Hazardous Area Equipment Market Size, Share & Industry Analysis, By Product (Cable Glands and Accessories, Measurement Devices, Control Panel Products, Alarm Systems, Gas Detector, Fire Detector, Motors, and Lighting Products), By Industry (Oil & Gas, Chemical & Pharmaceuticals, Food & Beverages, Energy & Power, Mining, and Others), and Regional Forecast, 2024-2032

The global hazardous area equipment market size was valued at USD 13.52 billion in 2023. The market is projected to grow from USD 14.21 billion in 2024 to USD 23.00 billion by 2032, exhibiting a CAGR of 6.2% during the forecast period.

Hazardous area equipment is an electronic and electrical device that is designed and certified to operate safely in environments where an explosive atmosphere may exist due to the presence of flammable vapors and flammable gas. Cable glands, measurement devices, industrial controls, sensors, and lighting fixtures are some products used in the market. It is extensively used for the oil & gas sector. Furthermore, it finds application in chemical & pharmaceuticals, food & beverages, mining, and power industries, among others.

Rapid industrialization and the expansion of the manufacturing sector, especially in developing countries. The rising demand for the equipment for safety measures fuels the growth of the market. Moreover, stringent government regulations for installing such products in hazardous areas are set to fuel the growth of the market. Besides, the integration of the Internet of Things (IoT) and Industry 4.0 technologies in such equipment enhances monitoring, diagnostics, and predictive maintenance, driving the growth of the market. The adoption of advanced technologies, such as LED lighting and smart sensors, over traditional solutions is a significant factor. These technologies offer better performance, energy efficiency, and longer lifespans, making them attractive options for hazardous environments, further driving the market expansion.

The COVID-19 pandemic had a mixed impact on the global hazardous area equipment market due to increasing safety awareness and rising demand from the oil and gas sector. The economic slowdown resulted in reduced capital expenditures by companies, particularly in non-essential sectors.

Hazardous Area Equipment Market Trends

Key Players Introduce IoT and AI-Based Solutions for Enhanced Safety and Efficiency

ABB Ltd, WERMA Signaltechnik GmbH Co KG, Siemens AG, Honeywell International, Patlite Corporation, and Rockwell Automation, among others, are few of the leading companies engaged in the introduction of new technological advancements such as the Internet of Things (IoT) and Artificial Intelligence based technologies. Such solutions allow real-time monitoring, data collection, and remote control capabilities, improving operational efficiency and safety in hazardous environments. Hazardous area equipment is increasingly incorporating advanced sensors and analytical capability to monitor various parameters such as temperature, pressure, vibration, and gas levels. A rise in advancements in technology is the latest trend in the global market.

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Hazardous Area Equipment Market Growth Factors

Global Investments and Industry Growth Boost Market for Specialized Safety Equipment in Hazardous Environments

The growth of industries such as oil and gas exploration, petrochemical processing, and mining activities, which often operate in hazardous environments, is driving the demand for such equipment. As these industries expand globally, the need for specialized equipment designed for potentially explosive atmospheres increases. The oil and gas industry is a significant consumer of such equipment, and increasing investments in exploration activities, both onshore and offshore, contribute to the market growth. In addition, government investment in expanding oil & gas infrastructure, which subsequently leads to a rise in the demand for such products, fuels the growth of the market. For instance, in February 2024, the Indian government planned to invest around USD 67 billion for the expansion of the natural gas supply chain for the next 5 to 6 years. These factors collectively fuel the global hazardous area equipment market growth.

RESTRAINING FACTORS

Substantial Initial Capital Investment to Impede Market Growth

Hazardous area equipment is typically more expensive than standard equipment owing to the specialized design, materials, and certifications required to ensure safe operation in potentially explosive environments. The cost required for such equipment such as cable glands and accessories, control panel products, gas detectors, and smoke detectors, among others, ranges from USD 1,000 to USD 12,000. In addition, a shortage of skilled personnel, particularly in remote or underdeveloped regions, can pose challenges for companies operating in hazardous environments.

Hazardous Area Equipment Market Segmentation Analysis

By Product Analysis

Cable Glands and Accessories Segment Dominate Due to Increasing Industrial Infrastructure Development

Based on product, the market is segmented into cable glands and accessories, measurement devices, control panel products, alarm systems, gas detector, fire detector, motors, and lighting products.

The cable glands and accessories segment dominated the market in terms of revenue in 2023. The increased adoption of automation across industries such as oil and gas, manufacturing, mining, and energy drives the demand for cable glands and accessories. These components are vital for ensuring safe and reliable electrical connections in automated systems.

Control panel products and measurement devices segments are projected to witness steady growth during the forecast period. This is owing to their features such as explosion-proof control panels. In addition, these products are widely adopted in the oil and gas, petrochemical, and mining industries, driving market growth.

Alarm systems, gas detectors, and fire detector segments are projected to exhibit moderate growth during the forecast period. This is owing to rapid industrialization and government investment in expanding industrial infrastructure. Subsequently, the demand for such equipment will drive the market growth.

The motors and lighting products segment is anticipated to exhibit decent growth during the forecast period. This is owing to increasing construction of new industrial manufacturing plants and rising adoption from sectors such as oil and gas and petrochemicals, which contributes positively in the global hazardous area equipment market share.

By Industry Analysis

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Oil & Gas Industry Holds Leading Position Owing to Rising Product Demand in Oil & Gas Plants

Based on industry, the market is segmented into oil & gas, chemical & pharmaceuticals, food & beverages, energy & power, mining, and others. The others segment includes the pulp and paper sector.

The oil & gas segment dominated the market in terms of share in 2023 and is projected to witness substantial growth during the forecast period. It is due to the presence of flammable hydrocarbons and explosive atmosphere in upstream and downstream operations. In addition, the rising demand from the oil & gas sector fuels the growth of the market.

The food and beverages sector segment is set to grow steadily during the forecast period owing to the rising adoption of such equipment to maintain safety, compliance, reliability, and efficiency. The presence of combustible dust and flammable gases, which mandates the usage of such equipment to ensure safety in industrial operations, fuels the market growth.

The chemical and pharmaceutical segment is anticipated to exhibit moderate growth during the forecast period. These industries deal with various flammable and combustible materials, making such equipment essential for safe operations.

The energy & power and mining sectors are set to record decent growth during the forecast period. This is due to the rising demand for control panels, cable glands, and flameproof control panels from the energy and mining sectors.

The others segment, which includes pulp and paper, is anticipated to grow moderately during the forecast period. This is credited to government safety regulations and standards and increased awareness about industrial safety practices across the pulp and paper sector.

REGIONAL INSIGHTS

Geographically, the market is studied across Asia Pacific, Europe, North America, South America, and the Middle East & Africa.

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Asia Pacific dominated the market in 2023 in terms of share, driven by urbanization, industrialization, and increasing investment in the oil & gas, mining, and petrochemical sectors. In addition, the growing petrochemical and mining sector, which results in a surging demand for hazardous area equipment, fuels the market growth. For instance, according to Mining Technology, investment in the mining sector in Asia Pacific grew by 5% in 2024 as compared to 2023.

China to Witness Substantial Growth Propelled by Expansion of Oil & Gas and Petrochemical Sector

China is a major producer and consumer of oil and gas, driving the demand for hazardous area equipment in upstream, midstream, and downstream operations. In addition, the robust manufacturing sector, including the automotive, electronics, and machinery sectors, propel the demand for hazardous area equipment. Moreover, China has domestic manufacturers of such products. These companies provide such products for the local market and are also expanding their presence across the globe.

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Europe is projected to grow steadily during the forecast period, owing to rising demand for such products from the petrochemical, oil and gas, and mining sectors. In addition, growth in the mining and manufacturing sectors across Germany, France, and Italy, among others, drives the growth of the regional hazardous area equipment market share.

North America is set to experience decent growth during the forecast period, owing to increasing industrial safety regulations and the need for advanced safety equipment in hazardous applications. In addition, the strong presence of major players such as Rockwell Automation Inc., ABB Ltd, and Siemens AG, among others, drives the growth of the market.

South America and the Middle East & Africa are projected to grow moderately during the forecast period. This is credited to rapid industrialization and government investment in the expansion of industrial plants across Brazil and Argentina.

KEY INDUSTRY PLAYERS

Market Players Adopt Product Launches and Acquisitions as Key Strategic Moves to Strengthen Competitive Landscape

Major players such as ABB Ltd, WERMA Signaltechnik GmbH + Co. KG, Siemens AG, Eaton Corporation, Rockwell Automation Inc, Honeywell International Inc, Emerson Electric, Patlite Corporation, R.Stahl AG, and E2S Warning Signals, among others, are engaged in the adoption of product development, product launch, and acquisitions as key strategic moves to gain an edge in the market. For instance, in January 2023, Siemens AG introduced new smoke detectors named FDA261 and FDA262 for industrial manufacturing plants, e-commerce warehouses, and data centers. This device requires a space of 6,700 square meters.

List of Top Hazardous Area Equipment Companies:

• ABB Ltd (Switzerland)


• Eaton Corporation (Ireland)


• Emerson Electric Co. (U.S.)


• E2S Warning Signals (U.K.)


• Honeywell International Inc (U.S.)


• WERMA Signaltechnik GmbH + Co. KG (Germany)


• Patlite Corporation (Japan)


• Rockwell Automation Inc (U.S.)


• R. Stahl AG (Germany)


• Siemens AG (Germany)

KEY INDUSTRY DEVELOPMENT:

• December 2023: Honeywell International Inc launched a new HEICC-23X1T camera for hazardous environments. It has features, such as 30X zoom, True Day/Night vision, 2 MP high resolution camera, and the capability to work under temperature from -40⁰ C to +60⁰ C.   


• May 2023: ABB Ltd planned to open a new innovation center at Memphis, U.S. The basic aim of the expansion was to expand its product portfolio of next generation electrification products.


• January 2023: ABB Ltd launched a new range of low-voltage motors, flameproof compressors for industrial plants. It offers advantages such as rising reliability and requires less maintenance. The devices find application in numerous industrial plants including oil & gas, and food & beverages, among others.


• November 2022: Eaton Corporation launched a new ExLin LED lighting products for hazardous work environments. It is a battery powered decentralized LED solution which finds application in numerous sectors such as petrochemical, oil & gas, and chemical plants. It is a cost efficient and safe device used across industrial sectors. It can perform better under low and high temperature capacity from -45⁰ C to +45⁰ C.    


• March 2022: DNV GV signed a collaboration agreement with Trainor AS based in Norway, Europe. Trainor AS deals in a wide range of hazardous area equipment. The basic aim of this collaboration was to improve the product portfolio for oil & gas, chemical, pharmaceuticals, and food & beverages sectors.  

REPORT COVERAGE

The report provides an in-depth analysis of the industry dynamics and competitive landscape. The report also provides market estimation and forecast based on product, industry, and regions. It provides various key insights, recent industry developments in the market such as mergers, acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.

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