Industry Outlook
Global automotive relay market is touching new heights and registered market value of US$ 13.43 Bn in 2017. The market is on the path of significant growth and projected to reach US$ 22.29 Bn in 2026 with a growth rate of 5.8% throughout the forecast period from 2018 to 2026. Automotive relays are simple electronic devices that play an important role of switching on and off several circuits within an automobile. Although the definition of the device is simple to read, automotive relays play a vital role in modern day automobile by ensuring safe operation and increased efficiency of circuits. A single new age passenger car can employ a number of relays for different applications and with automobiles becoming more sophisticated and complex, the number is projected to rise continuously in coming years.
Market Synopsis
Rugged Operating Conditions to Spark the Demand for Plug-in Automotive Relays
In 2017, PCB relays dominate the overall automotive relays market with a considerable market share. These relays are extensively used for circuits associated with control systems, body, and chassis such as power steering, anti-lock braking systems, cruise control, power windows, sunroofs and doors of automobiles. PCB relays are undergoing a continuous process of technological advancement and miniaturization in order to carry high current loads and requires less space. Plug-in automotive relays are generally used in extreme working conditions with high temperature, high vibration, and significant voltage fluctuations. Consequently, these relays are ideally suited for fuel injection systems, fuel pumps, engines, power-trains and HVAC applications among others. Plug-in relays are gaining popularity over PCB relays as they offer hassle-free installation and easy replacement. In addition, miniaturization of plug-in relays is eliminating the need for bulky junction boxes making automobiles lighter and efficient. Therefore, plug-in relays are projected to hold an upper hand over PCB relays in coming years.
Electric Vehicles to Dictate Terms for Automotive Relays in Coming Years
Conventional fuel vehicles including diesel, gasoline, CNG, and LPG vehicles led the overall automotive relays market in terms of market value in 2017. The scenario is not expected to change swiftly in the next few years and conventional fuel vehicles projected to dominate the automotive relays market throughout the forecast period. However, with increasing demand for electric cars and government initiatives to promote electric cars across the globe is bolstering the demand for electric vehicles. Thus electric vehicles expected to dictate terms for industries associated with automotive sectors such as automotive relays and other OEMs beyond the forecast period from 2018 to 2026.
Domination over Global Automotive Industries helped Asia Pacific to Dominate the Automotive Relay Market
Asia Pacific is home to almost half of the world’s population and with rapidly growing economies such as China and India several industries including automotive industries are experiencing a hefty growth. Some of the largest automotive companies in China, Japan, and South Korea produces almost 37 Mn units of automobiles each year. The aforementioned factors significantly boosted the demand for automotive relays in Asia Pacific. Asia Pacific ranked as the top region in automotive relays market in terms of volumes as well as market value. Home to major automotive electronics companies such as Delphi, ABB, and TE Connectivity among others, Europe follows Asia Pacific in automotive relays market and expected to experience considerable growth throughout the forecast period from 2018 to 2026.
Market Segmentation
by Product Type (2016–2026; US$ Bn)
by Applications (2016–2026; US$ Bn)
- Power Train
- Body & Chassis
- Lighting & Security
- Infotainment System
by Vehicle Type (2016–2026; US$ Bn)
- Conventional Fuel Vehicle
- Electric Vehicle
Geography Segment (2016–2026; US$ Bn)
- North America
- U.S.
- Rest of North America
- Europe
- U.K.
- Germany
- France
- Rest of Europe
- Asia Pacific (APAC)
- China
- Japan
- India
- Rest of APAC
- Rest of the World (RoW)
- Latin America
- Middle East and Africa (MEA)
Intense Competition Encouraging Technological Innovation in Modern Automotive Relays
With intense competition in highly fragmented market, all major automotive relay manufactures strive day-in-day-out to improve the quality of their product. High quality, long life, and technological up gradation are key focus areas for these companies to maintain their credential in the market. Besides, these companies also strive to acquire contracts from leading automotive manufacturers to supply automotive relays. Local automotive relay manufacturers pose a tough challenge for multinational companies especially in price-driven economies such as China, India and other South East Asian countries. Some of the major automotive relay manufactures included in this research study are ABB Group, American Zettler, Inc., Denso Corporation, Delphi Automotive LLP, Eaton Corporation plc, Fujitsu Limited, Good Sky Electric Co., Ltd., Hella KGaA Hueck & Co. (HELLA), IDEC Corporation, NEC Corporation, Omron Corporation, Panasonic Corporation, Robert Bosch GmbH, Siemens AG, and TE Connectivity Ltd. among others.
Key questions answered in this report
- What are the latest market trends in the automotive relays market and valuable opportunities for the players?
- How growing adoption of electric & hybrid cars affect the global as well as regional automotive relays market?
- Which are the prominent range of products that are manufactured by the key automotive relay manufacturers?
- Which is largest and fastest growing segment in terms of product type, application, and vehicle type?
- Which is the most prominent geographical region/country for overall automotive relays market?
- How government norms and regulation change the game in overall automotive relays market?
- What is the market size and trend in developing markets such as Asia Pacific, Middle East & Africa and Latin America?
