Explosion-Proof Lighting Market Worth $552.47 Million, Globally, by 2031

Date
08/08/2024

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The explosion-proof lighting market size is expected to register a CAGR of 7.5% during 2023–2031.

Source: The Insight Partners Analysis, Primary Interviews, Magazines and Journals, and Secondary Sources

­Lighting fixtures that are capable of containing sparks that could possibly ignite the combustible and explosive gasses in the atmosphere are referred to as explosion resistant lighting. Thus, the term "explosion proof lighting" refers to the ability of lighting equipment to stop external explosions from happening in a dangerous area rather than lighting that is explosion-resistant.

A robust frame composed of a durable material such as steel or aluminum commonly encloses an explosion-proof lighting fixture. Additionally, ex-proof lighting fixtures have incredibly strong lenses that can resist hard use and keep them from cracking, which could let in leaks.

Industries across the globe are extensively focusing on adopting stringent standards and practices for equipment to be used in hazardous locations.

Explosion-Proof Lighting Market Overview:

Hazardous events across diverse industries can be easily tackled by implementing the best practices. Several agencies are responsible for certifying the types of equipment for use in a hazardous area. For instance, in North America, Underwriters Laboratories (UL) and Factory Mutual (FM) usually provide standards, testing, and certification, whereas in Canada, the Canadian Standard Association (CSA) provides these approvals.

Similarly, in Europe, Equipment for Potentially Explosive Atmospheres (i.e., ATEX) and the International Electrotechnical Commission (IEC) offer standards that are acknowledged worldwide. These organizations do not implement their testing, such as UL, FM and CSA. However, they notify bodies to perform the testing so as to meet the standards set by them. Several North American players also certify their products to IEC/or ATEX standards in order to sell them internationally. However, the certifications offered by these organizations are quite different from each other.

Key Factors Impacting the Market:

  • Expansion of Oil & gas Industry: The oil & gas industry plays an important role in the economic transformation of various countries. The industry accounts for the largest share of global consumption of energy resources. Natural gas is likely to be one of the fastest-growing fossil fuels in the coming years. Many countries are scaling up their oil production capacities to fulfill their domestic energy demands. According to the International Energy Agency (IEA), global oil demand is expected to rise by 6% during 2022–2028, with significant requirements from the chemicals, energy, power, aviation, and petrochemical industries. The global demand is ultimately expected to reach 105.7 million barrels per day by 2028. A rapidly increasing need for oil among various industries encourages oil & gas industry players to scale up their capacities through plant expansion strategies, which creates the need for explosion-proof equipment, such as lighting, for efficiently monitoring and controlling plant operations by enhancing workers' safety. According to the Urwald eV report published in November 2023, 384 businesses across the world reported an average capital expenditure of more than US$ 10 million in oil & gas exploration activities during 2021–2023. The top seven companies that invested in oil & gas exploration were China National Petroleum Corporation (US$ 5.9 billion), China National Offshore Oil Corporation (US$ 3.2 billion), Saudi Aramco (US$ 2.8 billion), Pemex (US$ 2.6 billion), Sinopec Group (US$ 2.4 billion), Pioneer Natural Resources (US$ 2.1 billion), and Shell plc (US$ 2.0 billion).
  • Need to Ensure Workforce Safety: With the growing number of accidents in industries such as oil & gas, chemicals, pharmaceuticals, energy, and mining, the focus on industrial safety measures has also increased worldwide. For instance, according to the Mine Safety and Health Administration, seven miners died in the first six weeks of 2023 due to an electrocution incident. Similarly, in September 2023, a gas leak at Aarey Drugs & Pharmaceuticals Ltd in Maharashtra's Palghar district killed a contract worker and seriously injured four others. This increases the demand for explosion-proof lighting in oil & gas industry to prevent accidents. Good lighting conditions are critical for spotting possible hazards and detecting warning signs of equipment malfunctioning in hazardous areas. Thus, optimal lighting installations may help reduce the number of accidents in factories worldwide, which propels the demand for explosion-proof lighting in accident-prone industries. A properly lit workplace with stable illumination reinforces a company's commitment to safety and allows employees to accomplish their tasks with confidence. According to data from the European Union (EU), the Seveso-III Directive (Directive 2012/18/EU) on the control of major accident dangers establishes the necessary framework for risk management procedures to prevent major accidents and mitigate their consequences. This framework applies to nearly 12,000 industrial facilities throughout the EU. Industries are deploying lighting fixtures with consent ratings of Class 1 Division 1 (C1D1) and Class 1 Division 2 (C1D2) within their facilities to reduce fire or other explosive risks. Explosion proof lighting in hazardous areas is crucial to prevent accidents and promote a safe work culture.
  • IoT-Based Intelligent Lighting Systems: IoT-enabled, intelligent explosion-proof lighting solutions with advanced features benefit industries through predictive maintenance, automated control, and connection with other systems. R. STAHL AG, ABB Ltd, Cortem S.p.A., and Hubbell are a few of the major market players engaged in developing and adding advanced features to explosion-proof lights to assist their customers in improving workplace safety. For instance, in June 2024, Golden Future Enterprise HK LTD developed intelligent explosion-proof lights by adding numerous features and benefits such as remote monitoring, fault diagnosis, and automated brightness adjustment. These lights are integrated with sensors and communication modules that can facilitate monitoring of the surrounding environment in real time. The intelligent explosion-proof lights automatically modify their operating modes using sophisticated algorithms and adapt to diverse working conditions, therefore boosting safety.
  • Evolving Industry Standards: Explosion proof lighting certification is a difficult procedure that involves formal certification, testing, and adherence to strict requirements to guarantee that lighting fixtures are safe for locations that are vulnerable to unintentional fires and explosions. Regions across the globe have adopted various standards and certifications.

Regional Overview:

The geographic scope of the explosion-proof lighting market entails five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. In 2023, Asia Pacific led the market, followed by North America and Europe.

The APAC explosion-proof lighting market is segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. The region is expected to record the highest CAGR in the market during 2023–2031, and the projected market growth can be ascribed to the expanding mining industry and government support toward the development of smart manufacturing facilities. According to a 2023 report from the International Energy Agency (IEA), India, China, and Indonesia contribute massive shares to global coal production. China’s coal production increased by 3.3% and reached 4,631 metric tons in 2023, surpassing the production levels recorded in 2022 by 417 metric tons. Similarly, India’s coal production rose by 7% and reached 989 metric tons in 2023. Governments of these countries focus on encouraging technological advancements in the mining sector and supporting the development of smart manufacturing facilities, which indicates potential demand for explosion-proof lighting in these industries.

As per an article published in NS Energy, the Government of India has plans to start 647 oil & gas projects during 2021–2025 to transform India into a gas-based economy. Further, according to Sinopec, a national oil company, the natural gas demand in China reached 395 bcm in 2022, recording a 7% increase from the 370 bcm demand generated in 2021. Workers in the oil & gas industry often operate in hazardous locations and explosive environments. Thus, the surging number of oil & gas projects fuels the demand for explosion-proof lighting in Asia Pacific to safeguard employees from hazardous gas vapors, flammable liquids, or combustible dust.

Competitive Landscape:

The explosion-proof lighting market is highly fragmented owing to the presence of several local and international players. The manufacturers either offer their products directly or through different agencies, suppliers, distributors, and dealers. Also, these products are offered through online channels. A few key players operating in the explosion-proof lighting market are ABB Ltd; Hubbell Inc; Eaton Corp Plc; Cortem S.p.A.; Pepperl+Fuchs SE; Emerson Electric Co; Rockwell Automation Inc; Adolf Schuch GmbH; Airfal International; LDPI, Inc; ABTECH; Signify Holding (Philips); R. STAHL AG; NORKA; Glamox; TREVOS, a.s.; and TEP Ex d.o.o.

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