High Integrity Pressure Protection System (HIPPS) Market Size, Share & Trends Analysis Report By types (Electronic HIPPS, Mechanical HIPPS), By components (Field Initiators, Logic Solver, Final Element, others), By Services (Testing, Inspection and Certification, Maintenance, Training and Consultation), By end-user industry (Oil & Gas, Chemicals) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The high integrity pressure protection system (HIPPS) market size is valued at USD 570.50 million in 2022. It is projected to reach USD 1,135.69 million by 2031, growing at a CAGR of 7.95% during the forecast period (2023–2031). Increased industrial regulatory measures have been made in response to the increasing frequency of incidents in these dangerous locations, which could increase demand for safety infrastructure in the market under study. Addressing the surging government regulatory standards to enhance safety and security while navigating the challenges of implementation costs and skillset gaps, there is a growing demand for conventional mechanical relief devices.

In HIPPS, actuators with valves and pneumatics are widely used. Offerings for industrial automation have been developed by vendors, which has influenced the market environment. For instance, Experion PKS Highly Integrated Virtual Environment (HIVE), a new method for developing and maintaining industrial control systems, was introduced by Honeywell in June 2019. Experion Process Knowledge System (PKS), the company's main product, has taken this revolutionary step. Experion PKS HIVE uses networking, software, and Honeywell's LEAP project execution principles to decouple controllers from physical IO and control applications from physical equipment. High-integrity pressure protection systems may be required for subsea development with high wellhead shut-in tube pressures.

Market Dynamics

High Integrity Pressure Protection System (HIPPS) Market Drivers

Rising Government Regulatory Standards to Defend Safety and Security

Compared to the adoption of best engineering design methods in the past, introducing rigorous techniques in various international and regional industrial safety standards has improved a system's whole safety lifecycle. As a result, the market has seen more comprehensive and noticeable growth in adopting these standards. The rise in hazardous locations directly impacts the need for industrial units. The rapid adoption of safety switches in production facilities and corporate buildings or offices has been prompted by the widespread adoption of safety regulations and standards, along with increased awareness of the need for industrial safety management and competency at both the individual and organizational levels.

High Integrity Pressure Protection System (HIPPS) Market Restraint

Implementation Cost and Lack of Required Skillsets

To successfully deploy high-integrity pressure protection systems, end users, technology suppliers, and innovators must collaborate closely. Regulations, industry standards, and industry adoption of the technology are among the genuine issues regarding its application in manufacturing contexts. For instance, in the food industry, automation is only practical for handling more difficult operations like sandwich assembly. Such tasks demand a high level of automation. Additionally, such a level of automation is not economically viable for restaurants with lower yearly volumes and sales per location.

Furthermore, sizable capital investment is required to implement high-integrity pressure protection systems—options for leasing demand a stable financial commitment. Manufacturing companies must decide whether to commit to 100% of the cost upfront with either of those options.

High Integrity Pressure Protection System (HIPPS) Market Opportunities

Demand for Conventional Mechanical Relief Devices

Due to the demand for conventional mechanical relief devices and the degree of flaring in oil and gas applications, High Integrity Pressure Protection Systems (HIPPS) are rapidly gaining prominence. Mechanical relief devices are frequently needed when connecting new gas production sources to a gas plant facility to protect gas production facilities or pipelines. The channel must be secured from potential overpressure to prevent the release of hydrocarbons into the atmosphere or the unintentional burning of these hydrocarbons via a flare system from occurring when new production sources are linked to old pipelines.

The use of high-reliability safety instrumented systems to replace conventional mechanical relief devices and eliminate the need for flaring is permitted by international standards (API 521, Code Case 2211 of the ASME Section VIII, Division I and 2, ANSI/ISA 84.01-2004, IEC 61511), opening up new market opportunities.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global high integrity pressure protection system (HIPPS) market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

The Asia-Pacific HIPPS market is expected to grow at a CAGR of 8.80% during the forecast period. Due to the region's emphasis on expanding its oil and gas refining capacity and the noticeable growth of the chemicals industry, with China, Japan, and India being some of the key countries in this region, the Asia-Pacific HIPPS market is anticipated to experience the highest growth rate during the forecast period. Higher LNG deliveries, especially to India, were South Asia's main driver of growth. HIPPS is mainly used by India's petrochemical and oil and gas companies to lessen the harmful effects of overpressurization. Additionally, the increasing use of functional safety systems (like Safety Instrumented Systems (SIS)) in the oil and gas industry has fueled the demand for HIPPS to protect the environment, equipment, and personnel. This system minimizes the loss of oil or gas due to an explosion.

Europe is expected to exhibit a CAGR of 7.25% during the forecast period. Europe is one of the largest markets for high-integrity pressure protection systems. Over the projection period, the area can present many chances for market vendors to build their businesses. Established chemical manufacturing businesses may strongly influence the region's high-integrity pressure protection systems market. The expansion in offshore and shale-related exploration operations may raise the need for HIPPS in the oil and gas industry, increasing demand for HIPPS. For instance, the IEA reports that in Europe, gas-fired power plants witnessed an increase in output of around 11%, or almost 70 TWh, in 2019, compared to a sharp fall of 24% for coal-fired power plants.

North American organizations have also implemented industrial safety rules such as ANSI (American National Standards Institute) and OSHA (Occupational Safety and Health Administration), which has led to a high level of HIPPS acceptance in the region. Petroleum is the country's primary energy source, according to the EIA. The liquid is primarily utilized as a fuel in the transportation sector, which accounts for more than 28% of all energy consumption in the United States and is also the second-largest energy user in the world. The energy-guzzling industrial sector, a significant user of fossil fuels like petroleum and natural gas, is the only one to top this list, according to the same source. The demand for HIPPS increased in 2019 due to the approximately 32 quadrillion BTU of energy generated from natural gas in the United States.

Latin America, the Middle East, and Africa are included in the rest of the world. With the expansion of offshore and shale-related exploration activities in the Latin American region, the need for HIPPS in the oil and gas industry will rise. HIPPS is a functional safety system instrument utilized in the area and is essential for the security and dependability of oil and gas sector personnel. Applications can be found in power plants, pipelines, refineries, and oil platforms. Oil and natural gas production has expanded due to increased government investment in renewable energy sources, one of the critical drivers of the HIPPS market's expansion. According to EIA statistics, Brazil had 12.84 billion barrels of crude oil reserves in 2019, which was second only to Venezuela in terms of funds in Latin America and the Caribbean.

Segmental Analysis

The global high integrity pressure protection system (HIPPS) market is segmented by type and end-user industry.

Based on type, the global high integrity pressure protection system (HIPPS) market is bifurcated into components and services.

The components segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.40% during the forecast period. Due to HIPPS's significant market share components, a similar trend is anticipated to persist over the coming years as process industries expand. Pressure sensors and transmitters, valves, actuators, logic solvers, and other parts like control panels, solenoids, software, alarms, valve positioners, manifolds, and accessories make up the entire HIPPS solution. In HIPPS applications, the ability to accurately measure pressure is unquestionably essential. The system must promptly detect overpressure to activate the pressure protection system in time to save downstream equipment. By using smart diagnostics, the transmitter can identify clogged impulse lines, enabling SIS to take the necessary action and broaden the diagnostic range of the HIPPS.

Maintenance, testing, inspection, and certification, as well as training and consulting, comprise the full range of HIPPS services. An independently instrumented system with higher integrity than process shutdown and emergency shutdown systems is the high-integrity pressure protection system (HIPPS). HIPPS stops a system from going over its rated pressure level and is suitable for onshore and offshore installations needing high-integrity pressure protection of downstream systems. The FLS extreme service API 6A slab-style gate valves and MH series hydraulic actuators with controls are included in Schlumberger Limited's SIL 3-certified HIPPS. It is regarded as the wall dividing the high-pressure area of a production or installation facility. As manufacturing businesses increasingly implement safety instrumented systems (SIS) and demand for these systems rises, particularly in the oil and gas and chemicals industries, the services market for HIPPS is expanding rapidly.

Based on the end-user industry, the global high-integrity pressure protection system (HIPPS) market is bifurcated into oil and gas, chemicals, power, and others.

The oil and gas segment owns the highest market and is estimated to exhibit a CAGR of 7.25% during the forecast period. Oil and gas production, refining, and pipeline systems are protected against overpressurization by high-integrity pressure protection systems, which are safety-instrumented systems. HIPPS uses an oil and gas firm's system design and integration skills. In the past, the Dirk Gas Field Development Project in Assam received HIPPS built domestically by the leading engineering firm in India, Larsen & Toubro. In-house developed HIPPS were provided to Dirok, sponsored by a partnership of the Hindustan Oil Exploration Company, Oil India, and IOCL, by LANDT Valves, a division of Larsen & Toubro. The market's players are concentrating on creating cutting-edge goods and services, which might support the HIPPS market's expansion in the upcoming years.

The primary element driving the use of high-integrity pressure protection systems in the chemical and petrochemical industries is the rise in competition brought on by globalization. Many processing factories operate substantially faster than their design capacity to remain competitive. A lack of adequate process monitoring can negatively affect plant operations and product quality. When a plant operates at total capacity or beyond, wear and tear from corrosion often occurs significantly. The amount of waste effluent rises, and plant managers aim to lower maintenance expenses at the same time. Additionally, a growing body of environmental law mandates the monitoring and management of waste effluent.

Power plants use high-integrity pressure protection systems in a variety of ways. Automation in hydroelectric power plants has been identified as decreasing motor and generator downtime, enabling more significant capacity, and boosting plant effectiveness. Power plants, wind turbines, and thermal energy generators use HIPPS. For example, Schneider Electric recently unveiled new IIoT-based options for hydroelectric power generation companies. Some solutions include the EcoStruxure Pumping Performance Advisor, the EcoStruxure Augmented Operator Advisor, and the EcoStruxure Hybrid DCS for Water. In this industry, workflow facilitation, payroll management, and other data activities are critical applications.

Due to their effective performance and outcomes, high-integrity pressure protection systems have displaced traditional methods in several industries. Automation tools have helped the metal fabrication sector manufacture more accurate, nearly perfect products or parts in a shorter time. As a result, automation techniques are gradually gaining ground in all areas of this industry. After suffering significant losses in 2015 and reaching its lowest point in income creation since the turn of the century, the mining industry slowly recovered in 2016. The main restraints on the expansion of the mining industry on the global market landscape have been a slowdown in demand from the Chinese market and the concurrent decline in commodity prices. 

It is challenging for the food and beverage business to keep up with the evolving needs of modern customers. The increase in commodity costs is anticipated to impact how efficiently food producers run their businesses. High-integrity pressure protection systems are becoming increasingly in demand due to the processes in these industries demonstrating increased technological requirements. To retain growth, most manufacturers need a broad outlook; as a result, their production and storage facilities are progressively automating. For instance, Tyson Foods has spent more than USD 215 million over the past five years on automation and robots. The investments were made to support infrastructure renovations, replacements, and production growth.

Recent Developments

• January 2022: In line with Nigeria’s energy transition plan to attain zero routine gas flaring by 2035 and the nation’s increasing efforts to improve local participation in the oil and gas value chain, PE Energy has commissioned the nation’s first fully equipped facility for the full overhaul, maintenance, and recertification cycle of the High Integrity Pressure Protection System (HIPPS).