Global Intrinsically Safe Market 2014 -2019

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RESEARCH METHODOLOGY This research study involved the use of extensive secondary sources, directories, and databases like Comtrade, the Statistical Office of the European Communities (Eurostat), United Nations Statistics Division and several other proprietary databases to identify and collect useful information for this extensive technical, market-oriented, and commercial study of Intrinsically Safe Equipment Market. The primary sources were mainly several industry experts from core and related industries and preferred vendors, solution providers, technology developers, alliances, and organizations related to all the segments of this industry’s value chain. All primary sources were interviewed to obtain and verify critical qualitative and quantitative information as well as assess the future prospects. In the primary research process done for this research study, the primary sources – industry experts such as CEOs, Vice Presidents, Marketing Directors, Technology & Innovation Directors and related key executives from various key companies, organizations in energy management systems related industries – were interviewed to obtain and verify both qualitative and quantitative aspects of this research study. In the secondary research process for this study, several hundreds of secondary sources such as certified publications, articles from recognized authors, white papers, annual reports of companies, directories, and databases were used to identify and collect information useful for this extensive technical and commercial study of the global market. Secondary research was mainly used to obtain key information about the industry’s value chain market classification & segmentation according to industry trends to the bottom-most level, geographical markets, and key developments from both market and technology oriented perspectives. Total market breakdown was done after which several data triangulation methods were applied to perform market estimation and market forecasting, for all the segment and sub-segment markets listed in this report. Extensive qualitative and further quantitative analysis was also done from all the numbers arrived at in the complete market engineering process, to list key information throughout the report.

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3. MARKET INSIGHTS 3.2 FACTORS DRIVING THE MARKET 3.2.1 INCREASING FOCUS ON SAFETY AND SECURITY OF PERSONNEL EMPLOYED IN POTENTIALLY HAZARDOUS LOCATIONS The growing demand for electricity and petrochemicals is driving creating opportunity for enterprises to explore new sources of energy. These areas have high concentration of flammable gases and dusts which are hazardous to the safety of the persons employed there. This has led to formation of various regulations and safety standards which help in checking the accidents and ensure safety. In the U.S. the Occupational Safety & Health Administration (OSHA) is responsible for ensuring safe working conditions for employees in the workplace similar bodies are present across the world which make sure the safety of persons working at hazardous locations. These regulatory bodies identify the products and safety standards which need to be followed by the companies operating these locations. The companies while adhering to the standards have to procure and install equipment that demonstrate compliance with the regulatory body guidelines. These equipment are mostly intrinsically safe certified by agencies like Factory Mutual Research Corporation, Underwriters Laboratories (UL), Canadian Standards Association, the ATEX directive and others.

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3.3 FACTORS RESTRAINING THE MARKET 3.3.1 INDUSTRY STANDARDS VARY ACROSS DIFFERENT REGIONS The intrinsic standards vary across different geographical regions. The U.S. which has Factory Mutual Research Corporation and Underwriters Laboratories (UL), Canada has Canadian Standards Association. Similarly Europe has the ATEX directive for intrinsically safe equipment. These standards make it difficult for the manufacturers to manufacture equipment which are compliant to different geographical needs. This becomes a barrier for manufacturing enterprises to produce and market their products seamlessly across different regions. Thus, intrinsically safe equipment manufacturers have to produce those equipment which are compliant with multiple standards or change their processes to cater to demands of different countries. For large scale manufacturers this is still possible but acts as a barrier to entry for small scale industries which want to cater to different customers.

4. TECHNOLOGY OVERVIEW 4.2 TYPES OF INTRINSICALLY SAFE EQUIPMENT 4.2.1 ISOLATORS Isolators provide power limitations on an intrinsically safe circuit. Isolators and barriers both have the same functionality but isolators use more complex electronics and are more tolerant to supply voltage. These isolators have ability to detect short circuits or line break in the field and report back to the main system. Generally isolators are preferred solution in marine installations and Germanic zones of influence but different other form of it like Ethernet isolators designed especially for temporary installations and mobile apparatus as well as for machinery and equipment.

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7. INTRINSICALLY SAFE EQUIPMENT MARKET FORECAST BY REGIONS 7.1 NORTH AMERICA 7.1.1 INTRODUCTION The adoption for intrinsically safe equipment products in North America has been rather slow in early 2000’s. But with increasing focus on employee’s safety and strict regulations the demand for these products has been growing steadily. The U.S. is the major market for these products with a share of more than 70% followed by Canada with a share of 23%. Other countries contribute to 7% of the total market for intrinsically safe equipment.

North America Intrinsically safe equipment market size 700.00

Market Size ($ million)

600.00 500.00

DATA HIDDEN FROM VIEW

400.00 300.00 200.00 100.00 0.00 2014

2015

2016

2017 Year

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2018

2019


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Intrinsically safe equipment market for North America is estimated at $459.36 million. It is forecasted to grow at a CAGR of 6.50% for the period 2014 to 2019. The total market value by the end of 2019 is estimated to reach $629 million. The growing demand for energy which is driving the need for exploration of mines and oil fields is driving the demand for these products. Recent shale gas boom has reduced the dependence on Middle East oil. The hazardous nature of gas mined requires strict safety standards and regulations. These factors are augmenting the demand for intrinsically safe products which will continue to gain traction in near future.

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9. COMPANY PROFILES 9.4 PEPPERL+FUCHS 9.4.1 OVERVIEW Founded in 1945 and headquartered in Mannheim, Germany: Pepperl+Fuchs manufactures products for fabrication and process automation. It is a pioneer and innovator in electrical explosion protection, intrinsic safety and sensor technology. Its factory automation products - inductive, capacitive, photoelectric and ultrasonic sensors; ID systems; AS-Interface; rotary encoders; and zone scanners as well as different intrinsically safe products are used in a wide variety of markets and applications in industrial automation for the material handling, packaging, automotive, metal forming, printing, and mobile equipment industries. The company operates across the globe with more than 5,600 employees.

9.4.2 MAJOR PRODUCTS AND SERVICES Products/Services Intrinsically safe Ethernet Isolator

Description The Ethernet Isolator are used within the safe area and Zone 2 hazardous area. As an associated apparatus it is certified to lead intrinsically safe instrumentation into Zone 0 and Zone 1 hazardous areas. K-System guarantees a reliable and economical signal transmission

K-System

between field device and the control system. K-System product range can address single isolating module or a large scale system integration as well as application-oriented solutions.

Segment Protector

This Segment Protector Junction Box is a device coupler for Zone 2/Div 2.

Junction Box

Devices can be located in Zone 2/Div 2.

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9.4.3 FINANCIALS Type of company – Private Revenue - $665 million (2013)

9.4.4 RECENT DEVELOPMENTS Date

Development Pepperl+Fuchs launched SC-system: a new signal conditioner line for non-

April 2014

hazardous areas. Pepperl+Fuchs introduced new Control Stations and Control Units in type of

April 2014

protection Ex e. Pepperl+Fuchs transferred its business and sales activities for Separator Alarm

May 2014

Systems (SAS) to Labkotec Oy, to focus on its core business area: Process Automation solutions.

March 2013

Pepperl+Fuchs launched new ATEX and IEC Ex Zone 2 Panel PCs and Monitors

9.4.5 ANALYST VIEW Pepperl+Fuchs with its history of over 65 years is one the major players in intrinsically safe equipment market. Its presence across the globe and range of products for different industry sectors gives it a competitive edge. It is continuously innovating and adding new products to its existing portfolio which helps it cater to a wide range of customers.

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