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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 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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Functional Safety Market Changes Go Beyond Recession Forces

  1. 1. Functional Safety Market Changes Go Beyond Recession Forces<br />May 2011<br />webcast<br />
  2. 2. A full audio recording is available for download at:<br />http://vdcresearch.com/market_research/industrial_automation/freeresearch.aspx<br />Recording Available<br />
  3. 3. About Us<br />About Us<br />Market Intelligence for Technology Vendors & Investors<br /><ul><li>Direct-Contact Primary Market Research
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  11. 11. Industry Development Scenarios
  12. 12. Market Opportunity Fit Screening, Rating & Ranking</li></li></ul><li>Our Core Coverage Areas<br />Embedded Hardware & Systems<br />Mobile & Wireless<br />AutoID & Transaction Automation<br />Industrial Automation & Control<br />Embedded Software & Tools<br />Emerging Technologies<br />
  13. 13. Ways to Work With Us<br />Syndicated Research<br />Our syndicated research is the basis for the many ways VDC can help you grow your business. We offer a wide variety of services designed to meet 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.<br /> <br />
  14. 14. Today’s Speaker<br />David A. B. Laing, PMP<br />Program Manager/Senior Analyst<br />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. <br />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.<br />
  15. 15. <ul><li>Recent events have proved the need for increased automated process safety systems.
  16. 16. 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.
  17. 17. Machine automatic safeguarding will be driven not only by regulations and standards, but also by a need for fiscal and social responsibility.
  18. 18. In the intrinsic and process safety markets there is an increasing comfort level with wireless products.
  19. 19. 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.</li></ul>Functional Safety (FS) Market Highlights <br />
  20. 20. <ul><li>Overall trend is toward intrinsic safety systems/devices as opposed to alternatives.
  21. 21. Greater acceptance of wireless IS.
  22. 22. Despite economic pressures caused by downturn, cutting costs with respect to safety is universally acknowledged to be a bad choice.
  23. 23. FS markets exhibit a rare trend toward the purchase of entire systems rather than components.</li></ul>Many Methods to Achieve FS, but, Intrinsic Safety Appears Very Strong … <br />What method does your firm employ or specify to provide hazardous environment protection?<br />|IS|<br />| Other |<br />
  24. 24. Industry, Government Regulations Keep MS Market Stable, Fragmented, Growing<br /><ul><li>Survey respondents are shifting from dependence on lock out/tag out to machine automatic safeguarding.
  25. 25. Insurers and/or governments are now requiring owners of unsafe machines to pay more in premiums and taxes.
  26. 26. Tighter bottom lines and increased attention to deficits, make this a priority even in more permissive but emerging countries like Brazil.</li></li></ul><li><ul><li>A clear market trend is toward an “integrated” process safety system where most components, protocols and database software are same.
  27. 27. There is also a less significant movement toward “common” (only key components are interchangeable).
  28. 28. New facilities clearly moving away from the “closed” safety systems.
  29. 29. Interfaced systems are also falling out of favor as the COTS type components add complexity to the connections between the process and safety systems.</li></ul>New Construction Will Drive Deeper Integration of Process Safety Systems<br />
  30. 30. <ul><li>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.
  31. 31. 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.
  32. 32. Services and expertise on demand will be increasingly be needed by customers and this will be a reliable source of revenue for suppliers.
  33. 33. 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.
  34. 34. 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. </li></ul>Safety for Operators = Margin; Margin for Operators = Money for Suppliers<br />
  35. 35. 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.<br />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. <br />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.<br />Overview of VDC’s Functional Safety Solutions Market Research<br />
  36. 36. Thank You for Attending this VDC Webcast<br />For more information please contact:<br />Bob Perugini – Account Directorbperugini@vdcresearch.com| 508.653.9000x144<br />David Laing, PMP – Program Manager, Senior Analystdlaing@vdcresearch.com|508.653.9000x146<br />Chris Rezendes – Executive Vice Presidentcjr@vdcresearch.com| 508.653.9000 x120<br />

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