Functional Safety Market

Global Functional Safety Market Size (2023 to 2028)

The global functional safety market size is expected to be worth USD 5.52 Billion in 2023. It is expected to grow at a CAGR of 8.30% during the forecast period and reach a value of USD 8.22 Billion by 2028.

Functional safety is considered part of general safety, which depends on the normal and correct operation of the entity or system in response to the inputs that are provided to it. We are surrounded by systems in various places, such as factories, public places, offices, and household appliances, that can pose a threat to our safety if they malfunction under certain conditions. Functional safety applies to all industries today, and its demand is increasing as manufacturers and end-users seek to mitigate risk further. With the increasing use of automated equipment for manufacturing, testing, and process control, the need to prevent property damage, injury, and environmental damage is more critical than ever. The increasing demands and expectations of governments and workers have led manufacturers and suppliers to use predictable means to produce and design equipment that meets certain safety requirements.

The global GDP growth rate is projected to decline by 0.5% in 2020, putting the growth outlook on a negative trend in an already weak global economy. Many countries are already implementing recovery plans to cope with the economic crisis caused by the COVID-19 epidemic. The United States passed a bill called the Coronavirus Economic Relief, Relief and Security Act, also known as the CARES Act, under which $ 2 trillion will be spent on five components, namely individuals/families, large corporations, small businesses, states, and local communities governments and public services. The interest in functional safety items and arrangements is straightforwardly reliant on assembling exercises. In this manner, activities taken by different governments will help animate the development of organizations engaged with the improvement of functional safety items and arrangements.

Functional safety systems should be installed as a safety measure to protect workers, machines, and production lines in the event of an emergency. The price of functional safety components, installation costs, and maintenance and repair costs add significantly to the organization's budget. While large organizations can manage these expenses, it can be difficult for small and medium-sized businesses. Additionally, functional safety must meet regulatory standards. Security standards are frequently updated based on technological advancements and new mandates, forcing organizations to update their security systems. This upgrade requires additional investments in security systems and components. Therefore, this factor acts as a restriction, especially for small and medium-sized industries.

Impact of COVID-19 on the functional safety market:

The COVID-19 outbreak and lockdown restrictions around the world have affected industrial activities around the world. Some of the effects of foreclosure include supply chain disruptions, unavailability of raw materials used in the manufacturing process, labour shortages, price fluctuations that could inflate and exceed budget, production of the final product, shipping problems, etc. From a demand perspective, industries such as oil and gas are facing the effects of the COVID-19 outbreak. For this reason, producers quickly reduced capital expenditures and drilling programs. The pandemic has impacted the progress of several projects, causing the blockage or delay of the pipelines. The manufacturing industry has contracted significantly due to the pandemic, as the industry faces unprecedented challenges in the supply chain and sourcing of raw materials, resulting in significant losses for manufacturers. Few industries, such as agribusiness and pharmaceuticals, have been deemed essential by governments.

REPORT COVERAGE:

This research report on the global functional safety market has been segmented and sub-segmented into the following categories.

Functional Safety Market - By System:

• Emergency Shutdown System (ESD) 
• Fire & Gas Monitoring System 
• High Integrity Pressure Protection System (HIPPS) 
• Burner Management System (BMS) 
• Turbomachinery Control (TMC) 

Functional Safety Market - By Offering:

• Component 
  • Safety Sensor 
  • Programmable Safety System 
  • Safety Controller/Module/Relay 
  • Safety Switch 
  • Emergency Stop Device 
  • Final Control Elements 
• Service 
  • Testing, Inspection, and Certification 
  • Maintenance 
  • Training and Consulting 

The safety switches section represented the biggest piece of the overall Industry at 18.1% in 2019, with a market estimation of USD 723.7 million; it is relied upon to enlist a CAGR of 5.0% during the figure time frame. Security switches are electrical changes intended to work as a method for disengaging an assistance passage and initiating issue assurance for large equipment. A safety valve is a fail-safe safety device designed to open and relieve overpressure from a container or equipment. Programmable security systems are computer systems that are used to detect an error in automated machines and thus send early alerts. Emergency stop devices are safety devices used in an emergency that require a complete stop of the machines.

Functional Safety Market - By Industry:

• Oil & Gas 
• Power Generation 
• Chemicals 
• Food & Beverages 
• Water & Wastewater 
• Pharmaceuticals 
• Metal & Mining 
• Others 

The food and beverage industry is expected to grow at the highest CAGR from 2020 to 2025. The food and beverage industry strives for consistent, high-quality products at a low price. This can be achieved by making food and beverage factories more secure, flexible, and profitable by choosing an integrated approach to automated safety control systems, such as functional safety solutions. Also, in food processing plants, various dangerous machines are used, and plant managers must adhere to safety rules to avoid penalties. Today, food and beverage manufacturers rely more on automated controls for production.

Functional Safety Market – By Region:

• North America 
• Asia-Pacific
• Europe
• Latin America
• Middle East and Africa

North America represented the largest market share of 35.22% in 2019, with a market value of $ 1,406.7 million. The market is expected to post the highest CAGR of 5.8% during the forecast period. The United States is one of the largest functional safety markets in the world. The country is known for its innovative capabilities and is at the forefront of important developments around the emerging technologies of the Fourth Industrial Revolution. New shale resources in the United States and a growing number of oil and gas projects are another indicator of market potential.

Europe was the second biggest market in 2019, valued at USD 1,233.1 million. The market is relied upon to enlist a CAGR of 4.6%.

KEY MARKET PLAYERS:

Major players operating in the functional safety market include Rockwell Automation, Inc., ABB Ltd., Welspun, Schneider Electric SE, General Electric Co., Omron Corporation, Honeywell International Inc., Intel Corporation, Siemens AG, Yokogawa Electric Corporation, HIMA Paul Hildebrandt GmbH, Mitsubishi Electric Corporation, and Emerson Electric co.

RECENT HAPPENINGS IN THE MARKET:

• Large textile company Welspun India is entering the health and hygiene segment to respond to the challenges of the coronavirus pandemic, a senior company official said.
• Global Technology Company ABB has launched ABB AbilityTM Safety Plus for Hoists, a suite of mine hoist safety products that it believes provide the highest level of safety for personnel and equipment available for use.
• Industry-driving computerization arrangements supplier Omron Automation Americas, as of late, declared another TÜV Rheinland Functional Safety for Technicians, preparing a project to assist organizations with extending their representatives' comprehension of the security necessities and grow their ability in safety framework support and activity.