Market Dynamics
Drivers: Growing Standards of Industrial Safety
With increasing instances of workspace hazards and the requirement for operational safety amidst workspace operations, the need for functional safety products is growing. Extensive quality, assurance, and security standards are being placed to effectively reduce workspace accidents and similar threats. The industrial components must abide by increasingly growing and strict security standards such as the ANSI/ISA-99 standard. Thus, the Global Functional Safety Market appears to be constantly driven positively ahead, fueled by the increasing need for industrial machinery safety and quality.
Drivers: Growing Adoption and Use of Functional Safety Systems in a Variety of Industries
Industries globally are focused on increasing functionality, efficiency, and safety. The quality and work-rate improves drastically with an established data-specific approach merged with quality functional safety components. The widespread adoption of technologies such as AI (Artificial Intelligence) and ML (Machine Learning), combined with multiple functional safety components and systems, boost efficacy and control when combined with various functional safety components and systems. Integrating AI and ML with functional safety systems increases work execution and quality while reducing human interaction requirements.
Apart from the essential control, management, and dissipation of data, companies look towards protecting and mitigating complexities and hazards to other assets such as the people and the environment and are increasingly driven towards integrating and adopting functional safety systems, thus acting as a strong driving force for the global functional safety market.
Restraint: Increased Complexity alongside Initial Purchase and Further Maintenance Costs
The importance and prevalence of the global functional safety systems cannot be undermined, but the quality, safety, and technology increase costs. The increasing cost is typically borne by the user, operator, or company purchasing the functional safety system. There is also the constant requirement for maintenance and proper operation and integration of the functional safety systems. Although functional safety systems provide quality, safety, and hazard mitigation—integrating these security systems across industries and even within the same industry can be difficult.
While purchasing and deploying functional safety systems is challenging, additional challenges include upgrading and maintaining the systems, software and hardware compatibility, and customization. Utilizing any compromised, insufficiently supported, or under-updated functional safety system increases risk and hazard. These would further restrict the machine's quality, adoption, and quality utility—both manually and technologically.
There is also the significant risk of a functional safety system's quality and features being exaggerated by the seller or third party responsible for providing the product. This would result in malfunctioning and even safety hazards due to incompatibility with appropriate technology or incompatibility with other functional safety systems.
Regional Analysis
The Dominance of Europe Over the Rest of the World
Region-wise, the global functional safety market share is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe is predicted to hold the highest market share by 2030, growing at a CAGR of 11.89%. Germany leads the European region. The stronghold maintained by Germany resulted from its use of commerce and innovation. The German market is characterized by many SMEs and the largest concentration of OEMs in Europe, contributing mainly to the revenue process. With the increasing SMEs and their use of technology, Germany's landscape is increasingly competitive, further attracting foreign players. With players on the lines of Rhinestone being a crucial member of the German market complements Germany's stance with the upcoming Industrial Revolution 4.0. The German market is characterized by quality and scope and is further enhanced through expert handling, provision of essential technologies, and welcoming of international corporations.
North America is predicted to hold the next highest market share of USD 3,101 million by 2030, growing at a CAGR of 8.83%. The United States of America, followed by Canada, is leading the North American Region as the second-largest regional shareholder in the global functional safety market. The United States cements its share within the functional safety market through innovation, natural resources, increasing oil and gas projects, and the employment of modern technologies as a part of the 4th Industrial Revolution. The United States houses renowned corporates such as Honeywell International and Rockwell Automation, to name a few. The government contributes, too, by releasing various policies and grants.
With an increasingly growing power, Canada's food and beverage industry's requirement for safety is robust. Canada has Provincial and Federal regulations in place, apart from which there is increased focus on enhancing and incorporating the use of emergency shutdown systems (ESD). Canada is also extensively working towards balancing its pricing, incentivizing citizens to continue their routine purchases at both a societal and corporate level. This would significantly ensure their hold over a market share in the global functional safety industry.
Japan has been a frontrunner in Asia-Pacific, converting it into a sophisticated industrial economy. Industry 4.0 is being implemented at a quicker rate. It has grown as a manufacturing center, supplying goods and services to other Asian-Pacific markets. Such variables are projected to be a key driver for the worldwide shift from conventional manufacturing to advanced manufacturing techniques. It is a driving factor in the Japanese industrial sectors' sustained expansion and drives the market examined. Furthermore, due to the region's diverse emerging industries, big corporations are introducing new functional safety equipment to meet the rising demand.
Segmental Analysis
The global functional safety market share is segmented into device type, safety system, end-user, and regions.
The global functional safety market, based on device type, is classified into the following categories: Safety Sensors, Safety controllers/Modules/Relays, Safety Switches, Programmable Safety Systems, Emergency Stop Devices, Final Control Elements, and Others.
Safety Sensors are expected to hold the highest market share in 2030, growing at a CAGR of 12.90%. The safety sensors are essential to the global functional safety market and products. Using safety sensors, the protection of both human and robotic personnel operating the equipment or even the robot can be better ensured. There are additional benefits of real-time tracking, risk monitoring, performance monitoring, diagnosis, etc. Various companies such as Orman Corporation are working towards improving, enhancing, and releasing recreated versions of safety sensors. Safety sensors' varied and constant development allows them to retain a high future revenue share predictability.
Safety Switches have improved equipment and worker safety. The safety switches make it easier to disconnect and reconnect electricity for equipment maintenance. Operators may safely operate on downstream equipment without electricity. The risk of accidental contact with live voltage is significantly reduced. According to the National Electrical Code (NEC), they're required in all industrial applications (NFPA). NEC 430.102B requires all motors and industrial equipment to have a visible safety switch. The NEC defines "in sight" as less than 50 feet from the controlled device.
Other device type includes presence detecting devices, safety laser scanners, enabling devices, and safety drives. The most popular presence sensing safety device stops the machine stroke when a foreign item disturbs its sensing field. Thus, presence detection devices safeguard operators and other workers in the region. The safety laser scanner offers a laser safety solution for fixed and mobile vehicle applications, such as robotic work cells; traditional safety devices cannot address that. The safety laser scanners include mounted live window and area models. These gadgets work hard to build the best device for each user and their demands, and they utilize rehabilitation engineers to improve items.
The global functional safety market, based on safety systems, is classified into the following categories: Burner Management Systems, Turbomachinery Control (TMC) Systems, High-Integrity Pressure Protection Systems (HIPPS), Fire and Gas Monitoring Control Systems, Emergency Shutdown Systems (ESD), Supervisory Control and Data Acquisition (SCADA) Systems, and Distributed Control Systems (DCS).
Emergency Shutdown Systems (ESD) is predicted to hold the highest market share in 2030, growing at a CAGR of 10.05%. The Emergency Shutdown System (ESD) potentially safeguards the personnel, environment, and other vital assets. This equipment is typically found in industries of potential or explosion risks, such as The Oil and Gas industry, nuclear power, and similar. The Emergency Shutdown System is an immediate solution in cases containing and preventing the outbreak of massive emergencies such as fire and flooding, to name a few.
Burner Management System (BMS) allows safe start-up, operation, and shutdown of a boiler's numerous burner furnace sections. Such technologies assist regulate industrial energy use. Oil and gas operators utilize the BMS to safely start, operate, and shut down a process heater. BMS helps optimize fuel expenditures, minimize maintenance, and improve uptime while keeping workers safe. Burner Management Systems avoid process heater explosions under disturbed conditions. Cimarron Energy Inc. announced AR Control Dual in January 2020, a revolutionary Burner Management System (BMS) intended to let oil and gas companies run dual burner equipment from a single control box.
The global functional safety market, based on end-users, is classified into the following categories: Oil and Gas, Power Generation, Food and Beverage, Pharmaceutical, Automotive, and Others.
The Oil and Gas industry is predicted to hold the highest market share in 2030, growing at a CAGR of 8.65%. The oil and gas industry is categorized as high-risk, requiring protection against fire outbreaks, gas leakage, and similar risks. The industry constantly requires specialized and regular safety mechanisms and measures to maintain high safety standards. To continue effective functioning and upkeep, they require regular and periodic maintenance, up-gradation, and purchase of functional safety equipment- considering their constant risk to life, property, and essential assets.
The Power Generation sector includes conventional and renewable electricity generation and transmission, water and wastewater services, etc. The power generation industry is also one of the early adopters of functional safety systems due to the importance of predictive maintenance of the sector's equipment and infrastructure. The overall productivity of the power plants is profoundly dependent on the turbines and the generators. Rotating machinery failures are the prime contributors to the forced outages among power plants. The rotating parts of the turbines and the generators must work efficiently, with significantly less downtime and maximum throughput.
Other end-use industries considered for studying functional safety systems are the mining, chemical, and petrochemical industries. The machinery works under extreme conditions in the mining industry, with high dust, moisture, and temperature levels. Due to increasing productivity demands and cost reductions, rising pressure has changed the mining industry's underlying infrastructure, processes, and technology. Such industry trends are expected to increase the scope for adopting functional safety systems. Further, the average size of a chemical or petrochemical plant is large, complex, and costly, making it challenging to keep track of the plant's changes.
In the petrochemical industry, the raw materials and the intermediate products from crude oil are highly explosive when they blend with air, making it unsafe for humans, thus increasing the industry's need for functional safety systems. Hence, adopting a functional safety system is expected to increase as it provides key performance indicators for petrochemical plants worldwide to maintain employee safety and prevent operational downtime.
Top Key Players
Yokogawa Electric Corporation
Siemens AG
General Electric Company
Omron Corporation
SICK AG
Banner Engineering Corporation
Others
