Functional Safety Market By System Type (Safety Instrumented Systems (SIS), Industrial Control Systems (ICS), Programmable Logic Controllers (PLC), Emergency Shutdown Systems (ESD)), Component (Safety Sensors, Safety PLC (Programmable Logic Controller), Safety Switches, Final Control Elements), End-User Industry (Oil and Gas, Chemical, Energy and Power, Manufacturing, Automotive, Railways, Pharm
Published on: 2024-08-08 | No of Pages : 320 | Industry : latest updates trending Report
Publisher : MIR | Format : PDF&Excel
Functional Safety Market By System Type (Safety Instrumented Systems (SIS), Industrial Control Systems (ICS), Programmable Logic Controllers (PLC), Emergency Shutdown Systems (ESD)), Component (Safety Sensors, Safety PLC (Programmable Logic Controller), Safety Switches, Final Control Elements), End-User Industry (Oil and Gas, Chemical, Energy and Power, Manufacturing, Automotive, Railways, Pharm
Functional Safety Market Valuation – 2024-2031
There is a growing emphasis on severe safety laws and standards across businesses. As companies embrace more modern and automated systems, it becomes increasingly important to assure their safety and reliability. Regulatory organizations are demanding strict safety standards to protect both operators and equipment, resulting in a greater demand for functional safety solutions is fueling USD 5.19 Billion in 2024 and reaching USD 12.14 Billion by 2031.
Furthermore, the growing trend of industrial automation and the incorporation of IoT into manufacturing processes is driving the market, as these innovations necessitate sophisticated safety measures to prevent failures and accidents is expected to grow at a CAGR of about 11.20% from 2024 to 2031.
Functional Safety MarketDefinition/ Overview
Functional safety refers to the aspect of overall safety that is dependent on a system or equipment responding correctly to its inputs. It guarantees that important control and safety systems perform properly and predictably, avoiding dangers caused by breakdowns. Functional safety has applications in a variety of industries, including automotive (e.g., anti-lock brake systems), aerospace (e.g., flight control systems), manufacturing (e.g., robotic safety), and energy (e.g., power plant safety systems). The future scope of functional safety is set to expand as sectors embrace automation and digitalization, necessitating sophisticated safety measures to manage complex systems and reduce dangers associated with emerging technologies such as AI, IoT, and self-driving cars.
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Will Rising Emphasis on Stringent Safety Regulations and Standards Across Various Industries Drive the Functional Safety Market?
There is a growing emphasis on severe safety laws and standards across businesses. Industries such as oil and gas, automotive, pharmaceuticals, and manufacturing are heavily regulated, with safety standards established by organizations such as the International Electrotechnical Commission (IEC) and the International Organization for Standardization. These standards, such as IEC 61508 and ISO 26262, require stringent safety precautions to maintain essential systems’ reliability and security. Companies are required to comply with these rules in order to avoid expensive penalties, legal obligations, and severe reputational damage, which drives demand for functional safety solutions.
Changes in government legislation and industry norms have accelerated this tendency. For instance, in December 2023, the European Union revised the Machinery Directive to require additional safety features in automated and robotic systems used in production. This regulation highlights the importance of functional safety in reducing risks connected with machinery operation, urging manufacturers to invest in safety solutions. Similarly, In January 2024, the United States National Highway Traffic Safety Administration (NHTSA) announced in tighter safety regulations for autonomous and semi-autonomous vehicles, with a focus on functional safety factors to assure passenger and pedestrian safety.
In February 2024 Siemens AG announced the launch of a new suite of safety-integrated automation systems that will comply with the most recent IEC requirements. This move aims to assist industry in meeting growing safety regulations while retaining operational efficiency.
In addition, in March 2024 Schneider Electric released enhanced safety controllers to meet greater safety standards in the oil and gas sector, in accordance with updated API guidelines. These advancements demonstrate how severe safety laws and standards are driving innovation and growth in the functional safety sector.
Will High Implementation Costs Hinder the Growth of the Functional Safety Market?
The high costs of deploying functional safety systems pose a substantial obstacle to the market’s expansion. To maintain compliance with safety regulations, these systems frequently necessitate significant investment in modern technology, specialized equipment, and stringent testing protocols. Furthermore, integrating functional safety into current processes can be hard and expensive, necessitating large infrastructure improvements and extensive personnel training. Smaller organizations, in particular, may find these expenditures prohibitively expensive, restricting their capacity to implement complete functional safety solutions.
The consequences of these high costs for the industry. In November 2023, the International Society of Automation (ISA) reported that the average cost of deploying a full-scale functioning safety system in the oil and gas sector might approach $1 million. This financial burden is especially difficult for mid-sized and smaller businesses, which may lack the money to invest in such comprehensive safety measures.
Similarly, in January 2024 a poll done by the Automotive Safety Council indicated that 40% of automotive suppliers cited high implementation costs as a major impediment to adopting functional safety requirements, despite acknowledging their importance for vehicle safety.
Governments and industry bodies are starting to give financial incentives and assistance programs to help alleviate the burden of high implementation costs. For instance, in April 2024, the European Union announced a financial effort to provide grants and low-interest loans to small and medium-sized firms (SMEs) for the implementation of modern safety systems.
For instance, in February 2024, the US Department of Energy proposed a subsidy program for the energy sector to help defray the price of integrating functioning safety systems in key infrastructure. These efforts attempt to reduce financial barriers and promote the widespread use of functional safety measures across sectors.
Category-Wise Acumens
Will Rising Demand for Safety Instrumented Systems (SIS) Propel the Functional Safety Market?
The increasing demand for safety instrumented systems (SIS) is predicted to significantly boost the functional safety industry. SIS is crucial for guaranteeing safe operations in hazardous industries because it provides automated protection against safety risks. The increased emphasis on industrial safety, fueled by severe regulatory requirements and the desire to minimize accidents and environmental harm, is a major element driving demand for SIS. Industries including oil and gas, chemicals, and power generation rely heavily on these technologies to reduce operational risks.
In July 2023, Emerson announced that it would be expanding its SIS offering with the DeltaV SIS Emerson Smart SIS platform. This platform provides greater flexibility and scalability, addressing the changing needs of modern industrial safety requirements.
Government restrictions play an important influence in the adoption of SIS. For example, in March 2023, the U.S. Occupational Safety and Health Administration (OSHA) issued updated safety rules for the chemical manufacturing industry, requiring the use of modern safety systems such as SIS to avoid accidents and protect workers. Such regulatory frameworks drive enterprises to invest in comprehensive safety solutions, resulting in market growth for SIS. The growing regulatory scrutiny and the resulting requirement for compliance are projected to boost demand for SIS for the foreseeable future.
The fastest-growing segment, however, is Programmable Logic Controllers (PLC). PLCs are becoming more popular due to their flexibility, scalability, and integration capabilities with other control systems, driven by the growing trend of industrial automation and the demand for improved operational efficiency and safety.
Will Rising Adoption of Safety PLCs (Programmable Logic Controllers) Fuel the Functional Safety Market?
The increasing deployment of Safety PLCs (Programmable Logic Controllers) is expected to greatly boost the functional safety industry. Safety PLCs are essential components of modern industrial automation systems, providing increased dependability, flexibility, and scalability for managing complex safety operations. As enterprises prioritize safety to meet demanding regulatory standards while also protecting their workers and assets, the need for Safety PLCs is expanding. These controllers assure compliance with safety regulations such as IEC 61508 and ISO 13849, making them essential in industries such as oil and gas, chemicals, automobiles, and manufacturing.
In June 2023, Rockwell Automation announced the release of its new GuardLogix 5380 Safety Controller, which is intended to increase industrial safety and productivity. This product addresses the growing demand for advanced safety solutions that can be effortlessly integrated with existing control systems, resulting in comprehensive safety management capabilities. Similarly, in August 2023, Siemens released its new S7-1500 Safety PLCs, indicating key manufacturers’ increased commitment in developing complex safety solutions to meet the market’s changing demands.
For instance, in January 2023, the European Union strengthened its industrial safety legislation, requiring stricter safety standards across a variety of businesses. To meet the new criteria, organizations must implement advanced safety technology, such as Safety PLCs. The proactive posture of governments in maintaining workplace safety through severe laws fuels the functional safety industry, with Safety PLCs playing a critical part in this scenario.
Safety Sensors is the fastest-growing segment, driven by the increased adoption of IoT and Industry 4.0 technologies, which require advanced sensing systems for real-time monitoring and enhanced safety in industrial environments. These sensors are critical for identifying hazardous conditions and initiating necessary safety responses.
Gain Access into Functional Safety Market Report Methodology
Country/Region-wise
Will Rising Automotive and Manufacturing Sectors in Europe Drive the Functional Safety Market?
Growing demand for improved safety systems, Europe’s emerging automotive and manufacturing sectors are considerably driving the functional safety market. The European automobile sector is at the forefront of implementing functional safety measures, prompted by legislation such as the ISO 26262 standard for vehicle safety, which assures that safety-critical systems are dependable and satisfy high requirements. This regulatory framework is requiring automotive manufacturers to incorporate advanced safety systems into their vehicles in order to prevent accidents and assure compliance with safety regulations.
In April 2024, the European Commission recommended tighter car safety requirements, highlighting the importance of sophisticated safety devices in vehicles. This plan is likely to increase demand for functional safety systems, such as Safety Instrumented Systems (SIS) and Safety PLCs, as automobile manufacturers comply with new regulations. The increased emphasis on safety in the automobile industry is translating into greater investment in functional safety solutions.
The manufacturing sector in Europe is also helping to drive market expansion. European manufacturers are progressively developing safety systems to meet new safety rules and protect people and equipment from risks. For instance, in March 2024, Siemens announced a large investment in its safety automation systems, highlighting the increased emphasis on improving safety measures throughout manufacturing operations. This commitment to updating safety infrastructure is likely to increase demand for functional safety components and systems, cementing Europe’s position as a market leader in this area.
Will Increasing Safety Awareness in Asia-Pacific Propel the Functional Safety Market?
Increasing safety awareness in Asia-Pacific is driving the functional safety market as enterprises across the region implement tougher safety measures to eliminate hazards and comply with changing laws. This increased emphasis on safety is motivated by both government laws and an increasing emphasis on workplace safety and operational dependability. Countries in Asia-Pacific, particularly those with thriving industrial and manufacturing sectors, are investing in modern functional safety solutions to raise their safety requirements.
In June 2024, the Ministry of Labour and Employment issued updated industrial safety rules, which included the required adoption of modern safety systems. This move intends to prevent workplace accidents and raise safety standards, hence increasing demand for functional safety solutions like Safety Instrumented Systems (SIS) and Safety PLCs. The regulatory push is projected to fuel significant expansion in the functional safety market throughout the region.
Furthermore, in China, the government’s emphasis on improving industrial safety and automation has resulted in greater expenditures in functional safety technologies. In May 2024, the Chinese Ministry of Industry and Information Technology launched a financial effort to encourage the use of sophisticated safety technologies in production. This program is part of a larger strategy to update industrial processes and provide safer operating environments. The increased emphasis on safety in China’s rapidly developing industrial sector is likely to increase demand for functional safety systems, driving market growth in the Asia-Pacific region.
Competitive Landscape
The competitive landscape of the functional safety market is characterized by a mix of established and emerging players focusing on innovation and technological advancements. Companies are increasingly investing in research and development to offer advanced safety solutions that comply with stringent international safety standards and regulations. There is a significant focus on integrating functional safety with emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning to enhance system reliability and performance. Strategic partnerships, mergers, and acquisitions are also common strategies employed by companies to expand their market presence and product offerings, addressing the growing demand across various industries, including automotive, aerospace, and manufacturing.
Some of the prominent players operating in the functional safety market include
- ABB
- Siemens
- Honeywell
- Rockwell Automation
- Schneider Electric
- Yokogawa Electric Corporation
- Emerson Electric
- Robert Bosch GmbH
- TÜV SÜD AG
- Exida
- TÜV Rheinland AG
- SGS
- Intertek Group plc
- Bureau Veritas
- DEKRA SE
Latest Developments
- In July 2024, Honeywell expanded its functional safety solutions with the introduction of a new safety PLC series targeted for high-demand industrial applications. This idea intends to improve system dependability and safety during crucial operations.
- In August 2024, Schneider Electric revealed its latest safety sensor technology, which has increased sensitivity and endurance for severe industrial situations. The new sensors are intended to increase safety and operating efficiency.
- In April 2024, ABB announced a strategic relationship with a renowned software supplier to integrate sophisticated safety analytics into its industrial control systems. This collaboration intends to improve the predictive maintenance and real-time safety monitoring capabilities.
- In May 2024, Emerson introduced a new range of safety switches with enhanced fail-safe features for industrial control systems. These switches are designed to be more reliable and meet stringent safety requirements.
Report Scope
REPORT ATTRIBUTES | DETAILS |
---|---|
Study Period | 2021-2031 |
Growth Rate | CAGR of ~11.20% from 2024 to 2031 |
Base Year for Valuation | 2024 |
Historical Period | 2021-2023 |
Forecast Period | 2024-2031 |
Quantitative Units | Value in (USD Billion) |
Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
Segments Covered |
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Regions Covered |
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Key Players | ABB, Siemens, Honeywell, Rockwell Automation, Schneider Electric, Yokogawa Electric Corporation, Emerson Electric, Robert Bosch GmbH, TÜV SÜD AG, Exida, TÜV Rheinland AG, SGS, Intertek Group plc, Bureau Veritas, DEKRA SE. |
Customization | Report customization along with purchase available upon request |
Functional Safety Market, By Category
System Type
- Safety Instrumented Systems (SIS)
- Industrial Control Systems (ICS)
- Programmable Logic Controllers (PLC)
- Emergency Shutdown Systems (ESD)
Component
- Safety Sensors
- Safety PLC (Programmable Logic Controller)
- Safety Switches
- Final Control Elements)
End-User Industry
- Oil and Gas
- Chemical
- Energy and Power
- Manufacturing
- Automotive
- Railways
- Pharmaceutical
- Aerospace and Defense
Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
Research Methodology of Market Research
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Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support
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