Relay Market by Type (Electromechanical, Thermal, Reed, Time, PhotoMOSFET, Solid State, Micro-Electromechanical Systems), Voltage Range (Low, Medium, High), Mounting Type (Panel, PCB, DIN Rail, Plug-In), Application and Region - Global Forecast to 2030
[243 Pages Report] The relay market is expected to grow from an estimated USD 9.0 billion in 2022 to USD 14.7 billion by 2030, at a CAGR of 6.3% during the forecast period. The Increasing demand for control devices in end-user industries and rising investments in renewable energy resources are likely to propel the growth of the relay market.
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Impact of COVID-19
COVID-19 has slowed the growth of the relay market, as countries were forced to implement lockdowns during the first half of 2020.
The relay market includes major Tier I and II suppliers such as Panasonic Corporation, Xiamen Hongfa Electroacoustic Co Ltd, TE connectivity, Fuji Electric, and OMRON Industrial Automation. These suppliers have their manufacturing facilities spread across various countries across Asia Pacific, Europe, North America, and RoW. COVID-19 has impacted their businesses as well.
- In 2020, the company's overall revenue declined by USD 1.8 billion, which is around 27% compared with 2019; the growth of its key customers was affected by disruptions in the global supply chain due to the spread of COVID-19.
- TE Connectivity witnessed disruptions in its supply chain due to the COVID-19 crisis, and the volatility in energy and raw material costs during this period posed a serious threat to it. Moreover, TE Connectivity has a restrained presence in Asia and Australia.
Relay market Dynamics
Driver: Rising investments in renewable energy resources
Globally, developed and developing countries are moving away from conventional fossil fuel-based power generation towards renewable energy. This trend is driven, in part, by the rising concern for climate change. According to the Intergovernmental Panel on Climate Change (IPCC), the energy supply sector is the single largest contributor to global greenhouse gas emissions. Renewable power generation technologies, often called clean energy technologies, are increasingly preferred over conventional technologies. According to the International Renewable Energy Agency (IRENA), renewables accounted for 62% of the total new power generation capacity added in 2018, up from 39% in 2009. The investments are expected to increase globally to meet electrification targets and climate control targets. According to IRENA's projections, renewable energy could account for 57% of the global power supply by 2030.
Restraint: Increasing competition from the unorganized sector
Major relay manufacturers are facing tough competition from unorganized market players supplying cheap and low-quality products. These include local and grey market players. The local players sell goods manufactured in-house under their local brand names, whereas the grey market refers to the import and sale of goods by unauthorized dealers. These market players from the unorganized sector overpower the big players with price competitiveness and the local supply networks maintained by them, which are difficult to achieve for the global players. The growth in relay sales in the grey market degrades the brand names of the market leaders as cheap-quality goods are sold under their names. The increasing sales of both local and grey market players reduce the opportunities for global players to increase their revenues and market share.
Opportunity: Increasing power demand and investments in smart grid infrastructure
The current global power demand is expected to double by 2030. The annual growth rate of electricity generation (gross) is projected to be 2.4% by 2040. The capacity required to meet the projected demand would involve an investment of around USD 10 trillion. Substantial investments have been made, especially in the Middle East, Asia Pacific, and Africa, to augment power generation capacities. Investments in conventional power generation in Middle Eastern countries, such as Egypt and Oman, and renewable power generation investments in the Asia Pacific and African countries, such as China, India, and South Africa, have been planned to meet the increasing power demand. To cater to the increasing consumer demand reliably and to have full-fledged control of the grid, utilities globally have been investing in smart grid infrastructure. All major utilities around the world have announced investments in smart grid infrastructure. These investments aim to improve grid monitoring and control through extensive data collection, peer-to-peer communication between intelligent electronic devices, and remote operation of grid elements. Numerical relays possess the ability to collect voltage, current, and other real time grid parameters. They can also store, analyze, and act according to the pre-set trip settings. Due to these features and relatively low-cost, numerical relays are installed as part of grid automation and digitization projects. These increased investments in smart grid infrastructure present immense growth opportunities to the global relay market.
Challenge: Cybersecurity of time relays
Cybersecurity is a term primarily used with respect to computers and the internet. Computers or microprocessor-based devices are now commonly used for control and automation functions, apart from traditional data processing. Computers are used in several daily activities—financial, manufacturing, scientific, and safety-related applications. Technical misuse and abuse have become a serious concern in all areas that feature the use of computers. The power industry has been taking advantage of the tremendous potential offered by computers and microprocessor-based technologies. Protection & control devices, Supervisory Control and Data Acquisition (SCADA), remote control and monitoring, and other applications incorporate such technologies. This leads to concerns over the security of electronic communication paths of time relays. These cybersecurity issues must be addressed by the power industry and are, hence, a challenge to the growth of the global relay market.
Relay Market Ecosystem
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The thermal relay segment by type holds the second largest segment in 2021
Thermal relays are used for overload protection of motors and other electrical equipment or circuits. The motor encounters overload if the machine or circuit is abnormal. This will further lead to decrease in speed of motor, increase of current in the winding, and increase of winding temperature of the motor. If the overload time is short, overload current is small, and the motor winding does not exceed the allowable temperature rise, the overload is allowed. Such overloads can be handled by integrating thermals relays. Asia Pacific is expected to be the largest and fastest growing market for thermal relays.
Industrial segment by phase is estimated to be the second largest segment for relay market
Uninterrupted delivery of power to machines is essential for all industries. Any interruption or breakdown can result in significant losses. Relays are used in industries to prevent damage to expensive instruments caused by overload, over temperature, overcurrent, jams and undercurrent, high resistance winding faults, current and voltage unbalance, phase loss, and phase reverse. Relays feature advanced technologies such as integrated protection, metering, data logging, and remote communication. These advanced technologies not only help protect expensive industrial instruments but also contribute toward maximizing their operating life and efficiency. Asia Pacific is the largest consumer of industrial protection relays, with construction spending increasing in countries such as India, China, and Japan.
Medium Voltage relays are expected to hold the third largest share in the global relay market
The medium voltage, by voltage range, is projected to hold the third largest market share during the forecast period. Medium voltage relays are protection devices with a voltage range from 1 kV to 33 kV. They are generally used in networks that have lower voltages, and often have the same applications as that of high voltage relays. Medium voltage relays find application mainly in distribution utilities, where they are used in distribution transformers, feeders, busbars, and other electrical devices. They are also used in energy-intensive industries like mining, power generation, and oil & gas. Owing to their wide application in distribution infrastructure, the segment is expected to grow in both developing and developed regions of the world, with the largest markets in Asia Pacific, North America, and Europe. Schneider Electric, ABB, and AMETEK are some of the key manufacturers in this segment.
DIN Rail segment by mounting type is the second fastest segment for relay market
DIN rail mounting allows end-users to stack multiple timers on one DIN rail. Commercial and cabinet timing are the key applications of DIN rail mounting relays. The key end-users of DIN rail relays are manufacturers of power distribution boards, industrial control cabinets, meter cabinets, and control panels, among others. Additionally, DIN rails are used to connect different components to a single datalogger terminal, to create a power bus, or to install equipment such as power supplies, conditioners, or breakers. The rising demand for industrial devices is the key factor driving the growth of the DIN rail segment in the relay market.
The increasing population and growing urbanization will spur the use of various electric components such as circuit breakers, fused terminal blocks, wire connections, and many more, which will consequently boost the demand for DIN rail mounted relays in the Asia Pacific.
Asia Pacific is expected to account for the largest and fastest market size during the forecast period.
Asia Pacific accounted for a 43.5% share of the relay market in 2021. The region has been segmented, by country, into China, India, Japan, and the Rest of Asia Pacific. Countries in the region are undertaking many smart grid and substation projects per the IEC 61850 standard to fulfill the growing demand for energy. This would create demand for global relays in the region.
For instance, Indonesia has awarded various infrastructure projects, such as electric power plants under the Independent Power Producer (IPP) scheme and toll roads in some regions, with a contract worth USD 13.2 billion to China. This would drive the global relay market in the country during the forecast period.
Japan is increasingly focusing on increasing the share of renewables in power generation. According to the Government of Japan, the country looks to double its solar and wind generation capacity to between 127.1 gigawatts and 141.2 gigawatts by fiscal 2030. Apart from this, Japan’s medical device market is among the world’s largest. Japan’s Ministry of Health, Labor and Welfare (MHLW) data shows that the Japanese market for medical devices in 2020 was around USD 38 billion. This presents ample opportunities for the growth of the relay market in the country and in the region as a whole.
Key Players
Key Players include Panasonic Corporation (Japan), Xiamen Hongfa Electroacoustic Co., Ltd. (China), TE connectivity (Switzerland), Fuji Electric (Japan), and OMRON Industrial Automation (Japan).
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Report Metric |
Details |
Market Size available for years |
2020–2030 |
Base year considered |
2021 |
Forecast period |
2022–2027 |
Forecast units |
Value (USD Million/ Billion) |
Segments covered |
By Type, by Application, by Voltage-Range, by Mounting Type |
Geographies covered |
Asia Pacific, North America, Europe, and Rest of the World (RoW) |
Companies covered |
Panasonic Corporation (Japan), Xiamen Hongfa Electroacoustic Co., Ltd. (China), TE connectivity (Switzerland), Fuji Electric (Japan), OMRON Industrial Automation (Japan), Schneider Electric (France), Littelfuse, Inc. (US), Sensata Technologies (US), Fujitsu (Japan), Hasco (US), Carlo Gavazzi (US), COMUS International (Switzerland), Teledyne Defense Electronics (US), Bright Toward Industrial Co., Ltd. (Taiwan), Cosmo Electronics (Taiwan), Relpol S.A. (Poland), WAGO (Germany), CELDUC (US), Standex Electronics, Inc. (US), Cabur (Italy),Comat Releco (Switzerland), |
This research report categorizes the relay market based on type, application, voltage-range, mounting type, and region.
By Type
- Electromechanical
- Thermal
- Reed
- Time
- PhotoMOSFET
- MEMS Relay
- Others
By Application
- Industrial
- Building Equipment
- Household Appliances
- Test & Measurements
- Energy & Infrastructure
- Mining
- Automotive
- Medical
- Food & Beverages
- Renewables
- Others
By Voltage Range
- Low
- Medium
- High
By Mounting Type
- Panel
- PCB
- DIN Rail
- Plug-In
- Others
By Region
- North America
- Asia Pacific
- Europe
- Rest of the World (RoW)
Recent Developments
- In June 2022, TE Connectivity built a new building for Energy Industry Production in Mexico. The new building almost doubles TE's production capacity for solar products, power grid connections, and cable accessories for the expanding renewable energy industry in the Americas. A more dependable and sustainable electricity grid is made possible by the goods produced at this site.
- In April 2022, Panasonic Corporation introduced PhotoMOS CC TSON 1 Form B semiconductor relays with a small TSON package, built-in capacitor coupled isolation driver IC, and an oscillation circuit. These relays require low current and flow voltage instead of current at its input side.
- In March 2022, Xiamen Hongfa Automotive Electronics Con., Ltd introduced the latching relay HF191F-L, which is used in the charging system of electric vehicle charging application. It is manufactured as per the IEC 62955 standard and has a current carrying capacity of up 500A.
- In January 2020, Fuji Electric Co., Ltd (Japan), acquired Consul Neowatt Power Solutions Private Limited (CNPS), a major power electronics manufacturer in the country. The company plans to expand its power electronics systems business in India.
Frequently Asked Questions (FAQ):
What is the current size of the relay market?
The current market size of the global relay market is estimated to be USD 14.7 billion in 2030.
What are the major drivers for relay market?
With rising automation and technological upgradation in industries, the demand for devices with control and protection functions has increased. Timing relays are significant control devices that provide time-based control, which allows users to close or open contacts based on a particular timing function. These relays find application in industrial control logic circuits for flashing light control, furnace safety purge control, engine auto start control, and motor soft start delay control. Relays are deployed in a wide range of industries, such as water and wastewater, automotive, cement, and food and beverage. Equipment such as motors, starters, and pumps are used while carrying out operations in these end-use industries. Relays are fixed to such equipment to achieve certain time delays. Relays provide optimum time sequences, error indications, and selective shutdown, and are flexible and easy to handle even in small distribution boxes. The increasing demand for control devices is driving the global relay market.
Which is the largest-growing region during the forecasted period in relay market?
Asia Pacific is expected to account for the largest market size during the forecast period. Asia Pacific accounted for a 43.5% share of the relay market in 2022. The countries covered in the region are China, India, Japan, and Rest of Asia Pacific. Asia Pacific is expected to hold the largest market share in the global relay market during the forecast period. Increasing T&D network expansion and industrialization projects in emerging countries such as India and Japan are some of the key growth drivers of the global relay market in this region.
Which is the fastest-growing segment, by type during the forecasted period in relay market?
The electromechanical segment, by type, is projected to hold the highest market share during the forecast period. Electromechanical relays are switches that control high-power electrical devices by using a small amount of power. Electromechanical relays provide good performance, long operational life and consumes less power. Electromechanical relays fins usage in several applications, such as temperature controller in HVAC devices and factory automation, power supply switching in TVs, DTH boxes, and others.
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This study involved major activities in estimating the current size of the relay market. Comprehensive secondary research was done to collect information on the market, peer market, and parent market. The next step involved was the validation of these findings, assumptions, and market sizing with industry experts across the value chain through primary research. The total market size was estimated through country-wise analysis. Then, the market breakdown and data triangulation were performed to estimate the market size of the segments and sub-segments.
Secondary Research
The secondary research involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg BusinessWeek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the global market. The other secondary sources comprised press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturers, associations, trade directories, and databases.
Primary Research
The relay market comprises several stakeholders, such as product manufacturers, service providers, distributors, and end-users in the supply chain. The demand-side of this market is characterized by industrial end-users. Moreover, the demand is also fueled by the growing demand of automotive sector. The supply side is characterized by rising demand for contracts from the industrial sector, and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in our report.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.
The breakdown of primary respondents is given below:
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Market Size Estimation
The bottom-up approach has been used to estimate and validate the size of the relay market.
- In this approach, the relay production statistics for each product type have been considered at a country and regional level.
- Extensive secondary and primary research has been carried out to understand the global market scenario for various types of relays.
- Several primary interviews have been conducted with key opinion leaders related to relay system development, including key OEMs and Tier I suppliers.
- Qualitative aspects such as market drivers, restraints, opportunities, and challenges have been taken into consideration while calculating and forecasting the market size.
Global Relay Market Size: Bottom-Up Approach
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Data Triangulation
The overall market size is estimated using the market size estimation processes as explained above, followed by splitting of the market into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the market ecosystem.
Report Objectives
- To define, describe, and forecast the size of the market by type, by application, by voltage range, by mounting type, and region, in terms of value
- To estimate and forecast the global market for various segments with respect to 4 main regions, namely, North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), in terms of value
- To provide comprehensive information about the drivers, restraints, opportunities, and industry-specific challenges that affect the market growth
- To provide a detailed overview of the relay value chain, along with industry trends, use cases, security standards, and Porter’s five forces
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying high-growth segments and detail the competitive landscape for market players
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as joint ventures, mergers and acquisitions, contracts, and agreements, and new product launches, in the relay market
- To benchmark players within the market using the proprietary competitive leadership mapping framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio
- This report covers the relay market size in terms of value.
Available Customization
With the given market data, MarketsandMarkets offers customizations based on the company’s specific needs. The following customization options are available for the report:
Growth opportunities and latent adjacency in Relay Market