Safety Instrumented System Market Forecasts to 2030 - Global Analysis By Product Type (Burner Management Systems, Emergency Shutdown Systems and Other Product Types), Component Type, Application and By Geography

According to Stratistics MRC, the Global Safety Instrumented System Market is accounted for $4.3 billion in 2023 and is expected to reach $7.8 billion by 2030 growing at a CAGR of 8.9% during the forecast period. Systems for safety instrumentation are essential for adding a layer of safety to many industrial processes and automation systems. It makes it easier to identify hazards, specify safety requirements, and maintain systems and operations during the plant's lifespan. As the safety instrumentation systems are used to restore the process to a safe state when safe operating conditions are breached or safety limits are exceeded, they are widely employed to protect the environment and the neighbouring populations.

According to International Energy Agency, the oil and gas revenues for a number of key producers fell between 50 to 85% in 2020; compared with 2019, the losses could even be larger depending on future market developments.

Market Dynamics:

Driver:

Growing regulatory landscape

To prevent unanticipated failures and mishaps, the industrial processes used to produce chemicals and petrochemicals, power, medicines, food and drinks, oil, and gas, as well as other end users, are rigorously monitored by multiple regulatory bodies. The regulatory landscape has tightened up to encourage the adoption of SIS as a prophylactic measure. Since insurance benefits and legislation are related to these standards, businesses are building solutions that are compliant. Adopting rigorous approaches in many international and regional industrial safety standards has increased a system's overall safety lifespan compared to the finest engineering design methods of the past. As a result, the industry's adoption of these standards has seen a wide and noticeable rise thus amplifying the market growth.

Restraint:

Operational challenges and high maintenance cost

To implement safety instrumented systems, a considerable cross-fertilizing synergy between end users, technology suppliers, and innovators is required. The deployment of the technology in industrial contexts faces a number of real challenges, including regulations, industry standards, and industry adoption of the technology. For more sophisticated activities, like making sandwiches, automation in the food sector is still impractical. Such operations need extensive automation. Furthermore, high integrity pressure protection systems need a substantial financial expenditure to deploy. Leasing options need a steady financial commitment as well. The purchase and installation of a safety instrumented system for industrial automation costs fifty percent of the total cost of the system. Thus, the market is constrained by these factors.

Opportunity:

Emergence of IIoT

Pneumatics technology is becoming increasingly useful with the Industrial Internet of Things (IIoT), with new tracking and measuring capabilities that offer improved insight into machine operation and component and subsystem performance. A more profitable chance to monitor the machine's safety features and protect people and property is brought on by these increased capabilities. Local financial institutions' monetary policy decisions to keep manufacturing facilities open during the pandemic crisis, the oil and gas industry's soaring demand for safety systems, strict safety regulations, the advent of industrial revolution 4.0, and the high demand for dependable safety systems to ensure asset and personnel protection all contributed to the market growth.

Threat:

Availability of raw commodities and fierce competition

Due to a lack of understanding and the complexity of the standards in the various end-user sectors, little variation in growth is anticipated. It has been determined that a relatively poor response rate, together with expensive operating and product expenses, would significantly impede the growth of the market for safety instrumentation systems over the anticipated period.

COVID-19 Impact:

Due to the regulatory limitations put in place to combat the spread of the virus, the global COVID-19 epidemic has had a considerable negative influence on the development of numerous industries. Most businesses were forced to suspend production entirely or to drastically reduce it. The pandemic thus had a significant effect on the development of Safety Instrumented Systems (SIS). Furthermore, the impact was significantly greater for many oil-producing poor nations, as oil accounts for the majority of their exports and government income, restricting their capacity to respond to the many internal pressures brought on by COVID-19.

The emergency shutdown systems (ESD) segment is expected to be the largest during the forecast period

The emergency shutdown systems (ESD) segment is estimated to have a lucrative growth, due to a safety mechanism that automatically shuts down the facility if it changes into a potentially hazardous state. This is known as a Safety Instrumented System (SIS) in various nations. The Emergency Shutdown System (ESD) is intended to lessen the effects of emergency events, such as uncontrollable floods, hydrocarbon escape, or fire outbreak in hazardous or hydrocarbon-carrying locations which propels the growth of the market.

The oil & gas segment is expected to have the highest CAGR during the forecast period

The oil & gas segment is anticipated to witness the highest CAGR growth during the forecast period, as the market demand is being stimulated by the expanding advantages of safety instrumented systems over conventional safety systems. Traditional safety measures are hardwired and deployed through an electrical control system, which can result in incidents that might harm people, property, and the environment. This will increase the need for safety instrumented systems in the petrochemical sector, which offer a number of benefits including increased field life, decreased unplanned downtime, lower annual maintenance costs, elimination of unforeseen repair costs, and compliance with current codes and standards. Therefore, industry development will be fuelled by the growing benefits of safety instrumented systems over traditional safety systems.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to its quickly expanding industrial activity, growing cost pressures and production rates, and favorable government policies in developing nations like China and India. Manufacturers have adapted to shifting consumer expectations depending on use by creating new products for niche markets. Additionally, more complicated systems have been produced as a result of an increase in the number of safety instrumented systems. Additionally, the use of these systems has grown in the oil and gas, chemical, and power sectors because they provide the monitoring of consumption hours, various boiler management functions, stack temperature, boiler efficiency, and other crucial factors.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to crucial in offering protective layer functions in many industrial processes and automation systems. The phrase "safety system engineering" describes a rigorous and disciplined approach to danger assessment, the definition of safety requirements, and system upkeep and operation over the course of a plant's life. The development of the safety instrumented system industry depends on the expansion of the petrochemical and energy industries. Additionally, as the process industry moves closer to adopting higher safety requirements, control systems that can adapt, including steam turbines, compressors, and variable speed drives, could be required to retain profitability while fulfilling flexible needs.

Key players in the market:

Some of the key players profiled in the Safety Instrumented System Market include: Honeywell International Inc., General Electric Company, Schneider Electric SE, Emerson Process Management, ABB Ltd, Yokogawa Electric Corporation, Siemens AG, Rockwell Automation Inc., Johnson Control, Inc., OMRON Corporation, Tyco International Plc., HIMA Paul Hildebrandt GmbH, SIS-TECH Solutions LP and Baker Hughes

Key Developments:

In August 2023, GE Vernova's Digital business signs collaboration agreement with AWS to help manufacturers and utilities accelerate digital transformation using cloud-based Proficy® software solutions, the collaboration aims to help diverse industrial organizations ranging from manufacturers.

In April 2023, Honeywell partners with give me trees to launch plantation drive on earth day, the company will plant 1.6 lakh trees across Pune and Bengaluru. GMT will source the saplings, support plantation drives and conduct employee volunteering as well as ensure maintenance of these plantations for 3 years.

In March 2023, Honeywell successfully launches phase one of bangalore safe city project, The project includes the installation of more than 7000 cameras in more than 3000 strategic locations across the city along with a state-of-the-art Command and Control Center for City Surveillance

Product Types Covered:

• Burner Management Systems (BMS)
• Emergency Shutdown Systems (ESD)
• Fire and Gas Monitoring and Control (F&GC)
• High Integrity Pressure Protection Systems (HIPPS)
• Turbo Machinery Control
• Other Product Types

Component Types Covered:

• Emergency Stop Devices
• Programmable Safety Devices
• Safety Sensors
• Safety Switches
• Other Component Types

Applications Covered:

• Chemical
• Oil & Gas
• Pharmaceutical
• Paper & Pulp
• Metal & Mining
• Wastewater Treatment
• Food & Beverages
• Power Generation
• Energy & Power
• Aerospace & Defense
• Semiconductor
• Healthcare & Pharmaceuticals
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances