Adoption of automotive relays is mainly driven by the urgent requirement of passenger safety. Over the previous few decades, automobile safety measures have significantly reduced road accidents and fatalities. Additionally, the automobile sector is aiming to improve consumers’ driving experiences. Self-diagnosing smart automobiles are becoming more and more popular, which is expected to accelerate market expansion throughout the forecast period.
In addition, favorable regulations and incentives have been implemented by governments of various countries to encourage expansion of the automotive relay industry. Automotive relays are used in electronic devices with a wide range of applications, including safety management, powertrain, comfort, and infotainment, to incorporate new technologies into automobiles. This will result in the increasing demand for automotive relays in the next ten years.
Moreover, demand for automotive relays is set to surge due to the rising need for electric vehicles in developing nations like India, China, and Japan. The Asia Pacific region is anticipated to dominate the automotive relay market over the forecast period.
Presence of several well-established automotive manufacturers in emerging countries like China and India is projected to push the production of both passenger and commercial vehicles in the region. Owing to the aforementioned factors, the Asia Pacific automotive relay market is anticipated to grow at a steady pace in the next ten years.
Increased need for hybrid and electric vehicles with innovative, lightweight, and high-performance relays is driving manufacturers to invest in solid-state relays rather than traditional bulky electromechanical relays. As a result, it is projected that this factor will present a new growth potential for the global market.
Key Takeaways:
- Top 3 companies in the global automotive relay market accounted for about 49% of share in 2021.
- Based on product, the plug-in relay segment is set to remain at the forefront by 2032 with its easy replacement feature.
- By vehicle type, the electric vehicles segment is projected to generate the lion’s share by 2032 amid fluctuating fossil fuel prices.
- China automotive relay market is estimated to dominate Asia Pacific on the back of ongoing developments in the chip manufacturing industry.
- Adoption of state-of-the-art electrical systems in vehicles is likely to help Asia Pacific to lead the automotive relay market.
Growth Drivers:
- Favorable policies and incentives implemented by government bodies of various countries to promote sales of electric vehicles would augment the market.
- Introduction of vehicle safety features like lane departure warnings, collision avoidance systems, and parking assistance is likely to drive the market.
Restraints:
- Automotive relays are incapable of switching at a fast pace, as compared to transistors, which may hinder demand in the forecast period.
- Operational failure in extreme environmental conditions may hamper sales of automotive relays in the evaluation period.
Competitive Landscape:
Key competitors in the automotive relay market are concentrating on organic growth strategies such as product releases, product approvals, and patents & events. Acquisitions and partnerships & collaborations are some of the other inorganic growth tactics that are set to be adopted by key players in the market
Source: Automotive Relay Market by Fact.MR.