Asia fueling growth in electromechanical, solid-state relays

Natick, MA—The worldwide market for electromechanical and solid-state relays is expected to reach $4.2 billion by 2007, according to a recent study by Venture Development Corp. (VDC).

02/01/2005


Natick, MA— The worldwide market for electromechanical and solid-state relays is expected to reach $4.2 billion by 2007, according to a recent study by Venture Development Corp. (VDC). While implementation of relays contracted during the 2000-02 fiscal years, demand rebounded in the second half of 2003-04, posting 10-15% growth rates. Increases during the next three to five years are projected to slow to approximately 3-4% with the most growth expected in the Asia-Pacific region.

  • In the Americas, relay consumption is expected to increase from $1.15 billion in 2003 to $1.39 billion in 2007;

  • In the Europe, Middle East, Africa (EMEA) region, relay implementation is projected to increase from $1.14 billion in 2003 to $1.37 billion in 2007;

  • In the Asia-Pacific region, relay use is expected to grow from $1.12 billion in 2003 to $1.48 billion in 2007; and

  • Consequently, the worldwide consumption of relays is expected to increase from $3.42 billion in 2003 to $4.24 billion in 2007.

VDC reports that it surveyed more than 300 OEMs and end-users in the Americas, EMEA, and Asia-Pacific regions. It also identified several trends that it says will shape relay consumption in Asia during

  • Increasing use of electromechanical relay in telecommunications, ATE, and automotive markets;

  • Price pressures in commodity-type relay categories, driven in part by increasing numbers of low-cost Chinese relay manufacturers;

  • Conversions to solid-state technologies in select industrial and commercial markets; and

  • Shift in consumption to Asian markets, with the highest growth expected in the People's Republic of China.

'Relay suppliers are facing significant challenges in competing with traditional competitors and low-cost manufacturers,” says Rick Barnard, VDC’s practice director. “Suppliers are adopting a number of strategies to establish their presence in Asia. This has enabled those relay suppliers to better compete in the highly commoditized relay markets. However, additional pressures on margins are expected to continue. These trends will dramatically impact the competitive landscape over the next three to five years.'

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
Robot advances in connectivity, collaboration, and programming; Advanced process control; Industrial wireless developments; Multiplatform system integration
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me