ARC: Process Safety System Market to Reach $2.5B in 2012
July 25, 2008 // Published as a news service by IHS
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The worldwide market for safety instrumented systems (SIS), which is $1.4 billion in 2007, is expected to grow at a compounded annual growth rate (CAGR) of more than 12% per year to more than $2.5 billion in 2012, according to ARC Advisory Group.
Strong growth will continue in 2008; however, due to the downturn of the economy in North America, the growth rate will be somewhat tempered in subsequent years, ARC said.
"The safety system market has experienced unprecedented growth for the last two years. Increased demand for oil and gas due to the economic growth of China and India along with the high price of crude oil is fueling investments in oil and gas production and in refining, leading to increased demand for safety systems," said Asish Ghosh, ARC vice president.
Awareness of safety standards, such as International Electrotechnical Commission (IEC) 61508, IEC 61511 and American National Standards Institute/Instrumentation, Systems and Automation Society 84 (ANSI/ISA 84), and global environmental awareness are increasing the demand for safety systems, ARC said.
ARC cited the following as leading to demand for safety systems:
- High-profile industrial accidents, which have increased the sense of vulnerability among manufacturers.
- In North America and Western Europe, the obsolescence of older equipment.
All major safety standards have specified safety lifecycles, which show considerable similarities, differing only in the details.
The safety lifecycle, specified by IEC 61511, shows a systematic approach to safety starting from a hazard and risk analysis to implementation of the safety system and finally to its decommissioning.
With the increased awareness in safety standards, the demand for software used in managing the safety lifecycle is growing rapidly, ARC said.
Many SIS suppliers and third parties, such as system integrators, offer custom consulting in these areas. However, SIS users are now looking for packaged tools they can use to comply with the standard.
ARC pointed to the Europe, Middle East and Africa (EMEA) region as the largest market for safety systems, followed by Asia and North America. With the booming economy of China and India, the Asian region will show highest growth, ARC said.
The EMEA region will also show large growth in the market as the high price of crude oil will lead to investments in grass-root facilities in the Middle East and parts of Europe.
For more information about the study, titled Process Safety System Worldwide Outlook - Market Analysis and Forecast Through 2012, go to http://www.arcweb.com.
Source: ARC Advisory Group.