Strong Growth of Safety System Market Will Continue
The worldwide process safety system market, which showed double-digit growth in recent years, will continue to grow for the next five years. However, due to the economic downturn in North America and the rest of the world, the growth rate will be tempered in 2009.
With the booming economy of China and India, the Asian region will show the highest growth. The EMEA region will also show a large growth as the high price of crude oil will lead to significant investments in the Middle-East region in grass-root facilities.
The factors contributing to the growth of this market include:
- Greater awareness and compliance to international safety standards
- Increased oil price leading to greater investments
- Growth driven by China, India, and other BRIC economies
- Obsolescence of older systems
- Increased high profile incidents in USA, and in UK
- Global environmental awareness and regulations
The factors retarding the growth of this market include:
- Dearth of qualified people
- Perception of some users that they are protected by the grandfather clause
- Cost
- Slow growth in mature economies and recession in global economy
- Higher level of complexity in risk estimation and its mitigation
Strategic Issues
In order for a supplier to take advantage of the many opportunities that await in this growing market, it is crucial to determine the appropriate strategic business plan. The following are some of the key strategic issues for success of the suppliers who deal with safety and critical control systems:
- Offer unified asset monitoring for process equipment, control, and safety systems
- Develop packaged solution for safety lifecycle management
- Deliver simulation packages for hazard analysis and operator training
- Provide safety training to alleviate the shortage of trained personnel
- Emergence of new competition in the market