Explosion Proof Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Explosion Proof Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Explosion-proof Equipment Market size is estimated at USD 9.79 billion in 2024, and is expected to reach USD 13.85 billion by 2029, growing at a CAGR of 7.18% during the forecast period (2024-2029).

The explosion-proof equipment market is poised to grow owing to the increasing demand for integrated systems, technological advancements in automation, expanding industrial sectors, and stringent government regulations concerning hazardous zones.

Key Highlights

• Explosion-proof equipment, both electrical and non-electrical, is engineered to prevent and withstand explosions. This equipment, encased in specialized housing, is designed to withstand specific gas or vapor explosions. As the demand for energy increases, so does the need for secure fuel and energy delivery. Given their critical role in preventing explosions during electricity generation from natural resources, the demand for explosion-proof equipment is rising. With coal remaining essential in global energy production, new coal reserves are being explored.
• Explosion-proof equipment is utilized across various industries, including aerospace, construction, HVAC, manufacturing, mining, and oil extraction. Lighting, surveillance, and signaling equipment are particularly favored in these sectors. Driven by a rise in workplace accidents and mine explosions, regulatory bodies like OSHA are tightening protection protocols to protect workers and the environment. Recognizing the environmental sensitivity of oil and shale reserves, governments are enacting stringent regulations, especially in the oil and gas exploration sector.
• Given their prevalence in capital-intensive sectors like aerospace, manufacturing, and defense, explosion-proof devices command a premium. This results in higher safety device costs for these industries. Additionally, numerous tier 2 and tier 3 manufacturers are producing both single-phase and three-phase explosion-proof AC and DC motors. Low-voltage explosion-proof motors, widely used in the market, find applications in pumps, compressors, and blowers, particularly in the oil and gas sector. The anticipated increase in onshore and offshore oil and gas activities is set to significantly boost the demand for low-voltage motors.
• The absence of standardized laws poses challenges for producers and end-users in designing, testing, and installing explosion-proof equipment. These hurdles, coupled with increased installation costs, are likely to impede the market's growth. The oil and gas, along with the petrochemical sectors, have faced significant challenges due to the COVID-19 pandemic, including a sharp decline in demand, plummeting prices, and storage issues. Notably, the Asia-Pacific region witnessed a sharp decline in oil and gas demand during its lockdown phases, leading to varied impacts on the demand for explosion-proof equipment across different end-user industries.

Explosion Proof Equipment Market Trends

The Mining Industry is Expected to Hold a Significant Share in the Market

• Explosions in underground mines and processing plants are often triggered by the accumulation of toxic and flammable gases alongside combustible dust. Mining sites, with their numerous hazardous zones, pose significant health and safety risks to workers, compelling the industry to adopt explosion-proof equipment extensively. According to the May 28, 2024, Daily Fatality Report from the United States Department of Labor, 40 fatalities were reported in underground (UG) and surface (S) mines across the United States by the end of 2023. The data highlights the urgent necessity for the mining industry to bolster safety measures and regulatory compliance, safeguard workers, and minimize risks.
• Given the prevalence of flammable gases, combustible dust, and other ignitable materials in mining environments, the industry's move toward explosion-proof equipment is not just a trend but a necessity. This proactive stance is set to solidify the mining sector's market dominance in the coming years. Despite global efforts to enhance safety measures, mining remains one of the most perilous professions, with a disproportionately high fatality rate. Many companies are now investing in advanced equipment to detect leaks and avert disasters.
• Regulatory bodies are continuously updating standards to keep pace with the evolving nature of hazardous substances. As developing nations unearth significant mineral deposits, the mining sector, in tandem with these regulations, is witnessing substantial growth. The demand for enclosures in flameproof equipment is on the rise, driven by heightened mining activities globally and the increasing automation in various industries. This trend is bolstering the market's growth trajectory.
• Industrial firms and mining refineries are dedicating resources to equip their personnel and facilities against explosions. Bodies, like IECEx and OSHA, play pivotal roles in setting and upholding these operational and safety benchmarks.

Asia-Pacific is Expected to Witness a Significant Share in the Market

• The market for explosion-proof equipment is anticipated to be driven by the industrialization of Asian nations, particularly India and China. The Indian mining sector is expanding under a pro-industry government, while regions like the South China Sea and the Arabian Sea, known for their oil wealth, are increasingly turning to explosion-proof technology as regulations tighten.
• In the Asia-Pacific, the chemical and petrochemical industries handle the manufacture, processing, transportation, and storage of combustible materials. This often leads to the release of gases, vapors, or mists, creating an explosive atmosphere that poses risks to workers and equipment. Given that the chemical sector commonly deals with fine solids, such as dust, it is especially prone to explosions. With foreign businesses rapidly expanding their manufacturing facilities, the demand for explosion-proof equipment is set to rise.
• China has emerged as a prominent global leader in the manufacturing of equipment and machine tools. The country's manufacturing boom over the past decade has not only increased equipment production but also influenced the adoption rate of explosion-proof technology.
• India's processed food market is witnessing a surge in demand, driven by consumers' gravitation toward higher-value food categories. Meeting this demand necessitates technologically advanced processing equipment. As the adoption of explosion-proof equipment gains momentum, these trends are set to continue during the forecast period.
• Asia-Pacific's growing economies are poised to benefit from the rising demand for integrated systems, automation advancements, and stricter government regulations, especially in hazardous handling areas. To ensure worker and infrastructure safety, many organizations have set specific equipment standards. The Occupational Safety and Health Administration (OSHA) plays a pivotal role in setting and upholding workplace safety standards.
• With the increasing need for energy extraction, particularly in countries like India, where coal remains a primary energy source, the demand for explosion-proof equipment is rising. This equipment is crucial in preventing explosions from natural resources during power generation.
• As the oil and gas industry, especially in the Asia-Pacific, continues to expand, the adoption of explosion-proof equipment in Zone 0 is expected to grow. Furthermore, the industry's heightened focus on automation tools for monitoring gas storage and pipelines, coupled with rising safety concerns, is further bolstering the demand for explosion-proof technology.

Explosion Proof Equipment Industry Overview

The market for explosion-proof equipment is thriving, primarily driven by the significant presence of electrical product manufacturers. This has led to a semi-concentration ratio in major industry verticals, responding to the escalating safety demands. The demand for explosion-proof equipment is exceptionally high in industries such as oil and gas, mining, and chemicals, where the risk of explosions is substantial. Additionally, stringent government regulations and safety standards further propel the market's growth. Companies are increasingly investing in advanced technologies to enhance the safety and reliability of their products, thereby contributing to the market's expansion.

• In May 2024, Axis Communications, a prominent player in network video solutions, unveiled the industry's pioneering explosion-protected thermometric camera. This cutting-edge device is tailor-made and certified for deployment in zone and division 2 hazardous environments. Notably, it boasts a detection range that even covers the more critical zone and division 1 areas, allowing for enhanced operational efficiency through remote temperature monitoring.
• In January 2024, RealWear Inc. launched its explosion-proof smart glasses, RealWear Navigator Z1 smart glasses. The unveiling took place at the Consumer Electronics Show (CES), sparking significant interest in both the tech and industrial domains. Notably, the Navigator Z1 stands out with its Intrinsically Safe (IS) certification, a feature achieved through a strategic partnership with i.safe MOBILE, a leading expert in developing IS products.

Additional Benefits:

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