Market Trends of Solid-state Relay Industry
This section covers the major market trends shaping the Solid-state Relay Market according to our research experts:
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.
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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.
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