The reed relay market size is expected to advance at a CAGR of 15.40% during 2022–2030, to reach USD 1,162 million by 2030. This can be ascribed to the surging demand for electric vehicles, the rising need for renewable energy, and the improving EV and renewable infrastructure, globally.
With the increasing number of electric vehicles and charging stations, the demand for reed relays is rising, as these are used in different parts of EVs, such as engine, battery, lighting, screen wiping, steering, and electric mirror modules. Also, these relays are used in charging stations to ensure that a correct locking signal is passed for efficient charging of the vehicles.
In the application segment, the automotive and transportation category accounted for the largest revenue share in 2022. This is because several sensors are used in the automotive and transportation sector. For instance, certain reel sensors are used to resist shock and extreme temperatures and humidity that are required in automotive applications. In addition, thermal reed sensors can be used in automobiles as a safety feature to cut out electronics on the control circuits with a set temperature to reduce the chance of fire in the vehicle.
These switches can also be used in advanced automotive devices, such as automatic climate control systems, which can sense the need to change the temperature of air conditioners; and automatic turn indicators, which can sense the position of the steering in the vehicle and turn on the indicator for a particular side.
Whereas, the industrial category is expected to witness the fastest growth in the coming years. This can be due to the rapid growth in industrial technology advancements, such as robotics, smart machines, and smart factories, and many companies are working on technologies to improve their manufacturing facilities.
On the other hand, the household appliances category is also growing significantly, as reed relays are useful in switching extremely low current loads to their low leakage current and are useful for switching radiofrequency and microwave circuits. Also, a few appliances such as food processors use special reed relay switches to sense the load on the motor. When the relay senses that the load is very high, it switches the current path and the processor will stop working. Thus, due to the rising demand for safety features in appliances, the need for these relays is increasing.
Due to the surging pollution levels, governments of several countries are doing heavy investments in the electric vehicle sector, offering subsidies to buyers, and making improved infrastructure available to them. For instance, the Government of India is planning to set up 2600 charging stations in the country, which will create a high demand for reed relays.
In the same way, many initiatives can be seen in China regarding the EV infrastructure and electric vehicles in the country. The number of electric vehicles sold in the country in 2022 was 6.89 million, which was the highest in the world. With these initiatives, the market for reed relays is also rising.
The major reed relay market players are ABB, Standex International Corporation, Siemens, Schneider Electric, TE Connectivity, COTO Technology Inc., Pickering Electronic Ltd., General Electronic (GE), Littlefuse, and Towards Relays.