Global Relay Market Size (2024 - 2029)

Relay Market Analysis

The relay market is expected to register a CAGR of 4.6% during the forecast period (2022 - 2027). The relay market is projected to witness significant growth owing to the acceptance of different relays across various end-user applications, including aerospace, defense & military, automotive, communications, energy and power, industrial, and others.

• The rise in power consumption, growing adoption of electric vehicles, implementation of smart power grids, and increasing adoption of vehicular safety technology are some major factors expected to drive the relay market. However, volatility in raw material prices is one of the major factors that may hamper the growth of the relay market during the forecast period.
• Developing and developed countries worldwide are significantly investing in the construction of smart power grids, which is anticipated to propel the market for relays in the future. For instance, in July 2021, GridWise Alliance announced a USD 5 billion funding to revamp the US's transmission and distribution infrastructure with smart sensors, controls, and storage.
• Smart grids are advanced electric power grid infrastructures for enhanced reliability and efficiency and work with automated control, modern communications infrastructure, high-power converters, modern energy management techniques, and sensing and metering technologies.
• The demand for relays in an automated power grid is huge as they can support monitoring transformers and protect from transformer overload, overexcitation, and through-fault, as well as standard protection functions including overcurrent, differential, and earth faults.
• The emergence of COVID-19 adversely impacted the global relay market. The massive downturn in the industries that have been major end-users of the different types of relays impacted the decline in the relay market at a global level. Also, the pandemic brought key projects in the renewable resources sector to a standstill due to the lockdowns imposed in many countries to control the spread of the disease in 2020 and early 2021.
• Although, the industries across various parts of the world are opening back, easing the supply chain constraints. However, the disruptions caused by the pandemic are expected to have their impact felt at least for a short period.

Relay Industry Segmentation

A relay acts as a switch and is used to switch connections between different circuits. Electrical relays are generally utilized for switching radio frequencies, signals, high current circuits when utilizing a lower current circuit, and loads such as a motor, resistive, inductive, lamp, and capacitive applications. The relays are helpful when an existing circuit or in-line switch cannot manage the needed current. Among product types, electromechanical and solid state relays are the two major types of relays that have been considered in the scope of this market report.

The end-user applications considered part of the study include aerospace, defense, military, automotive, communications, energy and power, industrial, and others in various geographies. Also, the study includes the impact of COVID-19 on the market.