Europe Automotive Relay Market- Growth, Trends and Forecasts ((2022 - 2027)

Europe Automotive Relay Market- Growth, Trends and Forecasts ((2022 - 2027)

The Europe Automotive Relay Market is projected to grow with a CAGR of more than 7 % during the forecast period.

Key Highlights

• Owing to the factors such as the Brexit, which is a huge step for the European union economy, the impact of ongoing trade war between two major economies of the world, there is a slowdown in the automobiles sector all around the world. But the European region has still outperformed the global market during the year 2019.
• The demand for electric vehicles in the region is increasing with a very high rate. In 2019, 564,206 plug-in electric cars were sold in Europe, which is higher by 45% numbers in 2018.
• However, there are many small local players present in the market which are providing relays for vehicles is a concern for the major players and the industry.
• The impact of the ongoing pandemic COVID-19 and the forced lockdown of the economic activities will remain for some time even after the cure for the disease will be found. The businesses are expected to gain growth during the second half of the year 2021 when the financial position of the people will get stable.

Key Market TrendsElectronic Vehicles and Advancement of Technology Demand Driving Growth

With the introduction of new technologies like ADAS, Digital Cockpit systems and advancement in infotainment systems, the demand for automotive relays is expected to boom. Several major players are spending heavily on inclusion of these technologies to attract more demand in the region. For instance, in January 2020, AU Optronics announced its latest display technologies and applications that are transforming smart and connected vehicles. The company offers industry’s first and largest 12.1-inch full color TFT driven micro LED display, with micro LEDs less than 30um in size to light each pixel independently, reaching a pixel density of 169 PPI with high dynamic range to enable crucial driving data to be presented in a crisp and clear way.

Owing to the increasing pollution levels all around the world and decreased air quality, governments all around the world are encouraging sales of electric vehicles by giving attractive financial benefits to the end users and enhancing the infrastructure for electric vehicle like charging stations in their country. With the rise in sales of electric vehicle in the region the automotive relay market is also expected to rise.

The governments in the region are spending heavily to increase the demand for electric vehicles. For instance, the Norway government waived off vehicle import duties and registration and sales taxes for buyers of electric cars. Owners don't have to pay road tolls and get free use of ferries and bus lanes in congested city centers which has cost around USD 1 billion for the Norway Government. Electric cars continue to dominate in Norway, as 2019 saw EV sales rise to 42.4%, up from 31.2% in 2018, according to OFV. This represents almost a 1/3 increase in EV sales from year to year. Adding in plug-in hybrid sales, about 56% of Norway's new car sales in 2019 had a plug.

Similarly, in France the sales of electric vehicles were up by 29% from the year 2018 and reached to 69,466.

Germany Remains the Largest Market

With the change in tax regime proposed by the European Union, the passenger cars sales in the country were up by 5% and reached to 3,607,258 cars which is the largest growth in the country during the last decade.

The German government and car industry have agreed to increase joint subsidies for electric car buyers and extend the program to 2025. Under the agreement, consumer subsidies for electric cars costing less than Euro 40,000 (USD 44,500) will increase to Euro 6,000 (about UDS 6,700) from Euro 4,000. Purchasers of plug-in hybrids in this price range would be given a subsidy of Euro 4,500, up from Euro 3,000. These initiatives have resulted in increase in demand for electric vehicles in the region. During the year 2019, new electric passenger vehicle registrations in Germany in 2019 increased by 75.5% to 63,281 battery-electric cars. This increased electric cars' share of the German new car market from 1.05% in 2018 to 1.75% in 2019.

With the presence of several automotive OEMs in the country, they are including latest technologies like digital cockpit, advanced infotainment systems and others to attract demand for their vehicles. For instance, in November 2019, Volkswagen announced inclusion of digital cockpit solution to model Golf. Digital Cockpit, includes the instrument cluster, an infotainment system, and a multifunction steering wheel

Competitive Landscape

The Europe Automotive Relay Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in the Europe Automotive Relay Market are Robert Bosch, Denso Corporation, Fujitsu Ltd, Panasonic Corporation and others. The major players in the region are spending heavily in research and development of new products and delivering mobile cranes globally.

For instance, in June 2019, TE Connectivity has announced acquisition of the Kissling group of companies. Kissling Group is a provider of high-power and high-voltage relays and switches for the commercial transportation, industrial, military, aviation industries, and other applications.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Robert Bosch GmbH
Denso Corporation
Fujitsu
Panasonic
TE Connectivity
Omron Corporation
Hella KGaA HUECK & CO.
Nidec Corporation
Johnson Electric

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