HVAC Relay Market
Analysis by Type (Electromagnetic, Solid State, Thermal, and Hybrid Relay); by Application (Automotive, Industrial, Residential, and Commercial) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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Analysis by Type (Electromagnetic, Solid State, Thermal, and Hybrid Relay); by Application (Automotive, Industrial, Residential, and Commercial) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global HVAC relay market is estimated to garner a revenue of ~USD 3558 Million by the end of 2035 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 1580 Million in the year 2022. 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.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 1580 Million |
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Forecast Year Market Size (2035) |
~ USD 3558 Million |
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Regional Scope |
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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
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.
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 HVAC relay market includes the following segments:
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By Type |
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By Application |
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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.
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.
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.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing ratio of commercial construction, rising implementation of automation, and technological innovations in HVAC solutions are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2035.
Ans: High installation and maintenance cost of HVAC relays, fluctuation in prices of raw materials of HVAC relays, and supply chain disruption as of geopolitical tension are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are ABB Ltd., TE Connectivity Ltd., C&S Electric Limited, Eaton Corporation plc, Hitachi, Ltd., Toshiba Corporation, Littelfuse, Inc. (IXYS Integrated Circuits Division, Inc.), and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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