Emergency Shutdown Systems Market Outlook 2031
The global emergency shutdown systems market size was valued at USD 1.97 Billion in 2022 and is expected to reach USD 4.39 Billion by 2031, expanding at a CAGR of 9.3% during the forecast period, 2023 – 2031. The growth of the market is attributed to government regulations and standards, and the rising number of global catastrophic accidents.
Increasing emphasis on industrial safety is driving the emergency shutdown (ESD) system market. Recognition of the potential risks and hazards associated with industrial operations creates a focus on implementing robust safety measures, including emergency shutdown systems. These systems are designed to respond quickly and effectively to critical incidents, such as equipment failures, leaks, fires, or other hazardous situations, thereby minimizing the risk to personnel and assets.
Government regulations and standards are fueling the market. Governments worldwide have implemented stringent safety regulations and standards across various industries. These regulations often require the installation of emergency shutdown systems as a mandatory safety measure. For example, in industries such as oil & gas, chemicals, power generation, and others, regulatory bodies have mandated the use of these systems to ensure the protection of workers and the environment. Compliance with these regulations is driving the demand for emergency shutdown systems.
The research report finds that the COVID-19 pandemic has both positive and negative impacts on the emergency shutdown system market. The pandemic increased the focus on workplace safety. It has heightened awareness about the importance of workplace safety across industries. This resulted in an increased emphasis on implementing robust safety measures, including emergency shutdown systems, to protect workers and prevent the spread of the virus.
However, the pandemic has caused disruptions in global supply chains, affecting the availability of components and equipment required for emergency shutdown systems. Restrictions on manufacturing, transportation, and logistics have led to delays in the delivery of critical system components, affecting project timelines and installations.
Artificial Intelligence (AI) Impact on Emergency Shutdown System Market
The emergence of AI has a significant impact on the emergency shutdown system market. AI-powered technologies enable advanced monitoring and predictive analytics capabilities for ESD systems. AI algorithms analyze real-time data from sensors, equipment, and other sources to detect anomalies, identify potential hazards, and predict equipment failures or critical events. This proactive approach helps prevent incidents and allows for timely shutdowns, improving overall safety and minimizing downtime.
Emergency Shutdown Systems Market Dynamics
Major Drivers
Increasing number of accidents at the workplace and the rising number of hazardous explosions are expected to boost the market. Growing number of accidents has raised concerns regarding workplace safety. These incidents highlight the need for effective safety measures, including emergency shutdown systems.
As a result, industries are increasingly investing in these systems to prevent accidents, protect personnel, and minimize the potential for catastrophic events. The rising awareness of these risks is expected to drive the emergency shutdown systems market. Growing number of power plant projects are expected to propel the market.
The increasing demand for electricity and the expansion of power generation infrastructure has led to a growing number of power plant projects worldwide. Power plants require robust safety measures, including emergency shutdown systems, to ensure the safe operation of critical equipment and prevent accidents that disrupt power supply or pose risks to personnel. The need for these systems in power plants is expected to drive the market. For instance,
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In May 2022, Emerson released the TopWorx DX PSR with Hart 7, a discrete valve controller designed to improve safety in hazardous environments. These controllers offer important valve data and diagnostic information, enabling the digital transformation of process applications.
Existing Restraint
High investment costs and complexity associated with safety designs are restraining the market. ESD system involves high investment costs and complex implementation processes. The design, installation, and integration of these systems require specialized expertise and it is challenging for industries. The cost and complexity associated with implementing these safety designs act as barriers to adoption, potentially hindering market growth.
Emerging Opportunities
Rapid developments in industrial IoT are expected to create lucrative opportunities in the market. Industrial Internet of Things (IoT) is rapidly transforming various industries, including safety systems. The integration of IoT technologies with emergency shutdown systems enables real-time monitoring, data analytics, and remote-control capabilities.
This integration enhances the effectiveness and efficiency of emergency shutdown systems, allowing for proactive maintenance, predictive analysis, and improved response times. The rapid developments in the industrial IoT present opportunities for innovation and growth within the emergency shutdown systems market during the forecast period.
Scope of The Emergency Shutdown Systems Market Report
The report on the global emergency shutdown systems market research report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Emergency Shutdown Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Control Method (Electrical, Fiber Optic, and Pneumatic) and Application (Oil & Gas, Refining, Power Generation)
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Regional Scope
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North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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ABB Ltd; General Electric Co; Honeywell International Inc; Nov Inc.; Rockwell Automation Inc; Schneider Electric SE; Siemens AG; Versa Products Company Inc.; and Yokogawa Electric Corporation. |
Global Emergency Shutdown Systems Market Segment Insights
Control Method Segment Analysis
Based on the control method, the market is divided into electrical, fiber optic, and pneumatic. The pneumatic segment is expected to account for a considerable market share during the forecast period. Pneumatic control is an economical and effective choice for designing commercial buildings. It is powered by compressed air, which makes it ideal for controlling humidity, temperature, and pressure. This factor is propelling the segment.
Application Segment Analysis
Based on application, the global emergency shutdown systems market is segmented into oil & gas, refining, and power generation. The oil & gas segment holds a major share of the market, owing to increasing upstream activity and recovering oil & gas prices. ESD system aids in combating emergencies in the oil & gas industry. The system uses components such as switches, valves, sensors, and others to control and monitor emergencies.
The increasing demand for ESD systems from upstream, midstream, and downstream (oil refineries) activities is driving the oil & gas segment. The power generation segment is expected to expand at a steady growth rate during the forecast period, due to rising energy demand across the globe. A sharp rise in the number of nuclear power plants has created a high demand for emergency shutdown systems.
ESD systems play a vital role in power plants as a safety system. Thus, increasing construction of nuclear power plants is expected to create a high demand for emergency shutdown systems in the market. For instance,
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In October 2022, according to the World Nuclear Organization, the global future energy needs, particularly clean electricity, are expected to rise significantly. Electricity demand is growing at twice the rate of overall energy use. Nuclear power currently accounts for approximately 10% of global electricity and 18% in OECD countries.
Regional Analysis
In terms of region, the market is segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe holds the largest share of the ESD systems market, owing to the presence of advanced crude oil refiners in the region. Rising activity in the downstream oil & gas sector and high industrial activity in the region are driving the ESD systems market in Europe.
The market in North America is projected to expand at a high CAGR in the coming years, due to rising exploration activities in the US. The US has significant natural gas reserves accounting for 5.4% of the global reserves, which serve various purposes, such as cooking, car fuel, and others. Additionally, the rapid expansion of nuclear power generation infrastructure is fueling the ESD system market in the region. For instance,
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In March 2022, according to the World Population Review, the US currently operates approximately 96 nuclear power reactors, with expectations for this number to grow as the country transitions towards sustainable energy sources. As a result, demand for emergency shutdown systems, which are essential components of nuclear power reactors, is expected to be high.
Segments
The Global Emergency Shutdown Systems Market has been segmented on the basis of
Control Method
- Electrical
- Fiber Optic
- Pneumatic
Application
- Oil & Gas
- Refining
- Power Generation
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Players
- ABB Ltd
- General Electric Co
- Honeywell International Inc
- Nov Inc.
- Rockwell Automation Inc
- Schneider Electric SE
- Siemens AG
- Versa Products Company Inc.
- Yokogawa Electric Corporation
Competitive Landscape
Key players operating in the global emergency shutdown systems market include ABB Ltd; General Electric Co.; Honeywell International Inc.; Nov Inc.; Rockwell Automation Inc.; Schneider Electric SE; Siemens AG; Versa Products Company Inc.; and Yokogawa Electric Corporation. Industry players are engaging in partnerships, and acquisitions, and are investing in R&D activities to expand their market share. For instance,
- In January 2021, Honeywell is expected to provide integrated control and safety systems to Repsol's biofuel plant in Spain, producing eco-friendly biofuels and reducing CO2 emissions by 900,000 tons annually.
- In April 2020, Emerson Electric Co. acquired American Governor Company, enhancing its product portfolio and expanding its solutions for the hydroelectric turbine control market. This acquisition strengthens Emerson's expertise in the renewables and power industry, allowing it to deliver reliable and responsive power generation solutions for the growing hydropower sector.
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