In 2022, the reed relay market was worth around USD 370 million, and it is projected to advance at a 15.40% CAGR from 2022 to 2030, hitting USD 1,162 million by 2030, according to P&S Intelligence.
This growth can be credited to the growing industrialization, the increasing acceptance of EVs and advancing associated infrastructure, and the rising demand for solar devices worldwide. Furthermore, the growth in the utilization of such switches in medical devices and instruments is a main trend experienced in the market.
With the launch of Industry 4.0, the manufacturing sector is transforming its processes. Businesses are merging novel technologies into their production amenities. Therefore, the use of smart sensing and robotics is growing in manufacturing amenities.
Such technologies result in the automation of procedures and the installation of smart machines in plants, worldwide. thus, because of the huge automation, the need for reed relays is growing significantly.
The increasing popularity of EVs and the rising requirement for electric vehicle infrastructure are the main factors boosting the industry for such switches, because of their excellent utilization at low loads. They can be utilized in the battery, engine, screen wiping, lighting, electric mirror, and steering modules and in several other ways in electric vehicles.
With the rapidly growing EV market, the demand for such switches is also growing at a very high pace because of their many uses in electric vehicles. Such relays are also utilized in electric vehicle charging infrastructure as they support the good union of connectors, and are utilized in sockets of electric vehicles in the charging cable to guarantee that an accurate locking signal is approved to initiate the charging.
In 2022, Europe held the largest revenue share, at 26.4%. This is because of the growing need for renewable power devices in Europe and the combined efforts of European nations toward the reduction of CO2 emissions.
Also, because of the Russia–Ukraine war, the region is rethinking its dependency on Russia for power requirements and taking a move toward the use of renewables in order to attain net zero emissions by 2050. This amplifies the need for renewable power, and therefore, expenditure on sustainable power infrastructure is growing, which is one of the main factors the European region is the leading industry for reed relays throughout the globe.
For example, as per the World Economic Forum, in Europe, to get its target of becoming free from conventional fuel by 2050, an expenditure of approximately USD 3.8 trillion would be required in renewable sources of power like solar and wind projects.
Hence, the growing industrialization, the increasing acceptance of EVs and advancing associated infrastructure, and the rising demand for solar devices worldwide, are the major reasons behind the growth of the reed relay industry.
