According to a recent report published by Allied Market Research, titled, “Machine Safety Market by Component, Implementation, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global machine safety industry size was valued at $4.83 billion in 2020, and is projected to reach $8.63 billion by 2030, registering a CAGR of 6.1% from 2021 to 2030. Safety Interlock Switches accounted more market share in 2020 and is expected to maintain this trend during the forecast period.
The key factor that drives the growth of the machine safety market share include rise in demand for presence-sensing safety devices, increase in use of IoT, and surge in emphasis on industrial safety and proactive safety measures. The key factors that hamper the growth of this market are lack of awareness about the importance of machine safety. The opportunity lies in the technological advancement in development of machine safety devices.
By component, it is fragmented into safety sensors, safety interlock switches, safety controller, and others. Among all components, Safety Interlock Switches segment was the highest revenue generating segment that accounted for $8627.5 million in 2020. However, the Safety Controllers segment is expected to witness the fastest growth at a CAGR of 7.50% during the forecast period.
By industry vertical, the machine safety market share is divided into oil & gas, healthcare, metals & mining, automotive, and others. The oil and gas sector is the fastest growing application segment, to register a CAGR of 9.00%, during the forecast period. However, the automotive segment is the highest revenue contributor that accounted for $1,485.6 million in 2020.
By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor that was valued at $1698.9 million in 2020. This region is further expected to attain a market value of $1837.4 million by 2022, to grow at a CAGR of 4.8%. Moreover, Asia-Pacific is expected to maintain its dominant position during the forecast period. Europe is the second region of the machine safety market.
COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners across the globe.
Demand from the wireless communication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies, such as 5G, IoT, AI, and intelligent edge computing, for future optimization.
Some of the machine safety device manufacturers have witnessed temporary delays in machine safety production, increased costs, and revenue losses due to the pandemic.
According to machine safety market trends, the manufacturing sector witnessed severe loss, and thus no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumer electronics and electric devices markets are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the machine safety market growth is facing major obstacles from the emergence of the COVID-19 pandemic.
The overall impact of the pandemic is impacting the production process of several industries, including semiconductor and electronics. Trade barriers are further constraining the demand and supply outlook. The overall production process is adversely affected as governments of different countries have already announced total lockdown and temporary shutdown of industries.
Key Findings Of The Study
- The oil & gas sector is projected to be the major end user during the forecast period.
- North America and Asia-Pacific dominated the machine safety market analysis in 2020.
- Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
- U.S. was the major shareholder in 2020 in the North America machine security market.
The key players profiled in this report include Schneider Electric SE, ABB Ltd, Honeywell International Inc., Emerson Electric Co., Rockwell Automation, Inc., Mitsubishi Electric Corporation, Sick AG, Siemens AG, Keyence Corporation, and Omron Corporation. These key players have adopted several strategies, such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the machine safety industry during the forecast period.