Global Solar Relays Market To Grow At An Annual Growth Rate Of 4.15% And Reach $16.3 Billion By 2023

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Global Relays Market To Grow At An Annual Growth Rate Of 4.15% And Reach $16.3 Billion By 2023. Increasing investments in solar energy projects globally is expected to drive the relays market in the forecast period. According to the Global Trends In Renewable Energy Investment 2019 report by the United Nations Environment Programme (UNEP), in 2018, solar energy attracted the highest capacity investments globally at $133.5 billion.

Global relays market was worth $13.9 billion in 2019. thE annual growth rate is expected to be 4.15% and reach $16.3 billion by 2023. Increasing investments in solar energy projects globally is expected to drive the relays market in the forecast period. Relays are used in solar energy projects to cut off high DC voltages. According to the Global Trends In Renewable Energy Investment 2019 report by the United Nations Environment Programme (UNEP), in 2018, solar energy attracted the highest capacity investments globally at $133.5 billion. The Middle East Solar Industry Association (MESIA) expects solar energy projects worth over $15 billion to start operations in the Middle East in the next five years. With increasing demand from solar energy projects, relay manufacturers are now offering relays compatible with solar energy systems. For instance, Fujitsu is offering relays designed especially for solar applications.

Growing Popularity Of Plug-In Relays

Plug-in relays are increasingly being used in the automotive sector due to their light weight compared to electromechanical relays. These relays can handle high-rated current and operating voltage similar to that of electromechanical type relays. Plug-in relays are being used in automobile applications such as electrically heated catalytic converters, heater controls, windscreen wipers, motors and pumps, and body electronics, such as door locks, seat controls, window lifters and others. For instance, Omron’s plug-in automotive relays that range from 20A to 70A are used in automotive applications such as arter motors, heater controls, windscreen wipers and any applications that require high continuous current switching.

The relays market can be segmented by type into latching relay, solid state relay, automotive relay, overload protection relay, electromechanical relay, and others. By application, it can be segmented into military, industrial automation, electronics, and others.

High Power Consumption By Relays

The high power consumption by relays and the presence of alternatives such as optocouplers (opt-isolators) is acting as a restraint on the relays market. Relays are used in order to turn on or turn off a circuit electronically or electromechanically. Relays pose a problem in cases where power consumption needs to be kept minimum. For instance, to switch on a small LED light, the power consumed by the relay could be more than the power consumed by the light. Also, PV solar systems may require larger solar panels and battery to compensate for the excess power consumption by relays. This increases costs and limits the usage of relays in such applications.

Strategies Adopted By Major Players In The Relays Market

The major players in this market are Crydom Corp,Omron, Eaton, Comus International, Fujitsu, TE Connectivity, Fuji Electric, ABB, Hongfa, Teledyne. Companies in the market have been investing in mergers and acquisitions to strengthen and expand their businesses. For example, in June 2019, TE Connectivity (TE), a consumer electronics company, acquired the Kissling group of companies for an undisclosed amount. The acquisition will enable TE to expand its portfolio of specialty relays and switches to support the needs of industrial and commercial transportation customers. Kissling group is a provider of high- power relays and ruggedized switches that are used in various applications such as commercial vehicle, transportation, industrial, military, aviation industries and others. 

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