Automotive Relay Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Automotive Relay Market report is segmented by type (PCB relay and plug-in relay), application type (locking system, engine management module, lamps/lights, and other application types (power window, sunroof, ABS control, etc.)), and geography (North America, Europe, Asia-Pacific, and rest of the world). The report offers market size and forecasts for all the above segments in value (USD).

Automotive Relay Market Size

Automotive Relay Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.20 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration High

Major Players

Automotive Relay Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Automotive Relay Market Analysis

The Automotive Relay Market size is expected to grow from USD 9.72 billion in 2023 to USD 12.53 billion in 2028, registering a CAGR of 5.2% during the forecast period (2023-2028).

The increasing electrification of vehicles, including hybrid and electric vehicles, drives the demand for relays to control and manage various electrical systems. Also, the growth of ADAS features such as adaptive cruise control and lane departure warning systems relies on relays to control sensors and actuators.

The demand for advanced relays with lightweight and high-performance characteristics is compelling manufacturers to invest in producing more solid-state relays compared to traditional heavy electromechanical relays. It is owing to the growing demand for hybrid and electric vehicles in the region.

Among regions, Asia-Pacific is anticipated to dominate the automotive relay market. The Asia-Pacific relay market is primarily driven by growing vehicle production and sales, rapid electrification of vehicles, rising stringency of emission norms, and increasing disposable income of consumers. It, in turn, is increasing the demand for vehicles, owing to the growing preference for safety and comfort.

Automotive Relay Market Trends

Increasing Penetration of Automated Systems Driving the Adoption of Electronics.

The automotive industry is transitioning from hardware to software-enabled vehicles, and the average software and electronics content per vehicle is increasing rapidly. Electronics often enable the integration of new functions and features into the car. Thus, there is increasing penetration of electronics into major application fields, including powertrain, safety management, body, and convenience or infotainment.

Both government involvement and consumers' demand for greater automatic control of systems resulted in the increased usage of electronics in vehicles. Electronics are offering new opportunities to improve energy efficiency and emission reduction as several functions can be consolidated into fewer and smaller electronic control super units, thereby reducing the weight. The high penetration rate of automobile electronics across all vehicle classes is being influenced by three major aspects, namely, productivity, quality, and innovation.

Efforts are being deployed in the automobile industry to transform consumers driving experience. Cars are becoming smarter and capable of conducting self-diagnostics. In the coming years, cars can connect effectively.

In addition, passenger safety is another factor driving the adoption of automated systems in automobiles. The installation of safety features and systems in vehicles greatly aided in reducing the number of accidents and fatalities on the road over the past few decades.

With the increasing focus on autonomous vehicles and smart cars (with the ability to connect with vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications) that can ensure safety and convenience to consumers, the demand for electronic systems in new cars is increasing rapidly.

Newer generation automotive electronics that enhance the driver experience are witnessing mass adoption in mid-range and entry-level car segments and ease of availability through the aftermarket.

The rapidly growing use of electric components in current and upcoming vehicles is consistently propelling the need for manufacturing reliable and standardized components for efficient, safe, and secure switching of electric loads. These factors are currently driving the market growth.

Automotive Relay Market: Global Electric Vehicle Sales, In Million Units, 2018-2022

Asia-Pacific Dominating The Automotive Relay Market

Asia-Pacific is the world's largest automotive production hub, with several countries in the region, including China, Japan, South Korea, and India being major automobile manufacturers. Also, rising income levels, urbanization, and improved living standards led to an increase in vehicle ownership across Asia-Pacific. This surge in vehicle ownership directly impacts the demand for automotive relays used in various vehicle systems.

Many countries in Asia-Pacific implemented strict emission regulations to reduce pollution and greenhouse gas emissions. These regulations drive the adoption of advanced engine management and emission control systems that use relays for efficient operation.

The shift towards EVs and hybrid vehicles is a significant trend in the automotive industry. EVs and hybrids use more relays compared to traditional internal combustion engine vehicles, contributing to the market growth. Relays are becoming more compact and integrated, saving space in vehicles and reducing weight. This trend aligns with the automotive industry's focus on lightweighting and space optimization.

Asia-Pacific region leads in the automotive relay market due to its position as a major automotive production hub, growing vehicle ownership, the electrification of vehicles, stringent regulations, and the adoption of advanced automotive technologies.

Automotive Relay Market - Growth Rate by Region (2023 - 2028)

Automotive Relay Industry Overview

The automotive relay market is dominated by companies such as DENSO Corporation (ANDEN Co. Ltd), Panasonic Corporation, TE Connectivity, and Nidec Corporation.

The market for automotive relays is highly competitive due to the presence of both international and domestic relay suppliers in the region. The companies are investing heavily in R&D projects and launching new products. For instance,

  • In April 2022, LG Magna e-Powertrain announced its latest manufacturing facility located in Ramos Arizpe, Mexico. This newly established plant is dedicated to the production of inverters, motors, and onboard chargers with the primary objective of bolstering General Motors Electric Vehicle (EV) manufacturing operations.

Automotive Relay Market Leaders

  1. DENSO Corporation

  2. Fujitsu Ltd

  3. Panasonic Corporation

  4. Nidec Corporation

  5. TE Connectivity

*Disclaimer: Major Players sorted in no particular order

Automotive Relay Market Concentration
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Automotive Relay Market News

  • January 2023: Bosch announced plans to invest more than USD 1 billion in expanding its e-mobility capacities in China. This significant investment is expected to drive increased demand for automotive relays in the region.
  • May 2022: Taolink Technologies raised USD 15 million through a Series A funding round, with Xinyi Capital taking the lead in the investment. The company specializes in the development and supply of chips for narrowband communication devices. Additionally, Taolink Technologies is involved in the development of System-on-Chips (SoCs), relays, gateways, and other components used across a wide range of industry sectors, including automotive and communication, among others.
  • May 2022: Texas Instruments introduced a new line of relays designed to enhance safety in electric vehicles by utilizing silicon dioxide to improve their isolation capabilities. The inclusion of silicon dioxide is visually represented in a rendering with a greenish-gold hue.
  • February 2022: Menlo Micro secured USD 150 million in a Series C funding round. The company employs both electromechanical and solid-state technologies to achieve a 99% reduction in crucial metrics, including size, weight, power consumption, and costs, when compared to conventional electromechanical relays. Menlo Micro markets its innovative solution under the name 'Ideal Switch.'

Automotive Relay Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

      1. 4.1.1 Increasing Electrification of Vehicles

    2. 4.2 Market Restraints

      1. 4.2.1 Precise Testing and Validation

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market value in (USD))

    1. 5.1 By Type

      1. 5.1.1 PCB Relay

      2. 5.1.2 Plug-in Relay

    2. 5.2 By Application Type

      1. 5.2.1 Locking System

      2. 5.2.2 Engine Management Module

      3. 5.2.3 Lamps/Lights

      4. 5.2.4 Other Application Types (Power Window, Sunroof, ABS Control, etc.)

    3. 5.3 Geography

      1. 5.3.1 North America

        1. US

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. UK

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. Brazil

        2. South Africa

        3. Other Countries


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Robert Bosch GmbH

      2. 6.2.2 DENSO Corporation

      3. 6.2.3 Fujitsu Ltd

      4. 6.2.4 Panasonic Corporation

      5. 6.2.5 MITSUBA Corporation

      6. 6.2.6 TE Connectivity

      7. 6.2.7 Omron Corporation

      8. 6.2.8 Hella KGaA Hueck & Co.

      9. 6.2.9 Nidec Corporation


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Automotive Relay Industry Segmentation

An automotive relay is an electromechanical or solid-state device designed to control and switch electrical circuits in automotive applications. It serves as a switch that can be remotely operated to control various electrical components and functions within a vehicle. Automotive relays are essential components that help manage the flow of electrical current, ensuring that specific functions are activated or deactivated as needed.

The automotive relay market is segmented by type, application type, and geography. By type, the market is segmented into PCB relay and plug-in relay. By application type, the market is segmented into locking systems, engine management modules, lamps/lights, and other application types (power windows, sunroof, ABS control, etc.). By geography, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world. The market sizing and forecasts are provided in value (USD) for each segment.

By Type
PCB Relay
Plug-in Relay
By Application Type
Locking System
Engine Management Module
Other Application Types (Power Window, Sunroof, ABS Control, etc.)
North America
Rest of North America
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South Africa
Other Countries
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Automotive Relay Market Research FAQs

The Automotive Relay Market is projected to register a CAGR of 5.20% during the forecast period (2024-2029)

DENSO Corporation, Fujitsu Ltd, Panasonic Corporation, Nidec Corporation and TE Connectivity are the major companies operating in the Automotive Relay Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Automotive Relay Market.

The report covers the Automotive Relay Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Relay Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Automotive Relay Industry Report

Statistics for the 2024 Automotive Relay market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Relay analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Automotive Relay Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)