Industrial Safety Market to Grow 6.3 Billion in 2027

industrialThe industrial safety market is projected to grow from USD 6.3 billion in 2022 to USD 8.8 billion by 2027; it is expected to grow at a CAGR of 6.8% from 2022 to 2027. The growth of the industrial safety market is driven by the high requirement for reliable safety systems to ensure personal and asset protection, and strict mandates for safety regulations.

Key Market Players

The industrial safety players have implemented various types of organic as well as inorganic growth strategies, such as new product launches, acquisitions, and agreements, to strengthen their offerings in the market. The major players are Schneider Electric SE (France), Honeywell International Inc. (US), ABB Ltd. (Switzerland), Rockwell Automation, Inc. (US), Siemens AG (Germany), Emerson Electric Co. (US), Baker Hughes (US), HIMA (Germany), Yokogawa Electric Corp. (Japan), and Omron Corporation (Japan) were the major players in the industrial safety market.

COVID-19 impact on the industrial safety market

The COVID-19 pandemic has affected the oil & gas industry badly, with oil prices slashing drastically. The major decline in the demand of oil and gas due to various restrictions imposed by governments worldwide in 2020 resulted in a huge gap between the supply and demand. Oil & gas is one of the key industries requires safety systems and components. Chemicals and energy & power industries are also among the key end users of valves; these industries also witnessed reduced demand due to the global pandemic. There were restrictions on foreign trades due to the lockdown of international borders, non-operational distribution channels, and various precautionary measures undertaken for public health and safety. However, an increase in demand from the energy & power sector is likely to drive the industrial safety market for the energy & power end-user industry gradually from 2022 to 2027.

The business for safety systems specific to the pharmaceuticals end-user industry is less affected than other industries. Pharmaceutical companies need better control over operational excellence to be in line with the innovations taking place in the industry. Maintaining a safe, consistent, and efficient manufacturing process is the basic requirement to ensure the highest quality of products. The growing cost pressures, regulatory and safety guidelines, and increasingly diverse product portfolios are among a few of the challenges faced by this industry. Hence, prompt control and monitoring of production processes are necessary. Safety system enables the processes to function according to the regulatory safety standards and deliver maximum output with utmost safety. Therefore, the use of safety systems and components has helped pharmaceuticals companies eliminate process constraints, such as contamination, dead space, leakages, crystallization, fire safety, and temperature measurement.

Market Dynamics

Driver: Strict mandates for safety regulations

Mandates for safety regulations play a significant role in the growth of the industrial safety market. The US government and governments of countries in Europe are undertaking constructive measures to prevent accidents by enforcing regulations related to personnel and process safety and installing certified equipment, including explosion-proof sensors, switches, and actuators in hazardous locations. However, organizations such as Occupational Safety and Health Administration (OSHA), International Electrotechnical Commission (IEC), International Standard Organization (ISO), and American National Standards Institute (ANSI) have implemented safety standards and regulatory measures to monitor and enhance the efficiency of industrial processes. Machine safety regulations, such as EU Machinery Directives and North America’s OSHA regulations, have helped drive the growth of the industrial safety product market.

Restraint: High investments required for automation and installing industrial safety systems

Industrial safety systems are required to be installed as a safety measure for safeguarding employees, machines, and production lines in an emergency situation. The price of industrial safety components, installation cost, and maintenance and repair costs put a substantial burden on the organizational budget. Though large organizations can manage these expenses, it can be difficult for small and medium-sized organizations. In addition, industrial safety has to comply with regulatory standards. The safety standards are frequently updated according to the technological advancements and new mandates, resulting in the obligation on organizations to upgrade their safety systems. This upgrading requires additional investments in safety components and systems. Therefore, this factor acts as a restraint, especially for small and medium-scale industries.

Opportunity: Increasing usage of Industrial Internet of Things

IIoT is creating new opportunities for integrated safety and compliance services. IIoT can acquire data from sensors that measure pressure, level, flow, temperature, and vibration, and send this collected information to monitoring systems. The data is transmitted through wired and wireless networks that provide real-time analysis, alerts, and possible solutions in case of any emergency situation. Using IIoT, companies can integrate their processes with safety systems and can monitor the same in real-time. IIoT facilitates quick monitoring, analysis, and control, offering virtual management of physical systems, which ultimately results in performance improvement. With the increasing adoption of IIoT, the demand for industrial safety is expected to grow during the forecast period.

Challenge: Failure to access all machinery-related risks

Complete machine guarding requires risk assessment that considers inputs not only from guard designers, but also from machine operators, maintenance personnel, supervisors, engineers, safety professionals, machine guarding experts, and original equipment manufacturer (OEM) representatives. It is difficult for a designer to independently anticipate all potential hazards associated with equipment setup, operation, inspection, and maintenance. Comprehensive planning and execution are required in situations where workers need to access areas inside machine guards. Insufficient risk assessment can also overlook important requirements regarding the design and performance of interlock devices and monitoring components such as relays, safety-rated programmable logic controllers, which are used for protection while performing alternative safeguarding measures.

The presence sensing safety sensors component of the industrial safety market is projected to hold the largest market share of industrial safety market from 2022 to 2027.

The presence sensing sensor market is expected to hold the largest market share owing to the need for security requirements for protecting workers and production units from any accidents mandated by the strict industrial safety regulations based on the national and international standards. Moreover, the factors such as the rise in industrial revolution 4.0, increasing need for safety light curtains in the packaging industry powered by robotics, and rising incidents of accidents in industries are driving the demand for presence sensing safety sensors of industrial safety market.

The industrial safety market for food & beverages industry is projected to grow at the highest CAGR during the forecast period.

The food & beverages segment is expected to grow at the highest CAGR during the forecast period. As regulations and regulations are becoming more stringent, there is an upsurge in demand for industrial safety systems to achieve safe and efficient operations in food & beverage manufacturing plants. The food & beverages industry strives to achieve high quality and consistent production at a low cost. This can be achieved by making food & beverages plants more safe, flexible, and profitable by choosing an integrated approach of automated safety control systems such as industrial safety solutions. The safety systems help in achieving greater operation transparency across production lines and reduction of compliance costs through timely corrective actions.

The industrial safety market in APAC is projected to hold the largest share throughout the forecast period.

APAC is expected to dominate the global industrial safety market during the forecast period owing to increasing industrialization in emerging economies such as China and India. China and India have already adopted industrial safety in various processes such as oil & gas and power generation. The adoption of safety automation solutions in manufacturing industries in this region is increasing significantly with rapid industrialization, thereby contributing to market growth.

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