Automotive Relay Market To Generate $18.1 Billion Revenue by 2030

The global automotive relay market size is expected to advance at a CAGR of 5.1% during 2024–2030, to reach USD 18.1 billion by 2030.

A relay is used in a variety of automobiles to increase the efficiency and power output. The industry growth is mainly attributed to the need for safer and more-comfortable automobiles and the surging demand for hybrid and EVs, which need high-voltage relays. Additionally, the rising preference for advanced features in automobiles is augmenting the growth potential of the market. For instance, relays are used for the headlights of cars to increase their brightness and power, thus allowing drivers a clearer view of the road in darkness.

Rising Demand for Safer and Comfortable Vehicles

In the last few years, the demand for extra comfort and safety in automobiles has greatly increased, impelling automobile manufacturers to make efforts in this direction. The usage of relays increases as the integration of advanced driving assistance systems and other features raises the number of electronic components in automobiles. Additionally, now, electromechanical relays have been replaced with electronic ones, which are efficient and compact.

Furthermore, the rising stringency of the regulations implemented to allay safety concerns propels the integration of a greater number of safety features, many of which are now mandatory in automobiles. For instance, in the U.S., the National Highway Traffic Safety Administration is responsible for vehicle safety, having implemented the Federal Motor Vehicle Safety Standards in this regard. Similarly, in 2019, the European Union implemented the General Safety Regulation to reduce the number of deaths and serious injuries due to road accidents. The rules, which majorly apply to heavy commercial vehicles and buses, mandate several safety systems, such as emergency brake assistance systems and lane departure warning systems, which need relays.

In addition, the enhancements in deep learning, artificial intelligence, and cloud mobility lead to the integration of advanced processors in EVs’ systems. Moreover, automotive relays are used in computer systems that design a 3D spatial representation of a vehicle's surroundings and those that detect threats. Further, the GPS delivers signals to the electronic devices that indicate speed, direction, and time, due to which the usage of relays in vehicles is increasing.

Additionally, governments and regulatory bodies have implemented stringent emission standards on vehicles to lower greenhouse gas emissions and improve air quality, thereby driving the market. An economy ICE passenger vehicle has 28 to 40 relays, compared to 55 to 65 in an average EV.

Some of the major player operating in the automotive relay market are TE Connectivity Ltd, Omron Corporation, Panasonic Holdings Corporation, Xiamen Hongfa Electroacoustic Co. Ltd., Fujitsu Component Limited, American Electronic Components, LS Automotive India Pvt. Ltd., and Robert Bosch GmbH.