Sealed Contactor Market Trends

Growth Drivers

• Growing Demand for Electronics and Smart Devices : With the growing economies and the penetration of electric manufacturing services (EMS), the demand for electronics and smart devices has considerably grown up. For instance, the sale of mobile phones in 2021 across the globe totaled approximately 1740 million units, accounting for 7800 million mobile people users, or about 20% of the world's population, buying a mobile in that particular year. The recent shift towards introducing technologically advanced electronic products along with the rising investment in the electrical sector has bought significant growth in the electronic industry which is anticipated to increase the demand for sealed contactors for the proper functioning of the products.
• Expanding Production of EVs and HEVs :In recent periods, the global population are propelled towards adopting electric vehicles and hybrid electric vehicles owing to rising initiatives by the government encouraging the usage of e-mobility and the increasing prices of crude oil. Thus, with the increasing demand for EVs and HEVs, the utilization rate of the sealed contactor is also estimated to grow to maintain the electrical circuit of the automobile and handle PCBs as well as other electric part components. According to the statistics released by the International Energy Agency (IEA), the global sales of electric vehicles nearly doubled to 6.6 million in 2021 from 2020. This totals up to almost 16.5 million electric cars on the roads of the world.
• High Usage Rates of Semiconductors – As a result of the burgeoning electrical industry, the application of semiconductors across a wide range of projects have also grown. Thus, for efficient management of such electrical products, the demand for sealed contactors grows up, hence, helping in creating a positive outlook for market growth during the forecast period. It was observed that in April 2020, semiconductors worth about USD 2.8 billion were sold in Japan, which grew to about USD 3.3 billion by the end of December that year.
• The Surge in the Number of Smart Homes Across the World :For instance, the proportion of smart homes surpassed around 178 million across the globe in the year 2022, and this ratio is estimated to increase by nearly 578,20 million smart homes throughout the world by 2025.
• Increased Consumption of Electricity :Recently, it was calculated that in 2019, the total electricity final consumption across the world reached 22 848 TWh, up 1.7% from 2018.

Challenges

• Increasing Cost of Sealed Contactors – The high cost of sealed contactors is propelling the global consumer base to shift towards more cost-efficient alternatives that are available in the market. Also, a high initial investment is required for the manufacturing process of sealed contactors which is again estimated to lower the adoption rate. All these factors are projected to couple up to pose a challenge to the growth of the global sealed contactor market during the forecast period.
• Easy Availability of Product Alternatives
• Less Awareness Level about the Advantages of Sealed Contactors