HVAC Relay Market size is projected to cross USD 3558 million by the end of 2035, growing at a CAGR of 7% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of HVAC relay was over USD 1580 million. The growth of the market can be attributed to the rising demand for heating, ventilation, and air conditioning systems, increasing construction of non-residential buildings around the world, and growing investments to set up HVAC systems. For instance, it is calculated that the demand for HVAC equipment increased by approximately 7 percent since 2019, whereas the shipment for the same rose by almost 6 percent every year since the same year. Further, the incredibly surging investments to install the HVAC systems is another major factor that is anticipated to accelerate the growth of the global HVAC relay market during the forecast period, i.e., 2023 - 2035.
In addition to these, factors that are believed to fuel the market growth of HVAC relay include the rising trend of green buildings on the back of escalating implementation of stringent government regulations associated with energy efficiency and savings, as green buildings utilize less energy and water as compared to conventional buildings. For instance, in 2020, there were more than 128,000 green-rated buildings across the globe. Moreover, an upsurge in industrialization throughout the world is also anticipated to further drive market growth during the forecast period.
Growth Drivers
Growing Ratio of Commercial Construction – A construction is referred to as commercial if no space is used, either permanently or temporarily, for human living. With time, numerous buildings have been constructed to cater to commercial purposes. Currently, there are numerous constructions such as hospitals, educational institutions, hotels, and other commercial facilities are present and even the construction of several commercial buildings is still in process. An upsurge in numerous non-residential constructions is estimated to radically increase the installation of several cooling and ventilation systems, thus the demand for HVAC relay systems is increasing at a significant ratio. Hence, this is estimated to boost market growth throughout the forecast period. For instance, in the U.S., the count of commercial buildings surged by nearly 5.6 million by 2020.
Rising Implementation of Automation - Automation refers to technological applications where the amount of human input is reduced. This encompasses home automation, industrial automation, business process automation (BPA), and more. Automation can be utilized in any sector where repetitive operations are prevalent. Currently, automation is being utilized in all most every sector. Hence, the rising utilization of automation is significantly boosting the demand for HVAC relay systems. For instance, almost 69% of organizations worldwide deploy business process automation technologies to increase end-to-end visibility across several systems.
Increasing Investments in the Residential Sector – For instance, in 2022, Germany's residential sector investment volume augmented approximately USD 12.5 billion.
Technological Innovations in HVAC Solutions – For instance, solar-powered HVAC systems are becoming increasingly popular. These HVAC systems heat and cool buildings by harnessing the sun's energy and lessening carbon footprints.
Expansion in the Internet of Things (IoT) – HVAC systems have been upgraded by the implementation of new technology. The implementation of the internet of things (IoT) is proving more helpful in real-time data monitoring and collection. In this way, they assist by collecting significant data to simplify manufacturing operations and discover flaws in production processes. Moreover, the use of IoT in HVAC equipment is highly essential for tracking vibration, airflow, temperature fluctuations, pollutants, and so on. Thus, the rising implementation of the internet of things network in HVAC systems is another major factor that is estimated to proliferate the market growth in coming years. For instance, by the end of 2021, nearly 19.8 million IoT-enabled smart thermostats had been installed in the United States.
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~7% |
|
Base Year Market Size (2022) |
~ USD 1580 Million |
|
Forecast Year Market Size (2035) |
~ USD 3558 Million |
|
Regional Scope |
|
Application (Automotive, Industrial, Residential, Commercial)
The global HVAC relay market is segmented and analyzed for demand and supply by application into automotive, industrial, residential, and commercial. Out of these four types of segments, the automotive segment is estimated to gain the largest market share of about ~45% in the year 2035. The growth of the segment can be attributed to the dynamic growth in the automotive sector across the globe, coupled with the increasing demand and traction for electric vehicles throughout the world. For instance, in 2022, the worldwide sales of electric vehicles increased to over 6.80 million. In addition to this, escalating demand for passenger cars is also estimated to spur segment growth as HVAC relays are highly utilized to control the climatic condition and temperature inside a vehicle, thus it is also helpful in maximizing battery efficiency. This, as a result, is anticipated to radically boost the segment growth throughout the projected time frame.
Type (Electromagnetic, Solid State, Thermal, Hybrid Relay)
The global HVAC relay market is also segmented and analyzed for demand and supply by type into electromagnetic, solid state, thermal, and hybrid relay. Amongst these four segments, the electromagnetic relay segment is anticipated to garner a significant share of around ~50% in the year 2035. This type of relays can be effectively used with AC or DC currents, and their fast operation and reset, and ability to operate in milliseconds. On the other hand, the hybrid relay segment is projected to witness a massive CAGR during the forecast period, owing to their high compatibility with mechanical and solid-state technologies, followed by the delivery of better performance.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Application |
|
APAC Market Statistics
The Asia Pacific HVAC relay market, amongst the market in all the other regions, is projected to hold the largest market share of about ~40% by the end of 2035. The growth of the market can be attributed majorly to the radically expanding automobile industry in the region, coupled with the surging production of vehicles, and increasing urbanization in the nations such as Japan, India, and so on. For instance, the Indian automobile industry manufactured around 25,930,380 vehicles between April 2021 and March 2022, including passenger vehicles, and commercial vehicles. Moreover, the rapid surge in industrialization is also a significant factor that is projected to boost the growth of the HVAC relay market in the APAC region during the projected time frame. In addition to this, the rising economy, and dynamic growth in the construction sector are also anticipated to boost the market growth further during the forecast period.
North American Market Forecast
The North American HVAC relay market, amongst the market in all the other regions, is projected to hold the second largest market share of about ~23% during the forecast period. The growth of the market can be attributed majorly to the surging demand for energy-efficient green buildings, and the high usage of personal vehicles by people in the region. For instance, the number of green buildings in the United States expanded by around 128,215 by 2021. Moreover, increasing demand for energy efficiency in residential buildings and commercial buildings is also anticipated to drive market growth further throughout the forecast period in the region. In addition, the presence of extreme weather conditions and lack of conventional heating methods are also predicted to boost the market growth in the future.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share of about ~19% by the end of 2035. The growth of the market can be attributed majorly to the rapid surge in urbanization, followed by the radical expansion in commercial vehicles is estimated to spur market growth in the region throughout the forecast period. In addition to this, recent expansion in business aircraft manufacturing is another significant factor anticipated to skyrocket the growth of the HVAC relay market in the European region during the forecast period.
Siemens AG launched a force-guided coupling relay in their Sirius 3RQ1 series for electrical systems in infrastructure and industry. The equipment can be assembled easily which reduces the total time required for building control panels.
Littelfuse, Inc. has acquired Hartland Controls, a leading manufacturer and supplier of electrical components used primarily in heating, ventilation, air conditioning, and refrigeration (HVAC/R) and other industrial and control systems applications.
Author Credits: Payel Roy, Dhruv Bhatia
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?