Automotive Relay Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Automotive Relay Market was valued at USD 19.02 Billion in 2024, and is expected to reach USD 27.12 Billion by 2030, rising at a CAGR of 6.15%. The global automotive relay market is experiencing significant growth driven by several key factors. Advancements in vehicle electrification have revolutionized the automotive industry, with electric vehicles (EVs) and hybrid electric vehicles (HEVs) becoming increasingly popular. These vehicles require a higher number of relays for various functions, such as powertrain control, battery management, and energy distribution.

As the adoption of EVs and HEVs continues to rise, the demand for automotive relays is expected to surge, driving market growth. The increasing focus on vehicle safety has led to the integration of advanced safety systems, including electronic stability control (ESC), advanced driver-assistance systems (ADAS), and autonomous driving technologies, all of which rely heavily on relays for their operation. In August 2024, new car registrations in the European Union rose by 3.9%, exceeding 6.5 million units, indicating a steady increase in vehicle production and, consequently, the demand for automotive relays.

Key Market Drivers

Advancements in Vehicle Electrification

One of the primary drivers of the global automotive relay market is the ongoing trend toward vehicle electrification. This transformation involves the increasing integration of electronic components and electric systems in both conventional and electric vehicles (EVs). As vehicles become more electrically complex, the demand for automotive relays grows substantially. The transition from internal combustion engines (ICE) to electric powertrains in EVs necessitates the use of relays to control various functions, such as motor drives, battery management systems, and charging circuits. Relays ensure the safe and efficient operation of these components.

ADAS technologies, including adaptive cruise control, lane-keeping assist, and automated braking systems, rely on relays for switching and controlling sensors and actuators, enhancing vehicle safety and convenience. The proliferation of infotainment and connectivity features in modern vehicles requires relays to manage audio and video systems, communication modules, and navigation systems, providing a seamless user experience.

Hybrid vehicles, which combine traditional internal combustion engines with electric powertrains, rely on relays for coordinating the operation of both systems, optimizing efficiency, and managing energy flows. In March 2024, Garrett advanced EV technology with its in-house electronics by introducing the first passenger vehicle E-Turbo. This innovation featured a 6kW electric motor on the turbo shaft, spinning at over 180,000 rpm independently of exhaust energy. Internally developed proprietary power electronics enabled this control by switching 30,000 times per second.

Key Market Challenges

Increasing Complexity of Vehicle Electronics

One of the most significant challenges facing the global automotive relay market is the increasing complexity of vehicle electronics systems. Modern vehicles are equipped with a wide array of electronic components, sensors, and control units, many of which require relay-based control. The integration of advanced driver assistance systems (ADAS) and autonomous driving technologies has led to a surge in the number of sensors and control units within vehicles. These systems rely heavily on relays to manage their functions. The transition to electric and hybrid powertrains has introduced complex electrical systems that require precise relay-based control, from battery management to electric motor control.

Modern vehicles are equipped with sophisticated infotainment and connectivity systems, necessitating relay control for functions like audio systems, navigation, and wireless communication. Stringent safety and emission regulations have led to the incorporation of additional electronic systems, such as tire pressure monitoring and emission control systems, further increasing the complexity of vehicle electronics. The challenge for relay manufacturers is to provide reliable and efficient relay solutions that can meet the demands of these complex electronic systems while maintaining compact designs and cost-effectiveness.

Key Market Trends

Advanced Driver Assistance Systems (ADAS) and Autonomous Driving

The integration of advanced driver assistance systems (ADAS) and the development of autonomous driving technologies are driving significant changes in the automotive relay market. These technologies rely heavily on relays to enable various functions, enhancing vehicle safety and convenience. ADAS and autonomous vehicles incorporate a multitude of sensors, including radar, LiDAR, cameras, and ultrasonic sensors, to perceive their surroundings. Relays play a crucial role in the coordination and control of these sensors, ensuring accurate data acquisition and processing.

Relays are responsible for controlling various actuators involved in ADAS and autonomous driving, including adaptive cruise control, lane-keeping assist, and automated braking systems. These relays enable precise and timely responses to changing road conditions. The massive amounts of data generated by sensors and processing units in ADAS and autonomous vehicles require efficient data routing and management. Relays are used to switch and route data between processing units, enabling real-time decision-making and control. Ensuring safety is paramount in autonomous vehicles. Relays are employed in fail-safe mechanisms that allow critical systems to override autonomous functions in emergency situations, providing an additional layer of safety.

Key Market Players

• TE Connectivity Ltd
• OMRON Corporation
• Xiamen Hongfa Electroacoustic Co.,Ltd
• FCL COMPONENTS LIMITED
• DENSO Corporation
• Panasonic Corporation
• MITSUBA Corporation
• HELLA GmbH & Co. KGaA
• Nidec Corporation
• Robert Bosch GmbH

Report Scope:

In this report, the Global Automotive Relay Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Automotive Relay Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Automotive Relay Market, By Relay Type:

• PCB
• Plug-In
• High Voltage

Automotive Relay Market, By Application Type:

• Resistive
• Capacitive
• Electric

Automotive Relay Market, By Region:

• Asia-Pacific
• China
• India
• Japan
• Indonesia
• Thailand
• South Korea
• Australia
• Europe & CIS
• Germany
• Spain
• France
• Russia
• Italy
• United Kingdom
• Belgium
• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Turkey
• Saudi Arabia
• UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Relay Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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