Market Trends of LA Safety Instrumented Systems Industry
This section covers the major market trends shaping the Latin America Safety Instrumented Systems Market according to our research experts:
Chemical and Petrochemical Industry is expected to Hold a Major Market Share
- A safety instrumented system comprises sensors, logic solvers, and final control elements for keeping the process safe when predetermined conditions are violated.
- The growing benefits of safety instrumented systems over traditional systems fuel market demand. The chemicals and petrochemicals industries are identified as continuously developing initiatives wherein the need to expand and upgrade aging safety problems and infrastructures is essential. Traditional safety systems are deployed through an electrical control system and are hardwired, leading to potential accidents affecting people, assets, and the environment.
- This trend may surge the demand for safety instrumented systems in petrochemical industries that deliver several advantages, such as prolonged field life, reduction in unplanned downtime, reduction in annual maintenance cost, elimination of unexpected repair expenses, and adherence to current codes and standards. Thus, the increasing advantages of safety instrumented systems over traditional safety systems may drive industry growth.
- Chemical industries have hazardous environments due to gas, oil, or dust, creating an explosive atmosphere in and around the machines. The industry issues related to regulation, geopolitical risk, legal limits on using natural resources, shareholder activism, and increasing public scrutiny create additional challenges. Thus, safety equipment such as fire and gas monitoring and detection, SCADA, and HIPPS installation is of utmost importance.
- As per Asociación Nacional de la Industria Química (Mexico), the chemical industry's production in Mexico amounted to USD 19.4 billion in 2021, an increase of approximately 15.7% compared to the previous year. Such an increase in chemical demand is estimated to impact the region's safety instrumented systems market positively.
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Other Countries Expected to Hold Significant Market Shares
- Argentina has been one of crude oil's significant producers and consumers. The country has been witnessing increased natural gas production due to the increasing production from the Neuquén Basin's Vaca Muerta shale and tight gas play.
- The country's energy department estimated that Vaca Muerta might double the country's oil production to 1 million b/d by 2023 from 500,000 b/d in 2019. As production has grown, Argentina has resumed exporting natural gas by pipeline to neighboring countries, like Chile, Brazil, etc., further boosting the demand for SIS equipment.
- According to World Bank, in 2021, the share of industrial production in Argentina's GDP was approximately 23.6%. In the same year, 21.41% of the employees in Argentina were active in the industrial sector. According to the Association of Equipment Manufacturers, the industry's value in Argentina is expected to increase in the following years.
- Volkswagen intends to report a positive result in Latin America for the first time, despite the pandemic and the global semiconductor scarcity. Volkswagen plans to spend USD 1.8 billion over the next five years to improve its competitive position in this vital industry and ensure long-term profitability.
- In addition to further local vehicle projects, Latin America's digitization and decarbonization efforts may be bolstered, which include a biofuels research facility as a market-bridging technology to support Volkswagen's global electrification push. Despite the supply chain disruption due to the pandemic, the region is anticipated to witness growth in the coming years due to such initiatives.
- As per the DNRNPACP (Argentina), nearly 17 million automobiles were duly authorized to circulate in Argentina in 2021, around 2% more than the last year.
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