June 22, 2024
Reed Switch Device Market

Driving Productivity: Global Reed Switch Device Market Soars 20%

A reed switch device consists of a pair of magnetic reed contacts in a hermetically sealed glass envelope. It functions based on the effect of a magnetic field on a ferromagnetic metal reed. The reed is sealed from the atmosphere inside a glass capsule which protects it and increases its lifespan. Reed switch devices are compactly designed and suitable for applications requiring miniaturization. They offer increased sensitivity, reliability, and longevity over conventional switches. The reed switch finds applications across multiple industries including automotive, consumer electronics, oil & gas, smart metering and medical.

The Global Reed Switch Device Market is estimated to be valued at US$ 373.09 Bn in 2024 and is expected to exhibit a CAGR of 20% over the forecast period 2024 to 2031.

Key Takeaways

The growing demand for automation and industrial internet of things across industries is driving the adoption of Reed Switch Device Market Size. Reed switch devices enable remote tracking and monitoring of industrial assets and machines, thereby boosting productivity. They find increasing usage in factory automation, process automation, and robotic applications due to their durability and long operational life.

Key players operating in the Reed Switch Device market are ABB Ltd., GE Digital, PTC Inc., Robert Bosch GmbH, Siemens AG, Accenture plc., Capgemini, and HCL Technologies Limited. These players are focusing on developing advanced reed switch devices with enhanced features to cater to the growing demand from end-use industries.

The reed switch device market is witnessing expansion across global regions with industries gradually adopting advanced automation solutions. Manufacturers are focusing on geographic expansion strategies to leverage growth opportunities in developing markets of Asia Pacific and Latin America. Increasing investments in infrastructure development and manufacturing sectors in these regions are expected to propel the demand for reed switch devices.

Market Key Trends

Miniaturization of electronic devices is a key trend in the semiconductor industry. Reed Switch Device Market Size manufacturers are developing micro reed switches to enable size reduction of various electronic components. These micro reed switches have led to wider applications in medical devices, consumer electronics, and mobile devices. Their compact design with long operational life promotes adoption in space-constrained applications. This evolving trend towards miniaturization is anticipated to drive the demand for reed switch devices over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the requirement of investment is high for setting up a new manufacturing plant. However, small players can enter as assemblers.

Bargaining power of buyers
: The bargaining power of buyers is moderate as the reed switch devices market has a large number of established players providing differentiated products at competitive prices.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute components. Also, customers can switch to alternate suppliers easily.

Threat of new substitutes: The threat of new substitutes is low as reed switch devices have fewClose substitutes and are used specifically where their features are required.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players offering comparable products. Players differentiate based on innovation, features, and service.

Geographical Regions

North America accounts for the largest share of the reed switch device market in terms of value owing to the high demand from the military and automotive sectors in the US and Canada.

The Asia Pacific region is expected to witness the fastest growth during the forecast period thanks to increasing industrial automation and rising electronics production in China, India, Japan and South Korea. Countries like China and India are focusing on boosting their domestic manufacturing capabilities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it