The Global Relay Market size is expected to reach $10.9 billion by 2030, rising at a market growth of 6.7% CAGR during the forecast period. In the year 2022, the market attained a volume of 82762.9 thousand units, experiencing a growth of 9.2% (2019-2022).
The emphasis on renewable energy sources in Europe, such as wind and solar power, may drive the need for energy management and control systems relays. Consequently, Europe region would generate approximately 25.31% revenue share of the market by 2030. Also, Germany would utilize 3,730.6 thousand units of time relay by 2030. Developing smart grids and infrastructure projects in European countries may lead to increased demand for relays in power distribution and management applications. Hence, the segment will expand rapidly in the coming years.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August 2023, Siemens AG launched the SIRIUS 3UG5 line monitoring relays. The SIRIUS 3UG5 relays boast an extended frequency range, operating smoothly from 15 to 70 Hertz (Hz) and facilitating the monitoring of specific frequencies on unstable grids. In May, 2023 Omron Corporation launched the G2RV-ST, its latest industrial 6mm electromechanical relay. The G2RV-ST relay is a pre-assembled 6mm slim relay with industrial pins, designed for easy wire insertion facilitated by an angled inclination and 2.5 mm2 wire dimensions.
Based on the Analysis presented in the KBV Cardinal matrix; Broadcom, Inc., Siemens AG and General Electric Company are the forerunners in the Market. In August 2023, Siemens AG launched the SIRIUS 3UG5 line monitoring relays. The SIRIUS 3UG5 relays boast an extended frequency range, operating smoothly from 15 to 70 Hertz (Hz) and facilitating the monitoring of specific frequencies on unstable grids. Moreover, the SIRIUS 3UG5 series provides a straightforward solution for monitoring grid stability and quality in accordance with standards, thereby guaranteeing optimal system performance and long service life for components like motors or compressors. And companies such as Schneider Electric SE, Eaton Corporation PLC and ABB Ltd. are some of the key innovators in Market.
The relentless drive towards industrial automation has positioned relays as indispensable components within the technological framework of modern manufacturing. Relays, with their ability to act as control switches, are pivotal in automating many processes across diverse industries. Adopting automation enhances operational efficiency and lays the foundation for more sophisticated advancements such as Industry 4.0. Thus, these factors will propel the demand for relays in the upcoming years.
Additionally, In the worldwide focus on energy and sustainability, relays serve as indispensable components, contributing significantly to the overarching goal of optimizing energy usage and promoting environmental sustainability. Relays are central in energy management systems, acting as the control mechanism for electrical loads. Thus, these factors will assist in the expansion of the market.
The inherent complexity of relay technology presents a primary technological barrier. Relays, designed for switching and controlling electrical circuits, require intricate engineering to meet diverse industrial and commercial needs. As these requirements expand, the complexity of relay designs increases, demanding continuous advancements in manufacturing processes and materials. The modern landscape requires relays with increasingly sophisticated features. Thus, these factors can lead to decreased demand for relays in the coming years.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
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Challenges On the basis of Mounting Type, the market is divided into DIN rail mount, PCB mount, panel mount, and plug in. The PCB mount segment recorded the 35.1% revenue share in the market in 2022. In terms of volume, PCB mount has 30,198.4 thousand units in 2022. The broader electronics industry's changes frequently impact the demand for electronic devices and components, particularly PCB-mounted relays. Thus, owing to these factors, the segment will grow rapidly in the upcoming years.
Based on type, the market is segmented into protection relay, time relay, monitor & control relay, general purpose relays, and others. In 2022, the general-purpose relay segment garnered a 11.2% revenue share in the market. The increasing adoption of automation in industries drives the demand for general-purpose relays. These relays are used in control panels, machinery, and manufacturing processes to manage electrical circuits. General-purpose relays find applications in automotive systems, including lighting, motors, and other electrical components. The growth of the automotive industry can impact the demand for these relays. Hence, these factors can help in the expansion of the segment.
Based on End User, the market is divided into automotive, communication & technology, industrial automation, power generation & distribution, and others. The power generation and distribution segment recorded a 32.4% revenue share in the market in 2022. The increasing need for grid modernization and the adoption of smart grid technologies have driven the demand for advanced relays. Relays that are dependable and efficient are necessary for smart grids in order to monitor and regulate power flow, maintain grid stability, and make it easier to integrate renewable energy sources. Therefore, these factors can assist in the expansion of the segment.
Free Valuable Insights: Global Relay Market size to reach USD 10.9 Billion by 2030
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America segment registered 27.6% revenue share in the market in 2022. North America has a significant presence in industrial sectors, and the adoption of automation technologies continues to grow. Moreover, the push for renewable energy sources, such as wind and solar, is prominent in North America. Therefore, these factors will pose lucrative growth prospects for the segment.
The relay market is characterized by fierce competition with established players like Broadcom, Inc., General Electric Company, and Siemens AG offering various relay types for applications across industries like automotive, industrial, and telecommunications. Key drivers of competition include technological innovation, quality and reliability, pricing strategies, market segmentation, distribution channels, brand reputation, and regulatory compliance. Companies vie for dominance by introducing advanced relay technologies, ensuring reliability, offering competitive pricing, targeting specific industry segments, optimizing distribution networks, building strong brand reputations, and complying with industry regulations. To gauge the current competitive landscape in 2024, industry reports and market analyses should be consulted to identify leading players, market shares, and emerging trends.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 6.5 Billion |
| Market size forecast in 2030 | USD 10.9 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 6.7% from 2023 to 2030 |
| Quantitative Data | Volume in Thousand Units, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Number of Pages | 414 |
| Number of Tables | 792 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Mounting Type, End User, Region |
| Country scope |
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| Companies Included | Fujitsu Limited, ABB Ltd., Broadcom, Inc., Eaton Corporation PLC, Schneider Electric SE, Siemens AG, TE Connectivity Ltd., General Electric Company, Rockwell Automation, Inc., Omron Corporation |
By Mounting Type (Volume, Thousand Units, USD Billion, 2019-2030)
By Type (Volume, Thousand Units, USD Billion, 2019-2030)
By End User (Volume, Thousand Units, USD Billion, 2019-2030)
By Geography (Volume, Thousand Units, USD Billion, 2019-2030)
This Market size is expected to reach $10.9 billion by 2030.
Rising Industrial Automation and Industry 4.0 Integration are driving the Market in coming years, however,Technological Barriers and Innovation Challenges restraints the growth of the Market.
Fujitsu Limited, ABB Ltd., Broadcom, Inc., Eaton Corporation PLC, Schneider Electric SE, Siemens AG, TE Connectivity Ltd., General Electric Company, Rockwell Automation, Inc., Omron Corporation
In the year 2022, the market attained a volume of 82762.9 thousand units, experiencing a growth of 9.2% (2019-2022).
The Time Relay segment is leading the Market by Type in 2022 there by, achieving a market value of $3.7 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022 there by, achieving a market value of $4.5 billion by 2030.
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