July 21, 2008 -- The strong growth of the Safety Instrumented Systems (SIS) market 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. The worldwide market, which is around $1.4 billion in 2007, is expected to grow at a compounded annual growth rate (CAGR) of over 12% per year to over $2.5 billion in 2012, according to a new ARC Advisory Group study, “Process Safety System Worldwide Outlook – Market Analysis and Forecast Through 2012.““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,” according to ARC Vice President Asish Ghosh, the principal author of the study.
Increased Demand Due to Greater Awareness of Standards and High Profile Incidents
Greater awareness of safety standards, such as IEC 61508, IEC 61511, and ANSI/ISA-84, and global environmental awareness is increasing the demand for safety systems. Additionally, high profile industrial accidents, such as in the BP Texas refinery in the USA and in the Buncefield terminal in the UK, have increased the sense of vulnerability among manufacturers, leading to increased demand for safety systems. In North America and Western Europe, the obsolescence of older equipment is also leading to greater demands for safety systems.
Increasing Importance of Safety Lifecycle Management
All major safety standards have specified safety lifecycles, which show considerable similarities, differing only in the details. The safety lifecycle, specified by the IEC 61511 standard, 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 that helps in managing the safety lifecycle is growing rapidly. Many SIS suppliers and third parties, such as system integrators, offer custom consulting in these areas. However, SIS users are now looking for packaged solutions that may help them comply with the standard.
Opportunities Lie in Asian and Middle Eastern Markets
The EMEA region is 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. The EMEA region will also show a large growth in the market as the high price of crude oil will lead to significant investments in grass-root facilities in the Middle East and parts of Europe.
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