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The global electric vehicle relay market size is estimated to be USD 24.08 billion in 2024, growing to USD 32.12 billion in 2025, and is expected to exceed USD 429.73 billion by 2034, registering a CAGR of 33.40% from 2024 to 2034.
The global electric vehicle relay market size is estimated to be USD 24.08 billion in 2024 and is expected to reach approximately USD 429.73 billion by 2034, registering a CAGR of 33.40% from 2024 to 2034.
The Asia Pacific Electric Vehicle Relays Market size is valued at US$ 9.87 Billion in 2024 and is expected to reach approximately US$ 178.34 Billion by 2034, growing at a CAGR of 33.55% from 2024 to 2034.
The Asia Pacific region is expected to be the fastest growing regional market during the forecast period, accounting for a revenue share of 41% in 2023. The growth can be attributed to rising EV sales in China and India. Furthermore, favorable government policies such as tax cuts and subsidies are expected to drive EV demand in countries such as Japan, Taiwan, South Korea, and Indonesia. Europe accounts for a significant share of the global EV relay market owing to high demand for key applications such as heating and cooling systems, lighting and filter capacitors, and electromagnetic motors and pumps. The North American market is also expected to grow significantly in the coming years as OEM adoption increases and customer awareness of eco-friendly vehicles increases.
Relays are important components of automotive electronics. Electric vehicle relays provide various electrical functions to the vehicle. Miniaturization of relays is an important market driver as large current loads can be packed into a compact, miniaturized device with a small footprint. While it provides additional functionality, it maintains the overall appearance of the vehicle. Electric vehicle relays are also considered safe as they come in sealed capsules. They are also resistant to dust and water and encapsulated in hydrogen to prevent oxidation on contact. Since most vehicles now have electronic rather than manual systems, the average number of relays per vehicle is likely to increase. This is another market driver.
As electric vehicles are becoming increasingly popular, the electric vehicle relay market is expanding. The industry is likely to grow during the forecast period due to the growing concerns over environmental issues. The government has taken steps to encourage electric vehicles to reduce pollution and hazardous gas emissions. The purchasing power of people is increasing; hence, the market for high-end cars is expanding. As most of the luxury cars are equipped with advanced features, this is the driving factor for the growth of the electric vehicle relay market.
As the automotive industry moves from hardware to software-centric vehicles, the average amount of software and electronics in a vehicle is growing rapidly. Electronic devices using automotive relays have a wide range of applications such as safety, engine, comfort, and infotainment controls to integrate new features into vehicles. This is expected to drive market demand during the forecast period.
Another key factor driving the adoption of autonomous technology in cars is occupant safety. Over the past few decades, vehicle safety measures have significantly reduced the number of road accidents and fatalities. In addition, the automobile industry is also striving to improve the driving experience for consumers. The growing popularity of smart cars with self-diagnostic capabilities is expected to drive the market expansion during the forecast period.
With the rapid development of new technologies, the automotive industry is expected to undergo some structural changes in the near future. Artificial intelligence (AI) and machine learning (ML) will significantly improve the accuracy, efficiency of robotics, and consistency of production processes. Level 2 automation includes active safety and driver assistance systems, allowing OEMs to offer attractive features and increase revenue growth in the EV relay market.
Adoption of Solid State Relays: Solid state relays are likely to become cheap in the long term, which will boost the electric vehicle relay industry. In automotive applications, relays allow tiny current circuits to control and manage larger circuits. Solid state relays generate optical semiconductor signals from electrical drive signals. They can be used instead of electromechanical relays.
Limited supply of fossil fuels: Due to the shortage of fossil fuels, many governments and large corporations are looking for alternative renewable resources. This has led to the emergence of vehicles running on electricity, CNG, LPG, SNG and other alternative fuels. This aspect can also lead to an increase in the projected profits in this market during the forecast period.
Infrastructure construction. Infrastructure construction is one of the key factors in the popularity of electric vehicles. Several companies are investing in this area and plan to deploy millions of charging stations across Europe by 2020. This will help minimize customer range anxiety and will facilitate the expansion of the EV relay industry.
The heating application category held the largest market share of over 41% in 2023 and is expected to grow significantly during the forecast period. Growing demand for energy-saving solutions with higher performance will drive the adoption of relay products in various applications. Electric vehicle relays are used to protect against short circuits and open circuits that may damage the vehicle’s electrical system or cause injury when exposed to high voltage.
In addition, these devices help minimize energy consumption by providing controlled switching between the two states, thereby reducing the load on the engine compared to conventional systems. These factors are expected to drive the industry growth during the forecast period, especially in Europe and North America, due to the growth in the production of electric vehicles, increasing consumer awareness of improved driving quality, and environmental benefits from reduced carbon emissions by global automakers in these areas.
PCB relays are expected to occupy the largest market share in the industry. It is widely used in various electrical devices, including ABS, cruise control, power steering, doors, power windows and sunroofs. They are widely used in places such as Europe and North America. However, in Asia, Oceania and other parts of the world, first-tier manufacturers and OEMs continue to prefer plug-in versions.
Plug-in relays are used where switching functions must be performed under conditions of high vibration, high temperatures and large voltage fluctuations. They are used in fuel injection systems, heating, ventilation and air conditioning (HVAC) systems and for switching fuel pumps. These components are in great demand due to their small size, which saves a lot of space in the distribution boxes. This phenomenon, in turn, helps to reduce the overall weight of the distribution box. The increasing use of electronic control modules in combination with electronic components has created a need for smaller devices that can withstand higher current loads.
The global EV relay market is expected to exceed US$6.5 billion in 2023. Governments in many countries have launched major initiatives to encourage the sale and use of EVs.
Many European governments are using incentive programs to promote electric vehicles. Countries like Germany and Austria offer tax breaks. France and the UK offer incentives and insurance benefits to electric vehicle owners. The electric vehicle industry is expected to grow more than other categories during the forecast period. Many governments encourage the sale and use of electric vehicles by offering customers tax breaks at the time of purchase. In addition, the amount of exemption depends on the size of the battery used in the car.
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Shivani Zoting is one of our distinguished writers, known for her rich knowledge base and innovative approach to market analysis. With a BS in Biotechnology and an MBA in Pharmaceutical Biotechnology, Shivani combines scientific expertise with business strategy, making her uniquely qualified to analyze and interpret complex industry trends. Over the past 3+ years in the market research field, she has become
With over 14 years of experience, Aditi is the expert responsible for reviewing every piece of data and content that goes through our research process. More than just an expert, she is the key person in ensuring that the information we provide is accurate, relevant and clear. Aditi’s broad experience spans across multiple sectors, with a particular focus on ICT, automotive and various other cross-cutting industries.
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Post time: Jan-02-2025