Relay market in Russia
Part 1. Global relay market
Unfortunately I do not have a global and complete report on the global relay market, as opposed to the capacitor market, if you read my article, so the information below is collected from several open sources.
The global relay market was valued at $9.41 billion in 2014 and was expected to reach $16.24 billion by 2021.
In 2019 the global relay market was worth $13.9 billion. It is expected to grow by an average of 4.15% and reach $16.3 billion by 2023.
As you can see, the final figure is old, but expectations have shifted by two years. This is the price of forecasts. The market is almost always below reality.
Classified by product type, the relay market consists of the following segments: solid-state relay, interlocked relay, overload protection relay, automotive relay and electromechanical relay. With a share of more than 21.0% in 2014 the electromechanical relay segment was the largest in the global relay market by product type. Then I found two numbers.
The global electromechanical relay market is expected to grow from $5,396.12 million in 2018 to $6,852.31 million by the end of 2025 at a combined annual growth rate (CAGR) of 3.47%.
According to another forecast, the market for electromechanical relays (EMR) during the forecast period CAGR will be 3.13% and by 2024 the total market volume will reach $7,161.108 million, increasing from $5,952.099 million in 2018.
Let the reader not be confused by the two figures of 5.3 and 5.9 billion dollars of relay sales in 2018. A margin of error of 10% is normal, since not one specific brand is analyzed, but all brands, some manufacturers do not show their figures, some small regional producers may not be considered by statistics at all, but the sum may amount to a significant figure. What will be seen in the structure of brands imported to Russia, table 2.
It is important that we take 13.9 billion sales in 2019 and an average figure of 5.6 in 2018. It turns out that the share of electromechanical relays has already increased from 21 to 40% in monetary terms, and in individual terms this gap is even greater.
What will further stimulate the relay market.
An electromechanical relay is widely used in electronic kitchen appliances that need to be turned on or off. In particular, according to analysts, the most promising market is in smart home systems. Further, in industrial automation, protection of electric power systems, radio electronics.
The market is also experiencing significant growth in the automotive sector. Embedded relays are used in vehicles such as electrically heated catalytic converters, heater controls, windscreen wipers, engines and pumps, fuse boxes, and body electronics such as door locks, seat controls, power windows, and others.
All this pushes up the demand for electromechanical relays due to their low cost, long service life, lower power consumption and ease of maintenance.
Some of the key players in the electromechanical relay market are ABBLtd., AshidaElectronicsPvt. Ltd., DAREElectronics, Inc., EatonCorporation, Fujitsu, GeneralElectric, HoneywellInternational, LeoneSystems, OmronCorporation, Panasonic, RockwellAutomation, SchneiderElectric, Siemens, TEConnectivity and TeledyneRelays.
This is the world market, and what about Russia?
Part 2. Relay market in Russia. RELAYS FOR A VOLTAGE GREATER THAN 60 V
In Russia almost all relays are received by the customs code 8536490000 RELAYS FOR A VOLTAGE GREATER THAN 60 V. So the analysis of this part of the article will concern these relays.
You can see the TOP 20 brands that imported products using this code in Table 1.
Table 1. Top 20 brands by code 8536490000 for 2019
|
Line names |
Amount |
|
SCHNEIDER ELECTRIC |
28924898 |
|
ABB |
9466028 |
|
IEK |
7156787 |
|
SIEMENS |
5474243 |
|
DANFOSS |
4140897 |
|
TYCO ELECTRONICS |
2999989 |
|
FINDER |
2395160 |
|
NCR CORPORATION |
2156674 |
|
DELIXI ELECTRIC |
2149447 |
|
OMRON |
2004385 |
|
EATON INDUSTRIES |
1949899 |
|
PHOENIX CONTACT |
1715358 |
|
EKF |
1655632 |
|
CHINT ELECTRICS |
1421508 |
|
LS IS CO. LTD |
1125748 |
|
LEGRAND |
798414 |
|
ZHEJIANG HOCH IMPORT & EXPORT CO.LTD. |
728618 |
|
BENEDICT GMBH |
718092 |
|
XIAMEN HONGFA ELECTROACOUSTIC |
694910 |
|
WEIDMULLER |
599688 |
The total amount of products for the code is $108.7 million. For comparison in my article The market of capacitors in Russia there is a figure for importing capacitors equal to $100 million. The article is present on the site and you can read it.
What we can see here. The relay market for this customs code in Russia is primarily the market for electrical equipment and electrical installation products. The TOP 5 leaders with a share of 55% confirm this, and if you take all the recipients, this share will be at least 80%. With a huge gap in the relay market SCHNEIDER ELECTRIC is in the lead.
You can see the brand structure by amount in Table 2.
Table 2. The structure of the brands by amount of import for 2019
|
Import |
Quantity |
Total amount, mil usd |
|
More than 1 mil |
15 |
75 |
|
1 mil – 100 t |
74 |
20 |
|
100 t – 10 t |
324 |
10 |
Remember, I wrote that some of the small regional producers may not be counted in statistics at all, but they may add up to a significant figure. As you can see from the table 324 brands leave 10%, so the analysis error of 10% is quite acceptable. I will be honest with readers and admit that in reality it is not 324, but three times less. The fact is that there is no strict standard for writing the manufacturer. The same TYCO can have up to 25 different spellings: dots, abbreviations, cities in the name, etc. Since I am alone, I give only the first 100 importers to the general name, and leave the remaining 10% of imports as they are.
Now let’s look at a similar situation for recipients, Table 3.
Table 3. TOP 40 recipients by code 8536490000 for 2019
|
№ |
Amount |
Type |
Place |
Amount |
Type |
|
1 |
31767862 |
Representative Office |
21 |
670878 |
Manufacturer |
|
2 |
9722489 |
Representative Office |
22 |
660629 |
Representative Office |
|
3 |
6430086 |
Distributor |
23 |
659838 |
Distributor |
|
4 |
5427802 |
Representative Office |
24 |
641211 |
Manufacturer |
|
5 |
4286455 |
Representative Office |
25 |
628414 |
Distributor |
|
6 |
2333442 |
Representative Office |
26 |
595238 |
Distributor |
|
7 |
1612443 |
Representative Office |
27 |
591929 |
Representative Office |
|
8 |
1584557 |
Distributor |
28 |
551338 |
Manufacturer |
|
9 |
1497103 |
Representative Office |
29 |
539432 |
Distributor |
|
10 |
1422000 |
Manufacturer |
30 |
508301 |
Manufacturer |
|
11 |
1237965 |
Distributor |
31 |
502611 |
Distributor |
|
12 |
1100256 |
Distributor |
32 |
484185 |
Distributor |
|
13 |
1040139 |
Representative Office |
33 |
458728 |
Representative Office |
|
14 |
1027106 |
Manufacturer |
34 |
426442 |
Manufacturer |
|
15 |
977068 |
Distributor |
35 |
413376 |
Representative Office |
|
16 |
948609 |
Representative Office |
36 |
382731 |
Representative Office |
|
17 |
868987 |
Distributor |
37 |
335215 |
Distributor |
|
18 |
765931 |
Manufacturer |
38 |
324112 |
Representative Office |
|
19 |
703843 |
Distributor |
39 |
308533 |
Manufacturer |
|
20 |
702692 |
Distributor |
40 |
302543 |
Representative Office |
You can see the structure of recipients by amount in Table 4.
Table 4. The structure of the recipients, the sum of the imports for 2019
|
Import |
Quantity |
Total amount, mil usd |
|
More than 1 mil |
14 |
70,5 |
|
1 mil – 100 t |
86 |
25 |
|
100 t – 10 t |
350 |
10,6 |
Everything is clear here, rarely when a company has more than 1 legal entity responsible for imports. I have compiled a register of such companies, which allows you to quickly get results. What surprised me when viewing the recipients. I work in the market of electronic components, here my knowledge is above average, but I did not know that the relay market is so strong, first of all the market of electrical engineering and representative offices. In the market of electronic components from 50% – 90% goes through intermediaries. Let the reader not be annoyed by this term, it allows you to combine the entire range of suppliers, from a distributor to one-day firms.
In the relay market everything is different, some relays are supplied as part of a component, module or device. If you look at Table 3, you will see that out of 40 importers, 17 are representative offices of a manufacturer or an international company. In the component market with very few exceptions representative offices do not deal with sales and customs. But this is not all, at least 5 distributors out of 16 carry their own brands, placing orders at foreign factories. In fact they are not even distributors, but a Russian brand enterprise without its own production capacity. All this leads to the fact that the list of TOP 40 only 10 manufacturers who carry themselves. I’ve analyzed a lot of imports of electronic components, but I don’t remember this. Apparently this is how the world electrical market works. If you want to sell your products successfully, sell them yourself. It is quite possible that many years ago, the one who gave the idea to TexasInstruments to thange its distribution policy in the world, partly focused on the electrical engineering market. For more information see my article “TexasInstruments in Russia. Revolution or opportunity”.
Back to the relay. It is clear that distributors of electronic components do not play a significant share in the relay market, but it is still interesting what brands they supply.
To get this information we will take importers-distributors who supply only electronic components on the board. Let’s identify their brands and make Table 5.
Table 5. Brands that distributors of electronic components specialize in
|
|
2019 |
2016 |
|
TYCO ELECTRONICS |
3000000 |
1 750 000 |
|
OMRON |
2000000 |
1 430 000 |
|
COTO TECHNOLOGY |
528000 |
0 |
|
XIAMEN HONGFA ELECTROACOUSTIC |
694000 |
215000 |
|
SCHALTBAU GMBH |
500000 |
179000 |
|
FUJITSU |
271000 |
112000 |
|
NCR CORPORATION |
2156000 |
50000 |
|
NINGBO FORWARD RELAY CORP. |
348000 |
85000 |
|
TAI-SHING ELECTRONIC |
184000 |
283000 |
The author is very pleased to see TYCO ELECTRONICS as a leader, as he has been developing this brand for more than 8 years and raised it from the 11th place among all distributors to the second place in the overall sales rating among TYCO distributors. In relay TYCO has always been strong. Other brands for the most part are also supplied through distributors of electronic components. Of course, this list is not complete, since it does not take into account a lot of small brands and supplies of market leaders from Table 1, some of which also make relays on the board. But the key word here is delivery through a distributor of electronic components. If you need to supply a relay to the board in Russia and your suppliers are not electrical companies, please pay attention to this list.
Only 35% of imports by code 8536490000 are made in China, and about 55% are made in Europe. Next comes India, Indonesia, and the United States.
If you apply the country of departure filter/ the country of origin of the product, we will see that 32 million dollars of products were manufactured directly in China, but only 24 million dollars were shipped directly to Russia. If you study the brands of these 24 million, you can find the complete absence of market leaders ABB, SIEMENS, PHOENIX CONTACT, SCHNEIDER ELECTRIC, or their insignificant presence. These 24 million are divided between the largest Russian brands that make their products in China and directly the Chinese manufacturers themselves. Only 3% of products coming to Russia from Europe are made in China. It turns out that the electrical relay market is very clearly divided into European and Asian. So clearly that for example 95% of products coming from Germany are made in Europe itself. At least, if we are talking about ready-made relays.
In electronic components most of the products can be manufactured and manufactured in China, and shipped from Germany. In the relay market, everything is very clear, European brands do in Europe, Asian in Asia.
Part 3. Relay market in Russia. RELAYS FOR A VOLTAGE less than 60 V
The following relay class, less than 60V, is divided into two customs classes:
- 8536419000 – Relay for a voltage of not more than 60 V, for a current of more than 2A.
- 8536411000 – Relay for a voltage of no more than 60 V, for a current of no more than 2A.
The analysis of this part of the article will concern the import of these relays to Russia. You can see the TOP 20 brands that imported products using this code in Table 6.
Table 6. The TOP 20 brands by codes 8536419000 and 8536411000 for 2019
|
Line names |
Amount for the Statistical cost field |
|
TE CONNECTIVITY |
5447432 |
|
OMRON |
4504955 |
|
VALEO AUTOSYSTEMY SP. Z. O. O. |
2135026 |
|
FINDER |
2073337 |
|
PHOENIX CONTACT |
2031990 |
|
SIEMENS AG |
2016768 |
|
G.CARTIER TECHNOLOGIES |
1763633 |
|
HONGFA |
1698985 |
|
TOYOTA MOTOR CORPORATION |
1600890 |
|
SCHNEIDER ELECTRIC |
1070519 |
|
CLION ELECTRIC CO. LTD |
912907 |
|
DENSO TEN LIMITED. |
695339 |
|
PANASONIC CORPORATION |
673303 |
|
WAI TRANSPO ELECTRONICS SHANGHAI LTD. |
435113 |
|
SUZHOU AOPEC AUTOMOTIVE PARTS CO. LTD |
389396 |
|
HONEYWELL |
383838 |
|
WEIDMULLER INTERFACE INTERNATIONAL |
350352 |
|
ROBERT BOSCH GMBH |
321897 |
|
SHENZHEN CONTANT ELECTRONICS |
270970 |
|
ZHEJIANG HUANFANG AUTOMOBILE APPLIANCES |
265552 |
The total amount of imports for these codes is 42 million dollars. You can see the total brand structure in Table 7.
Table 7. The structure of the brands on the amount of import for 2019.
|
Import |
Quantity |
Total amount, mil usd |
|
More than 1 mil |
10 |
24 |
|
1 mil – 100 t |
28 |
7,7 |
|
100 t – 10 t |
243 |
7,2 |
There is no longer a strong influence of electrical companies. In these customs codes the bias goes to a different market. These codes belong to car manufacturers. At least $13 million worth of relays are supplied to car manufacturers and their components. If we add such companies as Siemens, LG Electronics Rus, as well as companies from the electrical market AEK, Finder, Phoenix Contact, Schneider, then at least half of the relay market does not fall on the market where distributors of electronic components work. It is clear that electronic component distributors also do not play a significant share in the relay market for these two codes, but we are still interested in what brands they supply.
To get this information, we will take importers-distributors who supply only electronic components on the board. We will identify their brands and make a Table 8. I have identified 28 distributors and brokers who import the brands listed in the Table 8.
Table 8. Brands that distributors of electronic components imported to Russia by codes 8536419000 and 8536411000 specialize in for 2019
|
Brand |
Amount for the Statistical cost field
|
|
TE CONNECTIVITY |
5440000 |
|
OMRON |
4500000 |
|
HONGFA |
1690000 |
|
CLION ELECTRIC CO. LTD |
910000 |
|
PANASONIC CORPORATION |
670000 |
|
NINGBO TIANBO GANGLIAN ELECTRONICS CO.LTD. |
380000 |
|
TAI SHING ELECTRONICS |
107000 |
|
NINGBO FORWARD RELAY |
100000 |
Let me clarify that the table only shows manufacturers who are transported by distributors of electronic components and whose total annual imports exceeded $ 100 t. The amounts shown in the table 8 do not mean that the entire amount is handled through distributors. For example, a significant part of HONGFA goes to the production of LG household electrical appliances. This is not the fault of HONGFA itself or the shortcomings of Russian distributors, just South Korean engineers implemented a HONGFA relay in a LG product, so the LG Supply Department supplies it. In general direct deliveries are a very interesting topic for any distributor. You can read more about it in my article “Compare the figures for the brand”.
Part 4. What about relay manufacturing in Russia
In addition to powerful, diverse proprietary brands in the electrical market, such as IEK, EKF, KIPPRIBOR, ELEKTROTECHNIK,TEXENERGO, there are a dozen small ones. In total these companies take up about 10% of imports, but they do not make their products in Russia. Nevertheless these are Russian brands.
Russia has its own factories for the production of relays, JSC NPC “Severnaya Zarya”, JSC “NPP “Start”, JSC “Irkutsk relay plant”. Production in Russia is mainly focused on special-use relays, with at least 90% of production. This affects the pricing process. For example the cheapest relay at one of the largest production facilities in Russia for special applications, according to the price, costs 400 rubles, the relay of a well-known import manufacturer, on average, costs about 120 rubles. In general Russian companies can make any analog of an imported relay, but their sales volumes do not allow them to reach the world level of pricing. On all the sites I have viewed, I did not even notice the distributors section, which indirectly indicates that businesses do not work particularly in the civilian market. It is important to understand that I am now talking about relays manufactured in Russian factories, and not about Russian brands that place production in China. Our Russian manufacturers do not follow the path of IEK, EKF, although it would be quite commercially reasonable if they placed orders for products in China to expand their line. They could gain momentum, and then start making relays in Russia (buying technology and the most modern equipment), already having a formed market and consumers.
In the annual report, the leader of the production market JSC NPC “Severnaya Zarya”, it is written.
The equipment produced by Russian enterprises currently uses about 500 types of relays of various types and purposes. Relays for general industrial use only in contrast to military-purpose relays occupy a small share of the domestic relay market in terms of the nomenclature of types and volumes of use. Russian military-purpose relays included in the list of ECB 13 are manufactured by 20 enterprises and in 2018 there are more than 400 types of products that have dozens of versions of the type for electrical parameters, installation and climatic conditions of use. In the List 13 2018 95% are logical electromagnetic relays (low-current, medium-voltage, contactors, switches), among which the most widely used type are low-current electromagnetic relays (about 40 %). Manufacturers of the most used in the equipment of weapons, military and special equipment anchor low-current electromagnetic relays are JSC NPC “Severnaya Zarya” (about 60% of types), JSC “NPP “Start” (Veliky Novgorod, 15% of types), JSC “Plant “Electropribor” (Alatyr, 12% of types), JSC “Irkutsk relay plant” (6% of types), JSC “SKTB RT” (Veliky Novgorod, 5% of types).
The nomenclature market for anchor low-current electromagnetic relays produced by JSC NPC “Severnaya Zarya” is growing by 2 – 3 new types annually and in 2018 it accounts for almost 60% of the types of the domestic market. At the same time the volume of realized types of the Company’s relays is at least 70% of the total volume.
It is noteworthy but only JSC “Plant “Electropribor” is the only Russian manufacturer that listed a foreign manufacturer as a competitor in its annual report.
The companies described above make up the vast majority of the Russian manufacturers’ market. We will use them to analyze revenue in Table 7.
An important feature of the industry is the practical absence of duplication of relay production between enterprises.
Only two companies from the list – JSC “Irkutsk relay plant” and JSC NPC “Severnaya Zarya” – continue to publish their data in the public domain. For the rest of the companies I had to use the old data, Table 9, which I found in the report of JSC “NPP “Start” from 2013. This table is interesting because it shows a cross-section of the market from 2012.
Table 9. Sales volumes
|
№ |
Company name |
Volumes without VAT |
|
|
|
2012 |
2012
|
|||
|
RUB million |
Share, % |
usd million |
||
|
1 |
JSC “NPP “Start” |
377,8 |
17 |
12,6 |
|
2 |
JSC NPC “Severnaya Zarya” |
969,0 |
45 |
31,2 |
|
3 |
JSC “Irkutsk relay plant” |
276,8 |
13 |
8,9 |
|
4 |
JSC “Plant “Electropribor” |
314,2 |
14 |
10,1 |
|
5 |
SE “Radiorele” (Ukraine) |
243,9 |
11 |
7,8 |
|
|
TOTAL |
2 181,7 |
100 |
70,6 |
A source. Annual report of JSC “NPP “Start” from 2013.
Table 10. Russian manufacturers’ market in 2018
|
|
Revenue by relay, mil. RUB |
Year |
Revenue by relay. mil. usd |
|
JSC “Irkutsk relay plant” |
356 |
2018 |
5,65 |
|
JSC NPC “Severnaya Zarya” |
1840 |
2018 |
29,5 |
|
JSC “Plant “Electropribor” |
607 |
2015 |
9,9 |
|
JSC “SKTB RT” |
279 |
2014 |
7,3 |
|
JSC “NPP “Start” |
377,8 |
2012 |
12,6 |
Notes
- JSC “Irkutsk relay plant”. As stated in the report, a good increase was given by products manufactured under contract production. The company makes switches, sockets and relays. The author takes the output of the relay as 80% of the revenue.
- For calculation in usd the average dollar exchange rate for the year of data is taken.
As you can see, in usd, the relay market has not grown since 2012 for the largest manufacturers, even slightly decreased. At the same time it should be understood that Russian manufacturers have replaced Ukrainian manufacturers on the market, but in general their sales volume has not increased, since the market for state orders is generally stable and constant. Based on this we can safely take the old data from 2012 for the company JSC “NPP “Start” and add them to table 10.
Unfortunately the relay production market in Russia consists of 90% of the closed market of state orders, so there is no tradition to publish their data. But based on the above descriptions, I estimate the market for Russian manufacturers at $75 million.
It turns out that the import market to Russia, in the sum of 2 and 3 parts, is: in import prices 150 mil. usd, in delivery prices 185 mil. usd and in sales prices about 220 mil. usd. Import and domestic market in the prices of the final buyer gives about 300 mil. usd. But this is in money if you take the ratio in pieces, it will be about 90% to 10%, in favor of the civilian market. This difference is due to the specifics of production and pricing in the civil sector of the market and in the sector of relays for special applications.
If you find an inaccuracy, you have your own data, send it, I will be happy to receive any criticism with real figures in the letter.
In conclusion we will write that Russia in 2019 exported relays under the code 8536490000 for 9.5 million dollars, which is 6% of imports or 12% of production.
