The global safety instrumented system market size was valued at 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). Plants and manufacturing facilities that produce chemical, petrochemical, mining, or gas can be extremely hazardous places to work because of the possibility of fire, explosion, tank overflow, gas leakage, or chemical exposure. A safety instrumented system (SIS) is used to monitor the values and parameters of a plant within its operational limitations. When danger situations are detected, the SIS must activate alarms and place the plant in a safe or shutdown condition. The safety instrumented systems (SIS) are responsible for operating safety and ensuring an emergency stop within the safe operating limits whenever the operating limits are exceeded. The primary purpose is to prevent accidents within and outside of plants, such as fires, explosions, equipment damage, protection of production and property, and, more importantly, to avoid life-threatening or health-related injuries and catastrophic community consequences.
Safety instrumented system (SIS) implementations originated predominantly in the oil and gas industry, where they are utilized to mitigate safety risks. The SIS system comprises a carefully designed set of hardware and software controls, including sensors, logic solvers, and other devices. The SIS was once a high-end product, but as market players increased, pricing became competitive, and prices were sharply cut, making the SIS accessible to both large and small businesses. The strict mandates for safety standards and the increasing need for dependable safety systems to protect people and property drive the growth of the safety instrumented market.
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Increasing Regulatory Environment
The industrial processes used in producing chemicals and petrochemicals, electricity, pharmaceuticals, food and beverages, oil, and gas, as well as other end users, are strictly regulated by numerous regulating organizations to avoid unexpected failures and accidents. The regulatory environment has become more stringent to incentivize the implementation of SIS as a preventative measure. The ISA 84 standard, which specifies the criteria for SIS evaluation, design, installation, operation, and maintenance, was adopted by the American National Standards Institute (ANSI). In a hazardous situation, such as a fire, explosion, or chemical spill, the regulators and insurance companies examine the equipment to determine whether it complies with ISA 4 regulations. Companies are installing solutions compatible with the standard since insurance benefits, and laws are linked to these standards.
The stringent laws and acts created to prevent environmental pollution and limit catastrophic spills inspired the deployment of the SIS in the oil and gas sector. The safety of employees, communities, and the environment has received more attention from government regulating organizations like the US Occupational Safety and Health Administration (OSHA) and Environmental Protection Agency (EPA), as well as insurance firms. As a result, they mandate that businesses analyze process dangers to establish the steps required for the highest level of safety. Compared to the best engineering design methods of the past, adopting rigorous methodologies in many international and regional industrial safety standards has improved a system's total safety lifetime. Consequently, a broad and significant growth in the industry's implementation of these standards has been noticed.
Operational Complexity and High Cost of Maintenance
A significant cross-fertilizing synergy between end users, technology providers, and innovators is necessary to deploy safety instrumented systems. Regulations, industry standards, and industry adoption of the technology are among the genuine issues regarding application in manufacturing contexts. For example, automation in the food industry is not currently practical to handle more complex operations, such as sandwich construction. Such tasks demand a high level of automation. Furthermore, sizable capital investment is required to implement high integrity pressure protection systems.
Options for leasing demand a stable financial commitment as well. Manufacturing companies are challenged to commit 100% of the cost from the beginning with either of those solutions. SIS requires more maintenance than a manually run machine, and they are typically less flexible in terms of the items that may be produced than a manual system. Half of the entire cost incurred throughout a safety instrumented system for industrial automation is incurred during its procurement and installation. And so, these factors create restraints for the market.
Advent of IIoT
With the Industrial Internet of Things (IIoT), pneumatics technology is becoming more functional, with new tracking and measurement capabilities that provide better insight into machine operation and component and subsystem performance. With this added functionality comes a more lucrative opportunity to keep an eye on the machine's safety features and safeguard persons and property. The market growth was sparked by monetary policy decisions made by local financial institutions to maintain manufacturing facilities in operation 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 dependable safety systems to ensure asset and personnel protection.
The expanding initiatives by the government, relevant regulatory agencies, and businesses to encourage exploratory activities are also expected to increase the use of safety instrumented systems during the projected period. Additionally, expanding power projects to fulfill the growing electricity demand has accelerated the installation of safety instrumented systems at plant locations.
The global safety instrumented system market is classified by application, end-user, and region.
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. An emergency shutdown system (ESS) is an automatic protection system that shuts down the plant or process stations in the event of a potentially hazardous condition. ESD is a component of the Safety Instrumented System (SIS) component, primarily used to protect people or plants. These systems are designed to limit the repercussions of emergencies, such as equipment damage, worker injury, or death, by protecting against fire outbreaks, explosions, and hydrocarbon and other hazardous gas leaks.
The Fire and Gas Monitoring and Control (F&GC) section will hold the second-largest market share. F&GC systems are essential for ensuring industrial facilities' continued safety and operation. These systems protect people and property against dangerous conditions, such as fires and flammable/toxic gas leaks. Using modern approaches and adding intelligence to these sensors has dramatically increased detection rates.
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. Increased advantages of safety instrumented systems over conventional systems drive market demand. It is recognized that the chemical and petrochemical industries are continuously expanding, necessitating the growth and modernization of existing safety issues and infrastructures. As a result, the demand for safety instrumented systems in petrochemical industries was anticipated to increase due to their numerous benefits, such as extended field life, reduction in unplanned downtime, reduction in annual maintenance cost, elimination of unexpected repair expenses, and conformity with current codes.
The power generation section will hold the second-largest market share. The power generation sector comprises conventional and renewable electricity, transmission, and water and waste services. Due to the significance of predictive maintenance of the sector's equipment and infrastructure, the power generation industry is also among the first to embrace safety solutions.
North America Surpasses the Rest of the World
By region, the global safety instrumented system market comprises North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
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North America, led by the United States and Canada, will command the market, expanding at a CAGR of 5.6% over the forecast period. This is attributable to rapid urbanization and industrialization. The region's energy consumption is growing, and the risk of industrial mishaps is rising. Consequently, the demand for safety measures continues to increase. Safety system user requirements have emerged from a safety perspective and the convenience of use in conjunction with other systems and system functions, such as DCSs and operation and monitoring functions.
With many fatalities and confirmed cases in the early months of the pandemic, the United States was one of the worst-hit nations in the world. Accordingly, several industries suffered severe setbacks, including consumer electronics, oil & gas, manufacturing, chemical & petrochemicals, and automotive. Nonetheless, pharmaceutical, retail, and food & agricultural industries experienced tremendous expansion. Furthermore, pipeline building projects, such as the Pecos Trail Pipeline Project, Penn East Pipeline Project, and Atlantic Coast Pipeline, are anticipated to increase the need for ultrasonic non-destructive testing equipment in the country, driving the safety instrumented system 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 change due to the implementation of Industry 4.0. Engineers involved in the engineering process must become more cognizant of the operational and design ramifications of safety-related systems in light of the rising multidisciplinary complexity of the engineering environment. Also, knowledge of applicable safety regulations is necessary.
Additionally, change-managing control systems, including steam turbines, compressors, and variable speed drives, may be needed to maintain profitability while fulfilling flexible needs as the process industry progresses toward embracing more excellent safety standards. The region is suitable for industrial expansion due to the government's increased support for new industries and the political climate. Consequently, foreign businesses are seeking investment opportunities in this region. Also, there are ongoing projects to construct water and sewage treatment facilities in the region.