The rate of mergers and acquisitions in the global fire protection systems market is likely to consolidate its overall growth rate, according to a research report released by Transparency Market Research. The current rate of consolidation can allow players to increase their grasp on the market while also allowing them to score more long-term contracts and larger shares in the market. As stated by TMR, the leading players in the global fire protection systems market so far, have included 3M, Emerson Electric Co., and KEVTA Fire Systems, Inc.
The overall growth of the global fire protection systems market is largely dependent on the shape of the oil and gas industry, it being a heavy end user for the market. Meanwhile, consolidation efforts such as the acquisition of Separations Media business that originally belonged to Polypore, by 3M, are implications of the intensifying competition in the market over the coming years. TMR’s report states that the global fire protection systems market was valued at US$5.08 bn in 2014 and is expected expand at a CAGR of 6.48%, within a forecast period from 2015 to 2023. The global fire protection systems market is anticipated to reach US$8.93 bn by the end of 2023.
Preventive and Proactive Measures Undertaken at Increasing Rates
A large number of systems are currently available in the global fire protection systems market, varying between those used to detect fires, and those used to suppress them. “The entirety of the global fire protection systems market is currently being endowed with a very healthy growth rate in the oil and gas industry. The high level of danger that workers in this industry perform in is already a large enough factor to account for the high demand for protective systems. Additionally, more and more companies are preferring preventive protection systems because although they come with higher installation costs and maintenance costs, they can be extremely valuable when it comes to saving lives, equipment, chemicals, and property. Furthermore, several regions are beginning to fall under increasingly stringent guidelines that protect workers’ welfare and their safety, and the global fire protection systems market falls in an optimistic growth pattern through this regulatory framework,” states a TMR analyst.
Advancements in Tech to Increase Demand for Renovation
Further scope of growth has opened in the global fire protection systems market for the coming years, as an increasing number of companies from all streams of the oil and gas industry are purchasing newer and more advanced safety and protection systems. Advancements in technology in the global fire protection systems market is likely to open doors for manufacturers into the growing need for replacing outdated protection systems with newer versions. Some of these advancements are the replacement of water-based suppression systems with mist-based suppression systems, and the development of newer fire-retardant materials through the guidelines offered by bodies such as the NPFA and the ATSM.
Research and Development too Expensive for Some
One of the key restraints currently acting on the global fire protection systems market is the high costs associated with the research and development of advanced technologies. Players – especially medium scale and below – are struggling to find enough funds or investments to continue on a swift pace of technological evolution to meet the market’s needs. This is partly attributed to the complex scenario of fire hazards in the oil and gas industry, which needs the use of specialized systems and materials. These complications will increase with the evolution of the oil and gas industry and will require players from the global fire protection systems a greater deal of investments to keep up.
The information presented in this review is based on a Transparency Market Research report, titled, “Fire Protection Systems Market for Oil and Gas (Locations – Offshore (Offshore Platforms, Drill Ships, Offshore Oil Rigs, FPSOs, LNG Carriers, and Support and Supply Vessels), Onshore (Onshore Drilling Rigs, Accommodation Areas, and Pipelines), Production Vessels, Production Platforms, Refineries, and Petrochemicals; Applications – Upstream, Midstream, and Downstream; and Types – Fire Detection Systems and Fire Suppression Systems)- Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2015 - 2023.”
Key segments of the Global Fire Protection Systems Market
Global Fire Protection Systems (for Oil and Gas) Market: North America
Global Fire Protection Systems (for Oil and Gas) Market: Europe
Global Fire Protection Systems (for Oil and Gas) Market: Middle East and Africa
Global Fire Protection Systems (for Oil and Gas) Market: Asia Pacific
Global Fire Protection Systems (for Oil and Gas) Market: South and Central America
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