The Global Functional Safety Market was valued at USD 43.86 billion in 2023. The market size is projected to grow at a CAGR of 6.87 % and reach USD 74.63 billion by 2031.
Functional Safety Product Market – Industry Overview
Nearly three million workers die every year due to work-related accidents and diseases, according to ILO estimates (ILO). Consequently, the need for functional safety products is increasing substantially to fulfill the rising safety demands due to industrial automation, stringent regulatory standards, and growth in sectors like automotive and aerospace. The rise in complex and automated systems, coupled with a heightened focus on reducing risk and improving operational reliability, further supports market expansion. Despite challenges such as high implementation costs and integration complexities, technological advancements like AI and IoT are revolutionizing safety systems, enabling smarter and more adaptive solutions. Additionally, the increasing adoption of safety standards and regulations globally, along with emerging market opportunities in developing regions, are expected to fuel significant growth.
This market report provides details of new recent developments, market share, market trends on the basis of segmentations and regional analysis, impact of market leaders, analysis of the opportunities in terms of emerging revenue pockets, market regulations, strategic market growth analysis, market size, category wise market growths, application niches and dominance, product approvals, product launches, geographic expansions, and technological innovations in the market. To gain more info on the market, contact Data Bridge Market Research’s team of expert analysts. Our team will help you make an informed market decision to achieve market growth.
Global Functional Safety Market Size and Market Analysis
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Functional Safety Market Report Metric
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Forecast Period
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2024-2031
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Base Year
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2023
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Historic Year
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2022 (Customizable 2016-2021)
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Measuring Unit
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USD Billion
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Data Pointers
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market value, growth rate, segmentation, geographical coverage, and major players depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
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The global functional safety market is growing at a fast pace, due to its wide application across sectors like healthcare, automotive, industrial, environmental monitoring, consumer electronics, and aerospace and defense. Functional Safety technology is, thus, enhanced and developed further in these sectors by the use of sensors in diagnostics, monitoring, advanced driver-assistance systems, process control, and so on, thus fueling the market growth. Databridge Market Research took a dive into comprehensively analyzing the market and unveiled that the Global Functional Safety Product Market is increasing at a CAGR of 6.87%. The market size was valued at USD 43.86 billion in 2023 and is expected to grow up to USD 74.63 billion by 2031.
Functional Safety Market Dynamics
Functional Safety Market Growth Drivers
Tightening Regulatory Standards and safety regulations
Governments and industry bodies worldwide have established rigorous safety standards, such as IEC 61508 and ISO 26262, driving companies to adopt functional safety solutions to ensure compliance. These standards are designed to reduce risks and enhance the safety and reliability of industrial processes, particularly in high-stakes sectors like automotive, energy, and manufacturing. As regulatory frameworks continue to evolve, companies are increasingly required to implement advanced safety systems to stay compliant and competitive in the global market. This growing need for compliance and risk mitigation acts as a significant driver for the expansion of the functional safety market, as organizations prioritize investments in safety technologies to meet these stringent requirements.
Increasing Automation in Industries
The rise of Industry 4.0 and the integration of IoT in industrial processes have led to more automated and interconnected systems. As automation and connectivity grow, so does the complexity of these industrial environments. This heightened complexity significantly increases the need for reliable safety mechanisms to prevent system failures, minimize risks, and ensure continuous and safe operations. For instance the U.S. Occupational Safety and Health Administration (OSHA) has emphasized the need for employers to implement safety and health programs that include hazard identification, risk assessment, and control measures.
Functional Safety Market Growth Opportunities
Adoption of Wireless Safety Systems
The trend of wireless communication in industrial environments, provides an attractive opportunity for the development of wireless functional safety systems. In contrast to wired systems, wireless their counter parts do not require cable trenches and ducts on plant floor, which allows more flexibility in terms of designing or revamping the plant layout. Wireless safety solutions can be easily installed and scaled up in growing industries or plants. With increasing requirements of industry owners to upgrade their old safety infrastructure also favors the growth of market for wireless based safety systems.
Rising Electric and Autonomous Vehicles
The rising trend of electric and autonomous vehicles is acting as a major driver for the functional safety market. With the adoption of modern electronic systems in vehicles and use of autonomous driving technologies becoming more prominent, the requirement of safety heightens. Minimizing defects in these advanced technologies enabled, electric or fully autonomous driving vehicles is important to prevent accidents and ensure passenger safety. This increasing need for deploying more safety measures will continue to fuel functional safety market growth.
Functional Safety Market Growth Challenges
Skilled Workforce Shortage acting as A Key Challenge for Functional Safety Market Growth
According to the World Economic Forum's Future of Jobs Report 2023. With the current pace of technological change, employers estimate that in the next five years, 44% of workers skills will be disrupted. Consequently, the shortage of professionals with specialized knowledge in functional safety and complex industrial systems presents a significant challenge for the market. This skills gap can hinder the development and implementation of advanced safety solutions, as companies struggle to find qualified experts.
Cybersecurity Concerns hampering the Global Functional Safety Market Growth
Contemporarily, systems are becoming more interconnected, they are increasingly vulnerable to cyber threats. Integrating robust cybersecurity measures into functional safety systems adds another layer of complexity and cost, which can be a significant restraint on the growth of the global functional safety market. This concern is underscored by The National Crime Records Bureau (NCRB) reported 1128265 cases of cybercrime in India in 2023. This need for enhanced cybersecurity measures adds significant complexity and cost to functional safety systems, acting as a restraint on the growth of the global functional safety market.
Functional Safety Market Size Growth Restraints
Regulatory Complexity acting as a Barrier to Functional Safety Market Growth
Navigating the intricate and frequently evolving safety regulations poses a significant barrier to the functional safety market. Complying with standards like IEC 61508 and ISO 26262 demands substantial resources and specialized expertise. Companies must continuously adapt to new requirements across different regions, which involves regular investments in training, certification, and system upgrades. This ongoing challenge can hinder the timely adoption of new safety solutions, driving up costs and creating obstacles for the growth of Global functional safety market.
Functional Safety Market Scope and Trends
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Functional Safety Market Segmentation Overview
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Segments Type
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Sub-Segments
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System
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Safety Instrumented Systems, Emergency Shutdown Systems (ESD), Fire and Gas Monitoring Control, Turbo Machinery Control (TMC), Burner Management Systems (BMS), High-Integrity Pressure Protection Systems (HIPPS), Industrial Control Systems, Supervisory Control and Data Acquisition (SCADA) Systems, Distributed Control Systems (DCS)
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Offering
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Component (Safety Sensor, Programmable Safety System, Safety Controller/Module/Relay, Safety Switch, Emergency Stop Device, Final Control Elements)
Service (Testing, Inspection, and Certification, Maintenance, Training, Consulting)
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End User
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Oil and Gas, Power Generation, Chemicals, Food and Beverages, Water and Wastewater, Pharmaceuticals, Metal and Mining, Discrete Industry, Automotive, Railways, Medical, Others
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- Mine Safety Appliances has introduced the HazardWatch FX-12 Fire and Gas System, which combines programmable logic controller (PLC) technology with sophisticated gas and flame detection sensors to significantly improve safety measures in industrial environments.
- IMI has introduced one of the pioneering high integrity pressure protection systems (HIPPS) designed to guard against overpressure during the hydrogen post-production process.
- TDK Corporation presents a new redundant analog tunnel-magnetoresistance (TMR) angle sensor for safety-relevant applications. This advanced sensor offers enhanced reliability and precision for critical systems.
- SABIC will implement ABB’s integrated automation, control, and safety solutions in its Utilities Park and Pilot project. ABB’s 800xA platform combines DCS, electrical control, and SIS functionalities, offering real-time big data and predictive analytics
Functional Safety Market Regional Analysis – Market Trends
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Functional Safety Market Regional Overview
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Regions
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Countries
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Europe
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Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe
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APAC
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China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific
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North America
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U.S., Canada, and Mexico
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MEA
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Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East, and Africa
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South America
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Brazil, Argentina, and Rest of South America
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Key Insights
- Manufacturing, which accounts for over 10% of Canada's total GDP, is a key driver for the country's functional safety market. As the manufacturing sector continues to expand and modernize, the demand for advanced functional safety systems grows to ensure the safety, reliability, and efficiency of increasingly complex industrial processes.
- The EU automotive sector, a vital pillar of the EU economy, accounts for over 7% of the region's GDP, with a turnover reaching approximately EUR 936 billion in 2020. This substantial economic impact highlights the crucial role of the automotive industry in propelling the growth of the functional safety market in Europe.
- China, as the world's largest market for industrial automation with over 30% of the global market share, plays a crucial role in driving the growth of the functional safety market. The extensive deployment of advanced automation technologies across various sectors in China increases the need for effective functional safety solutions to ensure system reliability and mitigate risks
- India's functional safety market is expanding as the country aligns its safety standards with international norms through the Bureau of Indian Standards (BIS). BIS is promoting the adoption of global standards like IEC 61508 and ISO 26262, which are crucial for ensuring the safety and reliability of industrial systems.
Functional Safety Market Leading Players
- Renesas Electronics Corporation
- MANGAN SOFTWARE SOLUTIONS
- Intel Corporation
- Johnson Controls
- Balluff Automation India Pvt. Ltd.
- MOGAS Industries, Inc.
- PHOENIX CONTACT
- Pepperl+Fuchs (India) Pvt. Ltd.
- Moore Industries
- Bosch Rexroth AG
- UL LLC
- Pilz GmbH & Co. KG
- OMRON Corporation
- Mitsubishi Electric Corporation
- HIMA
- General Electric
- Yokogawa Electric Corporation
- Siemens
- Schneider Electric
- Rockwell Automation, Inc.
- Honeywell International Inc.
- Emerson Electric Co.
- ABB
Functional Safety Market Recent Developments
- NEXCOM, a Taiwanese company, has developed a cobot named NEXCOBOT, which is a robot companion of humans in the industrial workplace, by prominently emphasizing functional safety.
- In June 2024, Red Hat, Inc., a global leader in open-source solutions, has announced that the Linux math library, a core component of the Red Hat In-Vehicle Operating System, has received ISO 26262 ASIL-B functional safety certification from exida, a prominent authority in functional safety and cybersecurity certification.
- In April 2023, OMRON Corporation introduced the NX502 automation and programmable safety systems along with the NX-EIP201 EtherNet/IPTM units worldwide.
- In 2023 Emerson released new HIPPS technologies with improved response times and accuracy, enhancing safety in overpressure situations, especially in the oil and gas sector.
- In May 2023, Honeywell Industrial Automation's Safety Solutions have been honored with awards in the prestigious Red Dot international design competition across six of its solutions in gas detection, electrical safety, and fall protection.
- In October, 2023 u-blox, a global leader in positioning and wireless communication technologies, has launched u-safe, a robust functional safety solution for vehicle positioning, aimed at accelerating the adoption of autonomous vehicles.
DBMR’s market report on the global Functional Safety market takes you through valuable insights that can contribute to making several important business decisions. Based on our reports and research expertise you can create realistic growth strategies for your business.
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