CONSTRUCTION SAFETY NET MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Construction Safety Net Market Drivers

• Stringent safety regulations and compliance: The implementation of stringent safety regulations by regulatory bodies such as the Occupational Safety and Health Administration (OSHA) in the U.S. and similar organizations, globally, is compelling construction companies to adopt adequate fall protection systems including safety nets. For instance, from May 16, 2023, OSHA will prioritize inspections for falls from heights across all industries. This nationwide program allows inspectors to open investigations at elevated levels. Each OSHA office will develop inspection lists targeting construction projects in the area. Falling hazards are weighted more heavily in OSHA's performance evaluations.
• Increasing construction activities and investments: The gradual recovery across construction sectors from the economic downturn coupled with large-scale investments in infrastructure development, housing, and commercial real estate projects globally are contributing to the rising adoption of construction safety nets. For instance, on April 24, 2023, according to the new World Bank Data, private investment in infrastructure projects in developing countries made a strong comeback in 2022, with a 23% jump in commitments as compared to 2021. However, the number of projects remains below pre-pandemic levels, thus indicating a potential need for further encouragement of private involvement.
• Rising demand from developing economies: The expanding construction and infrastructural development activities in developing countries of Asia Pacific, Latin America, and Middle East & Africa are creating significant opportunities for construction safety net vendors. Countries such as India, Brazil, U.A.E., Saudi Arabia, Thailand, Indonesia, and Mexico are undertaking large-scale residential, commercial and infrastructure projects to accommodate their rising urban populace.
• Increased safety awareness among workers: There is a growing awareness among construction workers regarding workplace accidents, which account for around 60,000 fatalities every year worldwide as per ILO (International Labour Organization) estimates. Construction associations are conducting training programs to educate workers about potential fall hazards and prevention strategies including the proper installation and use of safety nets and barriers.

Construction Safety Net Market Opportunities

• Innovation in smart safety technologies: Construction companies are seeking safety solutions that can provide real-time monitoring and surveillance. Safety net manufacturers have an opportunity to integrate their products with Internet of Things and sensor based technologies to provide intelligent and automated safety systems. For instance, Teijin Limited, a global technology leader in various fields, launched its new Teijin Smart Safety website on November 10, 2020. This website showcases the company's innovative safety solutions that are designed specifically for firefighters, police, emergency personnel, and other first responders who regularly face hazardous situations.
• Growing demand for modern agriculture: The agriculture industry is creating lucrative opportunities for safety net manufacturers, with the growth in commercial greenhouses and vertical farming installations globally. Safety nets are used in greenhouse cladding and shading while vertical farms utilize protective netting.
• Infrastructural development in emerging economies: Rapid urbanization in emerging economies is leading to massive investments in infrastructural projects to build new mega cities, highways, railways, ports, power plants and dams. According to Price Waterhouse Coopers, the annual expenditure on infrastructure in emerging markets will rise to around US$2.2 trillion per year by 2025.
• Mergers and acquisitions: The safety net market is fragmented with the presence of several regional and local manufacturers. Larger global players can expand their market share and distribution network rapidly through strategic mergers and acquisition deals with smaller companies.

Construction Safety Net Market Restraints

• High installation and maintenance costs: While safety nets are essential for worker safety, it involves significant installation and maintenance expenses which can deter smaller contractors. The procurement and specialized installation using cranes or temporary platforms, and ongoing inspection/repairs of nets entails sizable costs.

Counterbalance: The market players should focus on keeping the installation and the maintenance cost affordable for the contractors in the market.

• Price volatility in raw materials: The raw materials used in safety net manufacturing including polypropylene, polyethylene, nylon, steel, and polyester are primarily petroleum derivatives. Their prices thus fluctuate corresponding to the global crude oil price volatility.
• Lack of safety regulation awareness in emerging nations: While advanced regions like North America and Europe have defined safety norms, developing countries often lack stringent and well-enforced regulations for construction sites. This leads to low awareness about safety threats and prevention measures like proper net installation among contractors.

Counterbalance: Developing countries need to take part in awareness programs of the usage and installation of the construction safety nets.