With rising demand for automation in our daily lives, the smart connected devices and electronics are accelerating at a fast pace. Cloud computing, automation, and Internet of Things (IoT) are majorly triggering the growth of the aforementioned markets. As a result, the microprocessors and chips embedded in the appliances are relying on the reed switches to gather required crucial information from the real world. Reed switch is one of the mature technologies which has proliferated applications owing to its low power usage, simplicity, and reliable performance. A reed switch sensor and its sister element, reed relay sensor are gaining huge traction in the appliances market, taking advantage of their unique capabilities. For designing low-power electronics and smart devices, reed switch technology is highly preferred when compared to solid-state sensing technologies as they offer tight power usage tolerance and precise magnetic sensitivity making them more flexible and reliable. As a result, the global reed switch market size attained a value of $14.3 billion in 2018, and the market is rising at a CAGR of 8.7% during 2019-2025.
High-Penetration of Automation Significantly Uplifts the Reed Switch Market Growth
With the rise in automation, reed switch market is expediting with wide-gamut applications. Industry 4.0 and Industrial Internet of Things (IIoT) are the game changers in the automation industry. With these trends, innovations in the targeted applications and rise of control systems such as industrial robots and information technology to automate several industrial processes and machinery are augmenting. These trends are highly adopted by industries, including healthcare, manufacturing, construction, and packaging, which are experiencing significant benefits such as high productivity, low-cost, high precision, and better safety. For end position sensing in the hydraulic or pneumatic actuator of industrial robots and other automation equipment, reed sensors provide excellent isolation, high operational speed, and use no power. The industrial robots were experiencing proliferated growth for the past few years and witnessed a growth rate of about 19% per year during 2012-2017. This growth, in turn, is thriving the demand for the reed switch market. On the other hand, in a high-precision environment such as petrol and diesel pumps, ferromagnetic reeds, proximity sensors, and reed sensors are ideal for proximity-sensing. Furthermore, ferrous part detection, transformer tap changer, and other ample applications in the automation market operate with reed switch technology. Thus, the rising growth of industrial automation is amplifying the reed switch market demand.
Strong Base of the End-Users in APAC is Intensifying the Reed Switch Market
APAC is the leading region in the global reed switch market and accounted for a significant share of 36.7% in 2018. The robust end-user industries such as consumer durables, mobile devices, and automotive sectors are the fundamental growth drivers of the reed switch market in this region. Smartphone ubiquity in APAC countries such as China, India, Korea, and Japan is quite dominant. According to the Global System for Mobile Communications (GSMA), China will emerge as a leading country in establishing smartphone connections closely followed by India while Japan will settle at a seventh position by 2025. On the other hand, the (13th) 5-year plan of China and Society 5.0 of Japan are boosting the growth of smart IoT connected devices and appliances. Along with that, the Indian appliance and consumer electronics market is projected to grow at a CAGR of 9%, during 2018-2022. As a result, the future scope of these end-user industries is augmenting the reed switch market demand.
The reed switches are hermetically sealed, ensuring reliable service in harsh environments, making them popular among manufacturers of mobile devices, consumer electronics, and automotive applications. In consumer electronics, the ongoing demand for efficient, latest, and low-cost portable devices continue to evolve. So, the demand for electronic equipment such as magnetic-based reed switch, proximity switch, reed relay, and actuators are experiencing paramount path. With these benefits in the growing end-user industries of APAC, the reed switch market is surging.
Reed Switch Market– To Experience Lucrative Opportunities in the Automotive Segment
In 2016, about 93.9 million vehicles were sold, and the value reached 96.8 million in 2017, according to the International Organization of Motor Vehicle Manufacturers. With the robust demand from the automotive sector, the reed switch industry is further propelling. Increasing consumer demand for advanced and safe driving experience is the major growth driver boosting the growth of the reed switch market in this sector. Also, the advancements such as miniaturization of sensors are extensively employed by this end-user. To meet with automotive end-user demands, the conventional reed switch technology is combined with MEMS (micro-electromechanical system) to provide zero power operation, high-resolution level sensing, and precision position sensing in the automotive switching applications. On the whole, less energy consumption demand of the automotive sector benefits with the innovations in the reed switch technology. As a result, the automotive industry of the reed switch market is surging with a CAGR of 8.8%, during the forecast period.
Key Players Functioning In the Global Reed Switch Industry
The core companies operating with a strong base in the global reed switch market are Standex-Meder Electronics, Celduc, Honeywell International Inc., Littelfuse, Inc., and Molex Incorporated. Standex Electronics is a global leader with more than 50% market share. Based on the end-user application, the players of this industry are customizing products which include cutting or bending the reed contact leads for vertical and horizontal surface mount applications and sorting magnetic sensitivity.
Acquisitions in the Global Reed Switch Industry
· In 2019, Rochester Gauges, LLC acquired FPI Sensors, a Minneapolis-based manufacturer of liquid level sensors and float level switches which use reed switch technology. With this acquisition, Rochester Gauges expands to build its legacy in providing industry-leading customer-centric solutions with leading-edge technologies to reinforce their presence in the liquid level sensor space.
· In 2017, Standex International Corporation has acquired Japan-based OKI Sensor Device Corporation a subsidiary of OKI Electric Industry Co., Ltd. OKI Sensor Device (after acquisition named as KOFU) is a global leader in designing and supplying of magnetic reed switches. Standex Electronics business is best known for delivering personalized engineered sensor and electromagnetic solutions to its end-user industries such as aerospace, medical, industrial, automotive, and electronics markets. With this acquisition, the company is enhancing its product portfolio in consulting and high-quality reed switch products and deliver robust and cutting-edge design solutions that add to its long-term sustainable growth.
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