Functional Safety Market Size Expected to Reach US$ 13.00 billion by 2031, Experiences Growth Owing to Increased Automation

­According to a new comprehensive report from The Insight Partners, the global Functional Safety market is observing significant growth owing to increased automation across industries and stricter regulatory requirements.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the Functional Safety are applicable in a vast array of end user industries that are expected to register strength during the coming years.

Overview of Report Findings

1. Market Growth: The Functional Safety market is expected to reach US$ 13.00 billion by 2031 from US$ 7.63 billion in 2024, at a CAGR of 7.9% during the forecast period. The need for sophisticated safety systems to reduce risks is being driven by the increase in automation in sectors like manufacturing, automotive, and energy. Businesses are being compelled to invest in strong, practical safety solutions due to strict government laws and safety standards. The need for advanced safety measures is growing as a result of the deployment of Industry 4.0 technologies, such as artificial intelligence (AI) and the Internet of Things (IoT).
2. Increased Automation Across Industries: As automation systems become more complex and interconnected, the potential for system failures and associated risks also increases. Industries such as manufacturing, oil and gas, and automotive require robust safety mechanisms to monitor and control these automated processes. Automated systems, while reducing human intervention, can still pose risks if not properly managed. Functional safety systems help mitigate these risks by ensuring machinery operates within safe limits and triggering protective actions when deviations occur. Governments and regulatory bodies impose strict safety requirements to protect workers, consumers, and the environment. Standards such as ISO 26262 for automotive systems and IEC 61508 for industrial applications mandate the integration of functional safety principles in system design. Compliance with these regulations reduces legal liabilities and improves product reliability.
3. Integration of AI and Machine Learning: The incorporation of AI and machine learning in safety systems is a significant trend. These technologies enable real-time data analysis and predictive maintenance, enhancing fault detection accuracy and decision-making in complex environments like autonomous vehicles and smart factories. For example, AI-driven safety solutions can predict potential failures before they occur, allowing for proactive maintenance and reducing downtime.
4. Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Asia Pacific and Europe. Asia Pacific is expected to register the highest CAGR during the forecast period.

Market Segmentation

• Based on offering, the functional safety market is segmented into component and services. The component segment held the largest share in the functional safety market in 2024.
• Based on system, the functional safety market is segmented into emergency shutdown system (ESD), turbo machinery control (TMC), fire and gas monitoring, high integrity pressure protection system (HIPPS), burner management system (BMS). The emergency shutdown system (ESD) segment held the largest share in the functional safety Market in 2024.
• Based on end-user industry, the functional safety market is segmented into oil and gas, chemicals, power generation, pharmaceuticals, food and beverages, automotive, and others.
• The functional safety market is segmented into five major regions: North America, Europe, APAC, Middle East and Africa, and South and Central America.