North America Safety Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Safety Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Safety Systems Market is expected to register a CAGR of 7.2% during the forecast period. The adoption of standards like IEC 61508 and IEC 61511 has led to increased reliance on industrial safety systems to attain mandatory risk reduction targets. The growth in the demand for programmable safety systems is also aiding the growth of the studied market in North America.

Key Highlights

• The food & beverage industry is expected to offer a significant boost to the studied market as the industry strives to achieve high quality, efficient, and consistent production at a low cost. It can be achieved by making food & beverage plants safer, more flexible, and more profitable by picking an integrated approach of automated safety control systems like industrial safety solutions. The safety systems aid in achieving greater operational transparency across production lines and reduce compliance costs through timely corrective actions.
• Additionally, IIoT (Industrial Internet of Things) is creating several new opportunities for integrated industrial safety and compliance services. IIoT can obtain data from sensors that measure pressure, flow, level, temperature, and vibration and send the collected information to monitoring systems. The data is transmitted through wireless or wired networks that offer real-time analysis, alerts, and possible solutions in any emergency. By employing IIoT, companies can integrate their processes with safety systems and monitor the same in real time.
• However, the cost of industrial safety components, installation costs, maintenance, and repair costs put a substantial burden on the organizational budget. Though large organizations can handle these expenses, it could be challenging for small and medium-sized organizations to afford robust industrial safety systems.
• In addition, industrial safety has to comply with regulatory standards. The safety standards are regularly updated according to technological advancements and new orders, resulting in the obligation on organizations to upgrade their safety systems. Such factors are expected to impede the growth of the studied market during the forecast period.
• The COVID-19 pandemic negatively affected the oil & gas industry, with oil prices slashing drastically. A noticeable decline in the demand for oil and gas due to various regional government restrictions in 2020 resulted in a decline in demand for industrial safety systems. Further, chemicals and energy & power industries are also among the key end users of valves. These industries also witnessed reduced demand due to the global pandemic. However, these industries quickly gained momentum in mid-2021.

Key Market TrendsThe Safety Controllers/Modules/Relays Segment is Expected to Drive the Market's Growth

• A safety controller is used to control and automate industrial machines and equipment. Safety controllers and safety relays promote safer work environments and protect machine operators from accidents and injuries by ensuring safe stop, start, and control functions. Safety Relays are used to build safety circuits for equipment and facilities. They have a forced guided mechanism that enables detecting contact welding.
• Safety controllers offer several benefits, like intuitive programming to save time and costs. A safety controller can reduce costs associated with wiring, testing, installation, and programming when it comes to new machines developed by OEMs.
• Safety controllers, in most cases, can also eliminate the need and integration for multiple relays. While some safety controllers are standalone, most safety controllers can be expanded using modules to add capabilities to support various inputs and outputs.
• The safety modules/relays/controllers are extensively employed in the oil & gas, mining, energy & power industries to prevent accidents. According to the Bureau of Economic Analysis, in 2015, the value added by this industry came to over USD 330.02 billion. By 2021, the added value from chemical product manufacturing increased to approximately USD 438.9 billion. Further, according to US Census Bureau, in 2021, the value of chemical exports from Texas amounted to USD 49.36 billion. Louisiana stood second with USD 10.31 billion worth of chemical exports. The increasing production of chemicals and related products in the region is expected to offer lucrative opportunities for the studied market growth.
• Several regional companies are launching new products to cater to the surge in demand for industrial safety systems. For instance, in May 2022, Emerson, a global software, technology, and engineering company, announced the release of its PACSystems RSTi-EP CPE 200 programmable automation controllers (PAC). This new family of compact PACs aids original equipment manufacturers (OEM) meet customer requirements by minimizing the need for specialized software engineering talent. As per the company, the CPE 200 controllers deliver large programmable logic controller (PLC) capability in a small, cost-effective, IIoT-ready form factor, so machine manufacturers do not need to sacrifice performance for the price.

The Oil & Gas Segment is Expected to Hold a Major Market Share

• Oil and gas production technology is associated with significant hazards like vehicle collisions, struck-by/caught-in/caught-between, fires, high-pressure lines and equipment, machine hazards, etc. The oil and gas industry workers face the risk of fire and explosion due to the ignition of flammable vapors or gases. Combustible gases, like well gases, vapors, and hydrogen sulfide, can be released from trucks, wells, production equipment, or surface equipment, including shale shakers and tanks. Ignition sources can include static, electrical energy sources, open flames, lightning, cigarettes, cutting and welding tools, hot surfaces, and frictional heat. Industrial safety systems aid in minimizing the risk of such hazards.
• For instance, a Fire and Gas System (FGS) continuously monitors for abnormal situations like a fire or explosion or toxic gas release within the plant and provides early warning & mitigation actions, thereby preventing the escalation of the incident and protecting the process or environment.
• Further, a safety shutdown system is a prevention safety layer that takes automatic & independent action to prevent a hazardous incident from occurring and protect personnel and plant equipment against potentially serious harm.
• North America boasts robust oil and gas production and refining activities. For instance, according to BP, the United States produced the most oil in the world in 2021, at over 16.6 million barrels of oil per day on average. Saudi Arabia and Russia followed as the second and third largest producers. Further, according to Baker Hughes, the number of operational oil and gas rigs in the US totaled 765 in July 2022, an increase from 488 rigs in July 2021.
• Further, the oil and gas industry is facing a shift towards conducting operations in non-conventional locations. Such production environments include remote, poorly accessible, offshore/deepwater, etc. According to Baker Hughes, North America hosts the most oil and gas rigs globally. In July 2022, there were 952 land rigs in the region, with a further 19 rigs located offshore. The extensive production and processing of oil & gas in the North American region is expected to drive the growth of the studied market.

Competitive Landscape

The North America Safety Systems Market is a moderately fragmented market, with significant players like Honeywell International Inc., Yokogawa Electric Corporation, Emerson Electric Co., ABB Ltd., etc. Several market players are launching innovative products, entering into long-term partnerships, and enhancing their manufacturing & technical capabilities to cater to the evolving needs of consumers.

• May 2022 - Emerson launched its new emergency shutdown discrete valve controller that improves safety and uptime in hazardous applications. The new DX PST integrates seamlessly with existing valves and control systems, giving operators access to critical valve data, trends, and diagnostics that can be used to predict and schedule maintenance. As claimed by the company, DX PST’s partial stroke test ensures the system’s reliable function without shutting down the process.
• November 2021 - Compressor Controls LLC (CCC) and Yokogawa Electric Corporation announced that they had concluded a commercial agreement to sell a jointly developed solution, CCC Inside for Yokogawa CENTUM VP, that integrates Yokogawa's process control technology and CCC's turbomachinery control technology.

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