The global Emergency Shutdown System market size was valued at USD 2 billion in 2022. Over the next ten years, global shutdown system sales are set to soar at 8.1% CAGR. By 2032, the worldwide market for emergency shutdown systems will total around USD 4.4 billion.
Oil & gas industry will continue to remain the leading end user of emergency shutdown systems. The target segment is likely to thrive at over 7.9% CAGR from 2022 to 2032. This is due to rising demand for safety systems from oil & gas sector.
Key Market Shaping Factors:
The advanced systems used in hazardous areas to prevent situations that may have catastrophic effects on human life, machinery, or environment are called emergency shutdown systems (ESD). They are also sometimes called safety instrumented systems (SIS).
Emergency shutdown systems are designed to minimize consequences of emergency situations. This includes uncontrolled flooding, outbreak of fire, gas leaks, etc. These systems have the ability to shut down a plant in case it enters a potentially dangerous state.
Adoption of emergency shutdown systems allows industries to enhance workers’ safety and minimize damage to equipment. They have become essential equipment for industries such as oil & gas and power generation.
In oil & gas industry, emergency shutdown systems minimize consequences of various emergency situations. These systems use components such as sensors, valves, switches, etc., to monitor and control emergencies. They can determine cause and effect analysis to protect the facility.
Growing adoption of specialized industrial control systems across high-risk industries such as power generation and oil & gas will boost the global market through 2032.
Integration of advanced technologies such as internet of things (IoT) in emergency shutdown systems to provide real-time monitoring will further boost the market.
Rapid shift towards sustainable power generation resources is forecast to act as a catalyst triggering emergency shutdown sales. In recent years, there has been a sharp rise in the number of nuclear power plants. This in turn is creating high demand for emergency shutdown systems.
Emergency shutdown systems play a crucial role in preventing situations such as nuclear meltdowns. They have become essential safety systems in power plants. Hence, rising construction of new nuclear power plants will create high demand for emergency shutdown systems.
Key emergency shutdown system manufacturers are introducing novel products in the market. For instance, in May 2022 TopWorx DX PSR with Hart 7 was launched by Emerson. This novel emergency shutdown discrete valve controller enhances safety in dangerous applications.
It can enable reliable operation and predictive maintenance by providing detailed valve assembly data and diagnosis. Development of such advanced systems will boost the global market through 2032.
| Attributes | Key Insights |
|---|---|
| Current Emergency Shutdown System Market Size (2022) | USD 2 billion |
| Projected Market Size (2032) | USD 4.4 billion |
| Value-based CAGR (2022 to 2032) | 8.1% |
| USA Market CAGR (2022 to 2032) | 7% |
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As per Future Market Insights, historically, from 2017 to 2021 global emergency shutdown system sales grew at 9.0% CAGR. Between 2022 and 2032, worldwide demand for emergency shutdown systems will rise at 8.1% CAGR. The global market will generate an absolute $ opportunity of USD 2.4 billion through 2032.
Emergency shutdown system is a process or system that prevents application operations and isolates from inbound connections or currents to effectively reduce the likelihood of an uninvited incident.
Emergency shutdown systems are widely used in a variety of industries. This includes power generation, oil & gas, refining, chemical, metal & mining, automotive, etc. Expansion of these industries will create opportunities for emergency shutdown system manufacturers.
Increasing construction of thermal and nuclear power plants globally will boost emergency shutdown system sales. As per the World Economic Forum, there are around 450 reactors worldwide.
Further, several nuclear power plants are under construction in both developed and developing regions. This is likely to elevate demand for emergency shutdown systems.
Nuclear power plants are increasingly installing advanced emergency safety systems. This is due to the extremely hazardous nature of nuclear energy and the risk it poses to both the environment and human beings.
To meet the world's energy needs, there is also an increase in demand for natural resources such as oil & gas. The demand for crude oil was around 99 million barrels per day in 2018. By 2026, it is likely to increase to about 104 million barrels per day.
Demand for advanced emergency shutdown systems is projected to increase as a result of the widespread use of emergency shutdown systems in the oil and gas industry. These systems help to prevent oil spills that could harm the environment and workers.
North America to Create Maximum Growth Opportunities for the Market
North America emergency shutdown system market size reached USD 560 million in 2022. By 2032, North America market will cross a valuation of USD 1.2 billion. Booming power generation and oil & gas industries is driving North America market.
Decarbonization policies are being implemented/introduced in several parts of North America to accelerate the transition to low carbon emissions and, eventually, carbon neutrality. Liquid natural gas (LNG), a cleaner fuel when compared to other fossil fuels, has seen an increase in demand due to the region's growing need for clean energy.
Rising production of natural gas is set to expand the market for emergency shutdown systems. This is because emergency shutdown systems are installed as a safety measure to prevent leakage and hazardous incidents from happening.
Principal Consultant
| Country | United States |
|---|---|
| Projected CAGR (2022 to 2032) | 7% |
| Historical CAGR (2017 to 2021) | 7.5% |
| Market Value (2032) | USD 1 billion |
| Country | United Kingdom |
|---|---|
| Projected CAGR (2022 to 2032) | 7.3% |
| Historical CAGR (2017 to 2021) | 7.8% |
| Market Value (2032) | USD 337 million |
| Country | China |
|---|---|
| Projected CAGR (2022 to 2032) | 9.1% |
| Historical CAGR (2017 to 2021) | 10.5% |
| Market Value (2032) | USD 346.1 million |
| Country | Japan |
|---|---|
| Projected CAGR (2022 to 2032) | 7.6% |
| Historical CAGR (2017 to 2021) | 8.2% |
| Market Value (2032) | USD 292.4 million |
| Country | South Korea |
|---|---|
| Projected CAGR (2022 to 2032) | 8.5% |
| Historical CAGR (2017 to 2021) | 9.8% |
| Market Value (2032) | USD 163.1 million |
Growing Adoption Across Natural Gas Extraction and Refining Sector Boosting the USA Market
The USA emergency shutdown system market is set to be valued at USD 1 billion in 2032. An absolute $ opportunity of USD 467.9 million is likely to be generated by the USA market.
Emergency shutdown system sales in the United States grew at 7.5% CAGR from 2017 to 2021. Between 2022 and 2032, emergency shutdown system demand in the country will surge at 7% CAGR.
The United States has one of the most significant natural gas reserves, accounting for about 5.3% of global reserves. Natural gas is used for a wide range of purposes. Although it can be used as car fuel, its main uses are for cooking and heating homes.
With carbon emissions that are between 15% and 20% lower than those of gasoline, natural gas is thought to be the cleanest fossil fuel. As a result, demand for natural gas in the nation has significantly increased.
Demand for natural gas in the country was around 95 billion cubic feet per day in 2019. By 2033, it is likely to increase to around 120 billion cubic feet per day. With increasing demand in the country, the production of natural gas is forecast to expand during the assessment period.
For the facility's safe operation, emergency shutdown systems are widely used in the natural gas extraction and refining sector. Hence, expansion of this sector will elevate demand for emergency shutdown systems. This in turn is likely to expand the United States emergency shutdown system market.
Further, rapid expansion of nuclear power generation infrastructure is bolstering emergency shutdown system sales.
According to the World Population Review, the United States has around 96 nuclear power reactors. With shift towards more sustainable energy sources, this number is likely to increase in future years. It will create high demand for emergency shutdown systems as they have become indispensable parts of nuclear power reactors.
Expansion of Manufacturing Sector Bolstering Emergency Shutdown System Sales in the United Kingdom
The United Kingdom market is forecast to reach a valuation of USD 337 million in 2032. Emergency shutdown system demand in the country increased at 7.8% CAGR from 2017 to 2021. For the next ten years, the United Kingdom market is likely to thrive at a CAGR of 7.3%.
The United Kingdom has a significant manufacturing sector that produces items such as metals, cars, food, beverages, and tobacco. In 2021, the manufacturing sector made up about 17% of the total GDP.
The nation's total manufacturing output was around USD 254 billion in 2018. In 2021 it reached a high of USD 274 billion. With the rise in manufacturing activity, demand for emergency shutdown systems will expand. This is because they are used for the safe operation of manufacturing units.
Increase in Oil Refining Capacity fueling Emergency Shutdown System Demand in China
The emergency shutdown industry in China is likely to hit a valuation of USD 346.1 million by 2032. It will generate an absolute $ opportunity of USD 201.5 million by 2032. Overall emergency shutdown system sales in China grew at 10.5% CAGR from 2017 to 2021. Over the next ten years, China market will progress at a CAGR of 9.1%.
China is an emerging economy and requires huge amounts of energy to fuel its economy. It imports around 72% of its oil from other countries. This is because it does not have enough crude oil deposits present to fuel its economy.
China also has the second-largest refining capacity in the world i.e. around 16%. In 2018, China imported around 9260 barrels/day which increased to around 10301 barrels/day in 2021. The import of crude oil is projected to expand owing to the rise in the economy of the country.
With increasing import of crude oil in the country, the refining capacity is also likely to expand. Since emergency shutdown systems are widely utilized in the refining sector to avoid spillage as well as ensure the safe functioning of the facility, demand for emergency shutdown systems will rise at a healthy pace through 2032.
Sensors to Take a Bigger Piece of Pie
By component, the market is segmented into switches, safety valves, actuators, sensors, etc. Among these, sensors segment is likely to retain its dominance in the market through 2032. This is due to growing importance of sensors in modern emergency shutdown systems.
Sensors segment witnessed a growth rate of 8.8% CAGR from 2017 to 2021. Over the next ten years, the target segment will rise at a CAGR of 8.0%. Hence, it will remain the key revenue-generating component category for manufacturers.
Significant Emergency Shutdown System Demand to Arise from Oil & Gas Sector
Oil & gas will continue to remain the leading end-use vertical for emergency shutdown systems. This is due to rising adoption of emergency shutdown systems in oil & gas industry. The target segment exhibited a CAGR of 8.6% from 2017 to 2021. For the next ten years, it will progress at a CAGR of 7.9%.
Oil and gas are crucial materials in today’s economy as they are the primary sources of energy. Rising demand and consumption of oil and gas globally has increased production.
The oil and gas sector utilizes emergency shutdown systems to avoid oil spillage and accidents that could be fatal. These systems are being used in offshore establishments. With the rise in the demand for oil and gas worldwide, emergency shutdown system sales will thrive at a robust pace.
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Leading manufacturers of emergency shutdown systems include Emerson Electric Co., HIMA Paul Hildebrandt GmbH, General Electric Company, ABB Ltd, Honeywell International Inc., Nov Inc., Yokogawa Electric Corporation, Rockwell Automation Inc, Siemens Aktiengesellschaft, Schneider Electric SE, Versa Products Company Inc., and Winn-Marion Companies
Key players are investing heavily in research and development for products offering better safety. They are also focussing on product launches to solidify their market positions.
Recent Developments:
In January 2021, Repsol selected Honeywell International Inc. for supplying integrated control and safety systems (ICSS) to its biofuel plant in Spain.
In April 2020, Emerson Electric Co. acquired American governor company. This acquisition will expand Emerson’s product portfolio along with being able to provide a wider range of solutions to their customers.
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 2 billion |
| Projected Market Size (2032) | USD 4.4 billion |
| Anticipated Growth Rate (2022 to 2032) | 8.1% CAGR |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Segments Covered | Component, Control Method, Industry Vertical, and Region |
| Key Companies Profiled | ABB Ltd; Emerson Electric Co.; General Electric Company; HIMA Paul Hildebrandt GmbH; Honeywell International Inc.; Nov Inc.; Rockwell Automation Inc; Schneider Electric SE; Siemens Aktiengesellschaft; Versa Products Company Inc.; Winn-Marion Companies; Yokogawa Electric Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is valued at USD 2 billion in 2022.
ABB Ltd, Nov Inc and Honeywell International Inc are the key market players.
Sensor segment is likely to remain preferred through 2033.
Players opt for mergers, collaborations, new launches and acquisitions.
The United States, the United Kingdom, and China dominate the global market.
1. Executive Summary | Emergency Shutdown System Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Component 5.1. Switches 5.2. Sensors 5.3. Programmable Safety Systems 5.4. Safety Valves 5.5. Actuators 5.6. Others 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Control Method 6.1. Pneumatic 6.2. Electrical 6.3. Fiber Optic 6.4. Hydraulic 6.5. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Industry Vertical 7.1. Oil and Gas 7.2. Refining 7.3. Power Generation 7.4. Metal and Mining 7.5. Paper and Pulp 7.6. Others 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. Middle East & Africa 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Middle East & Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. ABB Ltd 16.2. Emerson Electric Co. 16.3. General Electric Company 16.4. HIMA Paul Hildebrandt GmbH 16.5. Honeywell International Inc. 16.6. Nov Inc. 16.7. Rockwell Automation Inc 16.8. Schneider Electric SE 16.9. Siemens Aktiengesellschaft 16.10. Versa Products Company Inc. 16.11. Winn-Marion Companies 16.12. Yokogawa Electric Corporation 17. Assumptions & Acronyms Used 18. Research Methodology
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Emergency Shutdown System Market
