Market Challenges And Opportunities

Global Safety Instrumented System Market Drivers:

Increasing regulatory environment in the industry to drive the market growth

Industries such as power generation, chemicals and petrochemicals, food and beverage, pharmaceutical, and others have industrial processes that are regulated closely by different governing bodies for preventing mishaps and sudden breakdowns. The regulatory environment in recent times has become strict for promoting the deployment of SIS for safety purposes. For instance, the American National Standards Institute (ANSI) accepted the ISA 84 standard and specified needs for the SIS assessment, installation, design, maintenance, and operation of these systems. As a result, the demand for safety instrumented systems is increasing. Thus, the rising regulatory environment in industry is expected to fuel growth of the global safety instrumented system market over the forecast period.

Presence of strong SIS service ecosystem to augment the market pace

The industrial activities are growing rapidly, as the pandemic situation has returned to normal across several regions around the world. The co-ordinated service ecosystems is growing, as the growing industrial activities in end user industries along with various government regulations are rising for preventing environmental and occupational hazard. The landscape of government regulation is tightening the loopholes of companies and is deploying additional protection layers. This is directly promoting the growing SIS service ecosystem. As a result, the global safety instrumented system is expected to show strong growth over the forecast period.

Global Safety Instrumented System Market Opportunities:

Increasing Industrial Internet of Things (IIoT) use is expected to provide substantial opportunities in the global safety instrumented system market over the forecast period. With the emergence of IIoT, the pneumatics technology has become highly functional, with novel capabilities in measurement and tracking. This provides greater insights into operation of machines and performance of subsystems and components. These additional functionality are providing lucrative opportunities for monitoring machine safety characteristics and providing protection to people and equipment from harm.

Rise in power projects to cater increasing demand of electricity is also projected to generate lucrative opportunities in the global safety instrumented system market during the forecast period. Due to rise in power projects, the implementation of safety instrumented system at plant locations has gained momentum. As per the U.S. nonprofit Global Energy Monitor (GEM), in November 2021, Asia had 200 coal power plants under construction, including 23 in Indonesia, 28 in India, and 95 in China. Thus, this factor is likely to bring business opportunities in the market.

Global Safety Instrumented System Market Restraints:

High cost maintenance and operational complexity of SIS to hinder the market growth

The adoption of safety instrumented system is substantially low in small- and medium-sized enterprises of emerging countries such as Brazil, as these countries are not capable of bearing the product costs. Moreover, the timely maintenance of these products is also essential; however, it puts price pressure on the end-user. Furthermore, deploying these SIS products needs a robust cross-fertilizing synergy among technology providers, end users, and innovators. Thus, abovementioned factors are expected to restrain growth of the global safety instrumented system market over the forecast period. However, development of advanced SIS products with ease of use and requiring minimal maintenance cost, by market vendors is likely to support the market growth.

Growing inclination among end users toward renewable energy sources to limit the market growth

Several major oil and gas companies are diversifying the business into renewable energy. This in turn is impacting the safety business environment. The shift towards wind or solar energy can provide a platform to end users that can produce less wastage, has minimal needs of maintenance, and can eliminate the need for a safety system. Installing a renewable energy needs a control system. This in turn is impacting the demand for safety instrumented systems. Thus, the aforementioned factor is expected to hamper growth of the global safety instrumented system market over the forecast period.