Adoption of automotive relays is mainly driven by the urgent requirement of passenger safety. Over the previous few decades, automobile safety measures have significantly reduced road accidents and fatalities. Additionally, the automobile sector is aiming to improve consumers’ driving experiences. Self-diagnosing smart automobiles are becoming more and more popular, which is expected to accelerate market expansion through to 2032.
In addition, favourable regulations and incentives have been implemented by governments of various countries to encourage expansion of the automotive relay industry. Automotive relays are used in electronic devices with a wide range of applications, including safety management, powertrain, comfort, and infotainment, to incorporate new technologies into automobiles. This will result in the increasing demand for automotive relays in the next ten years.
Moreover, demand for automotive relays is set to surge due to the rising need for electric vehicles in developing nations like India, China, and Japan. The Asia Pacific region is anticipated to dominate the automotive relay market to 2032.
Presence of several well-established automotive manufacturers in emerging countries like China and India is projected to push the production of both passenger and commercial vehicles in the region. Owing to the aforementioned factors, the Asia Pacific automotive relay market is anticipated to grow at a steady pace in the next ten years.
Increased need for hybrid and electric vehicles with innovative, lightweight, and high-performance relays is driving manufacturers to invest in solid-state relays rather than traditional bulky electromechanical relays. As a result, it is projected that this factor will present a new growth potential for the global market.
Key competitors in the automotive relay market are concentrating on organic growth strategies such as product releases, product approvals, and patents & events. Acquisitions and partnerships & collaborations are some of the other inorganic growth tactics that are set to be adopted by key players in the market.
For instance, in August 2021, Faurecia, a prominent vehicle maker, announced its plans to buy a 60% stake in Hella GmbH & Co. In 2020, Panasonic established Prime Planet Energy & Solutions Inc. (PPES), an electric vehicle battery joint venture with Toyota, after its position as Tesla’s exclusive battery supplier was reduced due to changes in the market environment such as the advent of rivals from South Korea and China, as well as Tesla’s plan to bring the development and production of battery cells in-house.
These insights are based on a report on Automotive Relay Market by Fact.MR.
