One of the major differences between relays and contactors is that both are not used to handle the same kind of load; while the former is used mostly to handle loads with low voltage or current, the latter is used mostly to handle loads with high current and voltage. This shows that if you are to make their choices for smaller applications, then relays should be considered.
While for applications that will demand high power, contactors should be considered. Another reason why contractors should be chosen over relays for high power applications is that relays can't draw enough power like contactors. Most contractors usually come with a feature known as arc suppression mechanism.
This will help to reduce contact damage, which usually arises from arcing, and this will, in turn, help in reducing frequent maintenance or repair works. On the other hand, relays do not come with this kind of feature since they are not usually affected by arcing.