Relay Market Report

Market Insights

“The global relay market size was US$ 7.9 billion in 2024 and is likely to grow at a decent CAGR of 4.9% in the long run to reach US$ 11.2 billion in 2031.”

Market Dynamics

Introduction

A relay is an electrically operated switch that uses an electromagnet to mechanically open or close a circuit. They open and close circuits by receiving electrical signals from outside sources. The primary purpose of a relay is to protect the electrical system from high voltage or current, allowing the safe operation of equipment. They act as intermediaries that can quickly respond to abnormal conditions, such as overcurrent or short circuits, by interrupting the flow of electricity. Relays sense abnormal voltage and current conditions and send signals to circuit breakers to isolate faulty parts of a power system.

With a single press, relays can manage a substantially larger amount of electric flow than a switch can. Relays are generally used for lower-power applications and can switch multiple contacts simultaneously. They provide isolation between different voltage levels, protecting sensitive control circuits from high voltages and surges.

Relays can be broadly classified into electromechanical relays and solid-state relays. Electromechanical relays work on electromagnetism, where an electric current energizes a coil, creating a magnetic field that pulls a switch to open or close a circuit, whereas a solid-state relay uses a semiconductor device (such as thyristors or transistors) instead of mechanical contacts.

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In November 2023, Standex International Corporation announced that it has entered into a definitive agreement, through its subsidiary Standex Electronics Japan Corporation, to acquire privately held, Japanese-based, Sanyu Switch Co., Ltd. Sanyu Switch Co., Ltd. designs and manufactures reed relays, test sockets, testing systems for semi-conductor and other electronics manufacturing, and other switching applications.
• In January 2022, TE Connectivity (TE) acquired the force-guided narrow safety relay (NSR) elementary relay technology from the Phoenix Contact Group (Phoenix Contact) as part of a long-term partnership agreement. This acquisition adds a single-pole, force-guided offering to TE’s broad relay portfolio for the factory automation, elevator, and rail markets.

Recent Product Development:

• In February 2023, OMRON Corp. introduced the G9KA-E high-capacity power relay. G9KA-E relay is the industry's highest-performing relay for printed circuit boards, supporting 300A energization with ultra-low contact resistance (≤0.2 mΩ), minimizing heat generation, and enhancing efficiency in renewable energy applications.

Market Segments' Analysis

“Electromechanical relay is anticipated to generate more growth in the future due to its higher load capacity and cost effectiveness.”

The global relay market is segmented into electromechanical relays and solid-state relays. Electromagnetic relays dominate and are also witnessing the fastest growth in the global relay market because they offer a cost-effective solution compared to solid-state relays, making them ideal for budget-sensitive industries. Their durability and ease of maintenance, with which they can be repaired or replaced without specialized expertise, thus reducing operational downtime, make them a preferred choice in the relay market. Electromagnetic relays can handle higher voltage and current loads, making them more suitable for industrial applications.

By Mount Type

“Plug-in mount relays are expected to maintain their dominance in the coming years because of their versatility across industries.”

The global relay market is segmented into PCB mount, panel mount, plug-in mount, and other mounts. Plug-in mount relays will continue to dominate the global relay market as they offer easy installation and replacement without requiring complex wiring, making them ideal for industries that prioritize quick maintenance. With the rise of EVs and smart grid infrastructure, the demand for durable, high-performance, and easily replaceable relays is expected to boost the growth of plug-in mount relays.

By Application Type

“Industrial automation will experience higher growth in the coming years due to the rising adoption of smart factories, robotics, and Industry 4.0 initiatives.”

The global relay market is segmented by consumer electronics & appliances, automotive, industrial automation, communication, energy/power, automation testing equipment, and other applications. Industrial automation would be the fastest growing application as automation-driven demand for high-performance relays in manufacturing, logistics, and process industries will surpass other application segments as businesses focus on efficiency and reduced operational costs. However, consumer electronics & appliances dominate the global relay market because of the high demand for home appliances, HVAC systems, and smart devices that require reliable switching components.

By Function Type

“Interface relays will see higher growth in the coming years as they offer enhanced compatibility.”

The global relay market is segmented into switching power relays, universal relays, and interface relays. Interface relay will experience significant growth as automation continues to expand. These relays play a crucial role in connecting control systems with high-power devices while ensuring electrical isolation and preventing voltage fluctuations. Their compact size, fast switching speed, and ability to work with various control voltages further contribute to their increasing demand in robotics, smart factories, and industrial IoT, where reliable and efficient signal transmission is essential.

By Sales Channel Type

“Distributor sales channel will see more growth in the forecasted period because of expanding e-commerce globally.”

The global relay market is segmented into direct sales and distributor sales. Distributor sales will see more growth in the coming years because they cater to small and mid-sized businesses that require flexible purchasing options and faster deliveries. Expanding regional distribution networks are making it easier for distributors to penetrate new markets, increasing their share in the relay industry.

Direct sales dominate the global relay market because major relay manufacturers sell directly to large industrial customers, ensuring bulk orders and strong relationships. Cost efficiency in large-scale procurement makes direct sales attractive, as bulk buyers benefit from negotiated pricing and reduced intermediary costs.

By End-Use Type

“OE end-use dominates the global relay market, while other end-users (integrators, etc.), provides customized solutions.”

The market for global relay is segmented into OE, aftermarket and other end-users. OE end-use dominates the global relay market because of established supply chains, brand reputation, and strong partnerships. Strict standards and certifications favor OE, as large companies prefer certified, reliable suppliers for critical applications. Others will see more growth in the coming years as many end-users prefer to source relays through integrators since they offer value-added services like customization solutions, installation, system compatibility, and technical support, driving higher demand.

Regional Analysis

“Asia-Pacific is expected to be the dominant and the fastest-growing region over the forecasted period because of its strong manufacturing base.”

Asia-Pacific dominates the global relay market due to its large-scale production facilities. The region's rapid industrialization, particularly in automotive, electronics, and power infrastructure, increases the demand for relays. Asia-Pacific is the largest automobile manufacturing hub, with increasing demand for relays in EVs, hybrid vehicles, and automotive electronics. Fast-growing urban centers and government initiatives for smart cities fuel the need for relays in automation, transportation, and energy management.

Key Players

The market is fragmented, with over 80 players. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the global relay market. Some of the major players provide a complete range of services.

Here is the list of the Top Players (Based on Dominance)

• Hongfa
• Omron
• TE Connectivity
• Panasonic Holdings Corporation
• Schneider Electric
• Fujitsu
• Sanyou Relays
• Finder
• Phoenix Contact
• Eaton
• ABB
• Siemens
• Little Fuse Inc.
• Standex
• Mitsubishi Electric Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global relay market is segmented into the following categories. 

Global Relay Market, by Type

• Electromechanical Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Solid State Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by Mount Type

• PCB Mount Type (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Panel Mount Type (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Plug-in Mount Type (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other Mounts (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by Application Type

• Consumer Electronics & Appliances (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Automotive (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Industrial Automation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Communication (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Energy/Power (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Automation Testing Equipment (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other Applications (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by Function Type

• Switching Power Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Universal Relays (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Interface (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by Sales Channel Type

• Direct Sales (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Distributor Sales (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by End-Use Type

• OE (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Aftermarket (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Other End-Users (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Relay Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s global relay market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com