July 13, 2024
Safety Instrumented System Market

Safety Instrumented Systems Market Are Driven By Regulatory Compliance

Safety instrumented systems (SIS) are critical automation components used across various industrial sectors to ensure safety control and operations. SIS are used to monitor process variables, analyzes the process for any faults, and initiate actions to maintain safety. They are designed to monitor critical process parameters like temperature, pressure, and flow and automatically trigger a system shutdown in case process variables exceed predefined limits. SIS play an important role in minimizing risks associated with hazardous processes and preventing accidents in industries such as oil & gas, power generation, metals & mining, and chemicals. The global safety instrumented system market is estimated to be valued at US$ 4.42 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends gaining traction in the safety instrumented system market is the increased adoption of wireless safety instrumentation. Traditionally, hardwired safety instrumented systems were preferred due to their reliability. However, wireless SIS offer various advantages like reduced installation costs and easy maintenance. Wireless instrumentation enables real-time monitoring of process variables from remote locations via mobile devices. This has boosted their adoption in industries striving to reduce downtime and enhance productivity. Leading SIS vendors are focusing on developing wireless transmitters and modules compatible with standard process control and safety systems. Their wider acceptance in hazardous industrial spaces in the coming years will further augment the safety instrumented system market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The safety instrumented system market requires high capital investment and strict regulatory compliance which acts as a deterrent for new players. Therefore, the threat of new entrants is low.
Bargaining power of buyers: The presence of many system integrators gives buyer sufficient bargaining power to negotiate on pricing and customization. However, compliance requirements reduce choice of suppliers.
Bargaining power of suppliers: The presence of global players like Schlumberger, Emerson and Honeywell gives them significant bargaining power over buyers in terms of pricing and product innovations.
Threat of new substitutes: There are no close substitutes for safety instrumented systems as they provide critical safety functions in process industries. Therefore, threat from substitutes is low.
Competitive rivalry: The market comprises major global players capturing majority share. However, regional integrators pose competition based on localization and customization. Overall competitive rivalry is high.

Key Takeaways

The global Safety Instrumented System Market Share is expected to witness high growth over the forecast period supported by growing process automation across industries.

Regional analysis:

North America dominates the safety instrumented system market led by U.S. due to strong presence of oil & gas industry. Europe contributes significantly supported by stringent safety standards in chemicals industry. Asia Pacific is expected to grow at fastest pace with increasing spends on plant automation by industries in China, India.

Key players:

Key players operating in the safety instrumented system market are Schlumberger Limited, Rockwell Automation Inc., SIS-TECH Solutions LP, Emerson Electric Company, HIMA Paul Hildebrandt GmbH, Honeywell International Inc., Siemens AG, Yokogawa Electric Corporation, Schneider Electric SE, and ABB Ltd. Safety solutions from major players have widespread acceptance due to robust expertise in plant automation.

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