Solid-state Relay Market Size

Solid-State Relay Market Analysis

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.

• 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.