April 23, 2024
Functional Safety Market

Security Segment Is The Largest Segment Driving The Growth Of Functional Safety Market

The global Functional Safety Market is estimated to be valued at US$ 5767.57 Mn or Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Functional safety refers to safety-oriented controls and systems that ensure safe operation of machinery and plant even in the event of failures or errors. Functional safety aims to prevent hazards through the use of safety instrumented systems, emergency stop controls, and other protective measures. It involves identifying potential causes of hazardous events or conditions and taking precautions that will avoid or mitigate them.

Market key trends:
One of the major trends in the functional safety market is the increasing need to comply with functional safety standards. Industries such as automotive, oil & gas, and manufacturing are mandated to follow safety standards such as IEC 61508 and ISO 26262 for preventing any hazardous events. Non-compliance to these standards can result in severe financial and legal consequences. Hence, companies are investing heavily in adopting functional safety solutions to ensure the safety of their workers, operations, and the environment. Furthermore, the growing adoption of Industry 4.0 technologies such as IoT, machine learning, robotics, and additive manufacturing is augmenting the demand for functional safety systems as these technologies introduce new safety challenges.
SWOT Analysis

Strength: The functional safety market provides safety solutions for industrial equipment and processes which helps mitigate risks of failures and improves productivity. There is growing awareness among industries about benefits of functional safety systems.

Weakness: High initial costs associated with implementation and upgrades of functional safety systems is a major challenge. Lack of expertise and technical know-how required for functional safety assessments also restricts the market growth.

Opportunity: Integration of functional safety with artificial intelligence, IoT, and robotics opens new growth avenues. Rising investments in industrial automation across process and discrete industries will demand more functional safety implementations.

Threats: Changing industry standards and regulations pose compliance challenges. Availability of low-cost alternatives impact the demand for premium functional safety offerings. Intense competition among existing players also threatens individual company’s market share.

Key Takeaways

The Global Functional Safety Market Size is expected to reach US$ 15790.60 Mn by 2030 from US$ 5767.57 Mn in 2023, exhibiting a CAGR of 11%  during the forecast period. Growing industrial automation and emphasis on workplace safety are major market drivers.

Regional Analysis

Asia Pacific region dominated more than 30% of the global market share in 2023 due to large manufacturing base and rapid industrialization in countries like China and India. Europe is the second fastest growing region owing to stringent workplace safety laws and expanding process industry vertical. North America is also expected to offer lucrative opportunities attributed to increasing oil & gas production and investments in discrete manufacturing.

Key players operating in the functional safety market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE, Emerson Electric Company, Panasonic Industry Europe GmbH, Honeywell International Inc., Sick AG, Yokogawa Electric Corporation, Omron Corporation, ABB Ltd., General Electric Company, Schneider Electric SE, and Siemens AG. These companies are focusing on new product launches, partnerships, and mergers & acquisitions to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it