environment will escalate the penetration of automotive relays.
Currently, the demand for solid-state plug-in relays is growing, as they can handle high-rated currents (50A-80A) and operating voltages (less than 400V), similar to that of electromechanical type relays.
The market for the automotive relay is highly competitive due to the presence of both international and domestic relay suppliers.
Key Trends
To meet the consistently growing demand for plug-in relays in automobiles, automotive electronics firms are focusing on manufacturing high-power and reliable relays for automotive applications..
Both government involvement and consumers’ demand for greater automatic control of systems have been resulting in the increased usage of electronics in vehicles.
Key Market Players
The global automotive relay market is dominated by global vendors like DENSO Corporation, Panasonic Corporation, TE Connectivity, Nidec Corporation, Abb Group and Fujitsu Limited
Growth Drivers and Challenges
High implementation of electronic content in commercial & passenger vehicles is witnessing continuous rise for numerous applications, supporting the automotive relay market growth till 2026. These applications need a high power distribution system that generates demand for automotive relays
Factors such as technological innovations, and the introduction of electric vehicle relays for high voltage applications will have a positive impact on the growth of the automotive relay market value during the forecast period
In the manufacturing industry, original equipment manufacturers (OEMs) and parts suppliers are yet to return to full production capacity.
The slowdown in production and subsequent delays in deliveries might impact the market at multiple levels from postponed product launches and financially drained SMEs to dampened vehicle sales in the second quarter of 2020
The average number of relays installed per vehicle is expected to increase over the forecast period on account of the growing adoption of sophisticated electronics equipment and increased emphasis on safety and security.