Market Trends of Safety Instrumented System Industry
Chemical and Petrochemical Industry is Expected to Hold a Major Market Share
- A safety instrumented system encompasses sensors, logic solvers, and final control elements to keep the process safe when predetermined conditions are violated. The growing benefits of safety instrumented systems over traditional ones fuel the market demand. The chemicals and petrochemicals industries are identified as continuously developing industries where the need to expand and upgrade aging safety problems and infrastructures is essential.
- For instance, according to Brand Finance, in 2023, the world's chemical industry had a brand value of nearly USD 62 billion. This represents an increase of over USD 36 billion in 2015 when comparing the global chemical industry's brand value. Traditional safety systems are deployed through an electrical control system and are hardwired, leading to potential accidents affecting people, assets, and the environment.
- This is expected to increase the demand for safety-instrumented systems in petrochemical industries that deliver several advantages, such as prolonged field life, reduction in unplanned downtime, reduction in annual maintenance cost, elimination of unexpected repair expenses, and adherence to current codes and standards. Thus, the increasing advantages of safety instrumented systems over traditional safety systems are expected to drive industry growth.
- Chemical industries have hazardous environments due to gas, oil, or dust, creating an explosive atmosphere in and around the machines. Moreover, the industry issues related to regulation, geopolitical risk, legal limits on using natural resources, shareholder activism, and increasing public scrutiny have created additional challenges. Thus, safety equipment such as fire and gas monitoring and detection, SCADA, and HIPPS installation is paramount.
- Further, many companies offer controllers for emergency and safety shutdown duties and handle complex equipment maintenance in the petrochemical plant. For instance, HIMA, an intelligent safety company, offers controllers that perform classic emergency shutdown duties and handle complex equipment functions. The SafeEthernet protocol ensures safe cross-communication between controllers at safety integrity level 3 (SIL 3). It also offers fast response times in a safety shutdown, and the high operational safety (SIL 3) within safety-critical production processes contributes to the acetylene plant's high availability and productivity.
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Asia-Pacific is Expected to Witness High Growth Rate
- In many industrial processes and automation systems, safety instrumented systems play an important role in delivering protective layer functions. The term "safety system engineering" refers to a disciplined and methodical approach to hazard identification, safety requirement specifications, and system maintenance and operation throughout the life of a plant. The rise of the petrochemical and energy sectors is critical to the growth of the safety instrumented system industry.
- Furthermore, as the process sector advances toward embracing greater safety standards, control systems that can manage changes, such as steam turbines, compressors, and variable speed drives, may become necessary to maintain profitability while meeting agile needs.
- Because of stagnating industrial growth in industrialized countries, demand for valves and actuators has slowed. The government's increasing support for new industries, as well as political conditions, make the country conducive to industrial expansion. As a result, foreign corporations are looking to invest in this industry. In addition, there are ongoing and planned initiatives for establishing water and wastewater treatment plants in the region.
- For example, the Cambodian government and the Japanese International Cooperation Agency struck an agreement to construct a wastewater treatment plant in the Dangkor area. With a USD 25 million investment, the project aims to improve the drainage infrastructure in the district so that wastewater can flow directly to the plant rather than into the river. Such projects are expected to fuel the safety instrumentation systems market in Asia-Pacific.
- The food and beverage sector has a moral and legal responsibility to protect its employees. Heavy machinery, hazardous chemicals, and slick surfaces are among the immediate concerns, while dust inhalation, hearing loss, and repetitive strain injuries are among the more gradual threats. Coca-Cola, the world's largest beverage company, has noticed a surge in demand for sugar-free and low-sugar beverages in Southeast Asia. After the COVID-19 pandemic, this became more prominent.
- Due to rapidly increasing industrial activities, rising cost pressures and production rates, and favorable government policies in developing countries like China and India, Asia-Pacific is predicted to witness the fastest growth rate. Manufacturers have responded by developing new goods for specific uses in response to changing demands based on usage.
- Furthermore, an increase in the number of safety instrumented systems has resulted in the creation of more complex systems. Furthermore, the use of these systems has increased in the oil and gas, chemicals, and power industries because they help monitor usage hours, different aspects of boiler management, stack temperature, boiler, and fuel efficiency, all of which are important in this business.
- Moreover, at the 2020 National People's Congress, the CCP announced that in addition to doubling down on its Made in China 2025 and China Standards 2035 initiatives, it might spend approximately USD 1.4 trillion on a digital infrastructure public spending program. China's New Infrastructure initiative presents exciting opportunities for global companies. Owing to the same, the number of SIS equipment adopters in different sectors, such as new energy vehicles, oil and gas, 5G equipment, logistics, and energy and power, is expected to grow, boosting the growth of the market in the region.
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