Market Trends of North America Explosion-Proof Equipment Industry
This section covers the major market trends shaping the North America Explosion-Proof Equipment Market according to our research experts:
Oil and Gas Industry to Drive the Market Growth
- The oil and gas industry often deals with the high cost of lighting solutions, due to the presence of high vibration, debris, chemicals, and potential explosives. The refinery processes can create explosive and flammable conditions.
- The production facilities produce hydrocarbon gases from crude oil that can form highly flammable mixtures with air when they are present in the proportion between 1% and 10%.The protection and safety certifications for all electrical equipment used in these operations is mandatory. Furthermore, these environments require regular inspection to ensure that the atmosphere is below the lower explosive limits.
- Several factors have become instrumental in driving the market expansion including the need to comply to stringent government regulations, such as OSHA and ISO in the United States, coupled with the industrial infrastructure upgradation efforts, which have become necessary to reduce energy consumption, increase personnel and plant safety, and overcome other challenges like resource shortage.
- ExxonMobil, one of the leading oil producers in the United States, announced its plans to increase the production activity in the Permian Basin of West Texas by producing more than 1 million barrels per day (BPD) of oil-equivalent by as early as 2024. This is equivalent to an increase of nearly 80 percent compared to the present production capacity. Similarly, Chevron is expected to increase its net oil-equivalent production to reach 600,000 BPD by 2020 and 900,000 BPD by 2023. Such increasing oilfield activity is expected to drive the demand for explosion-proof equipment.
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United States Holds Significant Market Share
- The existent classification in the country is class-based. However, due to globalization, the government is including regulations in its systems to make them globally accredited. These accreditations are currently allowing the development of a comprehensive examination and testing program addressing the requirements for multiple certifications.
- The inclusion of Article 505 in the NEC and the similarity in the ‘Zone’ requirements, presently allow a US-based manufacturer that offers zone-classified products for international markets to obtain FM, often with little or no modification.
- The presence of multiple pharmaceutical manufacturing plants is expected to promote the growth of pharmaceutical industry in the region. Companies are expected to comply with the strict standards set by FDA and adopt explosion proof machinery in the plants and hazardous locations, thus becoming the factors which are expected to promote the growth of the market.
- US is currently one of the severely hit countries in the world with growing number of casualties and positive cases in the wake of Covid-19 outbreak, owing to which various industries such as consumer electronics, oil and gas, manufacturing, chemical & petrochemicals, and automotive are negatively impacted. Whereas, industries, such as pharmaceutical, retail, and food and agriculture, are seeing significant growth and are also deemed essential in the country.
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