“Functional safety market to exhibit significant growth during 2020–2025”
The functional safety market is estimated to grow from USD 4.4 billion in 2020 to USD 5.3 billion by 2025, at a CAGR of 3.8%. The key factors driving the market’s growth include strict mandates for safety regulations, surging demand for safety systems in the oil & gas industry, high requirement for reliable safety systems to ensure personnel and asset protection, and rise in industrial revolution 4.0. However, high investment required for installing functional safety systems and lack of awareness and complexity of standards will likely restrain the growth.
“Market for fire & gas monitoring systems to grow at highest CAGR during forecast period“
The fire and gas monitoring system market is estimated to grow at the highest CAGR from 2020 to 2025. Fire and gas safety systems continuously monitor fire or combustible/toxic gas leakages and provide early warning to prevent escalations. By implementing functional safety-certified fire and gas systems, plants can meet their safety and critical infrastructure protection requirements. The IEC 61511 and ANSI/ISA standards are increasingly being followed in various process industries, thereby contributing to the high growth of the market for fire & gas systems.
“Oil & gas industry to hold major share of functional safety market during forecast period”
The oil & gas industry is expected to hold the majority market share from 2020 to 2025. The oil & gas industry faces different types of risks and hazards, thereby giving rise to serious accidents that might have an adverse impact on people, assets, and environment. In avoiding such incidents, functional safety becomes a matter of utmost importance. Various safety instrumented systems are used in the oil & gas industry. For instance, ESDs are used to minimize the consequences of emergencies by shutting down systems and equipment and isolating hydrocarbon inventories, electrical equipment, and emergency ventilation control. Further, HIPPS are used to safeguard pipelines, vessels, and process packages against overpressure. However, due to the COVID-19 pandemic, the oil & gas industry has been tremendously hit. The price plunge is due to the excessive supply and the low demand that is being faced by the industry. This has impacted the production of the industry. The demand for oil & gas products declined due to the export restrictions imposed and also because the countries has limited the manufacturing in various industries, this resulted in an over production of oil & gas. Due to this the functional safety market will see a dip in short term. However, in the long run there will be a significant increase.
“Europe to be largest market for functional safety systems during forecast period”
Europe is expected to lead the global functional safety market, in terms of size, from 2020 to 2025.
The increasing adoption of functional safety solutions to comply with these standards and workplace safety regulations is driving the growth of the market in this region. Further, Currently, Russia, the UK, and Norway are the key oil and gas-producing countries based in Europe and are the major contributors to the European functional safety market growth. However, Europe is one of the most affected regions by COVID-19, economically. The outbreak of COVID-19 has caused a major setback to the export-oriented economy of Europe owing to the shutting down of manufacturing plants in the country. The automotive industry of Europe is severely affected as most of the automobile trade of the country takes place with China and Italy.
Break-up of primary participants’ profile:
- By Company Type – Tier 1 = 52%, Tier 2 = 31%, and Tier 3 = 17%
- By Designation – C-level = 47%, Director-level = 31%, and Manager-level = 22%
- By Region – North America = 44%, Europe =25%, APAC = 21%, South America = 5%, and MEA = 5%
The key players in the market include Emerson (US), Honeywell (US), Rockwell (US), ABB (Switzerland), Schneider (France), Yokogawa (Japan), General Electric (US), Hima Paul (Germany), Omron (Japan), Siemens (Germany), and Others.
The global functional safety market is segmented into offering, system, industry, and geography. The market, by system, is segmented into emergency shutdown system (ESD), fire & gas monitoring system, high integrity pressure protection system (HIPPS), burner management system (BMS), and turbomachinery control (TMC). Based on offering, the functional safety market has been split into component and service. The industries studied in the report include oil & gas, power generation, chemicals, food & beverages, pharmaceuticals, metal & mining, water & wastewater, and others. The functional safety market is segmented into 4 regions North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW).
- Reasons To Buy the report:
- Illustrative segmentation, analysis, and forecast for markets based on offering, system, industry, and geography have been conducted to give an overall view of the functional safety market.
- A value chain analysis has been performed to provide an in-depth insight into the functional safety market.
- Major drivers, restraints, opportunities, and challenges for the functional safety market have been detailed in this report.
- The report includes a detailed competitive landscape along with key players, in-depth analysis, and revenues of key players.