Explosion-Proof Equipment Market Size, Share & Trends Analysis Report By Type (Explosion Proof, Explosion Prevention, Explosion Segregation), By Zone (Zone 0, Zone 20, Zone 1, Zone 21, Zone 2, Zone 22), By End-User (Pharmaceutical, Chemical and Petrochemical, Energy and Power, Mining, Food Processing, Oil and Gas), By System (Power Supply System, Material Handling System, Motor, Automation System, Surveillance System) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global explosion-proof equipment was valued at USD 8.43 billion in 2022. It is estimated to reach USD 13.53 billion by 2031, growing at a CAGR of 5.40% during the forecast period (2023–2031).

An explosion is an uncontrollable increase in a system's energy, which can be mechanical or nuclear, and causes temperature increases and gas evacuation. Various factors, including oil spills, nuclear reactions, dust, and high pressure, can cause explosions. Equipment labeled "explosion-proof" has been designed to contain potential explosions within its casings. Explosion-proof equipment uses varying operating energies and explosive material to keep explosions at bay. These devices are used in various industries to protect machines and people's lives. Explosion-proof devices have several different preventative measures considered when being developed for mechanical, nuclear, electrical, or pharmaceutical use.

Market Dynamics

Market drivers

Strict regulations for the management of dangerous areas and substances

Trade units must abide by the established regulations, but standards, which are preferred modes of operation, are not strictly enforced due to regional variations in compliance frameworks. Regulations are necessary to ensure the safe handling of hazardous materials in industrial settings, which has been a top concern for all personnel involved. Governmental agencies and trade bodies in all major economies have discussed the need for strict regulations in the wake of industrial explosions in the mining and oil sectors. These laws are focused on using explosion-proof machinery in all significant industries. All producers of electrical goods have updated their processes to consider new regulations. Due to fatal accidents in various industries, these regulations have forced the use of explosion-proof equipment, which has increased adoption.

Rising demand for new mines, oil, and gas exploration

Energy and fuel extraction are becoming more necessary as energy consumption rises. This stimulates the market for explosion-proof equipment because they are frequently used to stop explosions during the production of electricity from natural resources. The search for new coal reserves is underway as the world depends on coal to meet its energy needs. These coal reserves must abide by safety regulations for mining personnel and machinery safety. In order to provide technical assistance for the investigation of potential new coal mining sites, several businesses have been working together.

Market restraint

Variation in security regulations

The standards established by regulating bodies like the IEC and ATEX vary regarding the classification of areas and equipment in hazardous environments. They are operated by their versions of the IEC standards in many nations. Due to the lack of regulatory uniformity, manufacturers and end users face difficulties designing, testing, and installing explosion-proof products. For instance, the current standards in India are based on outdated EN, IEC, or VDE standards from Europe or Germany that have undergone numerous changes over time in their respective countries, increasing costs for end users. Regional centers offer IEC certification, and their testing and monitoring processes vary. Some nations only require a straightforward certification for trade access, while others require installation permission procedures. Finding a balance between upholding safety standards and speeding up transaction times for equipment manufacturers is the biggest challenge facing these regulatory organizations and compliance authorities.

Market opportunities

Development of newer methods and products

The market for explosion-proof equipment is anticipated to grow as a result of stringent government policies, regulations, and rising energy demand. Future predictions indicate that it will take much less time to produce equipment that complies with standards, leading businesses to invest more in creating explosion-proof equipment. Additionally, newer methods are anticipated to boost the capability and desirability of the explosion protection method intrinsic safety in conjunction with electronic circuit solutions.

The emphasis on efficient energy consumption is helping the power generation sector become more prominent in the market. New nuclear and wind power plants will likely be constructed to produce electricity. Rugged products must withstand harsh conditions in the highly regulated nuclear, fossil, and renewable power industries. The uranium rods and bundles must be produced, heated, and cooled safely, so plant operators must maintain meticulous control. These provide electricity to one million different homes. As a result, businesses are spending a lot of money to monitor the safety of these plants. This is anticipated to increase demand for explosion-proof equipment over the forecast period.

Regional Analysis

The global explosion-proof equipment market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-pacific dominates the global market

Asia-Pacific is the most significant shareholder in the global explosion-proof equipment market and is expected to grow at a CAGR of 8.16% during the forecast period. China is one of the world's top producers and exporters of machine tools and manufacturing equipment. The production of tools and equipment has increased due to the boom in manufacturing over the past ten years. As a result, this expansion affects how quickly explosion-proof equipment is adopted. With the Made in China 2025 Strategy, the Chinese government will likely implement the economic restructuring. China wants to increase the domestic content of essential parts and materials from 20% by 2020 to 40% by 2025. These factors are expected to drive market growth over the forecast period.

North America is expected to grow at a CAGR of 4.4% during the forecast period. The US government did not require explosion-proof equipment in the late 19th century. However, the government has recently passed regulations in several different industry sectors. The central regulatory bodies in this field include the National Fire Protection Association (NFPA), Factory Mutual - FM3610, the Occupational Safety and Health Administration (OSHA), and Underwriters Laboratories (UL), an American safety consulting and certification company. As a result, the market saw an increase in the rates at which existing equipment was replaced.

Additionally, the alternative Zone system of hazardous location classification is still relatively new in the United States compared to the rest of the world, which has further prompted industries to replace their current machinery. The current system of classification in the nation is based on classes. However, the government is implementing regulations to make them globally accredited due to globalization. The region's pharmaceutical industry is anticipated to grow due to the numerous pharmaceutical manufacturing facilities present. Companies are anticipated to adhere to the FDA's strict regulations and install explosion-proof equipment in their facilities and hazardous areas, acting as catalysts for the market's expansion.

Europe is expected to grow significantly over the forecast period. The German Störfall-Verordnung, the EU Seveso Directive, and the Federal Immission Control Act are among the laws that are currently in force in the country. Machinery and equipment are the country's second-largest and most innovative sectors, with a turnover just behind the auto industry. Due to its strategic position within Europe, it is luring important integrators to profit from the ongoing technological advancements of the region (attracting 23% of all international projects). Chemicals and pharmaceuticals were Germany's third-largest industry in 2018, with a turnover of EUR 203 billion, according to the Landscape of the European Chemical Industry 2020 report by the European Chemical Industry Council. In addition, according to the VCI Prognos study Wege in die Zukunft, the German chemical industry will grow by 1.6% annually until 2050, which will positively affect the use of explosion-proof equipment in the industry. The pharmaceuticals industry is also desirable in Germany, demonstrating ongoing market stability, with well-known firms like Bayer, BASF, and Hoechst.

The primary regulatory standard for equipment that can withstand explosions in Latin America is NR12. The Brazil certification program for all electrical equipment for explosive atmospheres under combustible dust, flammable gases, and vapors is Portaria INMETRO No. 179. This regulation specifies the compliance assessment program's standards and requirements for electronic and electrical equipment for explosive atmospheres. Brazil's advanced industrialization, political stability, and vast raw material reserves make it an attractive investment due to its enormous potential for economic growth. Additionally, the South American Mercosur trade agreement—which includes Venezuela, Uruguay, Paraguay, Argentina, and Brazil—strengthens the South American market and expands the business opportunities for Brazil.

Saudi Arabia, which has the second-largest conventional oil reserves in the world, has about one-fifth of the total reserves in the Middle East and Africa. The nation is the second-largest producer of oil in the world and the world's top oil exporter. More than 90% of the nation's budgetary income comes from the oil industry. This enormous oil production capacity primarily drives the market for explosion-proof equipment. Around 17% of the world's proven petroleum reserves are believed to be in Saudi Arabia, according to the Organization of the Petroleum and Exporting Countries (OPEC). Additionally, about 50% of the nation's gross domestic product and 70% of export revenue come from the oil and gas industry. In addition to petroleum, the Kingdom's other natural resources include natural gas, iron ore, gold, and copper.

Segmental Analysis

The global explosion-proof equipment market is segmented by type, zone, end-user, and system.

Based on type, the global explosion-proof equipment market is bifurcated into explosion-proof, explosion-prevention, and explosion-segregation.

The explosion prevention segment is the highest contributor to the market and is expected to grow at a CAGR of 5.19% during the forecast period. Explosion-prevention equipment is preferred when the isolation or addition of parts to the equipment will not affect the equipment's overall functionality and is practical. Most of the equipment used for explosion prevention is intrinsically safe or has increased safety. Fiber optics and pneumatics are two additional essential pieces of prevention equipment. In addition to the universal acceptance of intrinsic safety standards, the benefits of prevention equipment favoring their adoption include high reliability, ease of installation and maintenance, lower downtime, and cost. The market is expanding due to increasing safety requirements and regulations, rising Asia-Pacific demand, and rising usage in all unstable regions.

Explosion-proof equipment has become more prevalent over the past few years in various industries, including oil and gas extraction, HVAC systems, mining, oil and gas extraction, aerospace and aircraft maintenance, and construction. Numerous vendors have entered the market for explosion-proof equipment in response to the rising demand brought on by tightening safety regulations to offer a range of solutions specifically suited to the sector's requirements. Regulatory organizations like OSHA and others are starting to implement stricter regulations in response to increased industrial accidents and explosions in mines to ensure worker safety and avoid harming the environment. Due to an increase in global mining activity and the burgeoning automation across all key industry verticals, there is an increasing demand for enclosures in flameproof equipment, which accounts for a sizeable portion of the market.

Based on the zone, the global explosion-proof equipment market is bifurcated into zone 0, zone 20, zone 1, zone 21, zone 2, and zone 22.

The zone 2 segment owns the highest market share and is expected to grow at a CAGR of 6.5% during the forecast period. Zone 2 has an explosive atmosphere that, while unlikely in regular operation, will only last a short time. Accidents or unusual operating conditions make these areas dangerous. Zone 2 rarely has ignitable gas vapors or liquids. Zone 2 hazardous locations are most common in the oil and gas industry, where combustible gas is scarce. Mining, power, chemical, and petroleum industries use Zone 2 processes. Despite explosives' rarity, ignition source controls are necessary. LEDs are easier to certify for hazardous locations, especially Zone 2, because they generate less heat.

Zone 1 is where an explosive atmosphere may occasionally be present during routine operations. Flammable or ignitable vapors also recur frequently due to frequent maintenance, repair, or leakage operations. For instance, Zone 1 includes gas stations or pumps. Zone 1 differs from the other zones in that it contains concentrations of flammable gases or vapors, which are also present in the other zones but are less likely to exist in normal conditions. Due to the potential transfer or communication of vapor from Zone 0 regions, which is caused by a lack of proper air pressure, inadequate ventilation facilities, etc., there is a high likelihood that zone 1 will manifest next to a Zone 0 location. Zone 1 installation requirements are more stringent than zone 2 installation requirements because of the nature of the operation. Such zones have strict installation requirements.

Based on the end-user, the global explosion-proof equipment market is bifurcated into pharmaceutical, chemical and petrochemical, energy and power, mining, food processing, and oil and gas.

The oil and gas segment is the highest contributor to the market and is expected to grow at a CAGR of 8.12% during the forecast period. Oil and gas companies often face high lighting costs due to vibration, debris, chemicals, and potential explosives. Hydrocarbon gases from crude oil produced by production facilities can mix with air to form explosive mixtures in concentrations between 1% and 10%. These operations require safety-certified electrical equipment. These environments must be regularly inspected to keep atmospheres below lower explosive limits. NEMA contributes to the establishment of guidelines for the electrical equipment used in the oil and gas industry. Types 7, 8, 9, and 10 are hazardous-area enclosure tools that can withstand electrical equipment explosions and prevent dust combustion.

The manufacture, processing, transportation, and storage of combustible materials occur in the chemical and petrochemical industries. As a result, gases, vapors, or mist may be produced or released into the environment, resulting in an explosive atmosphere, seriously injuring personnel, and harming equipment. Furthermore, the chemical industry is more vulnerable to explosions because solids are frequently encountered in fine forms, such as dust. The demand for explosion-proof equipment is anticipated to increase due to the rapid expansion of the production facilities of various companies in foreign nations.

Based on the system, the global explosion-proof equipment market is bifurcated into the power supply system, material handling system, motor, automation system, and surveillance system.

The power supply system segment owns the highest market share and is expected to grow at a CAGR of 5.78% during the forecast period. Most market products are power supply systems due to their many power sources. Manufacturing, energy, and power require constant power in extreme fluctuations. Power supplies in these industries range from a few hundred volts to over 300 kilovolts and from a few Watts to over 50 kW (kilowatts). Power supply systems benefit from modular design and equipment maintainability. The most significant power supply systems are located in Zones 1 and 21.

Automation systems are essential for most process plants where human intervention is impossible, especially in dangerous locations. The primary growth engine for explosion-proof equipment has been the increased exploration of new mining sites. The primary energy and electricity generation source is coal, and the discovery of new sites will produce significant amounts of energy. In addition, there will be a significant increase in safety regulations to safeguard mine workers. Due to rising explosive risks in hazardous areas, the risk in the automation sector for precision machining is also a market driver. Automated equipment and systems have also helped businesses gain a competitive edge, reduce downtime, and enhance product quality through increased accuracy and precision of operation.

Recent Developments

• September 2022- Yokogawa expanded the offering of OpreX analyzers with the ZR802S explosion-proof converter.
• January 2022- ABB India unveiled its new line of flameproof (FLP) motors, which are a secure option for applications in potentially explosive environments.