HVAC Relay Market

HVAC Relay Market Outlook (2023 to 2033)

The global HVAC relay market is valued at US$ 4 billion in 2023 and is predicted to reach a market size of US$ 7.2 billion by the end of 2033. Global demand for HVAC relays is estimated to increase at a CAGR of 6% from 2023 to 2033.

Manufacturers in the automotive sector are focusing on providing HVAC relays for energy-efficient electric vehicles. Growing production and demand for electric vehicles are driving market growth. Heating, ventilation, and air conditioning are referred to as HVAC. HVAC relays are various systems for controlling air quality and temperature. HVAC relays are open or closed circuits that are used to regulate the power flow to several HVAC system components.

A key element of the HVAC control system is the HVAC relay. To control and open or close contacts that are connected to the motor, HVAC relays are employed. Using the low-power signal, relays assist in controlling a circuit with high voltage.

An HVAC relay is defined as a switch that is typically used to regulate the functioning of cooling tower motors, condenser fan motors, and small-capacity compressors. With the increasing need for automobiles around the world, an increase in the demand for HVAC services in the automotive industry for automotive climate control is anticipated to fuel demand for HVAC relays.

The market is expected to increase significantly over the coming years as a result of rising demand from construction, automotive, healthcare, and other industries. Increased investment and growth in non-residential construction are expected to drive demand for HVAC relays and indoor air quality control tools, bolstering market growth.

The market is being driven by the growing trend of green building concepts due to the implementation of strict government rules and policies. These structures call for more effective energy management systems, highlighting the necessity for smart HVAC relays, which are widely used to increase building efficiency.

Market expansion is projected to be stimulated by ongoing R&D activities related to HVAC relays in the construction industry.

For instance,

• In 2021, a study conducted by scientists at the Harvard T.H. Chan School of Public Health found that installing HVAC systems with good filtration can help shield building occupants from the harmful effects of carbon dioxide and small particles.

Market growth will be further supported by an increase in new developments in HVAC systems across various industries.

• Nomad GO stated that it would employ the IMX500 from Sony Semiconductor, an AI-enabled intelligent vision sensor, in HVAC systems to reduce energy consumption by 30%.

Report Attributes	Details
Market Size (2023)	US$ 4 Billion
Projected Market Value (2033)	US$ 7.2 Billion
Global Market Growth Rate (2023 to 2033)	6% CAGR
Market Share of Solid-state Relays (2023)	50%
Key Companies Profiled	Eaton Corporation; Siemens AG; ABB Ltd.; General Electric; Toshiba Corporation; Schneider Electric; Mitsubishi Electric Corporation; Littlefuse Inc.; Hitachi Ltd.; Rockwell Automation, Inc.; Zettler Electronics Inc.; Omron Corporation; Omega Engineering, Inc.; Celduc Realis

Which are the Growth Determinants of the HVAC Relay Market?

“Huge Demand for HVAC Relays in Industrial & Commercial Facilities”

HVAC relays play a key role in an assortment of industries such as plastics manufacturing, food processing, construction, and chemical production. End-user industries are seeking advanced HVAC relays for streamlining their production while complying with stringent government regulations on energy efficiency and greenhouse gas emissions.

Continuous innovations in energy-efficient solutions are driving market growth. Technological advancements in HVAC relays are creating lucrative opportunities for players operating in the market with demand for novel switches to be used in advanced systems surging.

Building administrators are increasingly replacing conventional steam-based chiller systems with electric chillers, a trend that is estimated to propel market growth. Additionally, renovation and improvement of infrastructure around the world are projected to fuel demand for HVAC relays.

“Rapid Implementation of Automation & IoT to Improve HVAC Relay Quality”

Exponential growth in automation and the Internet of Things (IoT) is estimated to boost market growth over the coming years. Utilizing automation HVAC relay manufacturers are successfully enhancing the quality and durability of the systems in addition to boosting production. Real-time data monitoring and collection are aiding manufacturers in collecting vital data to streamline production operations and detect faults in the production processes.

The development of 3D printing and additive manufacturing is enabling companies to produce highly-efficient relay systems at lower costs and using sustainable materials. These factors are estimated to help companies in complying with government regulations and ensure large-scale production at lower costs.

“Surging Need for Geothermal Systems to Reduce Carbon Footprint”

Geothermal systems significantly reduce their carbon footprint in comparison to traditional HVAC systems by using the heat from the earth to maintain the required temperature in systems. Increased consumer awareness of environmental issues and stricter government controls on energy efficiency and greenhouse gas output would increase demand for geothermal HVAC relays and other HVAC systems that operate using renewable energy sources.

What Could Possibly Hinder the Sales Growth of HVAC Relays?

“Lack of Skilled Technicians and Complicated Process of HVAC System Installation”

The lack of skilled technicians in industries and buildings is increasingly being linked to the growing incidences of HVAC system failures around the world. This is restraining sales of HVAC relays. HVAC system installation involves making significant changes to the plumbing and ventilation systems of a building. The process is time-consuming and requires thorough planning for proper execution.

The presence of an old HVAC system in place may create additional problems in installation. Due to these reasons, the costs incurred for initially setting up HVAC systems is high. In addition to this, the infrastructural changes required for installation may result in a long period of downtime, which can cause inconvenience and lower production rates in industries.

These reasons are expected to restrain the demand for HVAC systems across industries and are estimated to adversely impact the HVAC relay market growth.

Which Region Accounts for a Leading Position in the Global HVAC Relay Market?

“Rapidly Increasing Investments in Electronic Equipment Industry in Asia Pacific”

• Asia Pacific accounts for 40% share of the global market.

Government rules for smart homes and incentives for including energy-efficient HVAC systems in new construction projects are fueling market expansion. Increasing investments in the electronic equipment industry and rising disposable income are driving market growth.

Country-wise Insights

Why is the Adoption of HVAC Relays Surging in the United States?

“Rapid Deployment of Energy-efficient HVAC Relays in Manufacturing Facilities”

The market in the United States is anticipated to increase significantly over the forecast period due to the rapid adoption of energy-efficient HVAC relays in manufacturing facilities. Recent growth in business aircraft and commercial vehicles has contributed to rising demand for automotive relays, fueling market expansion. The market is anticipated to be driven by rapid urbanization and rising infrastructure spending.

Why is Germany Seeing High Demand for HVAC Relays?

“Increase in Construction Activities across Germany”

Increasing need for automotive HVAC systems, rising affordability of housing, and growing government backing to promote homeownership & sustainable community development are supporting market expansion. An increase in construction activities, infrastructure improvements, and HVAC unit replacements are some of the key drivers of market growth.

What are the Growth Prospects for HVAC Relay Manufacturers in Japan?

“Increasing Demand for Electric Vehicles in Japan”

Market growth in Japan is attributed to an increase in urban population and strict government rules requiring energy-efficient heating and cooling equipment. The local supply of HVAC relays is increasing in the country due to the surging need for housing units. Demand for electric vehicles is rising due to strict government regulations and growing environmental concerns, which is boosting market value.

Category-wise Insights

Which Type of HVAC Relay is Forecast to Gain a Prominent Market Share?

“Solid-state Relays Gaining Traction Due to Their Reliability & Affordability”

Based on type, the market is classified into electromagnetic relays, solid-state relays, thermal relays, hybrid relays, and others

• Solid-state relays account for 50% share of the global market due to their reliability, compact size, and affordability.

Solid-state relays are ideal for industrial automation because they work with a variety of control systems, are resistant to magnetic noise, and can be mounted in a variety of orientations. They are also employed in appliances such as electric heaters and ovens, photocopiers, and laser printers that require the switching of enormous amounts of power.

Growing desire for miniaturization and greater efficiency and the rising popularity of semiconductor devices are boosting the demand for solid-state relays. The market is anticipated to be driven by an increasing need to modernize the power infrastructure in developed countries to reduce heat generation through thermal dissipation with solid-state relays.

Which Application is Leading the Demand for HVAC Relays?

“HVAC Relays Widely Used in Automotive Industry to Control Temperature Inside Vehicle”

HVAC relays are adopted in automotive, residential, commercial, and industrial applications. The demand for HVAC relays in the automotive industry is expected to increase over the forecast period.

HVAC relays are used to improve the battery's performance and regulate the climate and temperature inside the vehicle. The market for HVAC relays is also growing as a result of the surge in global demand for passenger cars. Most passenger cars now come equipped with HVAC relays as standard equipment.

Competitive Landscape

Leading companies are modernizing their product lines and manufacturing processes to acquire a competitive edge and expand their global footprints. Top HVAC relay producers engaged in various tactics such as quality control, pricing trends, supply chain management, alliances, and product standards to get a competitive edge in the market.

Growing environmental degradation and awareness of climate change are inspiring many promising players to use sustainable energy practices following safety regulations. They are making significant investments in eco-friendly power generation technologies to reduce the environmental impact and support sustainable development in different countries around the world.

Top manufacturers are working towards integrating value added-features into HVAC relays. High momentary current bearing capacity, reliable circuit breaking, and smart capabilities are some of the key features gaining priority in the HVAC relay market.

For instance,

• A brand-new, intelligent relay called the Easergy P3 was introduced by Schneider Electric. According to the company, the relay system protects equipment from serious damage by tripping circuit breakers instantly in the case of a breakdown. Users of the product can do virtual simulation tests and make maintenance easier using the web-based application that comes with it.

Key Segments of HVAC Relay Industry Research

• By Type :

  • Electromagnetic Relays
  • Solid-state Relays
  • Thermal Relays
  • Hybrid Relays
  • Others

• By Application :

  • Automotive
  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa