FUNCTIONAL SAFETY MARKET ANALYSIS

The global functional safety market size was valued at US$ 4,639.2 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 11.5% from 2022 to 2030. The functional safety market is expected to experience significant growth in the coming years. The market is driven by the demand for reliable and secure safety systems. Major drivers of growth include increasing adoption of automation technology across various industries, strict government regulations regarding product safety standards, and the growth of the oil and gas industry. Moreover, the rising emphasis on industrialization in developing nations is also expected to drive the market.

Global Functional Safety Market: Regional Insights

The global functional safety market was regionally divided into North America, Latin America, Asia Pacific, Europe, and Middle East and Africa.

North America is anticipated to witness significant growth in the global functional safety market over the forecast period. The region is known to be of the major markets for functional safety all over the world, as the countries such as the U.S. is renowned for its innovation capabilities and is a leading country for developments in new technologies of the 4^th Industrial Revolution. Moreover, governments across this region are focused on growing their capacity of generating energy, and the government of the U.S. is investing in related projects. For instance, in October 2022, the U.S. Department of Energy (DOE) revealed that the Idaho National Laboratory (INL) will be receiving US$ 150 million in financing from the President’s Inflation Reduction Act for modernizing its infrastructure and advance nuclear energy R&D.

Furthermore, Asia Pacific is also expected to gain a dominating share in the global functional safety market over the forecast period. This can be due to rise in industrialization in developing countries such as India and China. Moreover, countries in this region are increasingly accepting the international functional safety standards. Along with this, the growing industrial emphasis, adoption of safety systems, rapid industrialization, and functional and organizational safety influenced by multinational companies is also supporting growth of the market in this region.

Figure.1: Global Functional Safety Market Share (%), By Region,2021

To learn more about this report, request sample copy

Global Functional Safety Market Drivers:

Rise in standards for industrial safety to boost growth of market

Due to the introduction of rigorous approaches in different international and regional standards of industrial safety, the over lifecycle of safety of a systems has been enhanced as compared to the use of best engineering design practices that were used in the past. Thus, industrial safety standards are increasingly being implemented within industries. Moreover, rise in number of hazardous areas, and frequency of accidents in these areas has also contributed to increased demand for functional safety. Thus, rise in standards for industrial safety is expected to propel growth of the global functional safety market over the forecast period.

Growing adoption of functional safety systems in several industries to drive the market pace

The use of functional safety systems and a datacentric approach offers needed functionalities enabling automatic prevention of hazardous failures and control in instances of such occurrences in various industries. These systems also offer facilities that cannot be mimicked by humans. The number of enterprises increasingly depend on such electronic, electrical, and programmable electronic safety-related systems for protecting the environment, people, and physical assets in different industries. Thus, the adoption of functional safety systems is increasing, which in turn is expected to boost growth of the market.

Global Functional Safety Market Opportunities:

Increasing growth of services market is expected to create several growth opportunities in the global functional safety market over the forecast period. Due to rise in adoption of safety instrumented systems (SIS) that are produced by manufacturing companies and increasing demand for functional safety in the chemical and oil & gas industries, the services market relate to functional safety is witnessing strong growth. This in turn is offering various business opportunities in the market.

Growing number of work related injuries is creating demand for functional safety systems, which is anticipated to offer various business opportunities in the global functional safety market over the forecast period. For instance, as per the Coherent Market Insights, 1.3 million workers suffered work-related injuries or illnesses; over 72,702 employee suffered non-fatal injuries, and more than 144 workers died due to work related incidences. Thus, these factors are increasing demand for functional safety systems, which in will support growth of the market.

Global Functional Safety Market Trends:

Growing adoption of industrial internet of things (IIoT) is a major trend

The adoption IIoT has created new avenues for integrated safety and compliances services. IIoT can acquire data from sensors measuring level, pressure, temperature, flow, and vibration and then transfer this information to monitoring systems. The use of IIoT allows companies to integrate their processes with safety systems and monitor the system in real time. IIoT makes monitoring, analyzing, and controlling quick, which offers virtual management of physical systems. This ultimately improves the performance. Thus, the rise in adoption of IIoT is expected to continue in the market over the forecast period.

Increasing growth of food and beverage industry is recent trend

The food and beverage industry focuses on achieving high quality and consistent production at lower price. To achieve this, the food and beverage plants should be made more safe, flexible and profitable, by going for an integrated approach of automated safety control systems. Along with this, the manufacturing plants in the industry use various dangerous machines that should be following safety regulations for avoiding penalties. And lately, manufacturers in this industry are relying more on automated controls for production. Thus, this in turn is expected to create significant demand for functional safety solutions, which in turn is expected to boost the market growth.

Global Functional Safety Market Restraints:

Rise in complexity along with high initial and maintenance costs to impede market growth

The demand for functional safety systems is increasing across the globe; however, the rise in complexity coupled with high cost of maintenance and high cost of initial setup dissuades enterprises from adopting these systems, which in turn is expected to hinder growth of the global functional safety market over the forecast period. The cost of functional safety systems is high due to the strong and efficient software and hardware of the system. This also includes higher capital expenditure for investing in hardware such as safety controllers/modules/relays, safety sensors, emergency stop devices and more. Along with this, the hardware devices need timely upgrades as the need for addressing performance concerns is increasing. Thus, these factors are expected to hamper growth of the market. However, growing focus of market players on developing cost effective solutions is likely to support the market growth in the near future.

Lack of awareness and complexity of global standards to restrain the market pace

The lack of awareness regarding benefits of using functional safety systems is a major restraining factor in the market. Workforce from developing countries working in factories and plants lack awareness regarding the availability of safety devices that can safeguard the labor and the machinery. Most of the manufacturers in these regions do not appoint safety experts who can provide insights about the use of necessary safety devices in every process or machine. Thus, this factor is likely to impact adoption of functional safety systems, which in turn is expected to propel growth of the global functional safety market over the forecast period.

Figure.2: Global Functional Safety Market Share (%), By Device Type, 2021

To learn more about this report, request sample copy

Global Functional Safety Market Segmentation:

The global functional safety market report is segmented into Device Type, Safety Systems, and End User Industry.

Based on Device Type, the market is segmented into Safety Sensors, Safety Controllers/Modules/Relays, Safety Switches, Programmable Safety Systems, Emergency Stop Devices, Final Control Elements (Valves, Actuators), and Other Device Types. Out of which, Safety Sensors is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for LEDs deployed on the sensors for indicating different errors, door open/closed signaling, and misalignment signaling in pharmaceutical applications. Several companies are focused on development of safety sensors with RFID technology for obtaining maximum safety. This is likely to support growth of the segment.

Safety Controllers/Modules/Relays segment is also expected to witness significant growth in the near future and this is owing to the growing demand for these devices. Safety relays and safety controllers monitor the primary safety devices, which protect people from injury and accident, to ensure safe stop-and-start functions on equipment having hazardous motions. Thus, demand for these devices is increasing, which in turn is expected to support growth of the market.

Based on Safety Systems, the market is segmented into Burner Management System (BMS), Turbomachinery Control (TMC) System, High-Integrity Pressure Protection Systems (HIPPS), Fire and Gas Monitoring Control System, Emergency Shutdown Systems (ESD), Supervisory Control and Data Acquisition (SCADA) Systems, and Distributed Control System (DCS). Out of which, Burner Management System (BMS) is expected to dominate the global market over the forecast period and this is attributed to the growth of oil and gas industry. This industry is one of the major industries that uses a burner management systems to replace antiquated and hazardous forms of reignition with automated and safe burner detection and reignition. Thus, growth oil and gas industry is expected to support growth of this segment.

Turbomachinery Control (TMC) System segment is also expected to witness significant growth in the near future and this is owing to the growing energy demand across the globe leading to rise in demand for hydroelectric turbines, industrial gas turbines, and others to cater the energy need. As per the EPA, in the U.S., the electricity demand is likely to be 1.5%-6.5% by 2050.

Based on End User Industry, the market is segmented into Oil and Gas, Power Generation, Food and Beverage, Pharmaceutical, Automotive, and Other End user Industries. Out of which, Oil and Gas is expected to dominate the global market over the forecast period and this is attributed to the growing focus of companies in this industry on maximizing efficiency and minimizing costs through the distribution chain. Automation helps in integrating information and power, control, and safety solutions for catering the stringent government regulations and demand for affordable energy. This creates need for functional safety solutions in this industry, which in turn supports growth of the market.

Power Generation segment is also expected to witness significant growth in the near future and this is owing to the growing investments in smart grid across the globe creating demand for functional safety solutions. Utilities around the globe are deploying more sophisticated technologies, which includes digital twinning and artificial intelligence. For instance, as per the IEA study, investments in digital technologies such as utility automation, electric vehicle charging infrastructure, and advanced metering infrastructure made up higher than 15% of the total grid spending. This is expected to support the segment growth in the near future.

Global Functional Safety Market: Key Developments

In May 2022, Honeywell International Inc. announced a new initiative for emissions control and reduction to assist clients become carbon neutral in various contexts. This initiative will be concentrating initially on assisting oil and gas customers with downstream, midstream, and upstream operations for monitoring and reducing fugitive methane emissions.

In July 2022, ABB Ltd., signed a memorandum of understanding (MoU) with SKF for investigating the potential for cooperation in the automation of manufacturing process. Under this MoU, both the companies will be working together to find and assess solutions for enhancing production capabilities and support increased production efficiency of the clients.

In September 2022, Yokogawa Electric Corporation, announced the acquisition of Votiva Singapore Pte Ltd, a Southeast Asian IT consultant offering services for deploying software of enterprise resource planning (ERP) as well as customer relationship management (CRM).

In May 2022, Scheider Electric SE, introduced Grid Operations Platform as a Service, as a part of its EcoStruxure Grid line-up. Schneider Electric provides a deployment of environment enabling grid planning and operations solutions for hosting and controlling in the cloud, which is supported by open cloud computing platform of Microsoft Azure.

Global Functional Safety Market: Key Companies Insights

The global functional safety market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global functional safety market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE, Emerson Electric Company, Panasonic Industry Europe GmbH (Panasonic Corporation), Honeywell International Inc., Sick AG, Yokogawa Electric Corporation, Omron Corporation, ABB Ltd., General Electric Company, Schneider Electric SE, and Siemens AG.

*Definition:

A Functional Safety system is a set of devices that help to minimize the risk of equipment damage or harm. These systems are used in various industries, including petrochemical, power plants, manufacturing, healthcare and more. For example, a functional safety system can prevent a runaway reaction in a chemical reactor by monitoring the temperature. It can also be used to stop a robotic arm from moving toward a dangerous situation.