The Global Automotive Relay Market is expected to reach USD 12.58 billion by 2020, according to a new study by Grand View Research, Inc. Electrical automotive parts have significantly diversified over the last five years which has consequently increased the number of switching relays from 20 to approximately 30 per vehicle. Variation in features required for each relay has also undergone considerable transition to address different specifications required for different applications.
Regulatory boards worldwide, for instance The National Highway Traffic Safety Administration in the U.S., have mandated installation of certain safety equipment in automobiles to curb fatalities resulting from road accidents. Additional relays needed for switching safety devices is expected to favorably impact automotive relay market growth.
Lack of standardization in the automotive industry, particularly in developing countries is expected to pose a challenge to market growth. However, efforts have been taken on a global scale to standardize the automotive industry, owing to which the market is not expected to be impacted in the long run.
Further key findings from the study suggest:
- Global automotive relay demand was estimated to be 2.62 billion units in 2013 and is expected to reach 3.69 billion units by 2020, growing at a CAGR of 5.1% from 2014 to 2020.
- Increased emphasis on automobile weight reduction to enhance fuel efficiency has driven PCB automotive relays demand owing to their growing miniaturization and improved current handling capabilities. PCB relays accounted for over 70% of the global shipments. Conventional plug-in relays are still preferred in powertrain systems due to their inherent robustness and ability to withstand high temperatures, voltage fluctuations and vibrations.
- Convenience applications accounted for over 30% of the market volume in 2013. Growing emphasis on in-vehicle entertainment and comfort systems has triggered the use of relays for switching these devices. Installation of safety & security systems is expected to witness high growth over the forecast period owing to increased government regulation pertaining to vehicular safety, which in-turn is expected to drive relay installations. Use of relays in driver information systems is expected to increase significantly over the forecast period.
- Transformation of Asia Pacific into an automobile manufacturing hub has driven the automotive relay market in this region, which contributed to a considerable percentage of global shipments in 2013. The North American market is expected to witness steady growth over the forecast period.
- PCB relay manufacturers have tapped new potential markets and launched new product lines in order to diversify. Growing number of strategic alliances and mergers & acquisitions for gaining competitive advantage has been a highlight of the automotive relay industry.
Learn more Full Market Insight Details here: Automotive Relay Market Report