EV relay Market: Current Analysis and Forecast (2022-2030)

An EV (Electric Vehicle) relay is an electrical component that acts as a switch to control the flow of current to various components within an electric vehicle. It is an important part of the vehicle's electrical system and helps to regulate the flow of electricity to different parts of the vehicle.

The Electric Vehicle (EV) Relay Market is expected to grow at a strong CAGR of 33% during the forecast period owing to the growing demand for electric vehicles around the world. For instance, according to IEA, Electric car sales reached a record high in 2021, despite supply chain bottlenecks and the ongoing COVID-19 pandemic. Compared with 2020, sales nearly doubled to 6.6*million (a sales share of nearly 9%), bringing the total number of electric cars on the road to 16.5*million.

Based on vehicle type, the market is segmented into passenger and commercial. Amongst these, the passenger segment withhold a higher CAGR during the forecast period owing to the increasing awareness of environmental issues and the need to reduce carbon emissions. Moreover, with the rise of global warming concerns, consumers are more inclined to choose electric vehicles that emit significantly fewer greenhouse gases than their gasoline-powered counterparts. In addition, government initiatives towards the adoption of an electric vehicle are also a prime factor for the growth of the segment. For instance, in 2023, the Government of Odisha amended the electric vehicle policy and increased the subsidy on the purchase of two-wheeler, three-wheeler, and four-wheeler vehicles substantially.

By type, the market is bifurcated into Plug-in-Relay and PCB Relay. Among these, Plug-in-relays captured the majority share of the industrial relay market in 2021. This is due to the increasing demand for electric vehicles, the need for more efficient and reliable power management, the emphasis on sustainability and reducing carbon emissions, and the investment in research and development of electric vehicle technology.

By application, the market is segmented into heating, lamps & filter capacitors, motor & pumps, and others. Among these, motors and pumps held a significant share of the market in 2021. This is due to the need for more efficient and reliable electric vehicle propulsion systems. Electric motors and pumps require precise and efficient control, which can be achieved through the use of specialized relays. These relays can optimize the performance of the electric motor and pump, ensuring that they operate at maximum efficiency and reliability.

By sales channel, the market is bifurcated into OEM and Aftermarket. Among these, OEMs are expected to hold the largest share of the market during the forecast period. OEMs have enough production-ready with the government specification. Moreover, OEMs are continually investing in research and development to improve the performance and reliability of EV relays.

For a better understanding of the market adoption of the Industrial Relay industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, , France, Italy, Spain , Rest of Europe), Asia-Pacific (China, Japan, India, Korea, and Rest of Asia-Pacific), Rest of World. Asia-pacific dominated the rail wheel market in 2021. The APAC region is witnessing rapid adoption of electric vehicles due to increasing environmental concerns, government initiatives, and technological advancements. For instance, in China, the government is providing subsidies and incentives to encourage the adoption of EVs, which is driving the demand for EV relays in the country. Moreover, With the increasing adoption of EVs, the demand for charging infrastructure is also increasing. The APAC region is witnessing significant investments in the development of EV charging infrastructure, which is driving the demand for EV relays. For example, according to IEA, Japan has plans to install 2.4 million EV charging points by 2030, which is expected to drive the demand for EV relays in the country.

Some of the major players operating in the market include: Panasonic Holdings Corporation; TE Connectivity.; OMRON Corporation; ABB Ltd.; Xiamen Hongfa Electroacoustic Co.,Ltd.; Willow.; Zettler Group; Tara Relays Pvt. Ltd; Denso Corp; BorgWarner Inc.