According to a new report published by Allied Market Research, titled, “Fire sprinkler Market by Type, Component, Technology, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global fire sprinkler market size was valued at $10,200.0 million in 2019, and is projected to reach $14,525.5 million by 2027, registering a CAGR of 6.5% from 2020 to 2027.
Rapid urbanization and industrialization has resulted in increase in residential and nonresidential construction activities in the developed and developing countries such as the U.S., Canada, the UK, Russia, India, China, and Brazil. For instance, in August 2020, Statistics Canada, a national statistical agency of Canada, released a report on economy of Canada. According to this report, total investments in building construction registered an increase of 12% in June 2020 as compared to May 2020. This is expected to result in the need for safety and security from fire hazards, which is anticipated to accelerate the growth of the market during the forecast period.
Governments and fire safety authorities around the globe has implemented strict fire safety regulations to ensure the safety of property and human lives against the risk of fire hazards. For instance, National Fire Protection Association (NFPA) based in the U.S. has made compulsory to install fire sprinklers for all new commercial and residential buildings as per regulations laid down in NFPA 13. Similarly, in the UK, according to the ADB (Approved Document B) of Building Regulations 2006, installation of fire sprinklers are compulsory for buildings having height of more than 30m. These strict norms are expected to accelerate the growth of fire sprinkler market during the forecast period.
Key players in the market are continuously taking efforts to improve their product offerings to cater to dynamic requirements of the industry. For instance, in February 2019, Johnson Controls International Inc., launched TYCO Series LFII Residential 4.9K Concealed Pendent Sprinkler systems. It is equipped with advanced heat sensors and water control system.
Based on type, the service segment had the highest share in market in 2019, owing to increase in demand for fire sprinklers and its components in different industrial verticals such as data centers and banks. Moreover, many companies are focused on development of advance fire sprinklers, which drastically reduces usage of water. For instance, in Plumis Inc., a U.S. based company, offers “Automist Smartscan Hydra,” a smart fire sprinkler system, which uses 90% less water than traditional fire sprinkler systems.
North America region generated highest revenue in 2019, however, Asia-Pacific is expected to grow at the highest CAGR during the forecast period, followed by LAMEA, owing to public safety concerns in developing countries such as India, Bangladesh, and Vietnam. In addition, factors such as increase in fire casualty rate, property damage is expected to propel the fire sprinkler industry growth.
By application, the commercial segment accounted for the largest market share in 2019, owing to increase in commercial construction activities around the globe. The commercial and industrial sector employs fire sprinklers in large scale. Furthermore, the fire sprinkler market is expected to witness significant growth in China and India, owing to increase in population growth. On the basis of technology, the active fire protection segment accounted for the maximum share in 2019, and is expected to maintain its lead throughout the forecast period. This is attributed to construction of new official buildings, commercial complexes, rapid industrialization, and government efforts to expand and upgrade existing infrastructure.
However, fluctuations in raw material prices are anticipated to reduce in the future, owing to intense competition among players in the market. COVID-19 has affected the demand for fire sprinklers, which is expected to cause a negative impact on the market growth throughout the year. Moreover, demand for fire sprinklers has drastically declined in developing countries such as India and China, which had limited production of fire sprinklers and components & accessories. Furthermore, disruption of logistics and supply chains hampers installation of fire sprinkler systems across the globe.
Furthermore, companies have adopted acquisition, partnership, and product launch as their key developmental strategies to sustain intense competition and expand their foothold in the global fire sprinkler market. For instance, in October 2020, APi Group acquired SK FireSafety Group (SKG) based in the Netherlands, which designs and manufactures fire suppression systems. The acquisition aims to expand its APi Groups business of fire safety services in Europe.
The key players profiled in the fire sprinkler market report include AG Fire Sprinkler, American Fire Technologies, APi Group, GW Sprinkler A/S, Honeywell International Inc., Johnson Controls International Plc, Minimax GmbH & Co. KG, Robert Bosch GmbH, Siemens AG, and SIRON Fire Protection.
Key Findings Of The Study
- The report provides an extensive analysis of the current and emerging fire sprinkler market trends and dynamics.
- Depending on type, the products segment dominated the fire sprinkler market, in terms of revenue in 2019, and is projected to grow at a significant CAGR during the forecast period.
- By component, the stop valve segment registered highest revenue in 2019.
- On the basis of technology, active fire protection has garnered highest share of revenue in 2019.
- Depending on application, the commercial segment dominated the fire sprinkler market, in terms of revenue in 2019, and is projected to grow at a significant CAGR during the forecast period.
- Asia-Pacific region is projected to register the highest growth rate in the coming years.
- The key players within the fire sprinkler market are profiled in this report, and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the fire sprinkler industry.
- The report provides an extensive analysis of the current trends and emerging opportunities of the market.
- In-depth fire sprinkler market analysis is conducted by constructing estimations for the key segments between 2020 and 2027.