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Functional Safety Market Changes Go Beyond Recession Forces
 

Functional Safety Market Changes Go Beyond Recession Forces

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During this QuickCast, VDC’s Program Manager David Laing discusses the current and future outlook of the functional safety solutions market including: the trends impacting functional safety ...

During this QuickCast, VDC’s Program Manager David Laing discusses the current and future outlook of the functional safety solutions market including: the trends impacting functional safety planning, implementation and verification; which methods and integrations of functional safety are being employed and how government regulation is impacting market growth.

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  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • The firm is organized around six practices, each with its own focused area of coverage, but all committed to the firm’s core philosophy.
  • This philosophy is applied in our syndicated research and in the wide variety of other services we provide to meet our clients specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robust methodologies to VDC’s large and continuously refreshed datasets.
  • The outlook for the overall industrial product markets is quite good across a broad and expanding applications base of customers worldwide, but particularly in BRIC and semi-industrial but still developing countries. As we note, wireless products are seeing increased adoption as they allow more coverage without needing the actual wiring which can be expensive and/or problematic in itself. We feel that this is especially true in new facilities or, in existing facilities where coverage is being augmented.In Machine Safety, the market is being driven not only by economic recovery and emerging markets but a drive to improve safety especially in countries that have a growing concern about social responsibility as well as the overall fiscal concernsIt has been noted that BP had been driving a system of employee based safety initiatives as opposed to automated systems. This placates insurers and regulators up until the point where something catastrophic happens. In the wake of the recent Gulf of Mexico mishap, there will likely be significant changes in process safety at BP and other industry participants.Process Safety Decisions need to be made in fractions of a second – Not by Corporate Management!!In closing we see clear indications of “Brain Drain” where many of the perspective clients’ experienced functional safety experts have been lost over the last few years and they will be increasingly looking for the suppliers to fill the gap.
  • Intrinsically Safe Products are still seeing uneven use and growth with the European Market having the greatest penetration and stable growth. In that market, as well as the Americas and APAC, growth depends not only on the economy but overcoming the “other” alternatives to Intrinsically safe. In some respects the cost of intrinsically safe, is not only the components that are often more expensive but the fact that the networks are limited in length and the number of field devices that can be used. This may be where the wireless technology may be taking hold particularly as the market begins to trust the reliability and as the costs come down. Intrinsically Safe can be a significant value add in places where the standard sensors are becoming commodities and it is difficult to maintain pricing and margins. VDC believes that the significant drop in the preference for Explosion / flame proof enclosures is due to the human factors where the units must be properly maintained after service. Purging and encapsulation are also service issues where the units have to be removed and serviced or even discarded if they fail. Last bullet … they want/ need a clean slate for performance, cost and liability factors …
  • LOTO, generally involves the complete powering off of the machine, and locking the ability to power it up. It relies on employees to follow procedures each and every time. This is very impractical as some machines require a long warm-up, set-up and calibration before they can be placed back into service. Machine Automatic safeguarding has generally driven an increase in machine costs so it has been a hard sell. Insurance companies are now taking notice and making incentives that encourage M-S. Governments in many cases, are the insurers of last resorts for those injured in the workplace and therefor. The anticipated deadline for the Euro. Commission moving from EN 954 to EN ISO 13849-1 or EN/IEC 62061 to access .
  • We asked users to select up to 2 options for the most common types of system architectures in place to connect their (or their customers/clients) process safety and control systems. This was asked for existing and new facilities. A comparison between the 2 give us this result. Integrated: Separate systems that do not share any hardware, but use the same Protocols or Databases or Software provides interoperability. Systems do not share any hardware.Common: Integrated system that has some common hardware, but parts are not completely interchangeable (ie Chassis, communications modules, etc.)Interfaced: Separate systems that do not share any hardware, software or databases. COTS technology provides compatibility.Closed: Systems are incompatible with each other, incapable of exchanging data (ieLogix controller with MSR safety relay)We also see a small but increasing sub-set of the market that is unsure of the direction they should take.
  • The outlook for the overall industrial product markets is quite good across a broad and expanding applications base of customers worldwide, but particularly in BRIC and semi-industrial but still developing countries. As we note, wireless products are seeing increased adoption as they allow more coverage without needing the actual wiring which can be expensive and/or problematic in itself. We feel that this is especially true in new facilities or, in existing facilities where coverage is being augmented.In Machine Safety, the market is being driven not only by economic recovery and emerging markets but a drive to improve safety especially in countries that have a growing concern about social responsibility as well as the overall fiscal concernsIt has been noted that BP had been driving a system of employee based safety initiatives as opposed to automated systems. This placates insurers and regulators up until the point where something catastrophic happens. In the wake of the recent Gulf of Mexico mishap, there will likely be significant changes in process safety at BP and other industry participants.Process Safety Decisions need to be made in fractions of a second – Not by Corporate Management!!In closing we see clear indications of “Brain Drain” where many of the perspective clients’ experienced functional safety experts have been lost over the last few years and they will be increasingly looking for the suppliers to fill the gap.
  • As we are near the end of the project so I thought it would be a good opportunity to touch on some of the things we were hearing from suppliers, and seeing in the marketplace. We will provide a few highlights form the recently completed demand-side survey. This presentation is intended to open a discussion about the subject and increase interest in the market for functional safety products. We will touch on a few interesting data points that will lead us into some thoughts on what the upcoming report will discover and questions we intend to answer.I am providing this first slide with the thinking that not all of the people in the audience will be fully aware of the 3 subject areas in this web-cast. The following slides will give a quick look at what we see happening in each of these 3 areas.

Functional Safety Market Changes Go Beyond Recession Forces Functional Safety Market Changes Go Beyond Recession Forces Presentation Transcript

  • Functional Safety Market Changes Go Beyond Recession Forces
    May 2011
    webcast
  • A full audio recording is available for download at:
    http://vdcresearch.com/market_research/industrial_automation/freeresearch.aspx
    Recording Available
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  • Today’s Speaker
    David A. B. Laing, PMP
    Program Manager/Senior Analyst
    David is VDC’s program manager in the firm’s Industrial Automation & Controls research practice. David is responsible for supporting VDC’s market research and custom consulting initiatives relative to emerging global opportunities, regional growth strategies, and market intelligence for industrial automation and control, systems components, technologies, services, and related applications across multiple vertical markets. Recent publications include the 2009 Volume 3 report on Position Sensing and the 2010-11 volume report on Power Protection products.
    David accumulated over 30 years of Semiconductor industry experience working at Teradyne Inc. and its worldwide customers. David held multiple positions in support, engineering, IT and management including project and support product management. David was a key leader in Teradyne’s adoption and implementation of remote support technologies. David earned an MBA degree (Summa cum Laude) from the F. W. Olin Graduate School of Business at Babson College and an undergraduate degree in Electronic Systems Engineering Technology from Wentworth Institute. David is a certified Project Management Professional (PMP) through the Project Management Institute.
    • Recent events have proved the need for increased automated process safety systems.
    • The importance of functional safety has to be a corporate concern not just operations. This not to be confused about individual safety and number of accidents/lost working days.
    • Machine automatic safeguarding will be driven not only by regulations and standards, but also by a need for fiscal and social responsibility.
    • In the intrinsic and process safety markets there is an increasing comfort level with wireless products.
    • Our supplier interviews and demand side surveys are showing a clear trend that customers will need more support in all phases of functional safety planning, implementation, and verification.
    Functional Safety (FS) Market Highlights
    • Overall trend is toward intrinsic safety systems/devices as opposed to alternatives.
    • Greater acceptance of wireless IS.
    • Despite economic pressures caused by downturn, cutting costs with respect to safety is universally acknowledged to be a bad choice.
    • FS markets exhibit a rare trend toward the purchase of entire systems rather than components.
    Many Methods to Achieve FS, but, Intrinsic Safety Appears Very Strong …
    What method does your firm employ or specify to provide hazardous environment protection?
    |IS|
    | Other |
  • Industry, Government Regulations Keep MS Market Stable, Fragmented, Growing
    • Survey respondents are shifting from dependence on lock out/tag out to machine automatic safeguarding.
    • Insurers and/or governments are now requiring owners of unsafe machines to pay more in premiums and taxes.
    • Tighter bottom lines and increased attention to deficits, make this a priority even in more permissive but emerging countries like Brazil.
    • A clear market trend is toward an “integrated” process safety system where most components, protocols and database software are same.
    • There is also a less significant movement toward “common” (only key components are interchangeable).
    • New facilities clearly moving away from the “closed” safety systems.
    • Interfaced systems are also falling out of favor as the COTS type components add complexity to the connections between the process and safety systems.
    New Construction Will Drive Deeper Integration of Process Safety Systems
    • As the economy recovers, the markets for functional safety products will shift toward new facilities and machines and this will in turn increase the market for entire systems/solutions.
    • Machine automatic safeguarding will become more important to machine suppliers and the safety shields and interlocks will be increasingly designed in and available as standard options.
    • Services and expertise on demand will be increasingly be needed by customers and this will be a reliable source of revenue for suppliers.
    • Channels and partners will increasingly be needed to provide expertise and complete lines of functional safety solutions to customers, particularly in regions where the suppliers’ own resources are not sufficient.
    • Regulatory management is a challenge for both suppliers and end-customers. This represents a market opportunity for those that are quick to adapt and have the appropriate products and infrastructure in place.
    Safety for Operators = Margin; Margin for Operators = Money for Suppliers
  • Intrinsically safe devices: An intrinsically safe system prevents fires and explosions by separating circuits with dangerous levels of energy from areas with volatile substances using electrical barriers and special versions of devices that are themselves Intrinsically safe. A system’s equipment and wiring prevents large levels of electrical energy in the network and all devices are incapable of releasing sufficient electrical or thermal energy under normal or abnormal conditions to cause ignition of a hazardous atmospheric mixture. There are multiple organizations involved for various regions/countries but, depending on the risk, there is a similar classification method where lower numbers indicate higher risk.
    Machine automatic safety: These are systems that allow machines to operate safely while maximizing productivity. They allow the operator or service person to perform some functions safely on a given machine while it is still powered on. In other cases, it prevents access to areas where harm could occur or, alternatively will limit the machines motion if it detects anything in the protected zone.
    Process safety systems: These are supplementary controllers and sensors/networks that are redundant to and often semi/fully autonomous to the main process control system. Depending on the potential hazards in the process being protected, the size and complexity of the system vary. These levels are determined by the Safety Integrity Level (SIL) where the higher number (1-4) requires more protection to reduce the risk to acceptable levels.
    Overview of VDC’s Functional Safety Solutions Market Research
  • Thank You for Attending this VDC Webcast
    For more information please contact:
    Bob Perugini – Account Directorbperugini@vdcresearch.com| 508.653.9000x144
    David Laing, PMP – Program Manager, Senior Analystdlaing@vdcresearch.com|508.653.9000x146
    Chris Rezendes – Executive Vice Presidentcjr@vdcresearch.com| 508.653.9000 x120