HOME Research Insight TE Connectivity (Switzerland) and Panasonic Corporation (Japan) are the Leading Player in the Automotive Relay Market

TE Connectivity (Switzerland) and Panasonic Corporation (Japan) are the Leading Player in the Automotive Relay Market

Increasing demand for comfort and safety is leading to increasing vehicle electrification, which in turn is driving the automotive relay market. The automotive relay market is projected to grow at a CAGR of 6.20% from 2017 to 2022 and is estimated to reach USD 16.75 Billion by 2022.

New product development is the key strategy adopted by the top players to gain traction in the market. For instance, TE Connectivity has a strong focus on R&D activities, which accounted for 5.26% of the total revenue in 2016. Likewise, Panasonic Corporation is focused toward the development of Electric Vehicle (EV) relays as the demand for alternate fuel vehicles is increasing. Additionally, the company invested 5.96% of its total revenue in R&D activities in 2016. Expansion and mergers & acquisitions are the second most widely followed strategies in the automotive relay market. For instance, TE connectivity started producing automotive relays in China at its Suzhou plant, Jiangsu by the end of 2009. Previously, the relays were manufactured only at the Shenzhen plant. The reason for the expansion was to cut down distribution cost and make the products cheaper.

The automotive relay market is dominated by a few global players and comprises several regional players. TE Connectivity (Switzerland) is a leading player in the global automotive relay market. The company has a wide range of automotive relays, namely, plug-in relays, Mil-Aero relays, protective relays, signal relays, time delay relays, and high current relays. The company caters to different vehicle segments including passenger cars, commercial vehicles (truck and bus), and off road. Following the strategy of new product development, the company developed the HCR 200 relays in 2009. This relay is used for the start and stop application of a vehicle. Some of the applications of HCR 200 relays are energy management, battery coupling, and starter system.

Panasonic Corporation (Japan) is identified as the second leading supplier in the automotive relay market. The company manufactures and sells an entire range of appliances, eco solutions, AVC networks, automotive and industrial systems, and others. Relays and couplers fall under the automotive and industrial systems segment. The major products included in this segment are power relay, signal relay, solid state relay, safety relay, automotive relay, and others. The company has adopted the strategy of mergers & acquisitions to increase its presence in the automotive relay market. In 2016, the company merged two of its subsidiaries-Panasonic Industrial Devices Obihiro Co., Ltd. (PID Obihiro) and Panasonic Industrial Devices Taiko Co., Ltd. (PID Taiko). PID Taiko will be merged with PID Obihiro, which is a manufacturer of automotive and electric vehicle relays. The new company will be named as Panasonic Switching Technologies Co., Ltd.

Related Reports:

Automotive Relay Market by Type (PCB, Plug-In, High Volt, Protective, Time), Load & Application (Door Lock, Power Window, Sunroof, Power Seat, EPS, Lighting, Fuel Injection, AC, Starter, Horn, Wiper), ICE & EV, and 48V Relay Market - Global Forecast to 2022

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