HVAC Relay Market
HVAC Relay Market (Type - Electromagnetic Relay, Solid State Relay, Thermal Relay, Hybrid Relay; Application - Automotive, Residential, Commercial, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026
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HVAC Relay Market - Snapshot
Relays are a type of switches, which can open and close a circuit either electromechanically or electronically. They are able to manipulate one electrical circuit by closing and opening contacts in another electrical circuit. HVAC relays are primarily used in HVAC control systems to regulate and control the operation of heating and air conditioning systems. In general, relays are primarily utilized to control and operate a high powered circuit with the help of a low power signal. Thus, relays can control large voltages and amperes of current by applying a small voltage to a relay coil present in the relay system. When voltage is applied to the relay coil, it actuates or stops a relay based upon the contact arrangement, which then either opens or closes a large electrical circuit. HVAC relays are used to control heating, ventilation, and air conditioning equipment such as compressor, condenser fan motor, or blower motor and turn them on or off during the operation as required.
Increase in Demand for Heating, Ventilation, and Air Conditioning Systems Likely to Drive Market
HVAC systems were introduced in the automotive sector in the early 1960s. Increase in demand for automobiles across the globe is expected to boost the demand for HVAC relays in the automotive segment. Rise in demand for passenger vehicles is a major factor driving the market. Currently, almost all passenger vehicles are equipped with HVAC systems. Thus demand for HVAC relays in the automotive industry is expected to increase in the near future. Rise in demand from commercial vehicles in light and heavy sections is also a reason behind the growth in demand for these relays in the automotive sector. Moreover, rise in investment in non-residential construction business is estimated to be a key driver of the market. Expansion in the non-residential construction business is likely to boost the demand for indoor air quality management and HVAC systems. This is projected to drive the HVAC relay market. Increase in investment in construction of hospitals, educational institutions, hotels, and other such commercial buildings is anticipated to propel the demand for HVAC relays.
Rise in popularity of green buildings due to the implementation of stringent government regulations and policies is likely to drive to the HVAC relay market. With the development of “smart” HVAC systems the buildings will become more energy efficient and will enable building managers and owners to operate more energy efficiently. Installation of these smart systems is expected to drive the demand for HVAC relays, which play an important role in these systems.
High Initial Investment to Setup HVAC Systems Expected to Restrain Market
Installation of new and advanced HVAC systems in a commercial or industrial building requires high initial cost. These systems not only involve high setup costs but also significant maintenance costs. Establishment of a new system is expensive. Similarly, upgrade of an old HVAC system can also be costly. The lifetime costs of an HVAC system include monthly operating expenses; preventive maintenance; and repair and replacement costs of small system components, air filters, and refrigerants. These factors are anticipated to hamper the HVAC relay market in the near future.
Environment-friendly Materials & IOT Offers Lucrative Opportunity for HVAC Relays
The shift in trend of manufacturing HVAC relays from environment-friendly materials can provide new opportunities to the HVAC relay market. Usage of these relays would make a building more energy efficient and the system more environment-friendly. Manufacturers are now shifting toward materials that are free of lead and cadmium, as lead and cadmium are hazardous for the environment and human health. Internet of Things (IOT) is expected to enable HVAC systems to become smarter. It can also enable these systems to operate based on real-time data available on usage. Furthermore, IOT is anticipated to enable quick detection of failure, allowing for remote diagnosis of these systems. This is likely to lower the load on HVAC relays, thus making HVAC systems more energy efficient.
Asia Pacific Held Major Share of Global HVAC Relay Market in 2017
Based on region, the HVAC relay market can be divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific dominated the global HVAC relay market in 2017. This can be primarily ascribed to the rise in demand for HVAC relays and HVAC systems in end-use applications, especially in developing countries in the region. The market in the region is anticipated to expand at a significant pace during the forecast period, primarily owing to the rise in demand for HVAC systems and relays in the region due to the increase in demand for automobiles and growth in investments in the construction sector in the region.
Highly Competitive Global HVAC Relay Market
Key players operating in the global HVAC relay market are TE Connectivity Limited, Control & Switchgear Electric Limited, Eaton Corporation, Siemens AG, General Electric, ABB Ltd., Littlefuse Inc., Hitachi Ltd., Mitsubishi Electric Corporation, Rockwell Automation, Inc., Toshiba Corporation, and Schneider Electric.
HVAC Relay Market - Overview
Relays are a type of an electrical circuit or switch that control the opening or closing of a different electrical circuit either electronically or electromagnetically. HVAC relay is a major component of HVAC control system. It is used to control the operation of a HVAC system. HVAC relay is described as a switch that is generally used to control the operation of small capacity compressors, fan motors of condensers, evaporators, and cooling tower motors. It is used to switch on or off an HVAC equipment. In general, HVAC relays control large voltage equipment with low power control signal, which actuates or stops the relay as per design or arrangement of the relay circuit.
Increase in demand for HVAC systems in the automotive industry for automotive climate control is expected to drive the demand for HVAC relay, as the demand for automobiles is increasing across the globe. Rise in construction of non-residential buildings and growth in investments in the sector are also driving the HVAC relay market. Implementation of stricter government regulations and policies regarding energy efficiency and savings is expected to shift the focus toward ‘green buildings’ and smarter HVAC systems. This, in turn, is anticipated to boost the market for HVAC relay. However, high initial setup costs of HVAC systems are likely to hamper the market in the near future.
This report analyzes and forecasts the market for HVAC relay at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global HVAC relay market. It also covers impact of these drivers and restraints on demand for HVAC relay during the forecast period. The report also highlights opportunities in the HVAC relay market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global HVAC relay market. Porter’s Five Forces model for the HVAC relay market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, where in type and application are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global HVAC relay market by segmenting it in terms of type and application. In terms of type, the HVAC relay market can be classified into electromagnetic relay, solid state relay, thermal relay, hybrid relay, and others. In terms of application, the market can be divided into automotive, residential, commercial, and industrial. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for HVAC relay in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides the actual market size of HVAC relay for 2017 and estimated market size for 2018 with forecast for the next eight years. The global market for HVAC relay has been provided in terms of revenue. Market revenue has been defined in US$ Mn. Market numbers have been estimated based on type and application of HVAC relay. Market size has been provided in terms of global, regional, and country level markets.
The report comprises profiles of major companies operating in the global HVAC relay market. Key players in the HVAC Relay market are TE Connectivity Limited, Control & Switchgear Electric Limited, Eaton Corporation, Siemens AG, General Electric, ABB Ltd., Littlefuse Inc., Hitachi Ltd., Mitsubishi Electric Corporation, Rockwell Automation, Inc., Toshiba Corporation, and Schneider Electric. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, regional presence, and recent developments.
- The electromagnetic relay segment accounts for prominent share of the market due to the lower cost and simplicity of working of these relays
- Increase in demand for automobiles and rise in demand for HVAC systems in residential, commercial, and industrial segments is likely to drive the HVAC relay market in the near future
- In terms of application, the industrial segment is anticipated to expand at a significant pace during the forecast period
- Residential segment is the major application segment of the HVAC relay market
- Asia Pacific is anticipated to dominate the market during the forecast period
- The market in Asia Pacific is expected to expand at a faster pace than that in other regions during the forecast period
The global HVAC relay market has been segmented as follows: