Automotive Relay Market Analysis

Automotive Relay Market Analysis

PCB relays are predicted to exhibit highest market revenue share and will register 5% growth through 2024 owing to rising investments for continuous development and innovation of the products possessing the capability to carry higher current loads.
 

Additionally, miniaturized size helps in saving considerable space in the automobile junction box. Major application areas of these products are power steering, sunroof, power windows, ABS, cruise control, and doors. Government initiatives for adoption of electric vehicles is likely to further propel the automotive relay market revenue.
 

Plug-in relays in the market were estimated at USD 4 billion in 2016. These relays are installed in applications where the requirement to sustain high temperatures, voltage fluctuations, and extreme vibrations arise, for instance, the powertrain systems. Multiple relays are deployed in engine compartment due to its ability to function properly in varying temperatures and moisture. These products will witness considerable demand.
 

Driver information application segment is anticipated to witness a demand of more than 300 million units by 2024. The growth is attributed to emergence of advanced technologies including weather & traffic information, GPS, location, and navigation services in vehicles.
 

Relay usage in convenience application is estimated to record around 5% growth during the next few years propelled by increasing demand from these systems such as electronic power steering, mirror control, seat control, communication systems, keyless entry systems, sunroof control, and infotainments systems.
 

High implementation of these products in safety and security systems will result in increased production. Mandatory installation of safety devices such as theft protection equipment, defogging systems, power windows, air bags, and windshield wiping systems is likely to propel the market growth.
 

Smartphone proliferation coupled with increasing communication speeds is expected to further bolster the adoption of these systems, which in turn is expected to increase automotive relay installation.
 

Europe is poised to account for more than 20% market share through 2024 due to stringent regulations pertaining to driver safety. Well-established business has strengthened the product penetration across the region. Rising implementation of the product in safety and security is gaining prominence which will drive the regional growth.
 

Asia pacific automotive relay market is expected to register a growth of over 4.5% during the forecast period impelled by rising awareness of safety and security in the vehicle. Emergence of various market participants in developing economies such as China and India will strengthen the business. Moreover, rising investments of the OEM’s in these countries and favorable regulatory landscape will fuel the regional demand.
 

For instance, Made in China 2025 initiative by Chinese government addresses usage of home build products. This leads various auto makers in the country to focus on building new manufacturing units that will increase the production in the country, further escalating the industry size. Increasing infotainment, communication, and telematics applications will also fuel the regional growth.