Relay industry out of the downturn

According to the research report of IHS subsidiary IMS Research, after two years of double-digit growth, the global electromechanical and solid-state relay market decreased by US$125 million (3.6%) to US$3.35 billion last year.

This is the first time sales have shrunk since 2009, when the market plummeted by more than 25%. By contrast, the 2012 decline was even smaller and shorter duration. IHS predicts that the relay market will grow by 5.2% to reach US$3.54 billion in 2013.

The European, Middle East and Africa (EMEA) market experienced the largest drop last year, with revenue falling by 6.2% and the Americas falling by 2.9%. The largest market reversal occurred in the Asia-Pacific region. In 2011, revenue increased by more than 24%, and in 2012 it dropped by another 2%.

“In 2011, the domestic sales of relay manufacturers in Asia grew by more than 40%, which is much higher than the growth rate in recent years.” Robert Carter, IHS power distribution assembly analyst, said, “However, with the cooling of the industrial market in 2012, especially in China, Demand has fallen, so some companies have seen a 15% shrink after unprecedented growth."

RobertCarter predicts that the shrinking relay market will not last long. After the market recovery in 2013, EMEA and the Americas will maintain a growth rate of 2% to 3%, and the Asia-Pacific region will maintain a growth rate of 6% to 8%. As of 2017, the global relay market will exceed $4.5 billion.