Product Code: 67138
The machine safety market is anticipated to witness a CAGR of over 6.3% during the forecast period (2020 - 2025).
- The growth of manufacturing along with new safety requirements in emerging countries spells a greater demand for machine safety solutions. Moreover, the manufacturers especially in developed countries where law enforcement is high, are aware that it is more-efficient to use machine safety devices than bear penalty for non-compliance.
- For instance, the European Machinery Directive 2006/42/EC on machine engineering focuses to ensure a common safety level for new machines distributed and operated in the member states. It governs safety and occupational health requirements for design and engineering. Improvements in safety solutions also offer business opportunities for machine safety vendors among conservative end-users.
- However, the recent economic downturn has forced manufacturers to concentrate on reducing operating and maintenance costs, leading to declining investments in areas not crucial for plant operation.
Scope of the Report
The machine safety market includes components such as presence sensing sensor devices, emergency stop devices, safety interlock switches and safety controllers/modules/relays are considered under the scope of the market. Components such as programmable safety systems and two hand safety controls are considered under other types of components.
Key Market Trends
Oil and Gas Industry to Hold a Significant Share
- The oil and gas indsutry is potentially one of the hazardous industry sectors. According to the data by Bureau of Labor Statistics, 74 out of 120 workplace deaths in the mining, oil and gas extraction industry occurred within the support activities for oil and gas operations. Further, according to OSHA, 489 oil and gas extraction workers were killed on the job between 2013 and 2017, making this a pretty dangerous industry.
- The growing focus to increase workers safety and improve safety measures in the industry has is increasing the demand for machine safety tools and solutions.
- With recovering crude oil prices which reached a USD 55 per barrel by the end of 2017, owing to controlled production by Oil Producing and Exporting Countries (OPEC), there has been considerable increase in the exploration and production activity.
- In fact, according to the recent estimates of Baker Hughes, by the end of 2018, the international rig count is expected to reach 960. As of 2017, the data form the Company suggest that there has been a 2.7% increase in the international rig count.
- Further, in many cases, security factors also alter the demand for machine safety equipment, especially in case of the oil and gas industry. For example, in countries like Mexico where the pipelines are often prone to insurgent attacks and theft, there is a high demand for automated and robust emergency stop systems and devices, which support remote operation.
- In fact, the theft of oil from Mexican pipelines is one of the major security issue faced by the mid-stream sector in Latin America. According to Petroleos Mexicanos (PEMEX), a state-owned Mexican petroleum company, there were more than 4,125 illegal fuel taps discovered in the region between 2014 and 2018.
- In such cases, the governments are increasingly spending on process automation related to pipeline security, which is expected to raise the demand for advanced emergency shutdown systems. Also, the increasing shortage of oil and gas labor is creating considerable demand for automated safety systems, there supporting the growth of the market.
Asia-Pacific to Hold Significant Share
- Asia-pacific is anticipated to witness highest CAGR owing to the growing investments in the industrial sector in the region.
- The "Made in China 2025" policy encourages advanced manufacturing, leading to an increased focus on safety. China is the largest market in Asia Pacific for machine safety products by revenue, with roughly a 40% share. In addition, the gradual improvement of technical safety standards, the continuous strengthening of personal safety awareness, and the gradual participation of the state and enterprises in market promotion has also accelerated the growth of machine safety market in the country.
- In 2017, China invested heavily in the automotive industry, resulting in an increase in new projects. The development of electric vehicles significantly drove capital investment, with most of this focused on new machinery.
- In addition, accordinng to the National Bureau of statistics, investment in automation equipment also increased in 2018. China's 13th Five-Year Plan is expected to drive the development of Chinese safety standards and increase the investment in safety products. The plan emphasizes the overall safety of manufacturing, with the aim of reducing accidents in the workplace through the adoption of new technologies and enforcement of regulation. The plan specifically mentions the upgrade of agricultural machinery and special equipment to satisfy the safety requirements.
The machine safety market is highly competitive by nature, and appears to be fragmented due to the presence of several prominent players. Key strategies traced from the analysis of recent developments of the market players include agreement & partnership, acquisition expansion, and product launch. These key players strive to deliver comprehensive safety solutions with adept technology and features. Growth in terms of product innovations and technologies in the market are also expected to create strong investment opportunities for the global players.
- March 2019 - Keyence launched new safety interlock switch. The GS Series safety interlock switch is designed to simply work better. It has a compact and robust design, forgiving and stable alignment, and is easily integrated into any safety system.
- December 2018 - Boeing partners with Seimens to to implement new automation solutions aimed at developing automation standards that will make Boeing's manufacturing systems more efficient and safer.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Number of Industrial Accidents
- 4.3.2 Stringent Government Regulations and Mandatory Safety Standards
- 4.4 Market Restraints
- 4.4.1 Additional Costs Associated With Machine Safety Systems
- 4.5 Value Chain / Supply Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Implementation
- 5.1.1 Individual Components
- 5.1.2 Embedded Components
- 5.2 By Component
- 5.2.1 Presence Sensing Safety Sensors
- 5.2.2 Emergency Stop Devices
- 5.2.3 Safety Interlock Switches
- 5.2.4 Safety Controller/Modules/Relays
- 5.2.5 Other Components
- 5.3 By End-user Industry
- 5.3.1 Chemical and Petrochemical
- 5.3.2 Oil and Gas
- 5.3.3 Healthcare
- 5.3.4 Energy and Utilities
- 5.3.5 Automotive
- 5.3.6 Other End-user Indsutries
- 5.4 Geography
- 5.4.1 North America
- 184.108.40.206 US
- 220.127.116.11 Canada
- 5.4.2 Europe
- 18.104.22.168 UK
- 22.214.171.124 Germany
- 126.96.36.199 France
- 188.8.131.52 Rest of Europe
- 5.4.3 Asia-Pacific
- 184.108.40.206 China
- 220.127.116.11 Japan
- 18.104.22.168 India
- 22.214.171.124 Rest of Asia-Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Rockwell Automation
- 6.1.2 Schneider Electric SE
- 6.1.3 Mitsubishi Electric Corporation
- 6.1.4 Omron Corporation
- 6.1.5 Pilz GmbH & Co KG
- 6.1.6 ABB Limited
- 6.1.7 Honeywell International Inc
- 6.1.8 Siemens AG
- 6.1.9 Keyence Corporation
- 6.1.10 IDEC Corporation
- 6.1.11 Sick AG
- 6.1.12 Banner Engineering
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS