SAFETY INSTRUMENTED SYSTEM MARKET ANALYSIS

The global safety instrumented system market size was valued at US$ 4.12 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030. Increasing industrialization and investments in the energy sector are driving growth for the global safety instrumented system market. The increased number of accidents in chemicals and petrochemicals industry, a rising trend to reduce the production cost, growing demand for safer work environments in pharmaceutical industries, and improved government regulations regarding employee safety are also driving the global safety instrumented systems market.

Global Safety Instrumented System Market: Regional Insights

North America is projected to witness strong growth in the global safety instrumented system market over the forecast period. This is owing to continuously growing urbanization along with increasing industrialization the region. Moreover, the demand for energy is increasing in the region, and along with it, the industrial accidents are also increasing. Thus, the demand for safety measures is increasing steadily in the region. From the standpoint of safety, the consumer demand for safety systems has increased in the region along with the convenience of use in connection with other systems. Thus, the region is likely to show substantial growth in the global safety instrumented system market during the forecast period.

Moreover, Asia Pacific is also anticipated to show robust growth in the global safety instrumented system market during the forecast period, owing to rising industrial activities, growing cost pressure and production rates, and supportive government policies in the emerging countries such as India and China. Industries such as food and beverages have a legal and moral responsibilities to provide protection to their employees from hazardous chemicals, heavy machinery, and slick surfaces. Thus, rising growth of such industries in the Asia Pacific region is also expected to drive growth of the market in this region.

Figure 1: Global Safety Instrumented System Market Share (%), By Region, 2022

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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 Trends:

Growing oil and gas industry is a major trend in the market

The oil and gas industry is one of the major user of safety instrumented system. The oil production capacity of this industry is increasing, targeting five million barrels every day by 2030, as the oil recovery schemes and ongoing in-fill drilling are expanding due to maturing field development plans of ADNOC. This has in turn increased the oil and gas reserves, which is in turn encouraging the demand for SIS. Thus, this trend is likely to continue in the global safety instrumented system market over the forecast period.

Rise in government initiatives is another trend in the market

The initiatives by government and related regulatory bodies and companies are increasing for propelling the exploration activities. This in turn is driving the adoption of the safety instrumented systems. For instance, as a part of 2030 strategy of ADNOC, the company is planning to tap gas from novel natural gas accumulations, substantial unconventional gas reserves, and gas caps. Thus, this trend is expected to drive demand for safety instrumented systems, which in turn will drive growth of 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. 

Figure 2: Global Safety Instrumented System Market Share (%), By End User, 2022

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Global Safety Instrumented System Market Segmentation:

The global safety instrumented system market report is segmented into Application and End User.

Based on Application, the market is segmented into Emergency Shutdown Systems (ESS), Fire and Gas Monitoring and Control (F&GC), High Integrity Pressure Protection Systems (HIPPS), Burner Management Systems (BMS), and Turbo Machinery Control Other Applications. Out of which, Emergency Shutdown Systems (ESS) is expected to dominate the global market over the forecast period and this is attributed to the rise in number of industrial accidents due to complexity of manufacturing and industrial applications. Moreover, governments are imposing regulations to promote adoption of advanced technologies for ensuring safety of workers. These factors in turn are driving the demand for emergency shutdown systems, which is expected to aid in growth of this segment.

Fire and Gas Monitoring and Control (F&GC) segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of F&GC systems among most of the end-use applications. Fire and gas monitoring and control systems are important to maintain the overall safety and operations of industrial facilities. These systems help protect the facilities and people from dangerous situations, such as toxic/combustible gas leaks.  Thus, adoption of these F&GC systems is increasing rapidly, which is likely to support growth of this segment.

Based on End User, the market is segmented into Chemicals and Petrochemicals, Power Generation, Pharmaceutical, Food and Beverage, Oil and Gas, and Other End Users. Out of which, Chemicals and Petrochemicals is expected to dominate the global market over the forecast period and this is attributed to the increasing benefits of safety instrumented systems compared to conventional safety systems. The chemical and petrochemical industries are constantly evolving, and the need for upgradation and expansion of aging safety problems as well as infrastructures is important. Thus, use of SIS is increasing in these industries, which in turn is driving the market growth.

Power Generation segment is also expected to witness significant growth in the near future and this is owing to the early adoption of safety systems, as the importance of predictive maintenance of the infrastructure and equipment in the industry is high. The power generation sector consists of renewable and conventional electricity and transmission and water and wastewater services. The need for following industry safety regulations as well as government protocols is increasing in the industry, which is expected to drive demand for safety instrumented system in the power generation segment.

Global Safety Instrumented System Market: Key Developments

In October 2021, Emerson Electric Co. announced the launch of the first valve assemblies to cater the needs of design process of safety integrity level (SIL) 3 as per the IEC 61508 standard of the International Electrotechnical Commission.

In May 2021, Yokogawa Electric Corporation achieved ISASecure CSA Level 1 certification from the ISA Security Compliance Institute *1 for the ProSafe-RS safety instrumented system, which is a product in the series of Safety and OpreX Control System.

In May 2021, Schneider Electric introduced an enhanced version of the EcoStruxure Triconex Safety View, which is a software application of alarm management and dual safety- and cybersecurity-certified bypass.

In August 2021, AESolutions, announced to have received the Siemens SIMATIC PCS 7 Process Safety Specialist Certification. aeSolutions is the first Siemens safety-certified solution partner in North America.

Global Safety Instrumented System Market: Key Companies Insights

The global safety instrumented system 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 safety instrumented system market are Schlumberger Limited, Rockwell Automation Inc., SIS-TECH Solutions LP, Emerson Electric Company, HIMA Paul Hildebrandt GmbH, Honeywell International Inc., Siemens AG, Yokogawa Electric Corporation, Schneider Electric SE, and ABB Ltd.

*Definition: A safety instrumented system (SIS) monitors that the operating conditions of a plant are within safe limits and free of hazards. It is in charge of safeguarding people around the plant, assets, production and the environment. SIS performance is, therefore, critical.