Automotive Relay Market Report

Automotive Relay Market Analysis By Product (PCB, Plug-in, High voltage relay), By Vehicle Type, By Application (Resistive load, Capacitive load, Inductive load), By Region, And Segment Forecasts, 2014 - 2025

Published: November 2017  |  180 Pages  |  Format: PDF  |  Report ID: 978-1-68038-305-8

Industry Insights

The global automotive relay market size was valued at USD 11.39 billion in 2016, growing at an estimated CAGR of 5.9% from 2017 to 2025, further the demand is expected to reach 5.17 billion units by 2025.

Electric automotive parts have diversified over the past decade, leading to an increase in the number of relays used as switching devices as well as variation in the required features of each relay. The industry is expected to witness steady growth over the forecast period owing to advancements in miniaturization and high contact capability development to address restrictions in mounting space in the Electric Control Unit (ECU) of vehicles.

China automotive relay market, by product, 2014 - 2025 (USD Million)

China automotive relay market

Electric automotive parts have diversified, thereby increasing the number of relays used for switching; different features are required for each relay. Further miniaturization and high contact capability development are needed, especially in Electric Control Unit (ECU) where there are restrictions in mounting space due to a presence of a cluster of relays. A high degree of reliability in relays is required from a safety point of view. Components equipped with features such as latching, low noise, and ultra-miniaturization have gained prominence owing to the need for providing switching technology for the latest generation of electronic functions in a car.

The average number of relays installed per vehicle is expected to increase over the forecast period on account of growing adoption of sophisticated electronics equipment and increased emphasis on safety and security. Switching of supplementary devices required for safety, security, communications, infotainment require additional relays apart from the basic relays used in powertrain systems. Increased developments in PCB relays to decreasing the overall vehicular weight for increasing fuel efficiency is expected to provide a fillip to market growth over the forecast period.

Product Insights

PCB relay is estimated to have the largest share in the automotive relay market. Its used in a majority of electronic applications such as ABS, cruise control, doors, power steering, power windows, and sunroof. In regions such as Europe and North America, they are used majorly. However, in regions such as Asia-Oceania and RoW, Tier-1 manufacturers and OEMs still prefer plug-in versions.

Plug-in relays are used where the switching operation is performed under extreme vibrations, temperatures, and voltage fluctuations. They are used in fuel injection systems, heating control, and air-conditioning (HVAC) systems, and switching fuel pumps. The demand for these components is more, owing to their compact size that saves considerable space in the junction box. This phenomenon, in turn, helps in reducing the overall weight of the junction box. Increasing electronic control modules coupled with electronic components have generated the demand for smaller devices that are capable of carrying greater current loads.

High voltage relays are also estimated to increase in the future as they have many applications in electric and hybrid electric vehicles. Automotive manufacturers and OEMs integrate the relays in the vehicle’s circuit, based on the respective applications. They form tie-ups and alliances with service centers to ensure proper maintenance and replacement of components

Vehicle Type Insights

The global passenger vehicles automotive relay market was valued over USD 6 billion in 2016. Many governments provide lucrative offers to promote the selling and usage of EVs. A positive factor responsible for the growth of the segment is the increasing demand for electronic e-fuse over the electromagnetic alternative due to modernization of vehicles

Many European countries follow incentive-based programs for promoting EVs. Countries, like Germany and Austria, offer tax exemptions and reductions. France and the UK offered bonus payments to EV buyers and discounts on insurance. The electric vehicles segment is estimated to witness the highest growth as compared to other segments over the forecast period.Many governments provide lucrative offers to promote the selling and usage of EVs. Tax benefits are provided at the time of purchase. Further, the extent of exemption depends on the size of batteries used in the vehicle.

In the United States, insurance companies are providing discounts on insurance policies to customers and utility companies are offering low electricity rates. Also, few states offer credits to electric vehicle manufacturers and buyers for their costs and purchase of charging equipment. The Federal Government offers tax credits up to USD 7,500 for Plug-in Electric Vehicles (PEVs).

Application Insights

The capacitive load's segment is estimated to dominate the automotive relay market in terms of revenue as compared to other segments over the forecast period. Automotive electronics consists of semiconductor devices that are used to do multiple functions in a car. Various safety and comfort systems in a car would not have been possible without electronics. Some of the basic applications in modern cars are driven by electronic systems and these require relay for their efficient operation. These include door lock system, power window, air conditioner, wiper, and fuel injection.

The electronic applications are more in the passenger car segment, as compared to LCV segment. This is due to the increasing demand for premium cars with advanced features. Modern vehicles feature a multitude of intelligent systems which increase all safety aspects and driving comforts. Navigation systems with interactive traffic condition interface have become common even in the mid-sized car segment. Passive and active safety systems such as airbags, belt tensioners, and antiskid brake/traction control, have led to an increase in the average number of relays per vehicle.

In high-spec cars, the value of the electric and electronic component sums up to almost a quarter of the total vehicle value. The wiring length can reach several thousands of meters with as many connection systems between different harnesses, ECU’s and actuators. Reliable switching of lights, motors, heaters, ECUs is critical for the overall reliability of the vehicle

Automotive Relay market by application, 2016 (%)

Automotive relay market

Regional Insights

Asia Pacific is a key revenue generating region and captured a significant market share in 2016. The regional growth is due to the penetration of automobiles in the developing economies such as China and adoption of safety standards in expected to drive the market in several Asian countries. Asia Pacific exhibits a high growth potential, which may be attributed to high vehicle demand in this region. Increasing automobile demand in Asia Pacific, particularly China, and Japan is expected to drive regional market growth over the forecast period.

Growing demand for connectivity and car digitalization will favorably impact market growth over the forecast period. Further, high-growth potential across the compact car segment due to space constraints has also driven the auto wiring harness demand extensively. Stringent government regulations mandating the use of certain electronic safety systems such as Anti-locking Braking System (ABS) and Electronic Stability Program (ESP) to reduce harmful fuel emissions offer avenues for market growth. In addition, growing popularity of electric vehicles has also spurred the auto wiring harness market demand.

Europe is also expected to witness substantial growth owing to strong growth across the automotive sector. The leading companies in auto wiring harness market include Delphi Automotive, Sumitomo Electric, Furukawa Electric, Tianjin Jin-Zhu Wiring systems Co. Ltd., Prestolite Electric, Fujikura Ltd., Lear Corporation, and Leoni.

Competitive Insights

A few of the major industry players include ABB Group, Denso Corporation, Eaton Corporation plc, Fujitsu Limited, Hella KGaA Hueck & Co. (HELLA).The current market environment is witnessing an intense competition between the key players for achieving the market domination via product differentiation and enhancement of quality. This has resulted in the growing market consolidation through strategic initiatives such as alliances, mergers, and acquisitions.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD million & CAGR from 2017 to 2025, Shipments in million units from 2014 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, Japan, China, India, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the automotive relay market into product, vehicle type, applications, and region:

  • Product Outlook (Revenue, USD Million; 2014 - 2025)

    • PCB Relay

    • Plug-in Relay

    • High Voltage Relay

    • Others

  • Vehicle Type Outlook (Revenue, USD Million; 2014 - 2025)

    • Passenger vehicles

    • Commercial vehicles

    • Electric vehicles

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • Resistive loads

    • Capacitive loads

    • Inductive loads

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East and Africa (MEA)

Key questions answered by the report
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