ASIA TO DRIVE ELECTROMECHANICAL AND SOLID-STATE RELAY MARKET GROWTH
20 January 2005 - Venture Development Corporation

The global market for electromechanical and solid-state relays is expected to reach $4.2 billion by 2007, according to a study published by VDC in late 2004. While global relay consumption contracted during the period FY 2000 to FY 2002, demand rebounded in the second half of 2003 and 2004 at 10-15% growth rates. Long-term growth rates (3-5 years) are expected to be slow to approximately 3-4%, with the highest growth expected in the Asia-Pacific region.

VDC surveyed over 300 OEMs and end users across the Americas, EMEA, and Asia-Pacific and concluded that the following trends will shape relay consumption in Asia over the next 3 years:

Electromechanical relay growth within telecommunications, ATE, and automotive markets;

Price pressures in commodity-type relay categories, driven in part by the increased number 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.

According to Rick Barnard, Practice Director at VDC, 'Relay suppliers are facing significant challenges in competing with traditional competitors and low-cost manufacturers. 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 3-5 years.'

http://www.vdc-corp.com

More News:
  • For January 2005
  • From Venture Development Corporation
  • For Market Research