The industrial safety market will reach US$ 11.34 billion in 2030 from US$ 8.27 billion in 2025 at a CAGR of 6.51% during the forecast period.
Industrial safety solutions are installed to avoid the occurrence of harm-causing incidents or reduce the severity of an occurred mishappening in an industrial setup. In an industrial sector, the risk of an occurring hazard always prevails owing to high automation, usage of chemicals, and other factors, having the potential to cause harm to human life and financial losses. Industrial safety solutions, hence, reduce the chances of loss due to industry hazards and help in facilitating better functioning.
The prime reason driving the market demand during the forecast period is robust development in the end users’ industries. Oil and gas, chemicals, and manufacturing are key end-users that are witnessing lucrative growth and are expected to grow at an exponential rate with increased operations. Growing technology and automation complexities in these industries, accompanied by rising safety standards by industry and government, are expected to support the market growth. Furthermore, rapid industrialization across developing countries with a growing industry sector is projected to provide opportunities for the market.
Robust growth across the end-user industry
One of the prime reasons for augmenting the industrial safety solutions demand is the robust growth across the end-user industries, especially manufacturing, healthcare, and oil and gas industries. With increased industrialization in developing countries, the manufacturing sector is projected to witness robust growth.
In the Asia Pacific region, countries like India, Thailand, South Korea, Vietnam, and Cambodia have been emerging as manufacturing hubs, which have provided robust scope for industrial safety systems. The oil and gas industry is also expected to witness robust growth with surging demand. A report published by the International Energy Agency (IEA) estimates that global oil consumption will reach 104.1 mb/d by 2026, a rise of 4.4 mb/d from 2019.
Rise in consumption is expected to be supported by an increase in the production of oil and gas, through the expansion of existing fields and operations in new fields. Industrial safety systems are an integral part of these projects since the industry is prone to severe hazards. Growth in projects is expected to create significant demand for the market.
The fire & gas system segment is growing considerably
By systems, the industrial safety market is segmented into process control systems (PCS), safety shutdown systems (SSS), emergency shutdown (ESD), fire and gas systems (FGS), and others. The fire and gas detection system detects fires and gas leaks early and reliably, and it continually monitors all locations where a fire or a buildup of a flammable or explosive gas combination may occur. When any of these occurrences is detected, the fire and gas detection system must notify employees and take prompt executive action to mitigate the implications. Rising concerns about worker and plant safety are the primary market forces driving the implementation of fire and gas systems. Furthermore, as a result of the rising frequency of fatal accidents, fire and gas explosions, and leakages, safety awareness is increasing among diverse end users. Globally, the usage of FGS equipment has risen in recent years, owing to strict government laws, security requirements, and environmental safety rules established across many applications. The fire and gas systems category comprises items that employ technology to enhance safety, and it is mostly used to protect personnel and assure plant safety. FGS are dedicated to detecting harmful fire and gas concentrations, generating alarms, and activating countermeasures before the situation becomes hazardous and endangers personnel, assets, and the environment. The global implementation of rigorous requirements for installing fire and gas systems in residential and nonresidential buildings is projected to boost market expansion.
The primary goals of the fire and gas system are to safeguard workers, the environment, and the facility (including equipment and structures). The FGS will attain these goals by detecting the presence of combustible gas at an early stage, detecting the liquid leak at an early stage (LPG and LNG), detecting the existence of fire and the presence of incipient fire, as needed, providing automated and/or human activation of the fire protection system, initiating environmental adjustments to maintain liquids below their flash point, when needed, as well as initiating alerts, both auditory and visible, to warn of identified dangers. If two or two out of three detectors are activated, the automatic shutdown of equipment and ventilation is initiated, as is the exhausting system. To summarize, the safety of today's manufacturers' buildings, employees, production, and the environment is critical to ensuring on-time delivery and avoiding possible losses. As a result, meeting their safety requirements while guaranteeing operational and business readiness at project start-up is essential.
The oil & gas segment is witnessing significant growth
By end-user, the industrial safety market is segmented into oil and gas, healthcare, manufacturing, chemical, and others. The oil & gas segment is expected to hold a significant market share as this industry is considered to be one of the most hazardous sectors. In 2022, global petrol and fuel consumption averaged 101.0 million barrels per day, on pace with 2019 (Source: EIA.gov). There are potentially high risks associated with oil & gas plants for personnel and the environment inside and outside. To drill and service oil wells, many different types of equipment and materials need to be considered. Industrial plants in this segment, therefore, require high levels of safety. The API is a worldwide leader in standardizing the oil and gas industry. API is accredited by the American National Standards Institute (ANSI), which has released nearly 700 consensus standards to regulate all segments of the oil and gas industry. It includes guidelines, standards, and recommended procedures for safety, construction, operations, water management, spill prevention, and environmental protection. Safety management systems are being introduced by players, which is driving the segment’s growth.
In the oil and gas sector, Paradigm Flow Services, the experts in blockage removal, are demonstrating a ground-breaking new technology that will change the way the industry tests fire deluge safety. For offshore testing of fire safety, this industry-first is game-changing. This system is faster to set up and complete the test, and addresses the risk associated with wet testing and corrosion. Furthermore, Petroleum Development Oman (PDO) has launched a behaviour-based safety (BBS) system that can be customized to suit the safety needs of the oil and gas industry and other industries. Oil & gas is a segment driven by the Industrial Revolution 4.0, as well as mandatory safety requirements.
The manufacturing segment will expand at a notable CAGR owing to the dangers related to complex manufacturing processes. Furthermore, the chemical segment will rise substantially due to the toxic nature of chemicals, which makes chemical manufacturing plants extremely dangerous.
The North American market to grow considerably
The North American region is expected to garner a significant market share due to the presence of large-scale industries like power, oil, and gas. The safety and security protocols of these industries adhere to strict standards. The growing need for workplace safety in the oil & gas, refining, food & beverages, healthcare and pharmaceutical, and chemical industries has encouraged investment and development of the industrial safety market in North America. Additionally, the regulating bodies in the region, like OSHA, ANSI, UL, NFPA, CCOHS, monitor the product standards, fire codes, electrical codes, and national laws. These stringent standards have furthered the need for an industrial safety system in the region. This has led to the implementation of safety systems across industries. Notable market players like Honeywell, GE, and 3M have their headquarters in America.
But the pandemic has brought in an unprecedented shortfall of investment, capital, and technology in the market, resulting in the suspension of various projects. The demand from certain end-users faced a contraction, while a few technologies are in high demand as they are essential for the smooth running of digital manufacturing facilities amid the lockdown. The essential industries like pharmaceuticals and food and beverages remained open during the lockdown, which helped the market to remain afloat. The demands from these sectors are also expected to rise during these uncertain times. The pandemic has also motivated the market players to include novel developments to mitigate the spread of the virus.