Automotive Relay Market is forecast to reach $20.1billion by 2025, after growing at a CAGR of 5.15% during 2020-2025. The significant rise in the demand for the electric vehicles and the employment of the relays in the vehicles in analyzed impact on the growth of the Automotive relay market. PCB relays, Plug-in Relay, and high voltage relays are employed in the applications including central locking systems, power window, sunroof, interior lights, lamps (front, rear, fog), ABS control, blower and cooling fans, engine control and fuel pump in automotive.
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By Product – Segment Analysis
PCB relays are analyzed to hold the highest market share over plug-in and high voltage relays. The PCB relays can be employed in high switching range, provide low noise operation and are available in smaller size which makes them efficient to be employed in the automotive. Moreover they are employed in typical applications including central locking systems, power window, sunroof, interior lights and others, thereby contributing the increasing demand for the PCB relays.
By Vehicle Type – Segment Analysis
Passenger cars hold the highest market share in the year 2018. However the electric vehicles is analyzed to grow at highest rate during the forecast period 2020-2025. The rise in the demand for electric vehicles owing to the environmental impacts caused by vehicular emissions of the conventional vehicles is analyzed to boost the market. In 2019, Volkswagen has announced to invest $66bn in the development of electric vehicles and it has also stated to set up eight electric vehicle manufacturing sites in APAC, North America and Europe. Therefore the increasing investments will certainly drive the electric vehicle market thereby impacting on the significant rise in the demand for the automotive relay market.
Geography – Segment Analysis
APAC dominated the Automotive Relay market with a share -of more than, followed by North America and Europe. It is mainly contributed to the large vehicle production base in this region. Moreover the increasing investments for setting up the electric vehicle production owing to the increasing demand for the electric vehicles in China, Japan, India and so on are analyzed to impact on the growth of the market. As per industryARC analysis, China is analyzed to grow at a highest rate in the electric vehicle market. This is mainly due to the significant rise in the investments in the electric vehicles in this region. In 2019, NIO has received $1.5bn investment and WM motors, investments of $2.27bn as of 2019. These investments are analyzed to boost the growth of the electric vehicle manufacturing locations thereby elevating the growth of the automotive relay market during the forecast period.
Drivers – Automotive Relay Market
Growing demand for electric vehicles
In order to meet zero emission targets under the “Paris Climate Accord”, in 2017, France government has announced that it will ban diesel and gasoline-powered vehicles completely and switch to electric powered vehicles by 2040. In an electric vehicle more than 20 relays are deployed therefore the growth in the electric vehicle market is analyzed to impact on the growth of the relay market.
Challenges – Automotive Relay Market
Lack in the standardization of the relay design
Due to the lack in the standardization of the relay design, there are number of relay manufacturers alongside involvement of local players in the aftermarket. Therefore these factors are acting as the challenges for the automotive relay market restraining the growth of the market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Relay market. In 2018, the market of Automotive Relay has been consolidated by the top five players TE Connectivity, Omron Corporation, Panasonic, HELLA KGAA HUECK & CO., Fujitsu among others.
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