Electromechanical relays are often referred to as switches that control high power electrical devices simply by using a small amount of power. These relays are used in the operation of both AC and DC current; and a magnetic force is generated when the power is supplied while controlling the mechanism in the switch. These electromechanical relays have various applications ranging from power supply switching in televisions and DTH boxes to the factory automation, and motor controllers, among others.
Expanding the telecom industry in developing countries like China and India coupled with increasing demand for energy-efficient solutions is expected to be the prime driver for the growth of the electromechanical relay market during the forecast period. For instance, according to the Chinese Ministry of Industry and Information Technology, the telecom sector revenue increased by nearly three percent year on year to 1.3 trillion Yuan in 2018 showing a great opportunity for electromechanical relay manufacturers and vendors.
Increasing energy prices globally is expected to drive the demand for advanced electromechanical relays aiming to reduce power consumption. Also, the growing number of renewable energy projects in various parts of the world is fuelling the demand for high capacity electromechanical relays, thus favoring the electromechanical relay market trend.
There has been a growing focus on reducing the construction time of a power plant to meet the growing global power demand. Simultaneously, the growing demand for electromechanical relays in the energy and semiconductor industry is due to its low cost, long operation life, less power consumption, and easy maintenance. Besides, the wide adoption of electromechanical relays in electronic appliances coupled with the rising use in the automobile sector in the fuse box to prevent the circuits from overload and faults is also expected to fuel the growth of the market over the forecast period. Simultaneously, there is also a growing trend towards the adoption and production of renewable sources of energy globally. For instance, in Europe, wind energy remains the second largest from power generation capacity and moreover, it is expected to overtake gas installations by 2019 (Source: Wind Europe) all such initiative by both public and private players is expected to create ample opportunities for electromechanical relay manufacturers and vendors. Simultaneously there are currently 454 operable civil nuclear power reactors globally, with a further 54 under construction (Source: World Nuclear Association). Thus, the growing plant turbine production to meet the growing global power demand along with its increasing use in the nuclear power plant will boost the demand for electromechanical relay solutions in the energy and power sector.
China Is Expected to Hold a Significant Share in the Global Market
Expanding the power and utility industry in the country coupled with increasing investment by both the public and private sectors is further expected to boost the adoption of the electromechanical relay in the coming years. In fact, according to China Electricity Council (CEC), the country is expected to put another 110 gig watts (GW) of new power generation into operation with half consisting of clean energy sources like solar by the end of this year. In addition, China is also stepping up its efforts to build charging stations in order to foster new energy car sector and these controllers are widely used across the charging station which is expected to boost the demand in the coming years. According to the China Association of Automobile Manufacturers, China is the world's largest new energy vehicle market with the sale of 1.25million cars in 2018 amid sluggish overall car market. Also, Volkswagen AG and FAW group Co sign an agreement as a part of the multibillion-dollar investment for setting up a network of a fast-charging station in China. Moreover increasing number of construction projects in the country along with the growing trend of mega projects like Beijing Daxing International Airport which started in 2014 whose first phase is expected to be complete by the end of 2019, increases the demand of automatic power factor controllers because of its ability to improve voltage, reduce power systems losses and increasing load carrying capabilities. All such factors are expected to further propel the electromechanical relay market growth opportunities for manufacturers and vendors in the coming years.
Aerospace and Defense Industry
Factors such as supportive government initiatives, effective talent recruitment strategies being adopted by the government, and the private sector, has led to relevant job skills training being provided to the new workforce. This, in turn, is bolstering the growth of the aerospace industry in developed regions such as North America and Europe and thereby impacting the growth of the electromechanical relay market. Favorable macroeconomic factors such as high economic growth and rapid industrialization have led to the setting up of aerospace clusters in the region, thereby positively impacting the demand for advanced electromechanical relays in various parts of the world. Rising investments by major aerospace companies in developing regions such as MEA and APAC owing to growing domestic demand and burgeoning tourism industry is further providing the necessary impetus to the thermal spray coating market for the aerospace segment. For example, in November 2019, Boeing predicted that India would require 2,380 commercial planes, valued at US$330 billion to handle the growing demand for air travel in the coming 20 years.
Source: The World Bank
In addition to this, rapid advancements in the electromechanical relay technologies are further estimated to boost their demand in the years to come. According to the World Bank, military expenditure at current USD in Germany and France has increased from US$42.552 and US$ 60.595 billion in 2007 to US$49.471 and US$63.8 billion in 2018, respectively. Furthermore, globally air transport passenger carried in recent years have also shown significant growth for instance, according to the World Bank recent report transport passenger carried has increased from 2.5 billion in 2009 to 4.233 billion in 2018 which is showing a growth of more than eighty percent thus opening the growth opportunities for electromechanical relay manufacturers and vendors.