by Functional safety refers to the safety of electrically controlled functions and systems in vehicles and industrial applications. This includes functions such as ABS, airbag deployment systems, engine controls, and infotainment systems. The growing adoption of electronics and IoT in automobiles has increased the importance of functional safety standards to prevent failures that can cause accidents. Growing automotive production globally is driving demand for functional safety solutions to enable advanced driver assistance systems and autonomous driving capabilities in new vehicles. Functional safety systems ensure the functional reliability and integrity of safety-critical systems.
The global functional safety market encompasses safety instrumentation systems, purposed safety controller platforms, and safety certified embedded components for sectors including automotive, transportation, medical, and industrial. Rise in electronics architecture complexity in vehicles is propelling the need for functional safety certification of ECUs and integrated components. Standards such as ISO 26262 for road vehicles help assess and mitigate hazards caused by malfunctioning of electronic and electrical systems.
The global Functional Safety Market is estimated to be valued at US$ 6,644.25 Million in 2024 and is expected to exhibit a CAGR Of 5.3% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the functional safety market is integration of functional safety in advanced driver assistance systems (ADAS) and autonomous vehicles. Automakers are focusing on enhancing driving comfort and safety through ADAS technologies. However, failures in safety critical ADAS and self-driving functions pose risks, necessitating functional safety certification according to ISO 21448 and ISO 26262 standards. Efforts by OEMs to certify autonomous driving software stacks and add functional safety functions will drive the adoption of safety solutions in upcoming years. Continuous innovation to ensure reliability of critical vehicle systems and functions and enable autonomous driving capabilities is expected to present opportunities for functional safety solution providers during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the challenges associated with establishing brand recognition and distribution channels in this mature market.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitutes and sensitivity of buyers to price changes for the product.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since there are many raw material suppliers and manufacturers in this market.
Threat of new substitutes: The threat of new substitutes is moderate with the possibility of innovative but complex substitute products.
Competitive rivalry: Rivalry among existing players is high given the presence of many global and regional players competing for market share.
Key Takeaways
The Global Functional Safety Market Demand is expected to witness high growth over the forecast period. The global functional safety market is estimated to be valued at US$ 6,644.25 million in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.
Regionally, North America dominates the market currently due to strict regulatory standards and the presence of major players. Europe and Asia Pacific are expected to witness fastest growth in the coming years due to rising industrial activities and increasing adoption of functional safety systems across various industries. Asia Pacific region is expected to witness fastest growth supported by increasing industrial and manufacturing activities and implementation of functional safety standards across industries such as automotive, oil & gas and chemicals in countries such as China, India and Japan.
Key players –
Key players operating in the Functional Safety Market are DowDuPont, Inc., Lanxess AG, United Initiators, Ansin Chemical Co Ltd., Shangyu Jie Hua Chemical Co., Ltd. Merck KGaA, and Lonza. Initiators player like DowDuPont offers diversified product portfolio for functional safety applications catering to various industries globally.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
