Global HVAC Relay Market Trends, Forecast Report 2025-2037
HVAC Relay Market size is poised to expand from USD 1.8 billion to USD 4.18 billion, registering a CAGR of more than 6.7% throughout the forecast period, from 2025 to 2037. In the year 2025, the industry size of HVAC relay is assessed at USD 1.9 billion.
The market growth is driven by 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, incredibly surging investments to install the HVAC systems is another major factor that is anticipated to accelerate the market growth.
In addition, the global HVAC relay market revenue is propelled by 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 across the world will boost the market size.
HVAC Relay Sector: Growth Drivers and Challenges
Growth Drivers
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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.
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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.
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Increasing Investments in the Residential Sector – For instance, in 2022, Germany's residential sector investment volume augmented approximately USD 12.5 billion.
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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.
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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
- High Installation and Maintenance Cost of HVAC Relays – Since, HVAC relays control and manage the power flow to several parts of a system, thus the installation and maintenance cost of HVAC relays are higher. A thorough inspection of drains, coils, and components is part of routine HVAC maintenance. Examining electrical connections, motor movements, and thermostat functionality all these scenarios require high maintenance costs. Hence, this factor is estimated to hinder market growth in the coming years.
- Fluctuation in Prices of Raw Materials of HVAC Relays
- Supply Chain Disruption as of Geopolitical Tension
HVAC Relay Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.7% |
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Base Year Market Size (2024) |
USD 1.8 billion |
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Forecast Year Market Size (2037) |
USD 4.18 billion |
|
Regional Scope |
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HVAC Relay Segmentation
Application (Automotive, Industrial, Residential, Commercial)
The automotive segment share is set to surpass 45% by 2037, attributed to 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, 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.
Type (Electromagnetic, Solid State, Thermal, Hybrid Relay)
The electromagnetic relay segment is anticipated to account for majority share of around 50% by 2037. 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:
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By Type |
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By Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
HVAC Relay Industry - Regional Synopsis
APAC Market Statistics
The Asia Pacific HVAC relay market is predicted to hold majority share of 40% by the end of 2037. The market domination is propelled by 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 will boost the market revenue in the APAC region. In addition, the rising economy, and dynamic growth in the construction sector will fuel the market expansion.
North American Market Forecast
The North American HVAC relay market is anticipated to account for 23% revenue share during the forecast period, led by 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 will drive the market growth. In addition, the presence of extreme weather conditions and lack of conventional heating methods will boost the market size.
Companies Dominating the HVAC Relay Landscape
- ABB Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- TE Connectivity Ltd.
- C&S Electric Limited
- Eaton Corporation plc
- Hitachi, Ltd.
- Toshiba Corporation
- Littelfuse, Inc. (IXYS Integrated Circuits Division, Inc.)
- OMEGA Engineering, Inc.
- Rockwell Automation Inc.
- Siemens AG
Recent Developments
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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.
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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.
- Report ID: 3393
- Published Date: Jan 28, 2025
- Report Format: PDF, PPT
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