Relays Global Market Opportunities and Strategies to 2033

This report describes and explains the relays market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global relays market reached a value of nearly $8.81 billion in 2023, having grown at a compound annual growth rate (CAGR) of 1.25% since 2018. The market is expected to grow from $8.81 billion in 2023 to $10.79 billion in 2028 at a rate of 4.13%. The market is then expected to grow at a CAGR of 5.57% from 2028 and reach $14.15 billion in 2033.

Growth in the historic period resulted from the growing adoption of electric vehicles, rising investments in renewable power generation and emerging markets growth. Factors that negatively affected growth in the historic period were lack of investments in grid stability in developing countries.

Going forward, increasing automobile production, rise in power consumption and rising urbanization will drive the growth. Factor that could hinder the growth of the relays market in the future include volatility in raw material prices.

The relays market is segmented by type into Latching Relays, Solid State Relays, Automotive Relays, Overload Protection Relays, Electromechanical Relays and Other Types. The electromechanical relays market was the largest segment of the relays market segmented by type, accounting for 48.8% or $4.3 billion of the total in 2023. Going forward, the solid state relays segment is expected to be the fastest growing segment in the relays market segmented by type, at a CAGR of 4.94% during 2023-2028.

The relays market is segmented by application into Military, Industrial Automation, Electronics and Other Applications. The industrial automation market was the largest segment of the relays market segmented by application, accounting for 46% or $4.05 billion of the total in 2023. Going forward, the industrial automation segment is expected to be the fastest growing segment in the relays market segmented by application, at a CAGR of 4.50% during 2023-2028.

The relays market is segmented by voltage into low, medium, and high. The low market was the largest segment of the relays market segmented by voltage, accounting for 57.1% or $5.03 billion of the total in 2023. Going forward, the high segment is expected to be the fastest growing segment in the relays market segmented by voltage, at a CAGR of 4.67% during 2023-2028.

The relays market is segmented by end-user into utilities, industrial, railways and other end-users. The utilities market was the largest segment of the relays market segmented by end-user, accounting for 40.2% or $3.54 billion of the total in 2023. Going forward, the industrial segment is expected to be the fastest growing segment in the relays market segmented by end-user, at a CAGR of 4.48% during 2023-2028.

Asia Pacific was the largest region in the relays market, accounting for 44.3% or $3.91 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the relays market will be Asia Pacific and Africa where growth will be at CAGRs of 5.36% and 3.38% respectively. These will be followed by South America and Eastern Europe where the markets are expected to grow at CAGRs of 3.72% and 3.51% respectively.

The global relays market is highly concentrated, with a large player operating in the market. The top ten competitors in the market made up 60.47% of the total market in 2022. Siemens was the largest competitor with a 13.34% share of the market, followed by Schneider Electric with 10.18%, TE Connectivity with 9.59%, Eaton Corporation with 8.45%, ABB with 4.99%, Honeywell International Inc with 3.54%, Omron Corporation with 2.99%, Toshiba, with 2.79%, Panasonic Corporation with 2.52% and Rockwell Automation Inc with 2.09%.

The top opportunities in the relays market segmented by type will arise in the electromechanical relays segment, which will gain $ 918.94 million of global annual sales by 2028. The top opportunities in the relays market segmented by application will arise in the electronics segment, which will gain $618.96 million of global annual sales by 2028. The top opportunities in the relays market segmented by voltage will arise in the low segment, which will gain $1.15 billion of global annual sales by 2028. The top opportunities in the relays market segmented by end user will arise in the utilities segment, which will gain $794.12 million of global annual sales by 2028. The relays market size will gain the most in China at $ 566.06 million.

Player-adopted strategies in the relays market include focus on strengthening its business operations through introducing new products, strengthening its operational capabilities through innovative product launches, enhancing its business operations through strategic acquisitions, enhancing its business operations by expanding their production capabilities.

Market-trend-based strategies for the relays market include development of eco-efficient relays for minimizing the impact on the environment and attaining sustainability, increased use of electromechanical relays to ensure optimum utilization of resources, increasing development of advanced line monitoring relays, increase in merger and acquisition activity among market players to drive innovation in the market, innovative product launches in solid state relays and high voltage relays.

To take advantage of the opportunities, the analyst recommends the relays companies to focus on sustainability with eco-efficient relay solutions, focus on electromechanical relays for enhanced efficiency, focus on advanced line monitoring relays for enhanced performance, focus on innovation in solid state and high voltage relays, focus on high-growth segments: solid state and latching relays, expand in emerging markets, continue to focus on developed markets, focus on strategic channel expansion, provide competitively priced offerings, focus on value-centric pricing, participate in trade shows and events, continue to use B2B promotions, focus on industrial automation and electronics segments and focus on utilities and railways end-user domains.