Electromechanical Relay - Global Market Outlook (2021-2028)

Electromechanical Relay - Global Market Outlook (2021-2028)

According to Stratistics MRC, the Global Electromechanical Relay Market is accounted for $9.25 billion in 2021 and is expected to reach $15.85 billion by 2028 growing at a CAGR of 8.0% during the forecast period. Electromechanical relay is a switch used to control high power devices. It controls the electric circuit by opening or closing the contacts of that circuit. The electromechanical relay is widely used in kitchen electronic appliances that need to be switched ON/OFF. These relays can work on both AC and DC supply sources.

Market Dynamics:

Driver:

Rising Factory Automation Activities

The growth of the market is fuelled by the increasing developments being done in the sector in several sectors in terms of automation. The increasing adoption of smart systems, components, and smart machinery and equipment, for the improvement of processes through automation and self-optimization, has resulted in the development of smart factories for planning, supply chain logistics, and product development. Increasingly, various manufacturing industries are striving to become smart factories. There has been an exponential rise in labor costs across various regions. In addition, the quality requirements are also getting more stringent. Moreover, automotive manufacturers across the globe understand that the next generation of robotics and automation technologies is a revolutionary opportunity to upgrade automotive manufacturing, in terms of productivity, quality, safety, and cost metrics. In addition, increased year-on-year robotic automation expenditure is projected to have a positive impact on the demand for robot automation systems.

Restraint:

Availability of Substitute

The availability of solid-state relays (SSRs) as a substitute, due to advancements in semiconductor fabrication and manufacturing technology may hamper the growth of the market. The more possible substitutes there are for it, the greater the elasticity. When several close substitutes are available, consumers can easily switch from one good to another even if there is only a small change in price. This is one of the factor restricting the market growth.

Opportunity:

Rising Application of Electromechanical Relays in Numerous Verticals

Growing applications of it in electronics projects to assist the alteration of the voltage & current is enhancing the market. Relays are effective in detecting and isolating faults during power transmission and distribution systems in the application areas of electrical supply. Lighting control systems, industrial process controllers, traffic control, telecommunication, motor drives control, and protection systems of an electrical power system are some of the most lucrative application areas for ERM. Moreover, the industrial growth in the country has also increased the demand for these electromechanical relays.

Threat:

Design and Technical Concerns Related To EMR

The market is analysed to grow at a significant rate, the design concerns are set to threaten the growth of the market. The challenge lies in blending the right mix of miniaturization and technical specifications to meet the designer's specific needs. The applications and technical specifications of these relays vary widely from one industry vertical to other. For instance, emerging broadband communications applications need relays to operate at higher frequencies, while industrial applications need lower power consumption and the automotive industry is demanding higher reliability. Hence these design concerns are set to hamper the market.

Automotive segment is expected to be the largest during the forecast period

Due to rising acceptance of these relays in cars to turn on/off equipped electronic devices within the vehicle. Additionally, modern car manufacturers are incorporating relay panels into fuse boxes, as it supports easy maintenance of the vehicle. Auto manufacturers are playing a crucial role in selecting the most suitable relays, especially in the case of modern device manufacturing. In automobile vehicles, relays use a low current signal to control a high current circuit, particularly in the applications such as starter solenoids. These cars also deal with heavy electrical loads. Electronic devices such as fans, horns, wipers, ignition, air-conditioning, and headlamps that are equipped in the vehicle consume a large amount of current to process their operations. Thus, efficient relays installation is in demand to lower the power consumption in different automotive vehicles including lightweight commercial vehicles, cars, and trucks.

The Heavy Duty and High Voltage Relays segment is expected to have the highest CAGR during the forecast period

The heavy duty and high voltage relays segment is driven by machine control, control starters and other components which are made of durable and long-lasting materials. Since heavy-duty relays are most normally utilized in auto machines and other modern applications, they are made of maintainable, dependable materials. They are generally used to control starters and different parts. Relays intended for high voltage and high-recurrence applications are intensely protected and utilize solid materials to expand contact life and endure heavy use. Also, they can withstand kilovolt surges.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, The Asia-Pacific area is relied upon to hold the main shares in the worldwide market. This is primarily because of the quick pace of industrialization and the presentation of current power conveyance and systems administration rehearses. A few transmission and distribution systems in the Asia Pacific are under upgrade, spurring extra interest for relays and other brilliant network parts. The locale likewise has enhancements in solar-based, wind-based, and tidal based energy, expanding the requirement for bigger power networks and, along these lines, relays and different parts.

Region with highest CAGR:

Europe is projected to have the highest CAGR, due to the higher manufacturing facilities and use of electronic components in the automotive sector. This region is growing at a rapid pace and the power demand is increasing at a rapid pace. The governments in this province are expanding their electricity grid and for the protection of the grids, relays are required. This region is also increasing its production of electricity from renewable sources of energy.

Key players in the market:

Some of the key players profiled in the Electromechanical Relay Market include ABB Ltd, Ashida Electronics Pvt Ltd, DARE Electronics Inc, Eaton Corporation, Fujitsu, General Electric, Honeywell International, Leone Systems, Omron Corporation, Panasonic, Rockwell Automation, Schneider Electric, Siemens, TE Connectivity, Teledyne Relays.

Key developments:

In November 2020: Fujitsu launched Ultra-Compact, 50A PCB Relay for Medium-to-Heavy Automotive Loads. Fujitsu Components America, Inc. has expanded its automotive relay offering with a new 12VDC PCB relay featuring a switching capacity of 50A at 14VDC. The FBR53-HC offers a higher contact rating than its 40A FBR53-HW counterpart, yet occupies the same 12.1 x 15.5 x 13.7mm footprint and weighs the same 6g.

In June 2019: TE Connectivity has announced acquisition of the Kissling group of companies. Kissling Group is a provider of high-power and high-voltage relays and switches for the commercial transportation, industrial, military, aviation industries, and other applications.

Types Covered:
Aerospace/MIL-SPEC Relays
Contactor
General Purpose Relay
Heavy Duty and High Voltage Relays
Power Relay
Reed Relays
Time-Delay Relay
Other Types

Products Covered:
Cost Structures
Manufacturing Processes
Raw Materials

Applications Covered:
Factory Automation
Heating, ventilation, and air conditioning
Motor Controls
Railways routing and signaling
Temperature Controllers
Wireless technology

End Users Covered:
Aerospace
Automotive
Communication and Technology
Consumer Electronics
Industrial Automation
Other End Users

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances