Explosion-Proof Equipment Market: Industry Expert View on Future Growth and Market Trends

With the growing number of incidents/accidents in industries such as oil & gas and mining, the focus on industrial safety measures has also increased worldwide. For instance, in Sweden, industrial safety has developed within a framework of legislation for worker protection and compensation, but also to a large extent through self-regulation between the parties in the labor market. In most Western countries, a rudimentary labor legislation system for the reduction of working hours, factory inspection, and industrial injury insurance was developed around the turn of the 20th century. The new industrial safety policy should be carried out, and the existing safety regulations of industries should appear under its purview. Thus, the government of Scandinavia is taking the initiative in implementing policies, considering the safety of the workers.

In order to reduce fire risk, businesses deploy fixtures with consent ratings of Class 1 Division 1 (C1D1) and Class 1 Division 2 (C1D2) inside the facility. Further, fixtures that are designed for oil refineries come with advanced features such as water tightness and corrosion resistance, as they are frequently exposed to abrasive cleaning solutions. The constant exposure to corrosive agents and water may result in the failure of the lights. This can lead to a considerable safety hazard, specifically for workers. Introducing better equipment may help reduce the number of incidents that take place in factories worldwide. Government policies and increasing explosion-proof equipment in industries are creating a demand for explosion-proof equipment.

The construction sector is witnessing a decent growth rate in the recent time. Governments of various countries are taking initiatives to support the construction industry. The increase in the construction of commercial and residential buildings is expected to provide growth opportunities for the market in the Scandinavia & Baltics region.

Residential and commercial housing constructions are continuously growing in the region, majorly in developing countries. For instance, according to the Russian news agency, the commissioning of housing in Russia increased by 28.4% in the first five months of 2021 compared to the previous year. In May 2021, 5 million square meters of housing was built, which was ~31% more than in May 2020. Similarly, according to the Ridgewater Homes website data, in 2021, there was a boom in residential building construction in Australia, with a 10% growth. This growth can be attributed to the surge in demand for houses because of record-low interest rates, and government programs such as HomeBuilder. Governments have taken initiatives to support the housing industry. 

For instance, safety policies enable the reuse of construction products in the Nordics. In an era of increasing environmental consciousness, adopting sustainable practices is more vital than ever. The construction sector stands at the forefront among the various industries that play a significant role in shaping our planet's ecological footprint. As the demand for construction continues to rise, so does the need for innovative solutions prioritizing resource efficiency, waste reduction, and the circular economy. In collaboration with the consulting company Norion Consult, the European and Nordic policy initiatives have significant positive or negative impacts on the possibility of reusing construction products. Thus, rising residential and residential housing constructions and growing government initiatives in housing construction are influencing the demand for explosion-proof equipment.

Strong economic conditions and low rates of housing loan interest will help maintain the expansion of construction activities in the world. Scandinavia is expected to show a slightly subdued growth, supported by improved construction sector conditions in various countries, allowing better residential and infrastructural spending. Swedish companies have a reputation for their methods and use of innovative technologies in the field of green buildings and infrastructure. Wooden building technology and low-energy housing solutions are areas where Sweden is at the forefront. These factors are boosting commercial and residential housing constructions, thereby increasing the need for explosion-proof equipment in buildings. 

For instance, BMarko Structures Inc. provides blast-resistant modular buildings. These blast-resistant modules are explosion-proof portable buildings designed to withstand blast loads. Thus, the growth of the construction sector is anticipated to create opportunities for the explosion-proof equipment market players because of the need for explosion-proof equipment solutions in commercial as well as residential buildings. The top five companies in the market are ABB Ltd., Pepperl+Fuchs, Eaton Corporation, Siemens AG, and Rockwell Automation. The above listing of key players is derived by considering factors such as overall revenue, current well-completion equipment and services portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities.

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