HVAC Relay Market Trends

Growth Drivers

• Growing Ratio of Commercial Construction – A construction is referred to as commercial if no space is used, either permanently or temporarily, for human living. With time, numerous buildings have been constructed to cater to commercial purposes. Currently, there are numerous constructions such as hospitals, educational institutions, hotels, and other commercial facilities are present and even the construction of several commercial buildings is still in process. An upsurge in numerous non-residential constructions is estimated to radically increase the installation of several cooling and ventilation systems, thus the demand for HVAC relay systems is increasing at a significant ratio. Hence, this is estimated to boost market growth throughout the forecast period. For instance, in the U.S., the count of commercial buildings surged by nearly 5.6 million by 2020.

• Rising Implementation of Automation - Automation refers to technological applications where the amount of human input is reduced. This encompasses home automation, industrial automation, business process automation (BPA), and more. Automation can be utilized in any sector where repetitive operations are prevalent. Currently, automation is being utilized in all most every sector. Hence, the rising utilization of automation is significantly boosting the demand for HVAC relay systems. For instance, almost 69% of organizations worldwide deploy business process automation technologies to increase end-to-end visibility across several systems.

• Increasing Investments in the Residential Sector – For instance, in 2022, Germany's residential sector investment volume augmented approximately USD 12.5 billion.

• Technological Innovations in HVAC Solutions – For instance, solar-powered HVAC systems are becoming increasingly popular. These HVAC systems heat and cool buildings by harnessing the sun's energy and lessening carbon footprints.

• Expansion in the Internet of Things (IoT) – HVAC systems have been upgraded by the implementation of new technology. The implementation of the internet of things (IoT) is proving more helpful in real-time data monitoring and collection. In this way, they assist by collecting significant data to simplify manufacturing operations and discover flaws in production processes. Moreover, the use of IoT in HVAC equipment is highly essential for tracking vibration, airflow, temperature fluctuations, pollutants, and so on. Thus, the rising implementation of the internet of things network in HVAC systems is another major factor that is estimated to proliferate the market growth in coming years. For instance, by the end of 2021, nearly 19.8 million IoT-enabled smart thermostats had been installed in the United States.

Challenges

• High Installation and Maintenance Cost of HVAC Relays – Since, HVAC relays control and manage the power flow to several parts of a system, thus the installation and maintenance cost of HVAC relays are higher. A thorough inspection of drains, coils, and components is part of routine HVAC maintenance. Examining electrical connections, motor movements, and thermostat functionality all these scenarios require high maintenance costs. Hence, this factor is estimated to hinder market growth in the coming years.
• Fluctuation in Prices of Raw Materials of HVAC Relays
• Supply Chain Disruption as of Geopolitical Tension