Global Relays Market: Snapshot
The implementation of smart power grids is one of the top priorities for most countries. It is catching on as a concept in developing economies at a rapid rate, and is already being implemented in several parts of developed countries. The scope of relays in an automated power grid is massive at they can help control all communication and distribution between the consumer and the supplier. This forms the key driver for all relay manufacturers around the world.
Additionally, players in the global relay market are also seeking greater opportunities in the field of wireless communication, where the high demand for multiband wireless tech has allowed for a wide-scale usage of mobile stations, relays, and cells. The demand for relays is also high in the solar power industry, where high capacity power relays are used to safely cut of DC voltages as required.
The market for relays is, however, currently restrained by the impact of their life spans on overall cost savings involves, and the large percentage of regional players in the mix leading to a more unorganized market.
The resultant of all the above factors of influence, and more, can be seen on the global relays market, which is progressing at a CAGR of 7.7% from 2015 to 2021. This market is expected to be valued at US$16.24 bn by the end of 2021.
Asia Pacific Industrial Growth Radically Benefits Relay Manufacturers
The global demand for relays as a whole is being driven by the implementation of smart grids and multiband wireless tech. This applies on a much higher scale to Asia Pacific, which is expected to hold 44% of the market value for relays by 2021. It will consistently be the region to consume the largest quantity of relays, especially given the dynamic industrial scenario of India, Japan, and China. The contribution of these countries to the demand for relays from APAC is primarily the result of the rapid rate of industrialization and the introduction of modern power distribution and networking practices.
Several transmission and distribution systems in Asia Pacific are currently under overhaul, which is creating an additional demand for relays and other power grid components. The region is also showing a growing amount of interest in solar, wind, and tidal energy, increasing the need of larger power grids and therefore, relays and other components.
Rapidly Growing Demand for Relays Expected in Automotive, Semiconductors, and Other Industrial Infrastructure
By 2021, US$5.87 bn is expected to be generated by relay manufacturers from industries of semiconductors, infrastructure, and automobiles. They are collectively expected to be the largest application segment for the relays market till 2021. A major part of this demand originates from the automotive industry, which is currently experiencing a positive upswing in car sales across the world. At the same time, industrial infrastructure in developing economies is also under a high level of expansion and upgrade, allowing relay sales to rise.
The key companies in the global relays market include Crydom Corp., Siemens AG, Omron Corp., Alstom SA, Coto Technology, Fujitsu Ltd., StandexMeder Electronics GmbH, Teledyne Relays Inc., Schneider Electric SE, and Comus International.
Relays are used to control circuit by low power signal. It controls several circuits by one single signal. These are the electrically operated switch that uses electromagnet to operate the switch mechanically. They are used in different application including automobiles, military and industrial automation among others. These relays are used to prevent the circuits from overload and faults. When the applied current exceeds the threshold value, the armature is activated by the coil which operates either to open the closed contacts or close the open contacts. Relays helps one circuit to switch over another circuit by separating completely from the first circuit. Asia Pacific is the largest market for relays globally at present and is expected to remain so throughout the forecast period.
The market is primarily driven by the growing need of solar projects. In recent years, the demand for solar energy has shown increasing growth globally. This is due to need of green energy like solar and wind energy. In addition, relays are used in solar applications to protect the circuits from damage and overload of current. Moreover, increase in demand in smart grids is also driving the relays market globally. As the demand of electricity is increasing, smart grids are introduced to distribute the electricity to every region. The smart grids also need relays to protect the electric circuits from overload and faults. Another important driver of this market is the multi band wireless technology. It functions as a proxy for the macro based station which enables to extend coverage and quality of services for residential market.
The market is facing challenges as the relays wear out quickly. Relays that are manufactured today wear out quickly due to several reasons that include improper applications, environmental and issues among others. Moreover, they are likely to get damage, if they are connected improperly. Also, due to heat generation the coils of the circuit get damaged. Further, involvement of local players is also affecting the demand in the relays market. This is due to the better quality products provided by the local manufacturers that are similar to those products provided by the market leaders.
The major opportunity in this market is the expansion in the existing application areas. Automotive and signal relays are expected to create ample opportunities in the relays market. Moreover, the companies are also introducing use of environment friendly materials to manufacture relays. For instance, they are introducing products that are lead and cadmium free. These materials are hazardous for the environment. Thus, introduction of these products is expected to create opportunities in the market.
The relays market is analyzed on a global level and provides anticipate in terms of revenue (USD) from 2015 to 2021. It recognizes the restraints and drivers affecting the industry and analyzes their impact during the estimated period. Further, it identifies the major opportunities for market growth in the next few years.
The report segments the relays market geographically into North America, Europe, Asia-Pacific, and RoW (Rest of the World). These segments are predicted in terms of revenue (USD). The market has been segmented on the basis of product type which includes latching relay, solid state relay, automotive relay, overload protection relay, electromechanical relay and others. The market is also segmented based on the applications which include military, industrial automation, electronics and others. These segments have also been estimated based on geography in terms of revenue (USD billion).
The study comprises market attractiveness analysis, where the applications are benchmarked based on growth rate, market scope, and general attractiveness. The report includes company market share analysis of various industry participants.
The key players have also been profiled based on the basis of company overview, business strategies, financial overview, and recent developments. Major market players in this market are Comus International Inc. (U.S.), Coto Technology Inc. (U.S.), Crydom Inc. (U.S.), StandexMeder Electronics GmbH (Germany), Alstom S.A. (France), Siemens AG (Germany), Omron Corp. (Japan), Schneider Electric SE (France), Fujitsu Ltd. (Japan) and Teledyne Relays Inc. (U.S) among others.
The relays market has been segmented as:
Global Relays Market: By Product Type
- Latching relay
- Solid state relay
- Automotive relay
- Overload protection relay
- Electromechanical relay
Global Relays Market: By Application
- Industrial automation
Global Relays Market, by Geography:
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of RoW