The Functional Safety Market is estimated to be valued at US$ 5767.57 Mn in 2023 and is expected to exhibit a CAGR of 11%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Functional safety systems are used in various industry verticals to prevent failures that can cause hazards like damage to property and health of people. These systems ensure safety of machinery, plants and processes by detecting and responding to faults. They help achieve risk reduction in systems where malfunctions may result in safety hazards like injury, damage to environment or financial loss.

Market Key Trends:
The automotive industry is adopting functional safety systems at a rapid pace owing to stringent regulations by authorities to enhance vehicle safety. Automakers are integrating functional safety solutions in advanced driver assistance systems, infotainment systems, engine control units and other sub-systems. Also, increasing investments by governments and private firms in industries like oil & gas, manufacturing and power generation are facilitating adoption of functional safety standards. This is escalating demand for safety instrumentation systems and emergency shutdown systems for plant protection. Furthermore, growing emphasis on workplace safety is propelling deployment of safety controllers and systems in various end-use industries.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the functional safety market is moderate. High capital requirements and the need for technical expertise act as a deterrent for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power owing to the availability of several vendors providing similar functional safety solutions. However, switching costs deter frequent changing of vendors.
Bargaining power of suppliers: Component suppliers have low to moderate bargaining power due to the fragmented nature of the market. However, the need for certifications provides some bargaining power.
Threat of new substitutes: The threat of substitutes is low as functional safety equipment has few alternatives that can provide the same level of safety certifications for industrial processes.
Competitive rivalry: Intense due to the presence of prominent global players and compliance with industry standards.

SWOT Analysis
Strengths: Presence of stringent regulatory standards driving demand. Established industry players with diversified product portfolios and global presence.
Weaknesses: High initial investment and costs associated with product certification. Dependency on oil & gas industry business cycles.
Opportunities: Growth in process automation and emergence of Industry 4.0. Expanding manufacturing sector in developing regions.
Threats: Trade protectionism hindering global partnerships. Currency fluctuations and privacy/security issues impacting connectivity solutions.

Key Takeaways
The Global Functional Safety Market Size is expected to witness high growth, exhibiting CAGR of 11%  over the forecast period, due to increasing industrial IoT and factory automation. The increasing implementation of functional safety systems in process and discrete industries to comply with international safety standards will contribute to the growth of the market.

Regional analysis North America holds the largest share in the functional safety market and is expected to continue dominance over the forecast period due to rising investments in industrial automation by key players in the US. The Asia Pacific is expected to grow at the fastest rate owing to growth in industries such as chemicals, oil and gas, and increasing adoption of industrial IoT in emerging countries of China and India.

Key players operating in the functional safety market are Banner Engineering Corporation, Rockwell Automation Inc., Pepperl+Fuchs SE, Emerson Electric Company, Panasonic Industry Europe GmbH (Panasonic Corporation), Honeywell International Inc., Sick AG, Yokogawa Electric Corporation, Omron Corporation, ABB Ltd., General Electric Company, Schneider Electric SE, and Siemens AG. Key players are focused on organic and inorganic strategies such as partnerships, new product launches and expanding geographical presence to strengthen their market position.

Get More Insights On This Topic: https://www.newsanalyticspro.com/functional-safety-market-overview/