Market Trends of North America Safety Relay And Timers Industry
The Automotive Segment is Expected to Drive the Market
- Automotive relays are utilized in harnesses and box modules throughout a vehicle, including rear and front, passenger and engine areas, body control, powertrain, roof, seat, door, and fan modules. The automotive relay types include plug-in, PCB, high-current, high-voltage, and automotive contactors.
- The automotive industry is expected to be one of the highest adopters of safety features. According to the Argonne National Laboratory, in December 2023, the market shares of battery and plug-in hybrid electric vehicles reached 8.34% and 2.82% in the United States, respectively. In addition, according to the Kelley Blue Book estimates, the share of electric vehicles in the overall US vehicle market was 7.6% in 2023, up from 5.9% in 2022. Such expansion may further create demand in the market studied.
- In addition, North America is witnessing robust growth in its automotive industry. According to the OICA, North American motorists purchased around 3.98 million passenger cars in 2023, whereas the United States accumulated approximately 3.12 million.
- Furthermore, high-voltage systems are becoming more prevalent, especially with the increased adoption of EVs in the region. Numerous market players are focused on finding new ways for system designers to solve complex isolation challenges, like ensuring reliable and safe car operation as the enterprise transitions to 800 V batteries and reducing solution size and cost. Advanced solid-state relays can disconnect and connect loads through a single isolation barrier in microseconds, compared to milliseconds for electromechanical relays, to enable the safer operation of high-voltage automotive systems.
- To cater to this requirement, in April 2023, Fujitsu Components America Inc. expanded its offering in the automotive relay market and offered an option of 14 VDC PCBs that are ideally suited to applications with limited space. With the capability to switch 30 A of current in a very compact, plastic-sealed package, measuring 6.6 mm x 13.7 mm x 14 mm, the FTR-G3 is the world’s most miniature automotive relay in the 30 A class. Such innovations would drive the growth of the market studied by offering lucrative expansion opportunities.
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United States is Expected to Hold Significant Market Share
- The United States is one of the most significant and advanced markets for safety relays and timer solutions in the world. The strong economy, with notable energy and power sector and key manufacturing indices, results in significant growth in manufacturing, and it is poised to drive the demand for the market studied in the region. Sectors, including automotive, pharmaceutical, oil and gas, and manufacturing, are the region's most significant sources of demand for safety relay solutions.
- According to the World Robotics Report 2023, published by the International Federation of Robotics, the United States is the world's third major industrial robot user. According to the IFR, manufacturing firms in the United States significantly increased their investment in automation, as the total installations of industrial robots surged by 12%, reaching 44,303 units in 2023.
- Furthermore, the increasing manufacturing and mining activities and rising power generation and consumption in the country are expected to provide lucrative opportunities for the safety relays and timers market. For instance, according to the United States Energy Information Administration, energy in the United States comes in a broad mixture of forms and sources, which can be broadly divided into primary and secondary, renewable and nonrenewable, and fossil fuels.
- According to EIA, fossil fuels are the primary energy source in the United States, with a consumption of 77.18 quadrillion Btu in 2023. Closely following this, the US had 8.24 quadrillion Btu of energy derived from renewable energy. Such massive consumption will significantly create an opportunity for the growth of the market studied.
- Moreover, in the oil and gas sector, safety relays and timers are used in applications such as controlling, starting, and protecting circuits. Safety relays are an integral component of the oil and gas industry as they require heavy machinery that must be maintained through safety relays. Industrial timers are suitable for material handling, machine instruments, and process control in various process machines.
- According to EIA, in 2023, the demand for natural gas reached 89.1 billion cubic feet per day. By comparison, residential natural gas demand amounted to 12.3 billion cubic feet per day in the United States. Such instances may create a high demand for the safety relays and timers market over the forecast period.
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