“Global Functional Safety Market to reach a market value of USD 11.7 Billion by 2031 growing at a CAGR of 10.1%”
The Global Functional Safety Market size is expected to reach $11.7 billion by 2031, rising at a market growth of 10.1% CAGR during the forecast period.
TMC systems ensure the safe and reliable operation of turbomachinery such as pumps, mixers, and compressors in food & beverage processing facilities. These systems monitor and control critical parameters to prevent equipment damage, failures, and accidents. Consequently, the food & beverage segment would acquire nearly 10% of the total market share by 2031. TMC systems monitor pressure levels in equipment and pipelines to prevent overpressure events. They also monitor temperature levels in equipment and processes to prevent overheating and equipment damage.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, in March, 2024, Yokogawa Electric Corporation unveiled OpreX Robot Management Core, a software application in the OpreX Asset Management and Integrity portfolio. The product can be integrated with a variety of robots that perform plant maintenance tasks conventionally carried out by humans. Additionally, this software will enable customers to maintain their facilities in a safer and more cost-effective manner. Moreover, in January, 2024, Mitsubishi Electric Automation, Inc., a subsidiary of Mitsubishi Electric Corporation, unveiled the MELSEC iQ-R Series CIP Safety Module for Safe Communication over Devices in a Network. The product is made to send safety signals to many different devices and equipment, like third-party robots, Mitsubishi Electric products, other VFD products, and safety I/O and interlocks.
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG and General Electric Company are the forerunners in the Market. In January 2023, Siemens AG unveiled two aspirating smoke detectors (ASD), FDA261 and FDA262. These smoke detectors feature a range of up to 6700 m2, and for Class A installations, a range of up to 2,000 m2, with a single ASD+ detector. Additionally, the products can be utilized over wide areas, including large data centers, e-commerce warehouses, or industrial manufacturing sites. Companies such as Honeywell International, Inc., ABB Ltd. and Schneider Electric SE are some of the key innovators in the Market.
The aerospace and defence industry rely heavily on safety solutions to ensure the safe operation of aircraft, spacecraft, and defence systems. Safety is essential for flight control systems to ensure the safe operation of aircraft and the protection of passengers and crew. Safety solutions are essential for integrated battle management systems to ensure the safety and effectiveness of military operations. The expansion of space exploration programs and the growing demand for satellite systems drive the demand for safety solutions to ensure the safety and reliability of space missions and satellite operations. Therefore, the expansion of the aerospace and defence industry plays a significant role in driving the market.
The increasing demand for medical devices such as ventilators, anaesthesia machines, infusion pumps, and diagnostic equipment drives the adoption of safety solutions. Safety is essential for ensuring the safe and reliable operation of medical devices, protecting patients from harm, and ensuring the effectiveness of medical treatments. Medical devices used for patient care, including life-support systems, monitoring devices, and diagnostic equipment, require safety to ensure patient safety and well-being. Thus, rapid growth in the healthcare industry boosts the market.
Implementing safety systems often requires a significant upfront investment in safety-critical hardware, software, and engineering services. Companies may need help with competing priorities for allocating resources, making it challenging to justify investment in safety systems over other business initiatives. They may prioritize investments in revenue-generating activities over safety-related initiatives, leading to delays or underinvestment in safety measures. Hence, the high implementation costs of safety hinder the market.
By device type, the market is categorized into safety controllers, modules & relays, programmable safety systems, safety sensors, emergency stop devices, final control elements (valves, actuators), and others. In 2023, the safety controllers, modules & relays segment held 22% revenue share in the market. Safety controllers act as centralized control units for managing safety-critical functions in industrial environments. These controllers integrate with various safety devices such as sensors, switches, and actuators to monitor and control safety-related processes. Safety controllers allow emergency shutdown to stop or isolate equipment in hazardous situations.
On the basis of industry verticals, the market is divided into oil & gas, power generation, food & beverage, pharmaceutical, automotive, and others. The pharmaceutical segment procured 14% revenue share in the market in 2023. In pharmaceutical, safety systems control and monitor safety-critical processes and equipment in pharmaceutical manufacturing facilities, ensuring safe operation and emergency shutdown when necessary. These benefits support the demand for safety systems in this industry, and with the expansion of the industry, the demand for safety will also increase.
Based on safety system, the market is classified into emergency shutdown systems (ESD), burner management systems (BMS), high-integrity pressure protection systems (HIPPS), turbomachinery control (TMC) systems, fire & gas monitoring control systems, and supervisory control and data acquisition (SCADA) systems. The burner management systems (BMS) segment acquired 20.4% revenue share in the market in 2023. BMS systems prevent the release of hazardous substances into the environment, helping to minimize the environmental impact of industrial combustion processes. These systems optimize combustion efficiency and reduce emissions of pollutants such as NOx, CO, and VOCs, ensuring compliance with environmental regulations.
Free Valuable Insights: Global Functional Safety Market size to reach USD 11.7 Billion by 2031
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America led the market by generating 35.2% revenue share. North America's oil & gas industry is witnessing significant growth due to increasing exploration and production activities. The adoption of industrial automation technologies is driving the demand for safety solutions to ensure the safe operation of automated systems in North America.
The competition in the Market is intense, driven by the increasing adoption of automation and stringent safety regulations across industries. Key players are focusing on innovation and strategic collaborations to enhance their offerings, aiming to meet the growing demand for reliable and advanced safety solutions globally.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 5.5 Billion |
| Market size forecast in 2031 | USD 11.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 10.1% from 2024 to 2031 |
| Number of Pages | 345 |
| Number of Tables | 443 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Device Type, Safety System, Industry Verticals, Region |
| Country scope |
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| Companies Included | ABB Ltd., General Electric Company, Siemens AG, Rockwell Automation, Inc., Schneider Electric SE, Mitsubishi Electric Corporation, Emerson Electric Co., Honeywell International, Inc., Omron Corporation and Yokogawa Electric Corporation |
By Device Type
By Industry Verticals
By Safety System
By Geography
This Market size is expected to reach $11.7 billion by 2031.
Expansion of the aerospace and defence industry are driving the Market in coming years, however, High implementation costs of functional safety restraints the growth of the Market.
ABB Ltd., General Electric Company, Siemens AG, Rockwell Automation, Inc., Schneider Electric SE, Mitsubishi Electric Corporation, Emerson Electric Co., Honeywell International, Inc., Omron Corporation and Yokogawa Electric Corporation
The expected CAGR of this Market is 10.1% from 2023 to 2031.
The Oil & Gas segment led the Market by Industry Verticals in 2023; thereby, achieving a market value of $3 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $4 billion by 2031.
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