The worldwide automotive relay market is expected to exceed USD 12 billion by 2020, according to a study by Radiant Insights, Inc. Electrical automotive parts have witnessed design improvements over the last few years. To prolong the life-span of automobiles, switching relays have increased from 20 to 30 for each vehicle. On this basis, the market is estimated to grow at a CAGR of 6.2% during the forecast period (2014 to 2020).
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Automotive relays are devices that prolong the efficiency of electrical parts and conserve energy in the long run. Their installation is mandatory due to safety laws put forth by the National Highway Traffic Safety Administration (NHTSA) of the U.S. government.
The automotive relay market has applications in powertrain systems, body and chassis, safety & security, convenience, and driver information. Driver information holds the largest market share. It provides drivers with updates on weather, traffic, and GPS navigation. Powertrain systems capture the second largest share. They are followed by safety & security, and body & chassis.
Products segments in the automotive relay market include PCB (printed circuit board) relays, and plug-in relays. PCB relays are capable of carrying greater loads. They are utilized in adjustable pedals, heated seats, electric power steering, rear-seat speakers, power doors, and power folding seats.
PCB relays were the leading product and generated about USD 5.5 billion in 2013. They would notice around 6% CAGR and reach over USD 8 billion by 2020. Plug-in relays are utilized for applications functioning in extreme temperatures, and voltage fluctuations. They are utilized in fuel injection systems, switching fuel pumps, and HVAC (heating control and air-conditioning) systems.
Plug-in relays accounted for 32% of the global revenues of the automotive relay market in 2013. They are anticipated to grow at a CAGR of 5% during the forecast period. The production of automobiles in North America has witnessed steady growth. Brazil has become a major hub for automobile production, and will undergo extended market growth in the future.
Asia-Pacific has also become a major automobile manufacturing hub, owing cheap labor, abundant materials, and favorable governmental regulations. It will grow at 7% CAGR in the forecast period. The European automotive relay market, on the other hand, will experience reduced demand.
Information Source: Radiants Insights