Electric Vehicle (EV) Relay Market (By Application: Heating, Lamps and Filter Capacitors, Solenoids, Motors and Pumps, Others; By Product: Plug-in Relay, PCB Relay, EV, Hybrid; By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles; By Sales Channel: OEM, Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global electric vehicle relay market size was exhibited at USD 5.19 billion in 2022 and is projected to hit around USD 90.28 billion by 2032, growing at a CAGR of 33.06% during the forecast period 2023 to 2032.

Key Pointers:

• The heating application category held the biggest market share of more than 43% in 2022 
• The PCB relay is expected to hold the biggest market share in this industry.
• In 2021, the market for global electric passenger car relay market was worth more than USD 7.5 billion.
• Over the projection period, Asia Pacific region has accounted 42% revenue share in 2022

Electric Vehicle (EV) Relay Market Report Scope

Market Dynamics

DRIVER: Increasing need for safer and more comfortable vehicles

The demand for increased safety and comfort features in automobiles has greatly increased in recent years. This demand for better safety and comfort features has led automakers to offer advanced technologies and features. This has increased the usage of relays in such electronic systems. For instance, incorporating advanced driving assistance systems (ADAS) has also increased the number of electronic components in vehicles. In addition, electromechanical relays have been replaced with electronic relays that are compact and efficient.

The advancements in cloud mobility, deep learning, and artificial intelligence technologies have greatly contributed to the advanced processors in electronic vehicle systems. These processors are used to develop a 3D spatial model of a car’s environment and detect threat levels using relays to deliver outputs. GPS tracking system transmits signals to electronic devices indicating speed, time, and direction, thereby increasing the number of relays used. According to industry experts, with increasing electrification, the number of relays used per vehicle is around 30 to 40 for an economy ICE passenger vehicle and around 60 to 70 for an electric vehicle.

Furthermore, the increasing safety regulations around the globe demand a greater number of safety features to be mandatory in vehicles. In the United States, the Federal Motor Vehicle Safety Standards (FMVSS) and National Highway Traffic Safety Administration (NHTSA) are the governing bodies for vehicle safety. They have implemented safety regulations that incorporate various electronic systems in vehicles.

In 2022, the European Union adopted the General Safety Regulation (GSR) to reduce fatality and serious injuries during accidents. This included special safety requirements for buses and heavy commercial vehicles and mandated many safety systems apart from lane departure warning systems and emergency brake assistance systems. All these implications further increase the incorporation of relays in electronic safety systems, driving the market.

RESTRAINT: Lack of standardization in relay design

Automobiles have evolved with the advancing electronic systems in terms of safety, performance, comfort, and others. Automakers utilize various types of automotive relays in their applications. For instance, compact relays are miniature versions with high current carrying capacity. Arc-proof DC power relays are designed for electric cars to ensure high-voltage DC switching without producing any arc. With the advent of a greater variety of relays, the standardization of automotive relays remains a cause of concern. Generally, automotive relays can be categorized by terminal arrangements and different functions. This flexibility allows a relay to be designed according to its usability. Though this versatile and modular configuration is helpful for specific requirements, the automotive relay market has many different relays. Each OEMs follow different standards of relay specification, such as switching current, switching voltage, coil voltage/current, coil power, and others. This makes the automotive relay industry non-standard, and difficult for the relay manufacturers to mass produce a standard relay compatible with a greater number of vehicles. For instance, the automotive wiper is one of the essential components of a vehicle. It is a well-standardized market with universal products, where a particular size of wipers are compatible with a greater number of vehicle models from different OEMs.

Furthermore, the relays are also segmented by their types apart from the contact arrangement, load capacity, and others. For instance, there are three major automotive relays: PCB, Plug-in, and Combined. PCB relays are soldered on the PCB board. The plug-in relays generally have different sizes 2.8mm, 4.8mm, 6.3mm, and 9.5mm; the terminal layout is divided into ISO categories (micro-ISO, mini-ISO, power mini ISO) and 280 categories (ultra 280, micro 280, mini 280). Moreover, there are combined relays, PCB relays, and relay modules. Hence, different types of relays are combined, further increasing the choice of automotive relays. Also, the introduction of electric vehicles has increased the deployment of relays. Therefore, it has become difficult for relay manufacturers to develop a standard relay design. This lack of standardization can potentially hamper the growth of the automotive relay market.

OPPORTUNITY: Demand for higher switching capacity relays for electric, hybrid, and autonomous vehicles

The rising trend of electrification of the powertrain (BEV, PHEV, and HEV) in passenger cars and commercial vehicles has increased the demand for high-voltage DC relays for switching purposes. Various applications in electric vehicles (EV), such as battery management systems, HVAC, power steering pumps, and others, require an appropriate design for switching the relay on or off. Owing to the highly inductive nature of the load, a relay with high switching capacity, magnetic blowout, and sufficient spacing is required for various applications of electric vehicles.

In the case of electric vehicles, relays are used for main and pre-charging and DC charging interfaces. Panasonic has patented its EV relays segment and provides relays suitable for stringent conditions of short circuits and adaptive to higher system voltage. These relays have contacts enclosed in hermetically sealed ceramic capsule construction, and the contact chamber is filled with hydrogen gas owing to its better conductivity of heat than air. This helps in the quick and efficient dissipation of heat generated while arching, resulting in better switching performance. Other key manufacturers invest heavily in research and development to develop EV relays for high-switching applications. The sales of electric and hybrid vehicles have increased tremendously, and the electrification of these vehicles is influencing the demand for relays.

Moreover, concerning the rapidly growing electric vehicle market, the electric vehicle is being developed with higher battery and motor capacities to increase its performance and efficiency. For instance, the Tesla Roadster has a performance of 0-60 Mph in 1.9 seconds and is equipped with an enormous 200kWh battery pack. In 2019, the German carmaker Porche developed a new electric SUV with quad motor technology. These four motors were coupled to individual wheel hubs and were aimed to offer the maximum electric off-road capabilities. Such an increase in motors and battery capacities will demand a relay designed to operate with high switching capacities. The growth of the e-bike, electric moped, electric construction equipment markets, and others are also driving the growth of the automotive relays market. These new electric vehicle segments require relays for their operation.

For instance, according to MarketsandMarkets analysis, it is predicted that the e-bike market will grow at a CAGR of 10.3% from 2023 to 2032. Moreover, heavy electric equipment, including electric mining and construction equipment, is designed with high-performance motors and massive battery packs. Such applications would also demand relays with very high switching capacities. It is predicted that the electric construction equipment market will reach a value of USD 24.8 billion by 2027 at a CAGR of 22.0% during the forecast period, according to the MarketsandMarkets analysis. The growth of autonomous vehicles also demands a greater number of high-tech electronic systems. These electronic systems often require high-speed data and signal communications. A highly efficient relay is needed of uninterrupted signal transfers and precise switching of the applications. Therefore, the growth of autonomous vehicles, in turn, contributes to the growth of the automotive relay market.

CHALLENGE: Connected smart junction box and smart fuse box for autonomous cars

Though there are very limited direct alternatives to the automotive relays, Lear Corporation’s smart junction box (SJB) is one of them. This SJB integrates passive junction box features with electronic module functionality. The technology incorporates a microcontroller for switching the power and controlling the vehicle's functions. It utilizes integrating power and control functions into a single module. These SJBs also replace the relays and fuses with solid-state electronic drivers, improving the quality and reducing weight with less packaged size, up to 8%. This was an award-winning innovation by the company aimed to control and power the window door locks, interior and exterior lighting, and audio system. The other advantages of the SJBs were that they eliminated the need to access the fuse box and benefited customers with improved reliability. Automakers were impressed by its compactness and reduced packaged size and found it easier to manufacture.

Furthermore, in an electric vehicle, a relatively greater number of relays and fuses are needed than in an ICE vehicle, as it requires the transfer of charge from the battery to a group of loads. With the increasing use of 48V power for start-stop systems and other mild hybrid systems, it is difficult for the relays to switch between power requirements for heavy vehicles. A high-end vehicle can have up to 100 fuses and four fuse boxes that consume a larger amount of space. This also facilitates the incorporation of a smart junction box, which can eliminate most of the complications of relays. Though this is a relatively expensive option, one of the disadvantages of the SJBs, a few automakers find it as an alternative to switch power over fuses and relays, which can hamper the relay market growth.

Asia Pacific is projected to dominate the Automotive Relay market by 2032

The Asia Pacific region holds the largest market share in the automotive relay market. China accounts for the largest share owing to shifting consumer preferences, increasing per capita income of the middle-class population, and cost advantages that have led OEMs to increase vehicle production in the region. Thus, strong demand has been noticed in China, India, and Japan, accelerating the automotive relay market growth. In 2022, the demand for economy and mid-range cars was highest, with more than 90% of the share in total passenger car production. The demand for entry-level and medium-price range cars is growing in countries such as India, China and Thailand due to more product launches with advanced features in this segment at a competitive price bracket. Further, increased demand for luxury cars with superior safety and cabin comfort installed with some high-end technologies such as adaptive cruise control, intelligent park assist, advanced braking, automatic multi-climate air conditioning etc., would spur the demand for automotive relays market in the region

Some of the prominent players in the Electric Vehicle (EV) Relay Market include:

• Panasonic Corp.
• TE Connectivity Ltd.
• HELLA GmbH & Co. KGaA
• Furukawa Co., Ltd. (Fujitsu Limited)
• Hongfa Technology Co Ltd.
• Willow Technologies Limited
• Zettler Group
• Tara Relays Private Limited
• Song Chuan Group Company (Song Chuan Usa, Inc.)
• Jiangxi Weiqi Electric Co., Ltd.
• Other Players

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Electric Vehicle (EV) Relay market.

By Application

• Heating
• Lamps and Filter Capacitors
• Solenoids, Motors and Pumps
• Others

By Product

• Plug-in Relay
• PCB Relay
• EV
• Hybrid

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Sales Channel

• OEM
• Aftermarket

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)
• Frequently Asked Questions