Global Functional Safety Market: The strict safety standards and policies set by the government to ensure the protection of personnel is the primary aspect for the growth of this market.

Published Date: 05/05/2021

The functional safety market is expected to grow from USD 4.70 billion in 2020 to USD 5.87 billion by 2027, at a CAGR of 3.2 %. The markets growth is propelled by the Fiscal policy steps taken by regional financial institutions to keep manufacturing facilities floating amidst COVID-19 crisis, strict mandates for safety regulations, surging demand for safety systems in the oil & gas industry, high requirement for reliable safety systems to ensure personnel and asset protection, and rise in industrial revolution 4.0.

It is projected that the world GDP growth rate would go down by 0.5% in 2020, thereby giving a negative trend for growth prospects in an already weak world economy. Many countries are already implementing remedial plans to tackle the economic crisis triggered by the COVID-19 outbreak. The US has passed a bill named Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, under which USD 2 trillion will be spent under five components, namely individuals/families, big businesses, small businesses, state and local governments, and public services. The demand for functional safety products and solutions is directly dependent on manufacturing activities. Thus, the initiatives taken by different governments will help drive the growth of the companies involved in the development of functional safety products and solutions.

Functional 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 functional 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

The 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 functional safety is expected to grow during the forecast period.

As of 2019, Emerson (US), Yokogawa (Japan), General Electric (US), Omron (Japan), and Siemens (Germany) Schneider Electric (France), Honeywell (US), ABB Ltd (Switzerland), Rockwell Automation (US), HIMA Paul (Germany) were the major players in the functional safety market.

The functional safety market in APAC is expected to grow at the highest CAGR during the forecast period. This growth would likely be driven by increasing industrialization in emerging economies such as China and India. The increased acceptance of international functional safety standards is driving the growth of the market in this region. Rapid industrialization, rising industrial emphasis, and organizational functional safety, as well as the influence of multinational companies in adopting safety systems, is also driving the growth of the market in APAC. In addition, the growing number of power projects to meet the rising demand for electricity has given momentum to the implementation of functional safety systems such as burner management and fire and gas systems at plant locations.