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.

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.

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.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Relays market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Relays market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Relays market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Relays market?
• Which is the largest regional market for Automotive Relays market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Relays market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Relays market worldwide?