Rising Demand for Electric Vehicles in Most of Countries is Escalating the Growth of the Automotive Relay market

The rising demand for electric vehicles as a result of new technology in the automobile industry is fueling market expansion for Automotive Relays. The increasing government incentives for EV adoption is increasing demand for the Automotive Relay Market. Furthermore, the growing consumer trend towards sustainable living as a result of the rising usage of electric vehicles thus burgeoning the adoption of Automotive Relays. Automotive companies are developing and implementing safety measures in order to meet consumer demand. Besides this, Rising connectivity demand and vehicle digitalization and the launch of technologically advanced Automotive Relays by the market players are some of the factors driving the growth of the Automotive Relay Market. According to a World Health Organization report published in 2021, 1.3 million people died in automobile accidents each year. Adolescents are more likely than adults to be killed in a car accident.

However, to burgeoning number of premature death due to air pollution and an increase in discretionary income are accentuating the growth of the market in the forecasted period. Around 23,26,771 premature pollution-related deaths occur in India every year.

According to Marketlook Consulting’ research report “Global Automotive Relay Market Analysis, 2021”, the Global Automotive Relay market is anticipated to grow at a CAGR of 5.5% during 2022-29 The market would reach USD 18.78 Mn by 2029.

Based on Relay Type, PCB relay segment acquired a significant market share in 2021 as the demand for electronic control modules and electronic components grows, smaller devices capable of managing larger current loads are required. The fundamental advantage of PCB relays is their small size, which decreases the amount of junction box space required. While carrying a large current, a PCB relay allows more secure connections and disconnections of vehicle components than a plug-in relay. This is propelling the automotive PCB relays market forward.

Based on Vehicle Type, Electric Vehicles segment acquired an exorbitant market share in 2021. Many governments are making significant offers to encourage the sale and use of electric vehicles. Tax advantages are available at the time of purchase. Furthermore, the scope of the exemption is determined by the size of the batteries used in the vehicle. In the United States, insurance companies provide customers discounts on insurance contracts, and utility companies offer inexpensive electricity prices. Furthermore, only a few jurisdictions provide incentives to electric vehicle manufacturers and consumers for the costs of purchasing charging equipment. Tax credits of up to USD 7,500 are available from the federal government for plug-in electric vehicles (PEVs).

“Global Automotive Relay Market Analysis, 2021” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for Automotive Relay providers across the Globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.      

Asia Pacific Dominated the Market

Based on Leading regions, Asia Pacific dominated the global Automotive Relay market in 2021 and is projected to maintain its dominance during the forecasted period 2022-29 due to car penetration in growing economies such as China, and the implementation of safety norms is likely to fuel the market in various Asian countries. Asia Pacific has a strong development potential, which may be linked to the region's high vehicle demand. Consumer tastes have shifted as disposable money has increased. As a result of all of these factors, relays will be deployed, making the Asia Pacific area the largest market. Besides this, the industry is likely to expand as more market participants enter emerging markets such as China and India. Furthermore, rising OEM spending in these countries, as well as a favourable regulatory environment are projected to fuel the demand for Automotive Relay in the forthcoming period as stated in Marketlook Consulting research report “Global Automotive Relay Market Analysis, 2021”. 

According to Marketlook Consulting’, the key players with a considerable market share in the global Automotive Relay market are ABB Group, American Zettler Inc., Denso Corporation, Eaton Corporation plc, Fujitsu Limited, Beta Electric Industry Co. Ltd., Coto Technology, Deltrol Controls, Good Sky Electric Co. Ltd., IDEC Corporation, Hella KGaA Hueck & Co. (HELLA).

Market Segmentation:

• By Relay Type (Plug-in Relay, PCB Relay, High Voltage Relay, Others)
• By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Electric Vehicles)
• By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa)
• By Application (Engine Management Module, Lamps/Lights, Locking System, Others)
• By Company (ABB Group, American Zettler Inc., Denso Corporation, Eaton Corporation plc, Fujitsu Limited, Beta Electric Industry Co. Ltd., Coto Technology, Deltrol Controls, Good Sky Electric Co. Ltd., IDEC Corporation, Hella KGaA Hueck & Co. (HELLA))

Key questions answered in the study:

1. What are the current and future trends of the Automotive Relay industry?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. How the competition has been shaping across the countries followed by their comparative factorial indexing?
4. What are the key growth drivers and challenges for the Automotive Relay industry?
5. What is the customer orientation, purchase behavior, and expectations from the Automotive Relay firms across various regions?