The increasing rate of construction projects, manufacturing activities, stringent adherence to government regulations leading investments in safety measures to prevent any unforeseen accidents rapid growth rate of the conurbation and increasing inclination towards smart industries are some of the factors which are central to an anticipated meteoric rise of the safety switches market.
Delving further into the aspects pertaining to industries, one of the major drivers that are estimated to bolster the growth of the safety switches market is the growing adoption of automation in operation which is otherwise hazardous for humans. Additionally, to ensure a seamless accident-free operation that will ensure the safety of human lives and uninterrupted revenue stream various industries are embracing automation to transition into smart industries. Safety switches are also integral to residential electric wiring to prevent any accidents.
Industry (Including Construction), Value Added (% of GDP)
Source: WORLD BANK
Industries are the lifeline of the global economy and oil and gas and chemicals occupy an important core of the lifeline sustaining the world. Since the price crash of 2014, the consumption fuels globally have grown rapidly further with US shale gas growth the energy mix has expanded as well. There is also a steady demand for refined products thus influencing global oil production. Moreover, despite the supply disruption witnessed during mid-September 2019 which was reportedly the single largest disruption of supply since the gulf war, the prices rapidly reverted to then normal trading range. Even economic sanction against Venezuela, as well as the continuous degradation of operating conditions of and investments in the country’s oil sector, are being offset by producers located in the occident mainly Brazil, the USA with their onshore shale plays and deep-water plays which comprise of health proportion of crude oil, condensates, and NGLs. Further, the Canadian oil sands also can deliver a greater number of quantities from its current operations. Above all the agreement between non-OPEC and OPEC countries on production restraint is still in place that ensures spare production capacity to cater to tight market conditions should the need arises.
Moreover, closely tied with construction and automotive industries, activities pertaining to chemicals globally are still sustained albeit lower consumer spending on new automobiles due to the spending being redirected towards rideshare services, and used cars and electric vehicles (EVs). This makes the chemical industries strategic imperative to invest in opportunities by tapping into niche markets facilitating new growth avenues and endeavor to derive relatively more from their existing assets. This necessitates investing more in innovation to bring about new products, technologically integrated manufacturing, and processing methods. On the other hand, digital technologies have played an important role in the growth of the industries not only operating the aforesaid bit also other sectors as well.
Artificial intelligence-based solutions offered by technology firms are helping many organizations create a safe working environment which facilitates the tracking of worker behavior and prevent accidents in real-time. Further, as a result of the current pandemic, the anticipated delays in construction can lead to possible injudicious use of both human and material resources. In this scenario, the capability that a digital supply network (DSN) can help organizations adapt to their new project timelines without incurring a loss. Thus, along with the continued operation, anticipated growth prospective opportunities, as well as strict compliance with government regulation to ensure occupational safety, the safety switch market growth the safety switches market is expected to witness a meteoric growth in the next few years. To this end, it should be noted that the UK based Kraus Naimer had reportedly launched ATEX approved safety switches with IP66 protection for hazardous areas, in September 2019.
Rural population (% of total population)
Source: World Bank
Another Factor That Is Poised to Drive the Safety Switches Market Is Rapid Urbanization
The constant growth in population, as well as the steady flow of influx in urban areas, is leading to an expansion of cities leading to infrastructural development, more scope of industrial expansion because of availability of labor as well as increasing share of demands from a new pool of migrants who aspires to embrace the city lifestyle which also in part due to the availability of relatively more disposable income. In this regard, 55% the global population lived in the city in 2018 and the rural areas were home to 45% of the population that is anticipated to reduce by 40% in 2030. Additionally, the percentage of world population that is projected to live in urban areas according to UN was 68%. North America is a more urbanized region of the word with 82% of its population living in urban areas. China, Nigeria, and India are together expected to account for 35% of the growth of the world’s urban population between 2018 and 2050, with India being projected to add 416 million urban residents, China 255 million urban residents, and Nigeria 189 million urban residents. Also, it is estimated that by 2030 the world will have 43 megacities.
Thus, from the aforementioned, it is evident that with a higher number of construction projects in the coming years the semiconductor industry will experience unprecedented demand for safety switches. Few of the planned construction projects in 2020 are inclusive of but not limited to the January announcement of Piramal Group’s, the real estate arm Piramal Realty reported plan to invest Rs 1,500 crore to facilitate the development of a residential project in Thane, which is intended for consumers who are on a specific budget by offering smaller configurations. Further, in July 2020, it was announced that a property developer Naim Holdings Bhd will invest around RM30mil Miri, the second-largest city in Sarawak, Malaysia with a rationale to accelerate the development of affordable and intelligent houses in major towns. Again, in July 2002, Keppel Corp had announced that around RMB 1.5 billion ($213.7 million) will be invested by its Alpha Data Centre Fund toward the development of a greenfield data center in Guangdong province of China which will be marking its first foray into mainland china’s growing data center industry.