Functional Safety Market Size, Share, By Offerings, Services, Systems, End-User, and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the target market is expected to increase at a rate of USD 12.8 Billion.
• In 2024, functional safety market size was estimated to be worth USD 7.2 Billion.
• The market is growing at a CAGR of 6.5%.

Functional safety is a critical aspect of system and equipment design that ensures the safe operation of devices or systems in the presence of potential faults or failures. It focuses on detecting, mitigating, and managing risks that could arise from system malfunctions, thereby preventing harm to people, the environment, and property. The target market is a rapidly growing sector driven by the increasing adoption of safety standards across industries to mitigate risks associated with system failures.   

For instance, in November 2024, indie Semiconductor, an automotive solutions innovator, has launched a system basis safety integrated chip (IC) solution for vehicle powertrain applications. The solution has been independently certified by SGS-TÜV Saar as ASIL-D (Automotive Safety Integrity Level D), the highest safety level defined in ISO 26262, the international standard for functional safety in road vehicles. This demanding level of ASIL-D functional safety has been achieved through a combination of rigorous development processes together with multiple dedicated on-chip failure detection and integrity measures, including high-accuracy voltage monitoring, logic function error monitoring, and a window watchdog, to help ensure a safe IC response in the event of a failure.

Key Takeaways:

• Compliance with international safety standards, such as IEC 61508, ISO 26262, and IEC 61511 is mandatory, fueling the need for certified safety systems across multiple sectors.
• Asia Pacific has emerged as a very profitable market for functional safety solutions due to its rapid industrialization and rising automation initiatives.

Key Drivers of Target Market:

Increased Automation will Drive Functional Safety Market Growth

The growing trend of automation across various industries, including automotive, healthcare, and manufacturing, is a significant driver for the functional safety market growth. As organizations adopt more automated systems, the need for robust safety solutions to mitigate risks and ensure operational reliability becomes critical. 

• For instance, in January 2024, a new NVIDIA DRIVE AI Systems Inspection Lab will help automotive ecosystem partners navigate evolving industry standards for autonomous vehicle safety. The lab will focus on inspecting and verifying that automotive partner software and systems on the NVIDIA DRIVE AGX platform meet the automotive industry’s stringent safety and cybersecurity standards, including AI functional safety.

Increased Safety Awareness is Anticipated to Support Targeted Market Growth

There is an increasing awareness among consumers and industries regarding the importance of safety, which drives demand for functional safety products that can prevent accidents and enhance operational efficiency.  

• For instance, in January 2025, New Jersey Transit launched its anti-human-trafficking awareness campaign in another step to ensure the safety and security of its customers. The transit agency is partnering with the U.S. Department of Transportation on the new initiative. The campaign also comes as the state gets ready to host FIFA tournaments this year and in 2026.

Restraints:

Integration Complexities Can Hamper the Target Market Expansion

The complexity involved in integrating various safety systems and technologies can hinder the global market. Organizations may face challenges in ensuring compatibility between new functional safety solutions and existing infrastructure, leading to delays and increased costs.  

• Counterbalance Statements: Many technology providers are increasingly offering comprehensive support and services to assist organizations with integration challenges. This include training, consulting, and tailored solutions that help businesses effectively navigate the complexities of integrating functional safety systems.

Opportunities & Market Trends:

Main Opportunity for Targeted Market Expansion is the Adoption of Wireless Safety Systems

• The increasing trend of wireless communication in industrial environments presents a significant opportunity for developing wireless functional safety systems. These systems offer flexibility in installation and scalability, making them attractive for industries looking to upgrade their safety infrastructure without extensive cabling. 
• For instance, in April 2024, Comelit-PAC, known for its LogiFire system, has expanded its fire alarm solutions with a new series of wireless devices. This range is tailored for locations where wired installations are impractical. The addressable transceivers of the new range are notable for their ability to integrate directly into the existing loops of a fire alarm system, with built-in isolators to enhance safety.

The functional safety market is classified into offerings, systems, end user, and region.

Offerings:

The target market by offerings is categorized into component (safety sensors, safety controllers, safety switches, programmable safety systems, emergency stop devices, final control elements, and other components) and services (testing & certification, maintenance, and training & consulting). The components segment is anticipated to dominate functional safety systems market share over the forecast period. As safety sensors are vital for monitoring conditions and detecting hazards, ensuring that automated systems can respond appropriately to prevent accidents. They are integrated into various applications, providing real-time data on equipment status and environmental conditions.

• For instance, in October 2024, Infineon Technologies introduced two new fingerprint sensor ICs, the CYFP10020A00 and CYFP10020S00, designed for biometric authentication in vehicles. The company claims, these sensors offer a way for drivers to verify their identity, specifically for tasks including personalization of vehicle settings or authenticating payments for services, such as parking and charging. The use of fingerprint sensing differs from traditional methods used for authentication, such as connecting a smartphone or typing a PIN.

Systems:

By systems, the functional safety market is segmented into burner management systems (BMS), turbomachinery control systems (TMC), high-integrity pressure protection systems (HIPPS), fire and gas monitoring control systems, emergency shutdown systems (ESD), supervisory control data acquisition (SCADA) systems, and others. The segment that dominates the target market is emergency shutdown systems (ESD). The ESD segment has emerged as a leader in revenue generation within the functional safety landscape, reflecting its importance in mitigating risks associated with industrial operations. 

End-User:

The focused market is categorized into oil & gas, power generation, automotive, pharmaceutical, metal and mining, and others by end-user. The oil and gas category is highlighted as the most prominent within the functional safety market share, as it is characterized by high-risk operations, including exploration, drilling, production, and refining processes. 

• For instance, in September 2024, DNV GL has launched a new service specification for functional safety certification. This service specification will be applied for the certification of a High Integrity Pressure Protection System (HIPPS). GE Oil & Gas U.K. Ltd has commissioned DNV GL to carry out a third party inspection and certification of the logic solver element of a product that will provide overpressure protection to subsea process pipelines.

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is the largest market for functional safety solutions, driven by its advanced industrial infrastructure, stringent regulatory frameworks, and high adoption of cutting-edge technologies. The presence of major industries and significant investments in safety measures contribute to North America's leading position.

Asia Pacific: This region is expected to be the fastest-growing region during the forecast period due to the rapid industrialization and increasing demand for safety solutions across various sectors. Countries, such as China and India are driving this growth due to their expanding manufacturing capabilities and regulatory focus on safety standards.

• For instance, in September 2024, The TÜV SÜD South Asia Private Limited Certification Body, awarded Tessolve the ISO 26262 Functional Safety Process Certification. This certification represents Tesslove’s significant turning point in the company’s expansion into automotive semiconductor, systems and software industries. The company has been certified for the implementation and upkeep of a working safety management system. This system complies with industry standards for the functional safety of vehicle electrical systems and guarantees safety management, increased productivity, and improved reliability.

Functional Safety Market Report Scope:

Segmentation:

By Offerings:

• Component

• Safety Sensors
• Safety Controllers
• Safety Switches
• Programmable Safety Systems
• Emergency Stop Devices
• Final Control Elements
• Other Component

• Services

• Testing & Certification
• Maintenance
• Training & Consulting

By Systems:

• Burner Management Systems (BMS)
• Turbomachinery Control Systems (TMC)
• High-Integrity Pressure Protection Systems (HIPPS)
• Fire and Gas Monitoring Control Systems
• Emergency Shutdown Systems (ESD)
• Supervisory Control Data Acquisition (SCADA) Systems
• Others

By End-User:

• Oil & Gas
• Power Generation
• Automotive
• Pharmaceutical
• Metal and Mining
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Focused market major companies are actively investing in research and development to innovate and improve their functional safety solutions, ensuring compliance with stringent international safety standards. Some of the major key players operating in the functional safety market include, Safeline Solutions, Schneider Electric, ABB Ltd., and others.

For instance, in August 2023, Schneider Electric, the leader in the digital transformation of energy management and industrial automation, launched a Managed Security Services (MSS) offering to help customers in operational technology (OT) environments address the increased cyber risk associated with the demand for remote access and connectivity technologies. Powered by Schneider Electric’s global Cybersecurity Connected Service Hub (CCSH), this new offering provides proven technologies as flexible services to monitor cyber threats and proactively respond on behalf of customers. Few companies, especially those in the OT space, have the specialized cybersecurity resources or expertise in house.

List of Key Players in the Market:

• Safeline Solutions
• Schneider Electric
• ABB Ltd.
• Honeywell International Inc.
• Emerson Electric Co.
• Rockwell Automation, Inc.
• Yokogawa Electric Corporation
• HIMA Paul Hildebrandt GmbH
• Omron Corporation
• Siemens AG
• General Electric Company
• UL Solutions
• Spyrosoft
• B&R Industrial Automation GmbH

• In November 2024, indie Semiconductor, an automotive solutions innovator, has launched a system basis safety integrated chip (IC) solution for vehicle powertrain applications. Developed in close partnership with a leading European Tier 1 automotive system integrator, the IC provides critical safety monitor and supervision functionality for mission-critical powertrain operation. The solution has been independently certified by SGS-TÜV Saar as ASIL-D (Automotive Safety Integrity Level D), the highest safety level defined in ISO 26262, the international standard for functional safety in road vehicles.
• In October 2024, Belden Inc., a leading global supplier of network infrastructure and digitization solutions, announced the expansion of the Lumberg Automation LioN family with its new LioN-Safety I/O Modules. Designed to support functional safety efforts in industrial operations, the modules streamline the transmission of safety and non-safety-related data over existing networks.
• In September 2024, Rockwell Automation, Inc., the world’s largest company dedicated to industrial automation and digital transformation, build its industry-leading safety technology portfolio with the launch of Logix SIS, a cutting-edge safety instrumented system (SIS) designed to address the evolving needs of modern industrial environments.
• In September 2024, Omnex Inc., a leading provider of performance improvement consulting, training, and software, announced the launch of an independent, accredited certification body (CB). This new CB will offer organizations’ management systems certification for safety and security.

Analyst View for Functional Safety market:

Functional safety market is poised for significant growth driven by the regulatory demands, technological advancements, and increasing automation across various industries. Additionally, while there are challenges, such as high implementation costs, the integration of cutting-edge technologies in upcoming years, which will present unique opportunities for innovation and expansion within the aimed market.

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