Explosion Proof Equipment Market Segmentation by Application System (Power Supply, Material Handling, Automation system, Surveillance System, Motor and Others); By Flammable Substances (Class 1, Class 2, Class 3); By End Users (Chemical & Petrochemical, Pharmaceutical, Energy & Power, Mining, Food Processing, Oil & Gas and Others) - Global Demand Analysis & Opportunity Outlook 2027
Buy Now Report ID: 1819 | Published Date: Feb 16, 2023
Our-in depth analysis of the global explosion proof equipment market includes the following segments:
By Application System
By Flammable Substances
By End Users
By Region
On the basis of regional analysis, the global explosion proof equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is anticipated to have leading shares in the market on account of high adoption and production of ignition-proof automated solutions. The adoption of explosion-resistant devices in the Middle East region is expected to witness significant growth in the near future owing to the abundance of oil refineries in the region. Furthermore, the use of cost-effective equipment in Latin America region is expected to create huge opportunities in the market.
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The global explosion proof equipment market is further classified on the basis of region as follows:
Increasing adoption of explosion proof equipment in the oil & gas industries, exploration of new mining sites that increases the need for explosion proof equipment, rising demand of the equipment in the automation sector and new safety regulations for the use of such equipment are the factors that are contributing towards the growth of the market. In the last few years, the companies have designed some new materials for casing and with more advanced features.
The global explosion proof equipment market was valued at 8.43 Billion in 2018 and is expected to cross USD 11.84 Billion by 2027. The market is anticipated to grow at a CAGR of around 5.6% during the forecast period i.e. 2019-2027. The market is segmented by end users into chemical & petrochemical, pharmaceutical, energy & power, mining, food processing, oil & gas and others out of which, the mining segment is anticipated to have leading shares on account of majority of explosions taking place in underground mines and processing facilities caused by the accumulation of flammable and toxic gases and combustible dust. Mining remains the most hazardous occupation on account of maximum number of people exposed to the risk in the mining environment.
The market is further segmented by application system into power supply, material handling, automation system, surveillance system, motor and others out of which, automation system is anticipated to have significant growth on account of high cost of explosion proof automated products. On the basis of flammable substances, the market is segmented into class 1, class 2, and class 3.
Explosion protection is governed by the regulatory bodies of the individual countries. Differences in the technical requirements in different countries along with related approvals for the explosion proof device increases the demand for such devices and brings vast opportunities for the global manufacturers particularly, related to high investment for approval testing and development. In the recent years, efforts have been made to embrace technical standards and implement uniform safety standards in parallel.
Growth Drivers
Application in Various Industries
Explosion protection equipment is used in various industries in order to protect the devices and products from the hazardous environment. With increasing industrial accidents and explosions in mining industry, the regulatory body, such as OSHA, have initiated in the implementation of strict regulations to ensure the safety of workers and to prevent the damage to the atmosphere, thus propelling the growth of the market.
Safety Concerns
Safe handling of hazardous substances in the industries has been a great concern for the companies involved. Strict regulations have been made by the governmental agencies in various economies that are centered on the safe use of explosion-proof equipment. All the industries have restored their operations according to the changing regulations. This factor is anticipated to drive the growth of the market.
Restraints
Fluctuating Costs and Changing Standards
To manage the risks of explosion in the hazardous areas, the organizations have to make amendments in the standards that influence the designing and installation processes and ultimately affect the production and installation costs. Whenever there are changes in the regulations, either the product does not require any change or there are few changes in the product and this requires a test to be conducted that is based on new features. The whole new procedure must be followed in order to adhere to the standards. This factor makes it challenging for the companies to install such devices, thus affecting the growth of the market negatively.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Rushikesh, Richa Gupta
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