The global explosion--proof equipment market was valued at USD 8.41 billion in 2018, and is expected to reach a value of USD 11.65 billion by 2024, at a CAGR of 5.5% over 2019-2024. Increasing demand for integrated systems, progress in the automation sector, growth in industrial sectors, and stringent government regulations in handling hazardous areas are projected to foster the market growth, globally.
With the increasing consumption of energy, the need for fetching energy and fuel also increases. This stimulates the market for explosion-proof equipment, as they are widely used to prevent explosions during the generation of power from natural resources. With the world depending on coal to meet its energy requirements, new sites are being explored for coal reserves.
Explosion-proof devices cater to highly capital- and machine-intensive markets, like aerospace, manufacturing, and defense. Thus, the cost of safety devices required in these industries is also high.
Low-voltage explosion-proof motors are used extensively in the market, with many tier 2 and tier 3 manufacturers offering off-the-shelf single-phase and three-phase explosion proof AC and DC motors. Low-voltage motors are used in pumps, compressors, and blowers for application in the oil and gas industry. The growth of low-voltage motors is expected to increase, mainly because of expansion in both onshore (shale extraction) and offshore (FPSO and offshore production units) activities in the oil and gas industry.
Scope of the Report
Explosion-proof equipment refers to products that limit any source of explosion within its housings. This equipment relies on various principles of protection, such as explosion prevention, explosion proof, and explosion segregation.
While explosion-proof equipment utilizes a robust, protective housing, in order to contain any explosion within itself, explosion segregation equipment isolates the source of explosion inside a protective medium.
The key products available in the explosion-proof equipment market, and considered under the scope of the report, include lighting fixtures, switches and plugs, sensors, security cameras, signals and alarms, junction boxes, and cable glands.
Key Market Trends
Mining Industry to Hold Significant Share
A majority of the explosions in underground mines and processing facilities are caused by the accumulation of flammable and toxic gases and combustible dust.
While countries have made much effort in preventing explosion disasters, mining remains the most hazardous occupation, as the number of people exposed to risk in a mining environment is the maximum, and it also produces multiple fatalities.
Stringent government regulations across the mining industries in various countries, such as the Mines Regulations, 2014 by the United Kingdom, state specific health and safety legislation for workers, as well as regarding electrical safety in mines.
United Kingdom to Witness Significant Growth
Regulations and codes present in the region are majorly posed by ATEX directives. The major regulations operating in the region are the Institute of Petroleum Model Code of Practice (Area Classification Code for Petroleum Installations, 2002) and the Institution of Gas Engineers Safety Recommendations SR25 (2001).
In 2017, there were 1,300 companies involved in pharmaceutical manufacturing in the United Kingdom. Manufacturing in life sciences sector accounted for nearly 10% of all UK manufacturing, and sector exports were more than EUR 30 billion. Production grew to EUR 250 billion in 2016, which acted as a positive outlook to the market.
Majority of Food and Drinks Federation (FDF) members have reported soaring ingredient prices, plummeting product margins, and concerns for the future raised by their EU workforce. This trend by most of the companies is expected to continue over the next year.
These developments are expected to put the UK food and beverage industry at risk, which may challenge the growth of the explosion-proof equipment market, but are likely to stabilize over the forecast period, as the economy is expected to stabilize. The major setback to the United Kingdom's explosion-proof equipment market is due to the downfall witnessed in crude oil production.
The degree of competition in the explosion-proof equipment market is high, due to the presence of electrical product manufacturers. The firm concentration ratio in major industry verticals is on the higher side, due to increasing demand for safety.
Sustainable competitive advantage has been established by market leaders, like Marechal Electric Group and R. Stahl, through innovation and market consolidation. Adalet, a Scott Fetzer company, is focused on making strategic acquisitions.
The company is seeking to acquire companies focused on the manufacturing and marketing of explosion-proof and flameproof enclosures, along with cable coupler, connectors, and stainless steel enclosures that are held privately.
Intertek Group PLC is concentrating on building a strong relationship with its consumers, by delivering superior, high-quality services. The company is planning to formulate an effective sales strategy, primarily to improve its business, by attracting new clients and increasing account penetration with existing customers.
Another recent development in the explosion-proof equipment market was made by Intertek Group PLC. The company partnered with Corescan to offer hyperspectral scanning.
This extended capability will serve a range of applications from green and brownfields exploration, processing and geo-metallurgical assessments to environmental and geotechnical studies. CorDEX Instrument, a manufacturer of intrinsically safe tools and instrumentation, launched a lightweight, intrinsically-safe, and thermal imaging capable camera in the TOUGHPIX DIGITHERM series.
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