The sole domain of electromechanical relays (EMR) is gradually getting seized by solid state relays (SSR). The main difference lies in the fact that solid state relays don't have moving mechanical parts and completely rely on the magnetic, optical, and electrical properties of semiconductors to attain relay switching function and isolation. For decades, electromechanical relays have gained traction because of their easy availability and low pricing; however, the margin is lowering, and solid state relays are taking over. The biggest advantage of solid state relays over electromechanical relays is that they can switch off AC loads at the point of zero load current, eliminating the formation of electric arc, contact bounce, and electrical noise. Thus, this tool is attracting vendors from different industries such as industrial automation, healthcare, food and beverages, automotive, and others, contributing to growth of the solid state relay market. Its long life is adding to growth of the solid state relay market. Moreover, advancements in various manufacturing processes, coupled with metal–oxide–semiconductor field-effect transistor (MOSFET), which is slowly decreasing the size of semiconductors, is also creating additional scope in the solid state relay market. In 2018, the Solid State Relay Market generated revenues of around $1 billion. The solid state relay market is expected to grow with a CAGR of 5.5% over the forecast period of 2019-2025.
As per the International Trade Centre (ITC), the global trade value of electrical machinery, equipment, parts and other accessories was estimated to be around $2,969.71 billion, by the end of 2018, after witnessing an annual growth of 8%. These impeccable statistics of the parent market is evidence that a substantial part of this global trade value is contributing to nurturing of the solid state relay market.
Spurring Solid State Relay Market Revenue in APAC
China had the largest share in the trade value of electrical machinery, equipment, parts, and other accessories in 2018, estimated to be around $521.54 billion, after a growth of 14% over the previous year. It can be concluded that a part of this host trade value is attributable to solid state relay market growth in the APAC region. The countries of APAC are constantly contributing to expansion of the solid state relay market with increased R&D. In 2018, APAC held the largest solid state relay market share with almost 31.8% of the worldwide market collection.
· China's Historic Record Break in Automation Industry to Create an Impact in Growth of the ASAP Solid State Relay Market –
The constant demand for industrial robots has escalated due to increasing trends of automation and continued innovative technical improvements of industrial robots. Solid state relay is extensively used in industrial robotics because of the multifarious advantages it offers such as shock and vibration resistance, fast movement, and others. In 2016, China created the biggest global robot market regarding operational stock and sales. Furthermore, between 2018-2020, annual sales were poised to increase between 15-20% according to the International Federation of Robotics (IFR). These statistics reflect growth of the robotics industry in the APAC region, which is surely going to contribute to growth of the solid state relay market.
The ever-increasing population coupled with constant R&D is escalating the speed as well as the scope of urbanization that is happening at an unprecedented rate in APAC. This growth is going to continue, and as per the United Nations ESCAP, by 2040, the population in the region’s cities will add another one million. This is driving the concept of smart cities in APAC, which requires extensive use of the solid state relay market in building equipment. Thus, the fast developing construction industry is helping the end-user vendors to harness profits from the solid state relay market.
Energy consumption is growing enormously in fast-developing countries. China and India account for half of the growth in the global energy demand. According to the International Association of Oil & Gas Producers (IOGP), by 2040, Asia will drive one-third of the global energy demand due to the growing middle-class on the continent. With further technological innovation, the emergence of smart machines and equipment are resulting in the global shift from West to East, where India and China are rapidly growing. With the ongoing demand for machinery general industrial OEM, the demand for solid state relays is going to rise as the machines use SSRs as the primary component.
Solid State Relay Market: Key Application
The key application of the solid state relay market is found in the automotive industry. Apart from its diverse applications, solid state relay is majorly used in the automotive industry as an alternative to a classic switch that turns a circuit on or off when one wants to. The global automotive industry is rapidly nearing a major crossroad that would determine its long-term trajectory. The International Organization of Motor Vehicle Manufacturers (OICA assessed that the automotive industry saw sales worth $97m in 2017, which includes both commercial vehicle and passenger cars.On the other hand, the electric vehicles market is also witnessing growth while the global market volume touched 3.14 million units in 2018, which is expected to present ample scope of opportunities to the end-user vendors of the solid state market. The further application of solid state relay in the automotive industry is going rise at a CAGR of 7.96% through to 2025, resulting in benefits for the solid state relay market vendors.
Solid State Relay Market Growth Drivers –
· Rapid Evolution in Dietary Preferences to Contribute to Growing Solid State Market–
The food processing and handling sector are experiencing extreme challenges as they have a world's increasing population to feed while keeping the global energy depletion at check. Thus, the multi-faceted value chain is coming up with various technologies and logistics. The various dietary choices reflecting higher income and inclination towards value added products have heightened the processing of equipment to store, package, process, and cook food, which includes usage of solid state relay. The global organic food and beverages market is set to grow at a profitable CAGR of 11.9% in upcoming years. Thus, with the steady growth of this industry, the demand for food processing units will increase which in return will drive the solid state relay market.
· Increased CT Scan Usage Will Escalate Expansion of the Growing Solid State Market –
The World Health Organization (WHO) has announced its agenda to save 29 million lives by 2023. This statistics directly contributes to the growth of various diagnostic apparatus that would prevent disease growth and cure it before the effect starts. One of the major healthcare diagnostic machines is the CT scanner or computed tomography scanner. The machine, which involves the implementation of solid state relay as one of the primary components, helps in diagnosis of diseases including chronic obstructive pulmonary disease (COPD), oral disease, cancer, and others. Computed tomography market is expected to witness growth at a healthy CAGR of 14.5% over the forecast period 2019-2025. Hence, with rise of the computed tomography industry, the solid state relay market is going to present an avalanche of opportunities to the end user vendors.
Solid State Relay Market: Competitive Landscape
The key players in the global solid state relay market are Vishay, Omron Corporation, Carlo Gavazzi, Teledyne Technologies, Inc., Anacon Laboratories, IXYS Corporation, Omega S.A., Fujitsu Limited, and Broadcom. Inc.
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