U.S. DC Contactor Market Size, Share & COVID-19 Impact Analysis, By Type (Definite-Purpose DC Contactors and General Purpose DC Contactors), By Application (Electric Vehicle, Renewable Energy and Storage, Aerospace and Defense, Industrial Machineries, and Others), and Country Forecast, 2023-2030

The U.S. DC contactor market size was worth USD 78.08 million in 2022 and is projected to grow at a CAGR of 9.07% during the forecast period. 

The U.S. has witnessed significant growth in the demand for DC contactors. This growth is attributed to the expanding consumer base, including electric vehicles, renewable energy, and other sectors. According to the International Energy Agency (IEA), there are emerging signs of diversification in Photovoltaic (PV) supply chains, driven by innovative strategies in the U.S. and India, which are projected to stimulate investment in solar manufacturing by approximately USD 25 billion from 2022 to 2027.

The impact of COVID-19 on the market has been multifaceted. While there was a slowdown in manufacturing and construction activities during the pandemic, the increasing demand for electric vehicles and renewable energy systems has fueled the market's recovery. Supply chain disruptions and workforce challenges, however, have affected production and distribution, influencing the overall market dynamics. It's essential to monitor ongoing trends and industry adaptability for a comprehensive understanding of the current scenario.

LATEST TRENDS

Increasing Integration of Renewable Energy Sources is Propelling the Demand for DC Contactors

Incorporating renewable energy sources, such as wind and solar power, into the grid propels the demand for DC contactors in the energy sector. They are utilized in wind turbine systems and solar inverters to allow efficient grid integration and power conversion.

• May 2019 - ABB launched a new compact, efficient contactor named 1500 V DC GF contactor. It gives photovoltaic power plants an elementary solution to introduce 1500 V DC architectures. This product meets the IEC’s new dedicated solar power DC-PV3 utilization group and reinforces its company’s product portfolio of 1500 V DC switching solutions.

DRIVING FACTORS

Increased Adoption of Electric Vehicles Propels Market Growth

DC contactors play a significant role in electric vehicle charging infrastructure, providing reliable switching and control for efficient power transfer during charging operations. The growth of electric vehicles and their charging infrastructure is expected to drive the increased adoption of the product. For instance, in February 2023, the Biden-Harris Administration announced new standards and significant advancements for a Made-in-America National Network of Electric Vehicle Chargers. President Biden’s Bipartisan Infrastructure Law allocates USD 10 billion for clean transportation, USD 7.5 billion for electric vehicle charging, and over USD 7 billion for critical minerals, electric vehicle battery parts, and related components. Moreover, there are approximately 130,000 public chargers and three million electric vehicles in the U.S.

RESTRAINING FACTORS

Technical Problems Related to DC Contactor May Hamper Market Growth

DC contactors operate based on electromagnetic attraction, however, they do not include shading coils. When an AC voltage is applied to a DC coil, the contactor might chatter as the magnetic field reaches zero during the zero crossing of the AC voltage. This could produce loud noises and result in the contact changing state, causing unintended malfunctions within the circuit. Such technical challenges could potentially hinder the adoption of these contactors and consequently impede the U.S. DC contactor market growth.

SEGMENTATION

By Type Analysis

Based on type, the market is segmented into definite-purpose DC contactors and general-purpose DC contactors.

The definite purpose DC contactor segment held the largest U.S. DC contactor market share in 2022 due to the versatility and wide range of applications that the definite purpose DC contactor can serve. It is majorly utilized in HVAC systems, industrial machinery, and others.

• According to the Office of Energy Efficiency and Renewable Energy, Each year in the U.S., 3 million heating and cooling systems are replaced, and USD 14 billion is spent on HVAC repairs or services.

By Application Analysis

Based on application, the market is segmented into electric vehicle, renewable energy and storage, aerospace and defense, industrial machineries, and others.

The electric vehicle segment has held the largest market share. High DC voltages are crucial for achieving comparable power in electric vehicles as in combustion engines. However, disconnection triggers a switch arc that significantly wears out contact areas. Contactors' manufacturers aim to reduce the combustion period of this switch arc. High-voltage DC contactors fulfill these needs, making this technology controllable and safe by utilizing an air system.

• As per the Alternative Fuels Data Center (AFDC is a resource of the U.S. Department of Energy's Vehicle Technologies Office), the Tesla Model 3 electric vehicle was highly sold in 2019.

KEY INDUSTRY PLAYERS

In the competitive landscape, the market features established and emerging companies. In 2022, ABB and Eaton dominated the U.S. market. ABB’s GA, GAF, and GF are specifically designed for switching DC circuits up to 1500 V, enabling efficient breaking of DC circuits. This product line is among the most compact on the market, suitable for applications such as UPS and energy storage systems, EV charging, and PV solar. Other notable companies in the U.S. market include Eaton and Durakool. For example, Durakool introduced the new CHV series of ceramic high-voltage direct current (HVDC) contactors, catering to battery isolation in electric vehicles, switching HVDC in solar panels, and high-voltage battery storage. This product launch has strengthened its product portfolio.

LIST OF KEY COMPANIES PROFILED:

• Littelfuse (U.S.)


• Durakool (U.K.)


• ABB (Switzerland)


• Rockwell Automation (U.S.)


• Sensata Technologies Inc. (U.S.)


• Ametek Switch (U.S.)


• LS Electric (South Korea)


• Eaton Corporation (Ireland)


• Curtis Instruments, Inc. (Curtis/Albright) (U.S.)


• TE Connectivity (Switzerland)

KEY INDUSTRY DEVELOPMENTS: 

• May 2022: ABB announced its agreement to acquire Siemens’ low voltage NEMA motor business. This acquisition, which includes manufacturing operations in Guadalajara, Mexico, provides a well-regarded product portfolio, a longstanding North American customer base, and some experienced operations, sales, and management team. The business, employing around 600 people, generated revenues of approximately USD 63 million in 2021. Financial terms of the transaction were not disclosed, and it is expected to close in the second quarter of 2023.


• April 2023: Littelfuse announced a major expansion of DC contactors developed especially for industrial and eMobility applications.


• February 2021: Rockwell Automation has introduced additional sizes to its energy and space-saving product line, known as the Allen-Bradley Bulletin 300 NEMA contactors. This new offering spans NEMA sizes 00 through 8. The contactors feature universal electronic coils, reducing apparent inrush power (VA) by approximately 68% and sealed VA by over 75% when compared to traditional non-electronic coils. These electronic coils also simplify engineering efforts by covering coil voltages from 20 to 500 DC/VAC, requiring just four coil choices, significantly streamlining the selection process.

REPORT COVERAGE

The U.S. DC contactor market research report provides a comprehensive analysis of the industry. It delves into critical elements, including technological advancements and market trends. Additionally, it covers key findings, new product launches, significant industry developments such as mergers, partnerships, and acquisitions, and the impact of COVID-19 on the market. Furthermore, the report offers insights into emerging market trends, highlighting key industry dynamics and various factors contributing to the market's recent growth.

Report Scope & Segmentation