Global Safety Instrumented System Market to Grow at a CAGR of 5.8% During 2020 –2030

Introduction

Due to the possibility of fire, explosion, tank overflow, gas leakage, and chemical exposure, plants and manufacturing facilities that produce chemical, petrochemical, mining, or gas can be extremely hazardous places to work. A safety instrumented system (SIS) aims to monitor a facility's values and parameters within its operational constraints. When dangerous conditions are detected, the SIS must activate alarms and place the facility in a safe or shutdown state.

The safety instrumented systems are responsible for ensuring operating safety and an emergency stop within safe operating limits whenever operating limits are exceeded. The primary objective is to prevent accidents within and outside of plants, such as fires, explosions, equipment damage, protection of production and property, and, most importantly, life-threatening or health-related injuries and catastrophic community consequences. The growth of the market for safety instrumented systems is driven by the stringent requirements for safety standards and the rising demand for reliable safety systems to protect people and property.

Market Dynamics

Increasing Regulatory Environment Drives the Market for Safety Instrumented Systems

Numerous regulating organizations strictly regulate the industrial processes used in producing chemicals and petrochemicals, electricity, pharmaceuticals, food and beverages, oil, and gas, as well as other end users, to prevent unexpected failures and accidents. As a preventative measure to encourage the implementation of SIS, the regulatory environment has become more stringent. The American National Standards Institute (ANSI) approved the ISA 84 standard, which specifies evaluation, design, installation, operation, and maintenance criteria for SIS. In the event of a hazard, such as a fire, explosion, or chemical spill, regulators and insurance companies inspect the equipment to determine if it complies with ISA 4 regulations. Since insurance benefits and laws are dependent on these standards, businesses are implementing solutions that are compatible with them.

The stringent laws and acts enacted to prevent environmental pollution and limit catastrophic spills inspired the deployment of the SIS in the oil and gas industry. The safety of workers, communities and the environment has received greater attention from government regulating organizations, including the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and insurance companies. As a result, businesses must analyze process risks to determine the steps necessary for the highest level of protection. The adoption of rigorous methodologies in numerous international and regional industrial safety standards has increased the total safety lifetime of a system compared to the best engineering design practices of the past. Consequently, a significant and widespread increase in the industry's adoption of these standards has been observed.

The advent of IoT CreatesNew Opportunities for Safety Instrumented Systems

With the advent of the Industrial Internet of Things (IIoT), pneumatics technology is becoming more functional, with new tracking and measurement capabilities that provide a deeper understanding of machine operation and component and subsystem performance. With this additional functionality, it will be easier to monitor the machine's safety features and protect people and property.

Monetary policy decisions made by local financial institutions to keep manufacturing facilities operational during the pandemic crisis, soaring demand for safety systems in the oil and gas industry, stringent safety mandates, the emergence of industrial revolution 4.0, and high demand for reliable safety systems to ensure asset and personnel protection all contributed to the market growth.In addition, it is anticipated that the use of safety instrumented systems will increase during the forecast period due to the government's, regulatory bodies, and companies' growing efforts to support exploratory activities. Moreover, the expansion of power projects to meet the rising electricity demand has expedited the installation of safety instrumented systems at plant sites.

Regional Insights

North America will command the market, expanding at a CAGR of 5.6% over the forecast period. The two economies that contribute the most to the global market for safety instrumented systems are the United States and Canada. During the anticipated time frame, the safety instrumented system industry in the region is expected to proliferate. Increasing urbanization and rapid industrialization are driving the market in this region. The region's energy consumption is rising, and industrial accidents are becoming more likely. Consequently, demand for safety measures continues to increase. Safety system user requirements have emerged due to the convenience of use in conjunction with other systems and system functions, such as DCSs and operation and monitoring functions.

Owing to the high number of confirmed cases and fatalities in the early months of the pandemic, the United States was among the countries with the worst effects. Consequently, several industries, including consumer electronics, oil & gas, manufacturing, chemical & petrochemicals, and automotive, experienced significant setbacks. Simultaneously, pharmaceutical, retail, and food & agricultural industries experienced rapid growth and were deemed essential to the nation's well-being. In the coming years, pipeline construction projects such as the Pecos Trail Pipeline Project, Penn East Pipeline Project, and Atlantic Coast Pipeline are expected to be completed. These projects will increase the demand for ultrasonic nondestructive testing equipment nationwide in the coming years, thereby expanding the SIS market.

Asia-Pacific will likely grow at a CAGR of 7.29%, accounting for USD 1,364 million by 2030.It is anticipated that safety systems will evolve due to Industry 4.0 implementation. Engineers involved in the engineering process must become more aware of the operational and design implications of safety-related systems in light of the engineering environment's increasing multidisciplinary complexity. In addition, knowledge of applicable safety regulations is required. Moreover, as the process industry moves toward adopting higher safety standards, change-managing control systems, such as steam turbines, compressors, and variable speed drives, may be necessary to maintain profitability while meeting flexible needs. The government's increased support for new industries and the political climate make the region suitable for industrial expansion. Therefore, foreign companies are looking for investment opportunities in this region. The region also has ongoing construction projects for water and sewage treatment facilities.

Key Highlights

• The global safety instrumented system market size had a revenue holding of USD 4,042 million in 2021. It is expected to reach USD 6,346 million by 2030, growing at a CAGR of 5.8% during the forecast period (2022–2030).
• By application, the global safety instrumented system market comprises Emergency Shutdown Systems (ESS), Fire and Gas Monitoring and Control (F&GC), High Integrity Pressure Protection Systems (HIPPS), Burner Management Systems (BMS), Turbo Machinery Control, and Others.The Emergency Shutdown Systems (ESS) section will likely hold the largest market share, growing at a CAGR of 6.25% over the forecast period.
• By end-user, the global safety instrumented system market comprises Chemicals & Petrochemicals, Power Generation, Pharmaceutical, Food &Beverage, Oil &Gas, and Others. The Chemicals & Petrochemicals section will likely grow at a CAGR of 7.2% and hold the largest market share over the forecast period.
• By region, the global safety instrumented system market comprises North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America commands the leading market share.

Competitive Players

Competitive Players in Safety Instrumented System Market

• Rockwell Automation Inc.
• Emerson Electric Company
• Honeywell International Inc.
• Yokogawa Electric Corporation
• ABB Ltd
• Schneider Electric SE
• Siemens AG
• HIMA Paul Hildebrandt GmbH
• SIS-TECH Solutions LP
• Schlumberger Limited

Recent Developments

Market News

• In 2022, ABB announced a collaboration with Microsoft on reducing carbon emission of operations and empowering industrial decarbonization.

• In 2022, Rockwell Automation announced a three-year strategic agreement with start-up ZEVx to use advanced technology to accelerate electric vehicles.
• In 2022, ABB Ltd. and Shell announced the launch of the first nationwide network of Terra 360s, the world's fastest all-in-one electric car charger.

Segmentation

Global Safety Instrumented System Market: Segmentation

By Application

• Emergency Shutdown Systems (ESS)
• Fire & Gas Monitoring and Control (F&GC)
• High Integrity Pressure Protection Systems (HIPPS)
• Burner Management Systems (BMS)
• Turbo Machinery Control
• Others

By End-user

• Chemicals &Petrochemicals
• Power Generation
• Pharmaceutical
• Food &Beverage
• Oil &Gas
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa