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The process safety system market in the oil and gas industry size is estimated to grow at a CAGR of 3.18% between 2022 and 2027. The market size is forecast to increase by USD 146.51 million. The growth of the market depends on several factors, such as improvement in operational efficiency, improving safety standards, and the related developments and the increasing emphasis on corporate social responsibility.
This report extensively covers market segmentation by application (onshore and offshore), product (hardware, software, and service), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Process Safety System Market in the Oil and Gas Industry Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the market's growth during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The optimization of processes and workflows to achieve higher productivity, minimal costs, and enhanced overall performance is referred to as operational efficiency. The implementation of the advanced process safety systems enables centralized monitoring, control, and automation of critical operations.
Moreover, the main advantage of such integration is that it helps to streamline processes, reduces manual interventions, and improves overall efficiency. Additionally, the incorporation of predictive maintenance capabilities in process safety systems enables operators to anticipate equipment failures and schedule maintenance activities proactively. Hence, such factors are expected to positively impact the market which in turn will drive the market growth during the forecast period.
There has been an increasing advancement in robotic automation (RA) over the last few years. Additionally, there is an increasing adoption of the RA systems as they are more accurate and flexible than human beings as well and they help to enhance security and compliance and are capable of operating 24/7.
Moreover, these robotic automation (RA) systems are extensively used in harsh terrain, especially in oil and gas, mining, and nuclear power plants. Furthermore, the efficiency of RA systems in high-demand, highly scalable operations is fuelling the demand for such systems which in turn will drive the market growth during the forecast period.
There is a significant shortage of skilled laborers to maintain and operate automation systems coupled with process safety systems which significantly impacts the market players and end-users. Additionally, it has become very important for r safety system operators to have the knowledge as well as the technical ability to work on these systems, especially in developing countries.
Moreover, the decline in the number of skilled laborers is limiting the adoption of process safety systems across several industries mainly in developing countries. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
The onshore segment is estimated to witness significant growth during the forecast period. The onshore segment in the process safety system market in the oil and gas industry comprises the implementation of different safety measures and technologies to avoid and mitigate potential hazards and accidents in the production, refining, and processing of oil and gas onshore facilities. Process safety systems play a major role in the oil and gas industry to safeguard personnel, the environment, and assets.
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The onshore segment was the largest segment and was valued at USD 544.89 million in 2017. There is an increasing adoption of process safety systems in onshore applications as they help to identify, prevent, and manage incidents that could result in accidents, explosions, fires, and other hazardous situations. The onshore segment comprises several processes, from drilling and production to refining and distribution. Furthermore, it is essential for the onshore segment to comply with different safety regulations and standards, which can differ by location and jurisdiction. As there is an increase in energy demand, it is expected to increase the demand for need for safe and efficient onshore oil and gas operations. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on product, the segment is classified into hardware, software, and service. The hardware segment of the global process safety system market comprises emergency shutdown systems, fire and gas systems, burner management systems, TMC, HIPPS, and other field devices including automated valves, advanced controllers, safety interlocks, and communication devices. Factors such as rapidly increasing oil terminals and increasing competition among oil storage providers to tap new opportunities is expected to significantly contribute to the growth of this segment. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors that are significantly contributing to the growth of the process safety system in the oil and gas market in North America is the increase in crude oil production in the US and Canada. Additionally, there are several advancements in technology including a combination of hydraulic fracturing and horizontal drilling in the oil and natural gas industry is positively impacting the market growth in the region.
Furthermore, several countries such as the US, Canada, and Mexico are establishing solar plants to meet their energy needs which in turn will increase the demand for process safety systems. For example, the Occupational Safety and Health Administration (OSHA) is a prominent regulatory agency of the United States Department of Labor committed to safeguarding worker health and safety and protecting workers from health and safety hazards on the job. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global process safety system market witnessed a significant slowdown due to the temporary closure of oil and gas production units as well as disruption of the supply chain of production of petroleum products in North America. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of operations on several delayed oil and gas pipeline projects. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers process safety system solutions such as system 800xA high integrity, independent high integrity, and safety system evolution.
Bureau Veritas SA: The company offers a process safety system that focuses on the concerns of major hazards impacting safety, environmental damage, and business losses.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Emerson Electric Co., General Electric Co., Halma Plc, HIMA GmbH, Honeywell International Inc., Intertek Group Plc, Johnson Controls International Plc, Pentair Plc, Primatech Inc, Rockwell Automation Inc., RTP Co., Schneider Electric SE, SGS SA, Siemens AG, TUV SUD AG, Yokogawa Electric Corp., Hexagon AB, and OMRON Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The process safety system market in the oil and gas industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Process Safety System Market In The Oil And Gas Industry Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.18% |
Market growth 2023-2027 |
USD 146.51 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.04 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Bureau Veritas SA, Emerson Electric Co., General Electric Co., Halma Plc, HIMA GmbH, Honeywell International Inc., Intertek Group Plc, Johnson Controls International Plc, Pentair Plc, Primatech Inc, Rockwell Automation Inc., RTP Co., Schneider Electric SE, SGS SA, Siemens AG, TUV SUD AG, Yokogawa Electric Corp., Hexagon AB, and OMRON Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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