The global contactor market was valued at US$915.170 million in 2022 and is expected to be US$1467.010 million in 2029, growing at a CAGR of 6.97% during the forecast period.
An electrical switching device called a contactor links an electrical source to a load and regulates the flow of electricity. Because they can manage large loads, the main contactor types offered by the worldwide contactor business include power contactors, spring-loaded contactors, and auxiliary contactors. These contactors are employed in residential, commercial, and industrial settings. The surge in construction spending on residential, commercial, and industrial buildings stimulates the demand for contactors, further bolstering the global contactor market size.
Global Contactors Market Drivers:
Effective power distribution and control systems are becoming increasingly necessary as global industrialization and infrastructure expansion continue. Contactors are essential to these systems because they make it possible to switch electrical currents safely and effectively. They are employed in motor control circuits, lighting systems, HVAC systems, and several other applications where the regulation and safeguarding of electrical loads are necessary.
Increasing construction spending is expected to boost the global contactor industry's growth. According to research by the European Construction Sector Federation, in 2022, the construction sector had a 5.2% rise in overall investment over the previous year.
As urbanization and population growth continue, there is a rising need for residential buildings, including apartments and houses. These buildings require efficient electrical distribution and control systems to cater to residents' electrical needs. Contactors are essential components in residential electrical systems, enabling safe and reliable power switching to various devices and appliances. They are used in lighting control, HVAC systems, motor control for pumps and fans, home security systems, and other household applications.
Further, increasing residential buildings propels the global contactor market growth. According to the National Investment Promotion & Facilitation Agency of India 2022, around 600 million people are expected to live in urban India by 2030. This would create a demand for 25 million extra mid-end and affordable residential units.
Global Contactors Market Segment Analysis
There is a growing need for efficient electrical distribution and control solutions as the commercial sector expands with the construction of office buildings, shopping malls, hotels, hospitals, and other commercial establishments. Contactors enable the reliable switching and control of electrical power to lighting systems, elevators, escalators, security systems, and other building infrastructure. The sales of elevators to commercial settings expand the global contactor market size. Mitsubishi Electric Building Solutions Corporation announced in August 2022 that it supplied 123 elevators to major Chinese office complexes.
Industrial buildings, including manufacturing plants, factories, and warehouses, require efficient electrical control systems to manage machinery, equipment, and power distribution. Contactors are crucial for safe and efficient electrical power switching to motors, pumps, conveyors, and other industrial equipment. The investments made to improve manufacturing capacity will accelerate the global contactor market's growth. Under the Union Budget 2021-22 of India, funding of INR 1.97 lakh crore (over US$26 billion) was announced to enhance India’s manufacturing capabilities and exports.
The Asia-Pacific region is expected to be the significant contactor marketplace.
The Asia-Pacific region will account for a significant share of the global contactor market due to a surge in the construction of commercial and residential spaces, and establishments of industries in the region. In 2021, the Chinese government introduced the 14th Five Year Plan (FYP), which urged China to build new infrastructure in the years leading up to 2025, covering a wide range of industries, from gigabit fiber optics to space-based manufacturing.
Moreover, in 2023, Pradhan Mantri Awas Yojana, the budget for the flagship housing scheme by the government of India outlays was 66 % increased to over INR 79,000 Cr, while the Urban Infrastructure Development Fund will allocate INR 10,000 Cr annually for tier 2 & 3 city infrastructure. These initiatives boost the construction of residential and industrial spaces and thus improve the regional contactor market size.
Global Contactors Market Restraints:
Solid-state relays (SSRs) are electronic switching devices that can perform similar functions as contactors. The increasing adoption of SSRs, especially in certain applications such as low-power control circuits, can pose a challenge to expanding the global contactor market size, as they offer advantages like smaller sizes, faster-switching speeds, and longer lifespans. For example, in September 2022, Isocom Limited launched a latching solid-state relay that would switch many currents up to 60Amps with the additional benefit of positional memory, being on or off, and remaining in the last position until a new signal current forces it to the original position.
Global Contactors Market Players and Products:
Global Contactors Market Key Developments:
Market Segmentation:
The global contactor market is segmented and analyzed as below: