Growth of Oil & Gas Industry Boosts Explosion-Proof Equipment Market Growth
According to our latest market study on "Explosion-Proof Equipment Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis — by Systems, Protection Method, and Industry," the market was valued at US$ 8.40 billion in 2023 and is anticipated to reach US$ 13.69 billion by 2031; it is estimated to record a CAGR of 6.3% from 2023 to 2031. The report includes growth prospects in light of current explosion-proof equipment market trends and driving factors influencing the market growth.
The explosion-proof equipment market analysis is based on systems, protection method, and industry. Explosion-proof equipment plays a crucial role in the oil & gas industry. In this industry, flammable liquids, gases, vapors, or combustible dust exist in sufficient quantities; hence, the safety of workers is the top priority. Generally, refineries, oil plants, and offshore facilities are constantly exposed to flammable substances. Manufacturers produce and rigorously test explosion-proof assets to combat the high possibility of ignition. For instance, in November 2023, Mitsubishi Heavy Industries, Ltd. (MHI) carried out autonomous inspections at a refinery using the "ASCENT," a second-generation "EX ROVR" plant inspection robot with explosion-proof features currently under joint development with ENEOS Corporation.
Explosion-Proof Equipment Market Analysis – by Geography, 2023
Explosion-Proof Equipment Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Systems [Junction Boxes and Enclosures, Lighting System, Monitoring System (Cameras, Data Loggers, Sensors, and Others), Signaling Devices, Automation System, Cable Glands, HVAC Systems, and Others], Protection Method (Explosion Prevention, Explosion Containment, and Explosion Segregation), Industry (Oil and Gas, Manufacturing, Mining, Chemical and Petrochemical, Energy and Power, Pharmaceutical, Water and Wastewater Management, and Others), and Geography
Explosion-Proof Equipment Market Trends, Growth, Size by 2031
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Source: The Insight Partners Analysis
The use of explosion-proof equipment in oil and gas refineries has aided in reinforcing safety measures for unpredictable work environments, thus fueling the demand for explosion proof equipment in the industry. Dangerous compounds in oil and gas facilities indicate several safety challenges for the workers. For instance, hydrocarbon processing, including ethane, fossil fuels, methane, and propane, is a critical process that needs to be carried out under stable atmospheres. Additionally, the increasing number of upcoming oil and gas plants in various countries is fueling the requirement for explosion-proof equipment. For instance, in May 2024, Canada's oil and natural gas production hit record-high levels, and the country is amplifying its status as a global oil and natural gas superpower. This expansion of oil production and crude transportation capacities comes simultaneously while Canada is trying to ramp up its natural gas sector. The first phase of the LNG Canada liquified natural gas export facility, the largest private investment in Canadian history, is now reaching completion in Kitimat, British Columbia. The project is expected to be fully operational in 2025.
Several companies are engaged in increasing oil production. For instance, the International Monetary Fund expects OPEC and its partners to gradually increase oil production from July 2024. The fund projects that Saudi oil production will reach 10 MMbpd in early 2025. Therefore, with the growth of the oil & gas industry, the demand for explosion-proof equipment is also rising to ensure the safety of all operators and workers working in oil and gas plants, boosting the explosion-proof equipment market growth.
The scope of the explosion-proof equipment market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). In APAC, China held the largest explosion-proof equipment market share in 2023. China is the world's leading producer of steel, coal, lead, aluminum, tin, zinc, tungsten, magnesium, and other metallic minerals. According to a report by the Green Finance & Development Centre at Fudan University in Shanghai, new investments and contracts in the metals and mining sector in China reached US$ 10 billion during the first half of 2023, a 131% year-on-year growth. Furthermore, the growing renewable energy sector in the country drives the demand for respective explosion-proof equipment. As per China's National Energy Administration (NEA), the solar power capacity increased by 55% to reach 609 GW, while wind power installed capacity increased by ~21% to over 441 GW. Similarly, thermal power capacity grew by 4.1% in 2023 to ~1,390 GW, nuclear capacity by 2.4% to ~57 GW, and hydropower capacity by 1.8% to more than 421 GW. Thus, China's overall installed capacity increased by ~14% in 2023, reaching nearly 2,920 GW. Moreover, China is the largest market for industrial robots. The country is also striving to expand its geopolitical reach further to protect the oil and gas supply. Also, the country is attracting huge FDIs owing to government initiatives such as "Made in China" to propel the manufacturing sector of the country. Thus, the considerable growth in the manufacturing, mining, and power generation industries drives the explosion-proof equipment market growth in China.
In Europe, Germany held the largest explosion-proof equipment market share in 2023. Germany is one of the leading producers of automobiles in the world, and many major car manufacturing companies are located in the country, including Volkswagen, BMW AG, and Audi. Germany produces more than 6 million vehicles annually, including passenger cars and commercial vehicles. Approximately 70% of most premium brand vehicles globally are manufactured by German companies. Thus, with the growth in the manufacturing industry in Germany, it needs to employ a greater number of workers and operators and maintain their safety in the factories. This is boosting the demand for explosion-proof equipment.
The water and wastewater industry in Germany is gaining traction at a fast pace. Various countries are making a joint pact with Germany. For instance, in March 2023, under the Urban Water Catalyst Initiative, Germany, with support from the Netherlands, launched the first global initiative to mobilize public and private investment for climate-resilient urban water utilities in the Global South. The aim is to provide city dwellers in the growing cities of the Global South with access to safe drinking water and sanitation. Hence, the growth of the automotive and water and wastewater industry in Germany is likely to have a significant impact on the explosion-proof equipment market forecast in the next few years.
ABB Ltd; Cortem S.p.A; Emerson Electric Co; Pepperl+Fuchs SE; Honeywell International Inc; Xylem Inc.; OMEGA Engineering, Inc.; Spectec Thunderbird International Corp; Motion Sensors, Inc.; BARTEC Top Holding GmbH; Rockwell Automation Inc; Siemens AG; Schneider Electric SE; Detector Electronics, LLC.; and Larson Electronics LLC are among the key players profiled in the explosion-proof equipment market report. Several other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.
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