Global Safety Instrumented Systems Market

Description

Safety Instrumented Systems (SIS) is built as failsafe to the critical process systems using a multidisciplinary approach to hardware and software. Critical systems require prevention from an abnormal operational state, sans which they may lead to safety, health and environmental consequences for the company and nearby communities. SIS uses integrated technology to alleviate extreme conditions like high pressures and temperatures etc. by automating the relieving procedures using sensors, actuators etc based on predetermined conditions. They are built independently of the control systems of the equipment to minimize interference and reduce risk ranging from minor equipment damage to catastrophic hazardous accidents.With the advent of programmable and automated systems, SIS has become vital to the operations of large facilities, especially refineries and nuclear.

End-user/Technology

The major end-users of these systems are in the automotive manufacturing, oil & gas, chemical, and energy & power industry. They use SIS equipment to adhere to the strict standards set by the industry and the government set via best practices and legislation respectively. IEC 61511, IEC61508 etc. International standards govern and guide the end users throughout the life cycle of the systems. This allows them to meet safety expectations of society. With better technology, SIS has simultaneously increased productivity and lowered cost for the end users.

Market Dynamics

The demand for safety instrumented system is mainly driven by the Government safety regulations and the complexity of the requirements across the globe. Even the labor unions increasingly demand implementation of such systems to enforce safety measures and thereby set standards and best practices.

This increasing demand is constrained by high cost, lack of standards, lack of awareness, and complexity of standard and in implementation. Another impediment is of outdated plant technologies being not compatible with current SIS standards. These same constraints entail multi-billion opportunity for growth in this industry as the technology improves and costs come down.

Market Segmentation

The market can be segmented in terms of the types of components used, by products type, and by its application.

Segmentation based on components includes but is not limited to safety switches, sensors, programmable safety systems, valves etc. Based on application, it can be classified on the basis of the industrial sectors of its end users. On the basis of product type, the classifications are shutdown system – emergency and safety, interlock system, monitoring, machinery control etc.

All of the above segmentations are fluid as new technologies emerge for different sectors. Additionally, the geographical concentration of the markets and the makers give an additional layout to these segments.

Regional/Geographic Analysis

Europe especially Germany & Switzerland, USA, and Japan, house almost all of the top safety instrumented system companies, granting them a dominant market share. Although Europe currently drives and is the largest market with its increasingly stringent safety conditions and needs, future growth will come from APAC with their booming economies and growing manufacturing sector.

Opportunities

As the regulations become the norm, new plants and machinery will require SIS from the ground up. The increasing applications in various industries like pharmaceutical, paper, food, mining etc. provides a scope for expansion. After sales maintenance requirements provides a steady stream of income. Movement of the manufacturing hub towards APAC provides opportunities in newer markets.

Key Players

Some of the major players in the market include Emerson Process Management, Rockwell Automation, General Electric, Yokogawa Electric, Omron, ABB, and Tyco.