Solid State Relay Market - Growth, Trends, and Forecasts (2022 - 2027)

The solid-state relay market is expected to grow by registering a CAGR of 5% over the forecast period. The demand for low-cost, accurate, small-size, bounce-less operation and long self-life protective systems have increased during the last decade in industrial, automotive, energy and infrastructure, healthcare, and building equipment. Increased demand to upgrade the power infrastructure in developed countries to reduce heat generation through thermal dissipation with solid-state relays is expected to drive the market.

Key Highlights

• A solid-state relay is an electronic switching device that uses solid-state semiconductors' electrical and optical properties to switch on or off when a small external voltage is applied across its control terminals. They are mainly used to avoid any significant accidents or flashovers as they trip the circuit breaker when a fault is detected and prevent damage to the central system. Unlike electromechanical relays, these do not have moving parts to wear out; thus, they have a long shelf-life.
• The higher penetration of the Internet of Things has propelled the development of smart grids for smart cities. Intelligent smart grids work on advanced technologies to modernize electricity networks, extending from the end user to distribution and transmission. They use the smart meters' two layers of the relay (AC power relay and solid-state relay) to reduce heat dissipation. According to the IEA, smart meter deployment has advanced considerably in recent years. China is in the midst of entire full deployment, and Japan, Spain, and France are poised to achieve full rollouts in the next few years.
• The solid-state relay (SSR) ensures wear-free, silent, and extremely fast switching operations and meets the mechanical as well as electrical demands of the automotive industry, and thus, is suitable for automotive applications, especially in electric vehicles. Growing modernization of electric cars and lenient governmental policies are driving the sales of electric car sales, which, in turn, is fueling the solid-state relay market. These relays are an integrated component of the switching network in the electric car's battery and provide heat management and over-current protection to the battery.
• Additionally, SSRs are also used in building equipment due to their features, like low-power consumption, quiet operation, accuracy, and reliability. Building equipment powered by electricity, like air-conditioning systems, alarm and safety systems, automatic doors, electric water heaters, and hot-air hand dryers, need SSRs. Hence, with the growing demand for building equipment, the market would witness growth over the forecast period.
• However, the cost of a solid-state relay is significantly higher than that of an electromechanical relay and can hamper the market's growth. However, the ongoing technological advancements are expected to reduce the product's price, which will boost its application in the future.
• The COVID-19 outbreak disrupted the supply chain across the globe for various industries. The pandemic has restricted the supply and adoption of electronic devices, like mechanical and solid-state relays (SSR), due to disruptions in businesses and the global economy. The manufacturing industry has shrunk significantly owing to the outbreak as the industry faced unprecedented challenges in the supply chain and procurement of raw materials, which resulted in significant losses for manufacturers. Few industries, such as food & beverage and pharmaceutical, were deemed essential by governments. The COVID-19 pandemic has also exposed the overdependency on the region for critical raw materials, like China and the US, which has had a notable impact on the market's growth.

Key Market Trends

Industrial Automation Segment to Witness Significant Growth

• Since its introduction, the Solid state relay technology has gained acceptance in many areas previously the sole domain of Electromagnetic Relays (EMRs) or the Contractor. The major growth areas have come from Industrial Process Control applications, particularly heat/excellent temperature control, motors, lamps, solenoids, valves, and transformers.
• Solid state relays are compatible with various control systems and are immune to magnetic noise; their solid-state nature means they mount in multiple orientations and are also impervious to heavy vibration, making them a perfect fit for industrial automation.
• The growth of the industrial sector in the last few decades, especially in developing regions such as the Asia Pacific and Latin America, is positively impacting the demand for solid-state relays. For instance, according to the National Bureau of Statistics of China, in August 2022, industrial production in China increased by 4.2% YoY compared with July's reading of 3.8%. It was the fourth straight month of growth in industrial output following the pandemic.
• The automotive industry has played a massive role in the growth of the industrial sector. The increasing demand for personal and commercial vehicles is expected to facilitate the studied market's development further. According to OICA, global sales of cars in 2021 increased to 82.68 million from 78.77 million in 2020.

North America to Gain Significant Market Share

• The solid-state replay market in North America is expected to have significant growth due to the increasing investment in the manufacturing of electronic devices and equipment used in various industries, as well as the increase in the number of data centers and power plants across the United States and Canada.
• Prominent vendors such as Crydom Inc. are present in the country. The company has over 40-year expertise in SSR technology, and extensive market knowledge allows them to remain on the edge of innovation in the SSR market. For instance, the company's new line of Silicon DRC SSR is available with EMR auxiliary contacts. This innovative line of compact SSRs offers 18 new models created to improve the existing products.
• In the United States, the formation of the "Advanced Manufacturing Partnership" is an initiative undertaken to make the industry and the federal government invest in upcoming technologies. This has substantially helped the country gain a competitive edge in the global economy. The National Network for Manufacturing Innovation comprises developing regional hubs, which will be involved in developing cutting-edge manufacturing technologies for making innovative products to be implemented in this sector.
• Ongoing development in the automotive sector and the growing sensitivity of various governments toward a cleaner environment have significantly increased the demand for electric vehicles in the North American region. According to the U.S. Department of Energy, in 2021, new light-duty plug-in electric vehicles, including all-electric vehicles (E.V.s) and plug-in hybrid electric vehicles (PHEVs), nearly doubled to 608,000 units, from 308,000 units in 2020. E.V. sales accounted for 73% of all plug-in electric vehicle sales in 2021.
• The growing adoption of electric vehicles has fueled the demand for solid-state relays impressively and promises a great opportunity ahead as the number of vehicle charging stations will also grow. For instance, according to the U.S. Department of Energy, in 2021, the United States had about 46,290 charging stations and 113,558 charging outlets.
• The energy generation industry is also among the leading consumers of Solid-State relays. The government across the North American region is taking several initiatives to drive the growth of the alternative energy sector. For instance, in Canada, the Emerging Renewable Power Program (ERPP) provides up to USD 200 million to help the vendors expand the portfolio of commercially viable renewable energy sources.

Competitive Landscape

The solid-state relay market is competitive with the presence of a few significant players like Rockwell Automation Inc., ABB Ltd, General Electric, and Omron Corporation. These major players, with a prominent share in the market, are focusing on expanding their customer base globally. These companies leverage strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, mid-size to smaller companies are growing their market presence by securing new contracts and tapping into emerging markets.

• May 2022 - Texas Instruments introduced a new portfolio of solid-state relays, including automotive-qualified isolated drivers and switches, designed to deliver industry-leading reliability to help make electric vehicles (EVs) safer. The new isolated solid-state relays also include features such as small solution sizes to reduce the bill-of-materials (BOM) cost of the powertrain and 800-V battery-management systems.
• May 2022 - Crouzet, a French manufacturer of electromechanical and electronic components for the aviation, land transport, and machine industries. The company's portfolio has been extended to include single-phase SSRs, divided into four series: GN, GN+, GNA, and GNS, all of these products are IP20-rated.

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• The market estimate (ME) sheet in Excel format
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