May.2024 16
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The Global market of DC Contactor/High Voltage Relay

Details
High-voltage DC relays are core components of new energy vehicles and charging piles. High performance brings high added value, broad market space, and clear structure. With the high demand for new energy vehicles and charging piles, we are optimistic about the high growth of the high-voltage DC relay market. sex and certainty.

Summary

High voltage DC relay is an urgently needed product for new energy vehicles. High-voltage DC relay is a technical solution selected by new energy vehicles to meet national safety requirements and harsh working conditions. In the short term, it cannot be replaced by new technologies such as solid-state relays and smart fuses Pyrofuse. In the medium and long term, the high-voltage electrical architecture of new energy vehicles will become increasingly high-voltage. Structural development is bound, and demand for new energy models/platforms will be rigid during the duration.

The market space for new energy high-voltage DC relays is vast, and the global market size is expected to reach 9.62 billion yuan in 2025E. The high performance of high-voltage DC relays makes the value of a single vehicle far exceed that of traditional automotive relays; we estimate that driven by the growth of new energy vehicles and charging piles, the global market space of high-voltage DC relays in 2020E/2025E will be 2.42 billion yuan/9.62 billion yuan respectively, with room for growth. Nearly 4X, with a CAGR of 31.8% from 2020E to 2025E, the market space is vast.

The high-voltage DC relay market is highly concentrated. With the high demand for new energy vehicles and charging piles, the market will see disturbances such as demand growth shifting overseas in the short term, increased foreign investment, independent second-line market promotion, and an increase in external entrants, and market competition will intensify. , prices have dropped significantly, Yongneng Relay has competitive advantages in the industry in terms of global market operations and technical services, product structure/performance, vertical integration, cost, business efficiency, manufacturing capabilities, etc., and will continue to consolidate its leading position; with the new energy Car orders are gradually increasing, and it is expected that Yongneng Relay's global market share in 2025E is expected to further increase.

We believe that the non-battery component segment represented by high-voltage DC relays has not yet fully competed, and its price sensitivity is relatively low. It is more flexible in the increase in the volume of new energy vehicles, and is accelerating industry integration and clearing, bringing industry An opportunity for reshuffle, with strong mid- to long-term growth and certainty; recommended as an independent leading enterprise in high-voltage DC relays.

High Voltage DC Relays: Strong Alpha Components Beyond Batteries

Small devices, big achievements. High-voltage DC relays belong to the incremental field of new energy vehicles compared with traditional vehicles. In new energy vehicles, they cooperate with fuses to form a more complete high-voltage safety protection for new energy vehicles and serve as a necessary switch for turning on/off the high-voltage load circuit. components to enable new energy vehicles to meet the requirements of national safety regulations.

Have demand rigidity. At present, the high-voltage safety strategy of new energy models/platforms all adopts the high-voltage DC relay + fuse technical solution. The technical solution usually does not switch within the duration of 4-10 years; and we believe that the high-voltage DC relay has both functional and cost-effective advantages and is difficult to be replaced by new technologies. Substitution and the development and elimination of high-voltage (800V) electrical architecture of new energy vehicles have created rigid demand for new energy vehicles.

The technical upper limit increases the value of the bicycle. Compared with traditional vehicle relays, high-voltage DC relays are designed with arc extinguishing devices and improved coil/contact materials/heat dissipation structures. They have high voltage resistance, strong current carrying capacity, strong breaking capacity, resistance to impulse current, good heat dissipation, and strong resistance. Capabilities such as electromagnetic interference can adapt to the harsh working conditions of new energy vehicles. High performance increases the upper limit of value. The value of a single vehicle can reach more than 10X that of traditional vehicle relays, and the gross profit margin is 5-10ppt higher than that of traditional vehicle relays.

The market space is vast and the pattern is clear

The market space is vast and has strong growth potential. New energy vehicles and charging piles are currently the main downstream application areas of high-voltage DC relays. We estimate that the global market space in 2020E/2025E will be 2.42/9.62 billion yuan respectively, with a growth space of nearly 4X, and a CAGR of 31.8% from 2020E-2025E; in the future, with the growth of photovoltaics, With the development of wind power and energy storage industries, we expect that the high-voltage DC relay market space will further expand.
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