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High Integrity Pressure Protection System (HIPPS) Market - Growth, Trends, Forecasts (2020 - 2025)

  • ID: 5221473
  • Report
  • December 2020
  • Region: Global
  • 153 pages
  • Mordor Intelligence
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FEATURED COMPANIES

  • ABB Ltd
  • Emerson Electric Co.
  • Mokveld Valves BV
  • Rockwell Automation
  • Schneider Electric
  • Severn Glocon Group
  • MORE
The high integrity pressure protection system (HIPPS) market was valued at USD 507.70 million in 2019, and it is projected to be worth USD 714.92 million by 2025, registering a CAGR of 7.73% during the period of 2020-2025. The connection of new gas production sources to a gas plant facility has often required mechanical relief devices to protect gas production facilities or pipelines. New production sources connected to existing pipelines require the pipeline to be protected against potential overpressure, resulting in the release of hydrocarbons to the atmosphere or undesirable burning of these hydrocarbons via a flare system. Rising government regulatory standards to defend safety and security at industrial plants due to increasing accidents at plants drives the growth of the market.
  • A HIPPS (designed as an instrumented safety system) deals with over-pressure safely and without releasing pipeline contents into the atmosphere. The HIPPS stops the inflow of excess fluids and contains them within the system itself.
  • The HIPPS package development is governed by IEC 61508/61511, which defines specific guidelines to configure the SIS to provide the necessary risk reduction and meet the required safety integrity level (SIL). International standards (Divisions 1 and 2, ANSI/ISA 84.01-2004, API 521, Code Case 2211 of the ASME Section VIII, and IEC 61511) are in place to allow for the application of high-reliability safety instrumented systems to replace traditional mechanical relief devices and to remove the requirement for flaring.
  • Strict government regulations in the regions on emission levels across industries to increase workstation safety have bolstered the demand for various HIPPS applications. Due to rapid developments in the emerging markets, sustainability policies, the rise of new technologies, and changing consumer preferences, the end-user industry landscape has been rapidly evolving.
  • In July 2020, in a boiler blast at Neyveli Thermal Power Station (India), at least six people died, and as many as 17 others suffered serious injuries. This was the second boiler explosion in two months at the same plant. It is suspected that overheating and high pressure led to the power plant explosion in Tamil Nadu (India).
  • Players operating in the market studied have been focusing on cutting-edge technology developments pertaining to HIPPS applications. For instance, in December 2019, High-Pressure Equipment Company (a subsidiary of Graco Inc.) introduced a new soft seat relief valve designed to protect liquid and gas tubing systems from overpressure damage and failure. The new relief valves are available in pressure ranges from 1,500 to 25,000 psi for 9/16” O.D. tubing, with adapters available for other sizes. The company’s newly developed valves are factory set to the designated pressure and tagged accordingly. They feature 316 stainless steel bodies and removable seat glands, with a 17-4PH stem and seal ring for standard applications.
  • Oil and gas are one of the significant target segments for the high integrity pressure protection system (HIPPS) market. With the recent outbreak, the industry has observed a downward trend, affecting market growth. From the demand perspective, oil and gas have been challenged by the effects of the COVID-19 outbreak. Owing to this, producers have rapidly slashed capital spending and drilling programs. The pandemic has impacted the progress of several projects, resulting in pipelines getting stalled or delayed.
Key Market Trends

Oil and Gas Segment Holds for a Major Share Throughout the Forecast period
  • A high integrity pressure protection system is a safety instrumented system designed to protect oil and gas production, refining, and pipeline systems against over-pressurization. HIPPS leverages an oil and gas company's expertise in system design and integration.
  • Players operating in the market are focusing on developing innovative products and solutions, which may bolster the growth of the HIPPS market in the coming years. For instance, in July 2019, Severn Glocon Group extended its range of triple offset butterfly valves with a new solution that avoids galvanic corrosion in saline applications without compromising fire-safe capability.
  • The OCT SW development was driven by market feedback from offshore oil and gas operators concerning seawater service valves used for fire safety. The new solution ensures graphite parts, which can increase neighboring metals’ susceptibility to corrosion when exposed to seawater.
  • Excessive wellhead pressure can cause serious consequences to downstream personnel, production and production assets, and the environment. It is, therefore, mandatory to have IEC 61511 compliant protection systems. Companies implement various strategies, but the most common are 1oo2 or 2oo3 architectures for compliance to SIL 2 or SIL 3.
  • In the recent past, ATV HIPPS delivered HIPPS to a major customer in the United Arab Emirates. ATV HIPPS is part of ATV Group and ATV SpA, a major player in Subsea and Topside critical service valves for the oil and gas industry. The company acquired Hydropneumatic, which is specialized in wellhead equipment and controls. This may leverage its enhanced technical portfolio of HIPPS solutions.
Asia-pacific Segment is Expected to Grow at a Significant Rate Over the Forecast Period
  • The Asia-Pacific HIPPS market is anticipated to witness the highest growth rate during the forecast period due to the region’s focus on developing oil and gas refining capacity and notable growth in the chemicals industry, with China, Japan India being some of the principal countries in this region. For instance, according to IEA, Asia continued to be the key destination for LNG, accounting for 70% of the total LNG imports by 2019.
  • According to IEA, gas demand in the coming five years is set to be driven by Asia-Pacific, and it is anticipated to account for almost 60% of the total consumption increase by 2024. In 2019, the requirement for gas in China surged sharply due to the expansion of the petroleum industry, improvement in living standards, and the development of gas infrastructure.
  • The increasing focus for stringent industrial standards (such as ANSI/ISA and IEC standards) and related equipment with high operational safety (SIL 3/ S​IL4) within safety-critical production processes may act as a major driver for the growth of the market in the region. Additionally, the rising adoption of functional safety systems (such as Safety Instrumented System (SIS)) in the oil and gas industry has fostered the demand for HIPPS to ensure the protection of the environment, equipment, and personnel.
  • Moreover, gas-to-liquid and LNG plants' construction with the boom in shale gas may further increase the demand for HIPPS, especially in China. For instance, CNPC’s (the China National Petroleum Corporation) forecast of China’s shale gas output suggests a threefold increase in the output to 35 bcma in 2025 and to 100 bcma in 2050.
Competitive Landscape

The high integrity pressure protection system (HIPPS) market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their customer base. These vendors focus on the research and development activities, strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period.
  • July 2020 - MOGAS Industries, Inc. has acquired the assets of Watson Valve, a US-based manufacturer of severe service valves, in order to have repairs and coating services. Watson Valve has a global install base of more than 3,400 valves, majorly in the mining industry, and encompasses the chemical and oil & gas industries.
  • February 2020 - Emerson introduced the ASCO Series 158 Gas Valve and Series 159 Motorized Actuator. Newly developed ASCO valves are explicitly designed for burner-boiler applications. The new products gave OEMs, distributors, contractors, and end-users a new combustion safety shutoff valve option that increases safety and reliability and enhances both flow and control.
Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Note: Product cover images may vary from those shown
2 of 5

FEATURED COMPANIES

  • ABB Ltd
  • Emerson Electric Co.
  • Mokveld Valves BV
  • Rockwell Automation
  • Schneider Electric
  • Severn Glocon Group
  • MORE
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 on the Market
4.5 Market Drivers
4.5.1 Rising Government Regulatory Standards to Defend Safety and Security at Industrial Plants Owing to Increasing Accidents at Plants
4.6 Market Challenges
4.6.1 Implementation Cost and Lack of Required Skillsets

5 MARKET SEGMENTATION
5.1 Type
5.1.1 Components
5.1.2 Services
5.2 End-user Industry
5.2.1 Oil and Gas
5.2.2 Chemicals
5.2.3 Power
5.2.4 Metal and Mining
5.2.5 Food and Beverages
5.2.6 Other Process Industries
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Rest of the World

6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Rockwell Automation
6.1.2 Emerson Electric Co.
6.1.3 Severn Glocon Group
6.1.4 Schneider Electric
6.1.5 Yokogawa Electric Corporation
6.1.6 ABB Ltd
6.1.7 Siemens AG
6.1.8 Schlumberger NV
6.1.9 Mogas Industries Inc.
6.1.10 Mokveld Valves BV
6.1.11 SELLA CONTROLS Ltd
6.1.12 ATV Hipps
6.1.13 HIMA Paul Hildebrandt GmbH
6.1.14 PetrolValves SpA
6.1.15 L&T Valves Limited (Larsen & Toubro Limited)
6.1.16 BEL Valves (British Engines Limited)

7 VENDOR POSITIONING ANALYSIS

8 INVESTMENT ANALYSIS

9 MARKET OPPORTUNITIES AND FUTURE TRENDS
Note: Product cover images may vary from those shown
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  • Rockwell Automation
  • Emerson Electric Co.
  • Severn Glocon Group
  • Schneider Electric
  • Yokogawa Electric Corporation
  • ABB Ltd
  • Siemens AG
  • Schlumberger NV
  • Mogas Industries Inc.
  • Mokveld Valves BV
  • SELLA CONTROLS Ltd
  • ATV Hipps
  • HIMA Paul Hildebrandt GmbH
  • PetrolValves SpA
  • L&T Valves Limited (Larsen & Toubro Limited)
  • BEL Valves (British Engines Limited)
Note: Product cover images may vary from those shown
5 of 5

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