World relays market fell in 2012, expected to recover this year

Growth is expected to return to all regional markets in 2013, which will result in global revenues increasing by 5.2% to reach $3.54 billion.

09/10/2013


IHS Inc.After two years of double-digit growth, the world market for electro-mechanical and solid-state relays contracted by $125 million, or 3.6%, to approximately $3.35 billion in 2012, according to a new report from IMS Research, now part of IHS Inc.

This represents the first decline since 2009, when well over a quarter of market revenues were lost. However, the drop in 2012 was far smaller in both magnitude and duration than in 2009. Growth is expected to return to all regional markets in 2013, which will result in global revenues increasing by 5.2% to reach $3.54 billion.

The report—measuring automotive, industrial (socket mount), solid-state and PCB mount relay designs—found that the markets for these products retreated in all major regions in 2012. The Europe-Middle East-Africa (EMEA) territory showed the largest decline, down 6.2%, which far exceeded the 2.9% fall experienced in the Americas. But the largest reversal occurred in Asia-Pacific, where very high growth of more than 24% in 2011 was succeeded by a 2% loss overall in 2012.

“Asian-based relay manufacturers were reporting domestic sales growth of more than 40% in Asia during 2011, which was far higher than in recent years,” said Robert Carter, switchgear analyst at IHS. “However, as industry levels cooled in 2012, particularly in China, demand fell so that this unprecedented growth was then followed by a decrease of up to 15% for these same companies.”

Even so, the market downturn won’t last long.

“Growth is expected to return in every regional market in 2013,” Carter said. “After this point, stabilized annual growth of around 2% to 3% in both EMEA and the Americas, along with a modest 6% to 8% expansion in Asia-Pacific, is expected to cause the market for relays to reach almost $4.5 billion by 2017.”

Source: IHS Inc.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Combined heat and power; Assessing replacement of electrical systems; Energy codes and lighting; Salary Survey; Fan efficiency
Commissioning lighting control systems; 2016 Commissioning Giants; Design high-efficiency hot water systems for hospitals; Evaluating condensation and condensate
Solving HVAC challenges; Thermal comfort criteria; Liquid-immersion cooling; Specifying VRF systems; 2016 Product of the Year winners
Driving motor efficiency; Preventing Arc Flash in mission critical facilities; Integrating alternative power and existing electrical systems
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Designing generator systems; Using online commissioning tools; Selective coordination best practices
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
click me