The Latin America Explosionproof Equipment market was valued at USD 1.02 Billion in 2020, and it is expected to reach USD 1.52 Billion by 2026, registering a CAGR of 6.83%, during the period of 2021-2026.
- Explosion-proof equipment is electrical and non-electrical fixtures that can prevent and withstand explosions. An explosion-proof piece of equipment has an apparatus enclosed in a case, capable of withstanding an explosion of a specific gas or vapor that may occur within it.
- Explosion-proof equipment finds its applications in diverse industries, such as aerospace and aircraft maintenance sites, construction sites, HVAC systems, manufacturing and machine processing units, mining fields, and oil and gas extraction fields. Lighting, surveillance, and signaling systems are some of the several most preferred types of equipment across the industries.
- There has been a rise in the number of explosions in the extreme environment of manufacturing industries, across various regions, because of the growing presence of chemicals, toxic paints, and other combustible dust.
- The mining industry has resulted in fatal injuries that have caused damage to life and property and death in some cases. Although the incidents have reduced over the years in the mining sector, owing to the increased use of hazardous location safety equipment, a significant number of fires and explosions are being witnessed, specifically in the manufacturing sector.
- Growing energy requirements is a key factor driving the demand for the exploration of new mines and oil and gas resources, which, in turn, demands safe equipment.
Key Market Trends
Explosion prevention to hold significant share
- In the wake of increasing industrial accidents and explosions in mines, regulatory bodies are initiating the implementation of stricter regulations to ensure worker safety and also prevent damage to the atmosphere. Oil and shale reserves are generally found in ecologically sensitive areas like the Arctic circle. The Discovery of new oil reserves in countries like Brazil is expected to drive the market for explosion-proof equipment.
- Preservation of the environment is a high priority concern, and the governments are cognizant of the issue. This has resulted in the implementation of government regulations, particularly in the oil and gas exploration industry.
- Explosion prevention equipment is preferred in cases where the isolation or addition of specific parts to the equipment will not affect the total functionality of the equipment and is feasible practically. Intrinsically safe and increased safety equipment collectively account for a majority share of the explosion prevention market. Other major equipments in prevention include pneumatics and fiber optics.
- High reliability, ease of installation and maintenance, lower downtime, and cost are the advantages of the prevention equipment favoring their adoption, in addition to the worldwide recognition of intrinsic safety standards.
- However, the inability to operate at high power levels, planning and design complications and the relatively expensive nature of certain prevention equipment are hindering the growth of the market.
Brazil to hold major share
- The major regulatory standard for explosion-proof equipment in the country is NR12. Further, Portaria INMETRO Nº 179 is the Brazil certification program for all Electrical Equipment for Explosive Atmospheres under Combustible Dust and Flammable Gases and Vapors. This regulation dictates the compliance assessment program's criteria and requirements on electronic and electrical equipment for explosive atmospheres.
- Brazil has enormous economic growth potential and is particularly attractive to investors due to its advanced industrialization, political stability, and huge reserves for raw materials. Furthermore, the South American Mercosur trade agreement, which includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela, strengthens the South American market and opens up the additional wide-ranging potential for the Brazilian business.
- According to the National Agency for Petroleum, Gas, and Biofuels, national oil production in Brazil in 2020 crossed the mark of 1 billion barrels, an average of 2.79 million barrel per day in the year. These numbers indicate a 7.78% increase in production. Besides, the production of natural gas crossed by 9.46%, from 40.8 to 44.7 billion cubic meters in 2020.
- Moreover, Petrobras's business plan for the next decade may lead to significant investments amounting to USD 74.1 billion in areas, like exploration, maintenance, and logistics, driving the demand for safety for electrical equipment and hazardous wiring locations.
- The market studied in the country is witnessing expansions in renewable energy, biofuels, and biopower. Such developments are anticipated to boost the adoption of explosion-proof equipment over the forecast period.
The degree of competition in the explosion-proof equipment market is high due to the presence of electrical product manufacturers. The firm concentration ratio in major industry verticals is on the higher side due to the increasing demand for safety. Also, the increasing need for energy is a key factor enhancing the demand for the exploration of sources of natural resources, indirectly increasing the demand for Explosion-Proof Equipment in the Latin America Region. Some of the recent developments are:
- July 2021 - SAMCON Launched ExCam IPQ1785, an explosion-proof video camera that provides excellent picture quality for process monitoring and surveillance technologies (CCTV) in hazardous locations. The blast-resistant camera is authorized for hazardous areas (risk zones for dust and gas explosions) and is simple to install and maintain.
- August 2020 - Prumo, a private Brazilian company controlled by E.I.G. Global Energy Partners, bp, and Siemens, signed a binding agreement with SPIC Brasil. Under the agreement, SPIC will initially acquire 33% of the GNA I and GNA II LNG-to-power projects located in Port of Açu, Rio de Janeiro.
- March 2020 - R. STAHL LTD. partnered with Elite Control Systems, enabling both parties the ability to deliver the most robust and resilient hazardous area control systems available on the market today.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Industry Regulations
4.5 Impact of COVID-19 on the Market
4.6 MARKET Dynamics
4.7 Market Drivers
4.7.1 Stricter regulations for handling hazardous areas and substances
4.7.2 Increasing Energy Requirements Driving the Demand for Exploration of New Mines and Oil and Gas Resources
4.8 Market Challenges
4.8.1 Varying Safety Regulations Across Different Regions
5.1.1 Explosion Proof
5.1.2 Explosion Prevention
5.1.3 Explosion Segregation
5.2.1 Zone 0
5.2.2 Zone 20
5.2.3 Zone 1
5.2.4 Zone 21
5.2.5 Zone 2
5.2.6 Zone 22
5.3.2 Chemical and Petrochemical
5.3.3 Energy and Power
5.3.5 Food Processing
5.3.6 Oil and Gas
5.3.7 Other End-Users
5.4.1 Power Supply System
5.4.2 Material Handling
5.4.4 Automation System
5.4.5 Surveillance System
5.4.6 Other Systems
5.5.4 Rest of Latin America
6.1.1 R. Stahl
6.1.2 Marechal Electric Group
6.1.4 Bartec GmbH
6.1.5 Rae Systems (Acquired By Honeywell)
6.1.7 Intertek Group
6.1.8 Cordex Instruments
6.1.9 G.M. International SRL
6.1.10 Extronics Ltd