Global Automotive Relay Market 2023-2030

Global Automotive Relay Market 2023-2030

Global Automotive Relay Market Size, Share & Trends Analysis Report by Relay Type (PCB Relay, Plug-in Relay, High Voltage Relay, and Other Relay Types), by Vehicle Type (Passenger, Commercial, Electric), and by Application (Safety and Security, Lightssystem, Engine Management Module, and Other Applications) Forecast Period (2023-2030)

The automotive relay market is anticipated to grow at a considerable CAGR of 5.3% during the forecast period (2023-2030). The growing automotive industry is akey factor driving the demand for the global automotive relay market. An automotive relay is a type of electrical switch that works as a control device within a vehicle. It manages the flow of electrical energy within various systems and helps in controlling and automating electrical functions in a vehicle. Mainly, automotive relays are used to regulate high-current applications such as lighting, motors, and ignition systems, as well as other electronic components. Relays are designed to protect sensitive electronic components, improve safety, and improve overall efficiency in vehicle electrical systems.

Segmental Outlook

The global automotive relay market is segmented by relay type, vehicle type, and application. By relay type, the market is sub-segmented into PCB relay, Plug-in relay, high voltage relay, and other relay types such as signal relay, time relay, and protective relay. By vehicle type, the market is sub-segmented into passenger vehicles, commercial vehicles, and electric vehicles. By application, the market is sub-segmented into safety and security, lights systems, engine management modules, and other applications such as power windows, sunroof, and ABS control).

Among vehicle types, the demand for the automotive relay is expected to significantly in electric vehicles (EV). The primary factor of growth is the growing adoption of EVs globally. According to the International Energy Agency (IEA), electric car markets are growing significantly as sales exceed 10 million in 2022. A total of 14% of all new cars sold were electric in 2022, up from around 9% in 2021 and less than 5% in 2020. Apart from these growing technological advancements and the complexity of their electrical systems in the EVs. In EVs, automotive relays are used to manage various electrical functions, from battery management systems and power distribution to the control of electric motors and charging mechanisms. Additionally, the increase in advanced features in electric vehicles, like regenerative braking systems, thermal management, and advanced sensor networks, demands accurate and dependable control, which is made possible through the application of automotive relays.

The Commercial Vehicle Contribute Highest in the Global Automotive Relay Industry

Commercial vehicles contribute the highest in the global automotive relay market owing to factors such as growth in global sales, increasing number of electric components in the vehicle, adoption of advanced features such as advanced driver-assistance systems (ADAS) and electronic stability control (ESC), growing demand for comfort features, growing demand for fuel efficiency among others. According to the International Organization of Motor Vehicle Manufacturers (OICA), global production of commercial vehicles has grown from 21.7 million units to 23.4 million units between 2020 to 2022.

Regional Outlook

The global automotive relay market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). The European region is expected to be the fastest growing market in the global automotive relay market primarily due to the significant presence of the automotive industry and growing automobile sales in the region. As per the European Automobile Manufacturers’ Association (AECA),In the year 2022, the European Union witnessed the production of 10.9 million passenger cars, marking an 8.3% rise compared to the previous year,2021.The accompanying interactive chart provides a visual representation of the production figures for passenger cars in the EU spanning the period from 2011 to 2022. Apart from this, as per IEA, Europe is the second largest market in EV sales, and electric car sales increased by over 15% in 2022.Additionally growing technological advancements and a focus on fuel efficiency in the region are also driving the demand for automotive relays in the region.

Asia-Pacific Region Holds Considerable Share in the Global Automotive Relay Market

Asia-Pacific holds considerable share in the global market. The increasing presence of automobiles in developing economies such as China and the widespread adoption of stringent safety standards across various Asian countries. The automotive sector in Asia Pacific is witnessing a notable surge in vehicle demand, a trend expected to propel regional market expansion throughout the forecast period. As per the data from OICA, China, Japan, India, and South Korea are one of the top 5 automobile manufacturing countries globally accounting for 51% of global automotive production in 2022. Also, escalating demand for connectivity and the digitalization of cars, growing adoption of EVs in the region, and, government regulations mandating electronic safety systems, including the Anti-locking Braking System (ABS) and Electronic Stability Program (ESP), to mitigate harmful fuel emissions, present significant growth opportunities for the market in the region.

Market Players Outlook

The major companies serving the global automotive relay market are ABB Ltd, DENSO Corp., Eaton Corporation plc,and FUJITSU COMPONENT LIMITED among others.

The market players are considerably contributing to the market growth by the adoption of various strategies including R&D and portfolio expansion, to stay competitive in the market For instance, in April 2023, Littelfuse, Inc., an industrial technology manufacturing company announced a portfolio expansion of direct current (DC) contactors developed specifically for eMobility and industrial applications.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the automotive relay market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.