Automotive Relay Market Size (USD 34.29 Bn) by 2032

Overview

The global automotive relay market size is estimated to grow from USD 16.62 billion in 2023 to reach an estimated USD 34.29 billion by 2032, growing at 8.38% CAGR between 2024 and 2032.

Unlock Infinite Advantages: Subscribe to Annual Membership

Key Highlights

• Automotive relay market is poised for growth, starting at a value of USD 16.62 billion in 2023.
• The market is expected to grow, reaching an estimated value of USD 34.29 billion by 2032.
• This expansion is at a consistent CAGR of 8.38% over the period from 2023 to 2032.
• Asia-Pacific market for automotive relay is experiencing a significant growth.
• Growing demand for vehicles that are beyond expedients transforming the automotive relay landscape in Asia-Pacific.
• PCB Relays are gaining traction within the product segmentation.
• Capacitive Loads is expanding in Asia-Pacific region within its application segmentation.

Summary

The automotive industry is concentrating on enhancing driving experiences through self-diagnosing smart cars, which are likely to drive market growth. Automotive relays are vital for passenger comfort, entertainment systems, and power levels in extreme weather situations. The coil and contacts are two essential components of the relay. The rise of electric vehicles (EVs) opens both new opportunities and problems for relay makers. Autonomous driving relays in ADAS and autonomous cars must be highly reliable. As automobiles become more connected, relays play an important role in guaranteeing safe data transfer and dependable communication. The automobile sector is also making advances in cloud mobility, artificial intelligence, and deep learning. great-voltage DC relays are in great demand because to their use in PHEVs, BEVs, and HEVs.

Automotive Relay Market Overview

Adoption of automotive relays is driven by the urgent requirement of passenger safety, as these safety measure have significantly reduced road accidents. The automotive sector is aiming to improve consumers driving experiences. There are very self diagnosing smart automotives that re becoming more popular, which is definitely expected to accelerate the market expansion.

Automotive relays are engineered for DC voltages for mainly passenger comfort and for infotainment systems as well as power levels in critical environmental condition. These relays are mostly used for all box-modules and harnesses through a vehicle, which mainly includes rear as well as the front portion, engine areas, powertrain, roof, body control, and lastly the fan modules. The automotive relay types include PCB relays, plug-in relays, high-voltage relays and high-current relays.

Increase in the number of relays which is used for all load taking switches, various features are required for each relay, high contact capability of development is needed, like for the electronic control unit (ECU), there are many restrictions due to the mounting space due to the presence of a cluster of relays.

The relay present in the vehicle is a quite important electrical component that supports the the performance of the vehicle, and this particularly consists of two important parts which is the coil and contacts. Most the vehicles that are present in the market are equipped with relays to streamline the current that flows in the parts. Vehicle relays can produce magnetic force through the given coils, and this is mainly passed by an electrical current. With the help of this component, it not only reduces the the electric flow, but it also reduces the resistance in the cars electrical system, which helps the vehicle to be more efficient.

Before the utilization of the vehicle relays, its very imperative in order to comprehend its working so that errors could be avoided in the selection and the application. There are various terminals like 30,85, 86 and 87, but the electrical current flows in the relay which passes through terminals 85 and 86 from the coils. The coils induce magnetism that attracts the contractor which results in magnetic flow from terminal 30 to 87. This performance of the relay repeats which ensures that there’s is no unobstructed electric current flow. In  addition to this, the greater number of relays present in the vehicle ensures a much smoother flow of electrical current while also safeguarding the components and keeping in mind the damage that may occur.

OEM vehicle relays helps in the extending the lifespan of the switches by preventing these switches from being overheated, so that the combination switches in the car don’t rise its temperature quickly. If the relay protection is taken as priority, then the car light switches won’t melt due to excessive heat generated by the vehicle when moving.

Automotive Relay Market Trends

Starters and Ignition Systems

• Relays are used mainly in ignition system to engage the starter the motor when the vehicle is in ignition. It also helps to ensure the high current required for starting the engine is delivered efficiently and much safe conditions.
• The rise in EVs presents new opportunities and challenges for all the relay manufacturers. EVs demand high voltage relays, and manufacturers need to keep pace with the evolving requirements of these electric vehicles.

Light Systems

• With respect to the light system present in the automotive field, these relays are utilized to switch headlights, taillights and any other external lighting components. More efficient transfer of electric power to the bulbs, which ensures optimal illumination.

Fuel Injection and Engine Control

• The latest vehicles rely on the complex engine control systems. Relays are used in these systems to manage the fuel injectors, sensors and spark plugs. This control is vital for engine performance and emission and control.
• For autonomous driving relays used in advanced driver-assistance (ADAS) and autonomous vehicles require a high level of reliability.

Power Windows and Door Locks

• Relays facilitate the operation of door locks and power windows, enabling secure and smooth functionality. This also allows low-voltage switches to control the high-current motors that operate these features. Additionally, these relays are employed in the cooling and heating, air conditioning and ventilation systems. The relays also control compressors, fans and other components, ensuring temperature control within the vehicle.
• As vehicles are moving into more connected, relays play an important place in ensuring a secure data transmission and reliable connectivity, the manufacturers must develop that can support these trends.

Automotive Relay Market-Drivers

Growing Demand For Vehicles That Are Beyond Expedient

• Consumers are increasingly prioritizing safety and comfort in their vehicles. This has mainly led automakers to integrate advanced features like Advanced Driver Assistance Systems (ADAS), which rely heavily on various electronic components and consequently, a larger number of relays. These electronic relays offer compactness and efficiency compared to their electromechanically counterparts.

Automotive Relay Market-Restraint

Rapid Technological Change

• Automotive industry has been embracing its advancements in cloud mobility, artificial intelligence, and deep learning. These technologies power sophisticated processors in electronic vehicle systems. These processors utilize relays to deliver outputs, such as 3D spatial modeling of the vehicles environment for treat detection or transmitting signals to GPS tracking systems. There are many industry experts that estimate the number of relays used in each vehicle which can roughly range from 30-50 for a basic internal combustion engine vehicle to 65-80 for an electric vehicle.

Automotive Relay Market-Opportunity

Electric, Hybrid and Autonomous Vehicle Demand will increase

• The current trend that keeps rising is the electric vehicle which mainly PHEVs, BEVs and HEVs is driving demand for high-voltage DC relays for switching purposes. Electric Vehicles require relays for various applications, such as HVAC, pumps for power steering, and battery management systems. These relays need high switching capacity, magnetic blowout, and sufficient specifying to handle the highly inductive nature of the load in electric vehicles.
• Additionally, electric vehicles are evolving with higher battery and motor capacities for improved performance and efficiency. This trend necessitates relays designed for switching capacity. The growth of electric bikes, mopeds, and construction equipment further expands the market for Automotive relays.
• The development of autonomous vehicles necessitates a significant number of high-tech electronic systems for data and signal communication. These systems require highly efficient relays  so that is there is no interruption in the signal transfer and precise switching. Hence, autonomous vehicles growth is expected to contribute to the demand for automotive relays.

Asia-Pacific is Expected to Grow in Automotive Relay Market

Asia-Pacific region stands as the world's largest hub for automobile production, with countries such as China, Japan, South Korea, and India emerging as key players in the automotive manufacturing sector. This robust industrial landscape is further fuelled by rising income levels, urbanization trends, and improvements in living standards, all of which contribute to the escalating vehicular traffic across the region. Consequently, the surge in automobile ownership directly drives the demand for automotive relays, essential components utilized in a wide array of vehicles.

Moreover, the automotive industry is witnessing a significant shift towards electric and hybrid vehicles, representing a pivotal trend that is reshaping the sector. Electric and hybrid vehicles incorporate a higher number of relays within their electrical systems compared to conventional vehicles, thereby fostering substantial growth opportunities for relay manufacturers. Furthermore, advancements in relay technology have facilitated the development of more compact and lightweight relay models, aligning with the automotive industry's overarching emphasis on weight reduction and space optimization.

Given its status as a major automotive manufacturing hub coupled with the rising adoption of electric vehicles, stringent regulatory frameworks, and technological advancements, the Asia-Pacific region emerges as a pivotal driver of growth within the automotive relay market. This convergence of factors underscores the region's pivotal role in shaping the future trajectory of the automotive industry and underscores the significance of relay technologies in supporting these transformative trends.

Automotive Relay Market By Product

The PCB relay segment captured the largest share of 69% in the year 2023. Mos of the electronic application such as cruise control, ABS, power steering, power windows, and especially all types of sunroofs such panoramic sunroof and moon roof etc. The rising demand for electronic and hybrid vehicles is driving the growth of PCB relays in the market. These eco-friendly vehicles heavily rely on electronic systems for efficient power management and control. PCB relays are vital vehicle types in electric vehicle charging systems, battery management systems, and motor control units, ensuring these vehicles' safe and reliable operation.

High voltage relays are expected to grow as most of the applications especially in the electric and hybrid vehicles have it present in the vehicle. OEM and automotive manufacturers mostly integrate the relays in the vehicle’s circuit based on applications that are involved in the entire structure.

Automotive Relay Market By Vehicle Type

The passenger vehicles segment is mainly accounted for the largest share of around 64% in the year 2023. There are many positive factors that is considered for the growth as it is increasing the demand for electronic e-fuse over electromagnetic alternatives due to the advanced vehicles. Due to the continuous advancements in the technologies has mainly led to the integration of sophisticated electronic systems in the passenger vehicles.

Automotive Relay Market Key Players

• Zettler Components, Inc.
• BETA ELECTRIC INDUSTRY CO., LTD
• ABB
• COTO TECHNOLOGY
• Panasonic
• IDEC Corporation
• LG Magna
• Hella KGaA Hueck & Co. (HELLA)
• Littelfuse Inc.
• LS Automotive Technologies
• Menlo Micro
• Bosch
• Hongfa
• DENSO CORPORATION
• Eaton
• TE Connectivity
• Sensata Technologies Holdings N.V
• Deltrol Controls (Deltrol Corporation)
• Fujitsu Limited
• GOOD SKY ELECTRIC CO., LTD.
• Megatone Electronics Corp.

Key Players and Competitive Dynamics in Automotive Relay Market

Panasonic is one of the key players in the  automotive relay market, basically it is greatly known for its high-performance and reliable relay products. The company has a global presence and a strong reputation for quality and innovation. Panasonic has seen a steady market growth and continues to expand its share in the market in the automotive relay market.

TE Connectivity is a leading player in the automotive relay market which offers a wide range of relay products for various automotive applications. Due to its long history of providing innovative solutions and high-quality products to meet the evolving needs of its customers.

Hongfa a prominent player has a strong focus on its R&D, and their products are known for their quality and reliability. Hongfa has seen significant market growth in recent years, driven by its commitment to innovation and customer satisfaction.

Automotive Relay Market Recent Developments

• In January 2023, Bosch revealed its ambitious plans to invest over $1 billion in expanding electric vehicle infrastructure in China. This substantial investment is poised to catalyze the growth of vehicle relaying within the region, aligning with China's significant focus on electric mobility.
• In May 2022 witnessed Taolian Technology securing US$15 million in Series A financing, with Xinyi Capital leading the investment round. Taolian Technology specializes in chip development for narrowband communications devices and is actively engaged in the production of system-on-chip (SoC), relays, gates, and other components used across various industries, including automotive and telecommunications.
• In May 2022, Texas Instruments Incorporated (TI) announced the launch of a new series of relays engineered to enhance the safety of electric vehicles. These relays utilize silicon dioxide to bolster their isolation capabilities, with coatings featuring green-gold tones. This innovation underscores TI's commitment to advancing safety standards in the electric vehicle sector.
• In February 2022, Menlo Micro secured a significant milestone with $150 million in Series C financing. The company leverages electromechanical and solid-state technology to dramatically reduce key parameters such as size, weight, power consumption, and cost by an impressive 99% compared to traditional electromechanical relays. Marketed under the name "Ideal Switch," Menlo Micro's solution represents a groundbreaking advancement in relay technology with profound implications for various industries, including automotive.
• In April 2022, LG Magna e-Powertrain unveiled its latest manufacturing facility situated in Ramos Alispe, Mexico. The factory manufactures inverters, motors, and onboard chargers, principally for General Motors' EV production activities.

Automotive Relay Market Segmentation

By Product

• PCB Relay
• Plug-in Relay
• High Voltage Relay
• Others

By Vehicle Type

• Passenger Cars
  • Hatchbacks
  • Sedans
  • SUVs
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Propulsion Type

• ICE Vehicles
  • Diesel
  • Petrol
  • CNG and LPG
• Electric Vehicle
  • Battery Vehicles
  • Plug-in Vehicles
  • Hybrid Vehicles
• Others

By Application

• Resistive Loads
  • HVAC
• Capacitive Loads
  • Engine Management Module
  • Fog Lights
  • ABS Module
  • Front and Rear Beam
• Inductive Loads
  • Power Window
  • Central Lock
  • Cooling Fan
  • Clutches

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • United Arab Emirates
  • Saudi Arabia
  • South Africa