Explosion-Proof Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Explosion-Proof Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global explosion-proof equipment market was valued at USD 9.04 billion in 2020, and is expected to reach a value of USD 12.98 billion by 2026, at a CAGR of 6.09% over 2021-2026. Increasing demand for integrated systems, progress in the automation sector, growth in industrial sectors, and stringent government regulations in handling hazardous areas are projected to foster the market growth, globally.

Key Highlights

• With the increasing consumption of energy, the need for fetching energy and fuel also increases. This stimulates the market for explosion-proof equipment, as they are widely used to prevent explosions during the generation of power from natural resources. With the world depending on coal to meet its energy requirements, new sites are being explored for coal reserves.
• Explosion-proof devices cater to highly capital- and machine-intensive markets, like aerospace, manufacturing, and defense. Thus, the cost of safety devices required in these industries is also high.
• Low-voltage explosion-proof motors are used extensively in the market, with many tier 2 and tier 3 manufacturers offering off-the-shelf single-phase and three-phase explosion proof AC and DC motors. Low-voltage motors are used in pumps, compressors, and blowers for application in the oil and gas industry. The growth of low-voltage motors is expected to increase, mainly because of expansion in both onshore (shale extraction) and offshore (FPSO and offshore production units) activities in the oil and gas industry.
• The recent COVID-19 outbreak and nationwide lockdowns have impacted the overall demand of Explosion-proof Equipment Market globally. This also affected demand of electronics in the year 2020b. However the demand is expected to return back to normal with a small kink in the demand in long run.

Key Market TrendsMining Industry to Hold Significant Share

• Among the various industry verticals equipped with explosion proof equipment mining industry is expected to witness significant market share because there is high risk of fire or explosion hazards occurring due to presence of flammable gases, combustible liquid–produced vapors,flammable liquid–produced vapors combustible dusts, or ignitable fibers/ flying particles present in the air in quantities sufficient to produce explosive mixtures which may ignite on exposure to extreme conditions of temperature and pressure.
• A majority of the explosions in underground mines and processing facilities are caused by the accumulation of flammable and toxic gases and combustible dust.
• While countries have made much effort in preventing explosion disasters, mining remains the most hazardous occupation, as the number of people exposed to risk in a mining environment is the maximum, and it also produces multiple fatalities.
• Recently stringent government regulations across the mining industries in various countries are being followed keeping in mind the high fatality rate, such as the Mines Regulations, 2014 by United Kingdom, state specific health and safety legislation for workers, as well as regarding electrical safety in mines.

United States to Witness Significant Growth in the European Region

• In the late 19th century, the US government did not mandate the use of explosion proof equipment. However, the government introduced regulations across various industry verticals recently.
• The major regulatory bodies in the region are- Underwriters Laboratories(UL), an American safety consulting and certification company, Occupational Safety and Health Administration (OSHA), Factory Mutual - FM3610, National Fire Protection Association(NFPA), etc. Thus the market witnessed an increase in the replacement rates of the existing equipment.
• However, as compared to the rest of the world, the alternative Zone system of hazardous location classification is still new for United States, which is further leading to the replacement of existing machinery in the industries.
• The existent classification in the country is class-based. However, due to globalization, the government is including regulations in its systems to make them globally accredited.
• These accreditations are currently allowing the development of a comprehensive examination and testing program addressing the requirements for multiple certifications.
• The inclusion of Article 505 in the NEC and the similarity in the ‘Zone’ requirements, presently allow a US-based manufacturer that offers zone-classified products for international markets to obtain FM, often with little or no modification.
• The presence of multiple pharmaceutical manufacturing plants is expected to promote the growth of pharmaceutical industry in the region. Companies are expected to comply with the strict standards set by FDA and adopt explosion proof machinery in the plants and hazardous locations, thus becoming the factors which are expected to promote the growth of the market.

Competitive Landscape

The degree of competition in the explosion-proof equipment market is high, due to the presence of electrical product manufacturers. The firm concentration ratio in major industry verticals is on the higher side, due to increasing demand for safety.

• July 2020- Intertek, a leading Explosion-Proof Equipment provider to industries worldwide, is pleased to announce that it has entered into an exclusive services appointment and strategic partnership with Bangladesh Export Import Company Limited (BEXIMCO) which has been manufacturing and exporting large amounts of PPE Kits to USA.
• December 2019- CorDEX Instrument, a manufacturer of intrinsically safe tools and instrumentation, launched a lightweight, intrinsically-safe, USB SD Crad reader to reduce the weight of camera memory.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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