Global Functional Safety Market Overview:
Functional Safety Market Size was valued at USD 13.6 billion in 2023. The functional safety market industry is projected to grow from USD 14.443 Billion in 2024 to USD 22.0 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.40% during the forecast period (2024 - 2032). Increased use of automated devices and the increasing use of loT and industrial automation are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Functional Safety Market Trends
Market CAGR for functional safely market is being driven by increasing industrial safely standards. The introduction of rigorous approaches in various international and regional industrial safety standards has improved the overall safety of a system when compared to the use of best engineering design practices in the past. As a result, industrial safety standards are becoming more widely adopted within industries. Furthermore, the increase in the number of hazardous areas and the frequency of accidents in these areas has contributed to an increase in demand for functional safety. Thus, rising industrial safety standards are expected to drive growth in the Functional Safety Market over the forecast period.
In various industries, the use of functional safety systems and a datacentric approach provides needed functionalities enabling automatic prevention of hazardous failures and control in the event of such occurrences.
These systems also provide services that humans are unable to replicate. In various industries, an increasing number of businesses rely on electronic, electrical, and programmable electronic safety-related systems to protect the environment, people, and physical assets. As a result, the adoption of functional safety systems is increasing, which is expected to fuel market growth.
Functional Safety Market Segment Insights:
Functional Safety Devices Insights
The Functional Safety Market segmentation, based on devices includes actuators, safety sensors, final control elements, safety controllers, modules, relays and programmable safety systems. During the forecast period, safety controllers are predicted to have the biggest market share due to their ability to inform users in the event of a hazardous condition. For the past few years, stereoscopic vision technology has gained market traction due to its ability to extract accurate information from high-volume traffic data. Sensors used in a safety system are developed and designed to provide a safe output based on logic if a measurement or signal transmission fails. These safety sensors include redundancy elements, which means that if one element fails, another takes control of the operations, avoiding productivity losses caused by shutdown.
Functional Safety System Insights
The Functional Safety Market segmentation, based on system, includes Safety Instrumented Systems, Turbo Machinery Control (TMC), Supervisory Control System, Burner Management Systems (BMS) and Emergency Shutdown Systems (ESD). The emergency shutdown systems (ESD) category accounted for the biggest revenue share in 2022, owing to increased initiatives by governments throughout the world to strengthen functional safety measures in industries and accident-prone locations. Additionally, increased demand for emergency shutdown systems with functional safety certification in various industries to improve worker safety is driving revenue growth in this segment. Accidents at oil and gas (O&G) activities have the potential to be destructive to the community and the environment. Functional safety measures, such as emergency shutdown systems, can greatly reduce the likelihood of disasters in oil and gas plants.
Functional Safety End-Users Insights
The Functional Safety Market segmentation, based on end-users, includes oil & gas, metal and mining, pharmaceuticals and biotech, retail and wholesale and others. Oil and gas are expected to dominate the global market over the forecast period, owing to the increasing emphasis of companies in this industry on maximizing efficiency and minimizing costs throughout the distribution chain. Automation aids in the integration of information and power, control, and safety solutions to meet stringent government regulations as well as the demand for affordable energy. This creates a demand for functional safety solutions in this industry, which in turn supports market growth.
Figure1: Functional Safety Market, by End-Users, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Functional Safety Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. In 2022, the North American market will have the highest revenue share. This is due to the rapid advancement of industry 4.0, the development of important technologies and innovations, increased oil and gas projects, and rising demand for functional safety solutions.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Functional Safety Market SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s functional safety market accounts for the second-largest market share due to strict government standards for safety and security. Further, the German functional safety market held the largest market share and the UK functional safety market was the fastest growing market in the European region
The Asia-Pacific Functional Safety Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rapid expansion of the automotive sector and Food & Beverage (F&B) industries. Moreover, China’s functional safety market held the largest market share, and the Indian functional safety market was the fastest growing market in the Asia-Pacific region.
Functional Safety Key Market Players & Competitive Insights
Leading market players are making significant R&D investments in order to diversify their product offerings, which will drive the functional safety market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaged in a number of strategic actions to increase their global presence. The functional safety industry must provide affordable products if it wants to grow and thrive in an increasingly competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the global functional safety industry to assist customers and expand the market sector is local manufacturing to reduce operating costs. The functional safety industry has recently provided some of the biggest benefits to medicine. The major players in the functional safety market, such as Honeywell International Inc., ABB Ltd., Schneider Electric SE, Emerson Electric Co., General Electric Co., Endress+Hauser Management AG, Siemens AG, and others, are making investments in their research and development activities in an effort to boost market demand.
Schneider Electric SE is a multinational French corporation specializing in digital automation and energy management. By merging energy technology, real-time automation, software, and services, it addresses homes, buildings, data centers, infrastructure, and industries. Schneider Electric is a Fortune Global 500 corporation, a Euronext Exchange public company, and a component of the Euro Stoxx 50 stock market index. The corporation made €34.2 billion in revenue in fiscal year 2022. Schneider Electric owns Square D, APC, and other companies. It is also a research firm. In October 2022, Schneider Electric debuted the next generation of industrial technologies designed to empower people and support long-term economic growth. EcoStruxure Automation Expert 22.1, the world's first software-centric industrial automation system, further integrates with the AVEVA System Platform, allowing users to access AVEVA's substantial asset library based on the most current situational awareness standards and design graphics using the Operations Management Interface. Training time is reduced by more than half when AVEVA graphics and control applications are developed in the same environment.
Siemens is a German multinational conglomerate firm and Europe's largest industrial manufacturing company. Its headquarters are in Munich, and it has a number of foreign branch offices. The company's primary divisions are Digital Industries, Smart Infrastructure, Mobility, Healthcare (named Siemens Healthiness), and Financial Services. In September 2022, Siemens introduced Fire Safety Digital Services, a new range of digital and managed services that connect fire safety devices to the cloud in order to help enterprises shift from a compliance-driven, reactive approach to total protection through intelligent safety. Customers may increase risk identification and prevention, make better risk-control decisions, ensure business continuity, and create a secure environment for people and assets by implementing digital services in operation, event management, and maintenance.
Key Companies in the functional safety market include
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Siemens AG
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ABB Ltd.
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Honeywell
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General Electric Co.
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Schneider Electric SE
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Rockwell Automation inc.
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Emerson Electric Co.
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Honevwell International inc.
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HIMA Paul Hildebrandt GmbH
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Endress+Hauser Management AG
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TUV Rheinland
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Omron Corporation
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Yokogawa Electric Corporation
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DEKRA Group
Functional Safety Industry Developments
In July 2020, Rockwell Automation announced a new family of safety controllers with significant features to increase performance. The new SIL 3 controllers are an addition to Rockwell Automation GuardLogix 5380 series.
February 2021, Rockwell Automation introduced the Allen-Bradley SafeZone 3 laser scanner with the CIP Safety over the EtherNet/IP plug-in and Allen-Bradley GuardShield 450L light curtain with the CIP. Safety over the EtherNet/IP plug-in, which provides the users with the access to the essential data required for a complete picture of machine or production line status.
June 2021, ABB announced distributing the control system 800*A, improving the collaboration with several new features, including the simplified, faster commissioning of the greenfield projects and the brownfield expansions with a new and improved Ethernet I/O Field Kit.
Functional Safety Market Segmentation:
Functional Safety Market Device Outlook
Functional Safety Market System Outlook
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Safety Instrumented Systems
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Turbo Machinery Control (TMC)
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Supervisory Control System
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Burner Management Systems (BMS)
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Emergency Shutdown Systems (ESD)
Functional Safety Market End-Users Outlook
Functional Safety Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 13.6 billion |
| Market Size 2024 |
USD 14.443 billion |
| Market Size 2032 |
USD 22.0 billion |
| Compound Annual Growth Rate (CAGR) |
5.40% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Device, System, End-Users, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Honeywell International Inc., ABB Ltd., Schneider Electric SE, Emerson Electric Co., General Electric Co., Endress+Hauser Management AG, Siemens AG, Omron Corporation, Rockwell Automation Inc, and Yokogawa Electric Corporation. |
| Key Market Opportunities |
Rising acceptance of loT technology in industries. |
| Key Market Dynamics |
Rising trend of Industry 4.0 across industries. |
Frequently Asked Questions (FAQ) :
The Functional Safety Market size was valued at USD 13.6 Billion in 2023.
The global market is projected to grow at a CAGR of 5.40% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Honeywell International Inc., ABB Ltd., Schneider Electric SE, Emerson Electric Co., General Electric Co., Endress+Hauser Management AG, Siemens AG.
The Oil and gas functional safety category dominated the market in 2022.
