Safety Instrumented Systems (SIS) are emergency shutdown systems that are designed specifically to ensure safe and reliable operation of industrial process plants. SIS helps in timely shutdown of critical equipment and processes in case of abnormal process conditions and potentially hazardous situations. They provide a layer of mandatory safety that helps in preventing process upsets from resulting in an emergency shutdown or accident by shutting down specific parts of the system. The global safety instrumented system market is estimated to be valued at US$ 4.42 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The major opportunity for growth of safety instrumented system market lies in increasing adoption in process industries. Process industries such as oil and gas, chemicals, and pharmaceuticals involve complex operations with hazardous materials that require strict safety protocols. Installing SIS helps in achieving reliability and preventing adverse incidents in such industries. With growing complexity of industrial operations and stricter safety regulations, demand for SIS is rising from process plants. The opportunity for SIS suppliers lies in promoting benefits of deploying such safety systems to process industry players investing in capacity expansion and modernization of existing facilities. This will help drive the adoption of SIS and support the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the safety instrumented system market is medium. High capital requirements for R&D activities and need for technical expertise pose entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of various options in the market. Buyers can negotiate on pricing and demand customized solutions as projects involve large investments.
Bargaining power of suppliers: A few large multinational companies dominate the supply market. However, presence of many component manufacturers balance the power.
Threat of new substitutes: There are limited substitutes for safety instrumented systems as these ensure utmost safety in process industries. However, digital technologies pose a medium threat.
Competitive rivalry: The market consists of many global and regional players offering innovative solutions. Differentiation and customer relationships increase competition.
SWOT Analysis
Strength: High demand from process industries ensures stable revenues. Stringent safety standards drive adoption.
Weakness: High installation and maintenance costs. Require specialized workforce for complex systems.
Opportunity: Integration of AI and IoT offers growth potential. Expanding process automation boosts prospects.
Threats: Economic slowdowns impact capital expenditures. Delays in large projects affect revenues.
Key Takeaways
The global Safety Instrumented System Market Share is expected to witness high growth over the forecast period. Increasing industrialization and stringent regulatory frameworks will drive demand.
Regional analysis - North America dominates currently due to stringent EHS regulations and presence of major end users. Asia Pacific is projected to grow at the fastest pace owing to rising investments in process industries by China, India, and Southeast Asian countries.
Key players - Key players operating in the safety instrumented system market are Schlumberger Limited, Rockwell Automation Inc., SIS-TECH Solutions LP, Emerson Electric Company, HIMA Paul Hildebrandt GmbH, Honeywell International Inc., Siemens AG, Yokogawa Electric Corporation, Schneider Electric SE, and ABB Ltd.
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