Functional Safety Market Size and Share Analysis by Safety System (BMS, TMS, HIPPS, Fire & Gas Monitoring Control System, ESD, SCADA, DCS), Device (Safety Sensors, Safety Controllers, Safety Switches, Programmable Safety Systems, Emergency Stop Devices, Final Control Elements), Sales Channel (Direct, Indirect), SIL Type (SIL 1, SIL 2, SIL 3, SIL 4), End User (Oil & Gas, Power Generation, Food & Beverage, Pharmaceutical, Automotive and Transportation) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global functional safety market size in 2021 was $4,839.2 million, and it is expected to advance at a CAGR of 7.1% during the forecast period, to reach $8,990.6 million by 2030. Functional safety is a term that applies to varied industries where it is critical to implement advanced technologies in safety-related systems. It provides assurance that the related systems will offer the required risk reduction necessary to deliver equipment and personnel safety.

The adoption of functional safety systems provides substantial functionality to organizations across a wide range of industries, by enabling the automatic prevention of dangerous failures and control in the case of accidents. To prevent dangerous occurrences and damage to people, the environment, and physical assets in facilities, such as chemical plants, refineries, and onshore and offshore oil & gas fields, businesses are increasingly relying on electrical and electronic safeguards.

Furthermore, internationally recognized standards that outline the requirements for these systems ensure adequate safety at all times. Understanding and following these standards effectively in businesses are critical not only for compliance but also for protecting people, assets, and the environment.

Opportunities: Advancements in Manufacturing Technology

Modern technologies, such as IIoT, AI, and ML, are a reflection of the advancements in science and themselves an enabler of further scientific advancements. Such technological capabilities could bring the much-needed advantages that outweigh the benefits of manual control, as well as a new potential for the deployment for solutions integrated with such technologies. IIoT is creating opportunities for safety and compliance services, as it facilitates analysis, monitoring, and control and offers practical management of physical systems, which helps in improving the performance of the system. The demand for functional safety is expected to grow during the forecast period due to the adoption of IIoT in factory systems.

Demand for Safety Sensors To Grow Rapidly in Coming Years

Safety sensor demand is projected to grow at the highest CAGR, of more than 7.5%, in 2021–2030. Safety sensors are used for machinery safeguarding, personnel security, perimeter monitoring, body part protection, and high-risk zone safety. They determine the presence of humans within a particular region and minimize the likelihood of accidents.

Thus, safety sensors play an important role in manufacturing facilities by detecting, measuring, evaluating, and processing numerous changes that occur on production sites. They also assist manufacturers by providing real-time data on the equipment that is used, such as system performance, likelihood of breakdown, and system health. The increasing use of robots in numerous industries has increased the demand for safety sensors. Thus, a lot of companies, such as Emerson Electric Company, Honeywell International Inc., Yokogawa Electric Corporation, and ABB Ltd. are offering solutions for functional safety.

Systems Compliant with SIL3 Most Used in 2021

Systems compliant with SIL3 accounted for the largest functional safety market share in 2021, and they will also witness the fastest growth, by SIL type. Systems based on this safety compliance are economically feasible for most industrial operations. Moreover, systems that comply with SIL3 carry a lower probability of failure.

Automotive and Transportation Industry Will Witness Boom during Forecast Period

The automotive and transportation industry is expected to grow at the highest CAGR, of more than 7.5%, during 2021 to 2030. The automotive industry has seen the incorporation of numerous technological improvements in vehicles, especially in terms of safety. The increase in the number of sensor-dependent features has pushed engineers to create more-precise sensors for automotive applications.

The incorporation of safety sensors in vehicles benefits in blind spot warning, forward collision warning, lane departure warning, and other driving functionalities. With the advancements in technology, high-tech processors and sensors are increasingly being integrated into more-reliable and secure automobile systems. The lower costs and flexibility of programmable devices are enabling the implementation of intelligence capabilities into systems at the edge, in a secure, safe, and contained way.

Currently, electrification and automation are the two most-important advancements in the automotive industry. The emergence of electric vehicles has had a significant long-term impact on sensor demand. The growing trend of replacing conventional vehicles with EVs is likely to boost automotive demand even further. According to a government source, the Indian EV industry is expected to develop at a CAGR of more than 30% until 2026.

These changes have boosted the demand for automotive security and safety, which is projected to enhance the market growth potential. According to a government statistic, approximately 1 million people die each year as a result of traffic accidents. The standards for safety and reliability in modern systems in any mode of transportation, particularly railways, are continually increasing. The continuous improvements in quality, fault tolerance, and reliability, as well as user-friendliness, are thus critical for product success.

Explore more about this report - Request free sample

APAC Region To Grow Rapidly in Market in Coming Years

The APAC functional safety market revenue in 2030 will be more than $2000 million, and it is projected to grow at the highest CAGR during the forecast period. The requirement for functional safety has increased in emerging economies, particularly China and India, since the tightly regulated industries, such as oil and gas and power, have grown.

China had a regional market share of more than 30% in 2021, as it has an extremely high pace of industrial production. Such variables operate as catalysts for the country's automation market. For the same, investments are being planned, for ensuring growth and quality, resolving environmental problems, and reducing overcapacity. Since, China is one of the most-advanced countries in terms of automation, it is projected to have a beneficial impact on market growth.

Japan has been a pioneer in APAC in converting to a sophisticated industrial economy. Industry 4.0 is gaining traction, allowing Japan to establish itself as a manufacturing center exporting its goods and services to other APAC markets. Such factors are projected to be a major driver for the shift from traditional to sophisticated manufacturing techniques, which would, in turn, drive the market.

In the same vein, manufacturing has become one of India's fastest-growing industries. The 'Make in India' program puts India on the map as a manufacturing center and provides the Indian economy with international prominence. Furthermore, manufacturing behemoths, such as GE, Siemens, HTC, Toshiba, and Boeing, have established or are planning to establish their manufacturing facilities in India. This robust expansion is also visible in the automobile industry, where the major players are driving toward an automation-driven process, thus driving the market.

Among other Asian countries, South Korea is well known for its industry and progress toward automation and other advanced technologies. South Korea is also planning to phase out coal by 2028. Therefore, an increasing demand for functional safety devices and systems, such as burner management systems and emergency stop devices, is projected as the industry shifts to LNG.

The domestic and global demand for EVs, HEVs, PHEVs, and FCEVs will augment the potential of the market in the automotive and electronics sectors, with the functional safety market demand increasing in South Korea.

Product Launches Are Propelling Market Growth

The players operating in the market are focusing on product launches to strengthen their portfolios and increase customer satisfaction.

In March 2022, Renesas Electronics Corporation launched functional building safety solutions that meet the IEC61508 standard for both its RA and RX families of microcontrollers.

In January 2021, Rockwell Automation launched Allen-Bradley 450L GuardShield safety light curtains. They are designed to improve productivity and increase efficiency, while providing personnel safety. The product provides CIP Safety over EtherNet/IP, thus enabling smart safety within a connected enterprise and providing extensive data from the plant floor.

Top Players in Functional Safety Market Are:

• Schneider Electric SE
• ABB Ltd.
• Hima Paul Hildebrandt GmbH
• TUV Rheiland AG
• General Electric Co.
• Siemens AG
• Honeywell International Inc.
• Rockwell Automation Inc.
• Emerson Electric Co.
• Omron Corporation

Functional Safety Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Safety System

• Burner Management Systems
• Turbo Machinery Control System
• High-Integrity Pressure Protection Systems
• Fire & Gas Monitoring Control System
• Emergency Shutdown Systems
• Supervisory Control & Data Acquisition
• Distributed Control System

Based on Device

• Safety Sensors
• Safety Controllers
• Safety Switches
• Programmable Safety Systems
• Emergency Stop Devices
• Final Control Elements

Based on Sales Channel

• Direct
• Indirect

Based on SIL Type

• SIL 1
• SIL 2
• SIL 3
• SIL 4

Based on End User

• Oil & Gas
• Power Generation
• Food & Beverage
• Pharmaceutical
• Automotive and Transportation

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
• Latin America
  •  Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa