Functional Safety Market

Market Definition

The market encompasses technologies and systems that ensure reliable operation of safety-critical applications by mitigating risks from potential hardware or software failures. It includes certified sensors, logic controllers, actuators, and embedded software used across automotive, industrial automation, oil and gas, energy, and healthcare sectors. 

The market scope spans development, integration, and maintenance of safety systems throughout the equipment lifecycle. The report examines industry trends, regional developments, and regulatory frameworks impacting market growth through the projection period.

Functional Safety Market Overview

The global functional safety market size was valued at USD 6.78 billion in 2024 and is projected to grow from USD 7.21 billion in 2025 to USD 11.74 billion by 2032, exhibiting a CAGR of 6.96% during the forecast period. Adoption of AI and safety instrumented systems is driving market growth by enhancing predictive maintenance, real-time monitoring, risk reduction, and regulatory compliance across high-risk industrial sectors.

Major companies operating in the functional safety industry are Schneider Electric, ABB, Honeywell International Inc., Emerson Electric Co., Rockwell Automation, HIMA, General Electric Company, Omron Corporation, Siemens, Johnson Controls., TÜV SÜD, Balluff GmbH, Endress+Hauser Group Services AG, HORIBA, and Ignitarium Technology Solutions.

Certification standards are fueling market growth by ensuring consistent implementation of safety systems across industrial sectors. The adoption of certified safety solutions is accelerating in industries such as automotive, manufacturing, and energy, where compliance with international safety regulations is essential. This regulatory clarity is streamlining integration efforts and fueling market expansion.

Key Highlights:

1. The functional safety market size was recorded at USD 6.78 billion in 2024.
2. The market is projected to grow at a CAGR of 6.96% from 2025 to 2032.
3. North America held a market share of 34.09% in 2024, with a valuation of USD 2.31 billion.
4. The sensors technology segment garnered USD 1.52 billion in revenue in 2024.
5. The emergency shutdown systems segment is expected to reach USD 2.85 billion by 2032.
6. The food & beverages segment is anticipated to witness the fastest CAGR of 7.31% over the forecast period.
7. Asia Pacific is anticipated to grow at a CAGR of 7.95% during the forecast period.

Market Driver

Surging Adoption of Artificial Intelligence

Rising adoption of artificial intelligence is propelling the growth of the market. Integration of intelligent algorithms enables predictive maintenance through early fault detection and anomaly identification. Real-time safety monitoring capabilities are enhanced by automated analysis and system responsiveness. 

This advancement in intelligent automation is actively strengthening safety system performance and aiding market expansion across high-risk industrial environments.

• In March 2025, Press Information Bureau highlighted that India is rapidly advancing its AI computing and semiconductor infrastructure to support its expanding digital economy. Following the approval of the IndiaAI Mission in 2024, the government allocated approximately USD 1.24 billion over five years to boost national AI capabilities. A key component of the initiative is the establishment of a high-end shared computing facility equipped with 18,693 Graphics Processing Units (GPUs), positioning it among the largest AI compute infrastructures globally.

Market Challenge

High Certification Costs and Regulatory Complexity

The functional safety market faces major challenges due to the high costs and extended timelines associated with achieving certification across multiple industries and regions. Diverse regulatory requirements and testing protocols increase complexity and resource demands. 

To address this, companies are adopting unified certification frameworks and leveraging automated compliance tools to streamline processes. Additionally, collaboration with certification bodies aims to harmonize standards, reduce redundancy, and accelerate time-to-market for safety-critical products.

Market Trend

Rising Use of Safety Instrumented Systems

The market is experiencing a notable trend toward the adoption of safety instrumented systems (SIS) across both process and discrete industries. 

This widespread implementation underscores the emphasis on risk reduction and regulatory adherence. The trend demonstrates a growing commitment to strengthening safety measures and deploying advanced safety technologies across various industrial sectors.

• In May 2024, ABB introduced the newest version of its flagship Distributed Control System, ABB Ability System 800xA 6.2. Building on its modular orchestration capabilities, the enhanced Orchestration Designer boosts plant flexibility and ensures compliance with changing industry standards. The system’s native, direct integration with PROFIsafe devices enhances safety while reducing engineering, installation, and maintenance expenses for Safety Instrumented System (SIS) applications. 

Functional Safety Market Report Snapshot

Segmentation	Details
By Device	Sensors, Modules, Valves, Programmable Safety, Switches, Actuators, Emergency Stop
By System	Emergency Shutdown Systems, Fire & Gas Monitoring Controls, Turbomachinery Controls Systems, Burner Management Systems, High Integrity Pressure Protection Systems, Distributed Control Systems, Supervisory Control and Data Acquisition Systems
By End Use	Food & Beverages, Automotive, Oil & Gas, Power Generation, Pharmaceuticals, Chemicals
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Device (Sensors, Modules, Valves, Programmable Safety, Switches, Actuators, and Emergency Stop): The sensors segment earned USD 1.52 billion in 2024 due to its critical role in real-time monitoring and detection, ensuring system reliability and preventing failures across various safety-critical applications.
• By System (Emergency Shutdown Systems, Fire & Gas Monitoring Controls, Turbomachinery Controls Systems, Burner Management Systems, High Integrity Pressure Protection Systems, Distributed Control Systems, and Supervisory Control and Data Acquisition Systems): The emergency shutdown systems segment held a share of 24.20% in 2024, fueled by its essential function in quickly halting operations to prevent accidents and minimize damage in safety-critical environments.
• By End Use (Food & Beverages, Automotive, Oil & Gas, Power Generation, Pharmaceuticals, and Chemicals): The oil & gas segment is projected to reach USD 2.95 billion by 2032, owing to the industry's high risk of hazardous incidents, necessitating advanced safety systems to protect personnel, assets, and the environment.

Functional Safety Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America functional safety market share stood at around 34.09% in 2024, valued at USD 2.31 billion. The dominance is attributed to the widespread adoption of advanced automation and smart technologies across critical industries. 

The growing integration of IoT and connected systems in automotive, manufacturing, and energy sectors necessitates robust safety protocols to prevent operational failures. Strong technological infrastructure and high investment in safety solutions further solidifies the region’s leading position.

the Asia Pacific functional safety industry is set to grow at a CAGR of 7.95% over the forecast period. This growth is fostered by rapid urbanization and the expansion of smart city initiatives. 

Increasing deployment of connected infrastructure and intelligent transportation systems necessitates advanced safety protocols to ensure operational reliability. Supportive government policies promoting digital transformation and safety standards further foster regional market expansion.

Regulatory Frameworks

• In the U.S., the Occupational Safety and Health Administration (OSHA) sets workplace safety regulations that mandate compliance with functional safety standards in industrial and manufacturing settings to safeguard workers from machinery- and process-related hazards.
• In China, the Standardization Administration of China (SAC) is responsible for developing and issuing national standards (GB standards), many aligned with international functional safety standards such as IEC 61508 and IEC 61511, providing guidance for the design and certification of safety systems.
• In India, the Bureau of Indian Standards (BIS) formulates and implements national standards, including those for functional safety, frequently harmonized with international standards such as IEC 61508 and IEC 61511 to guarantee safety and reliability across various industries.

Competitive Landscape

The functional safety market is witnessing active product launches focused on advanced safety solutions to enhance reliability and efficiency across industries. Companies are introducing next-generation safety systems and programmable logic controllers to meet growing regulatory and operational demands. 

Strategic developments emphasize improving safety standards and integrating smart technologies. This competitive landscape fosters innovation, enabling market participants to strengthen their positions and capitalize on emerging global opportunities.

• In January 2025, Yaskawa Electric Corporation launched sales of two new product lines under its AC servo drive Σ-X (Sigma Ten) series. The Advanced Safety Modules (ASM-X), which attach to the side of the SERVOPACK, and servo motors with functional safety support various safety standards, including compliance with CE marking machinery directives.

List of Key Companies in Functional Safety Market:

• Schneider Electric
• ABB
• Honeywell International Inc.
• Emerson Electric Co.
• Rockwell Automation
• HIMA
• General Electric Company
• Omron Corporation
• Siemens
• Johnson Controls.
• TÜV SÜD
• Balluff GmbH
• Endress+Hauser Group Services AG
• HORIBA
• Ignitarium Technology Solutions

Recent Developments (Certification/Product Launches)

• In April 2025, SEALSQ Corporation announced a strategic collaboration with IC’ALPS, an application-specific integrated circuit (ASIC) design house specializing in custom integrated circuits compliant with the International Automotive Task Force 16949 (IATF 16949) standard. IC’ALPS also offers ISO 26262-compliant solutions tailored to the Automotive Safety Integrity Levels (ASIL).
• In January 2025, Andes Technology announced that its D45-SE processor successfully obtained ISO 26262 ASIL-D certification. This underscores Andes Technology’s commitment to meeting the highest automotive safety standards essential for safety-critical applications. The certification qualifies the D45-SE processor for deployment in the most mission-critical automotive systems within the industry.
• In September 2024, Rockwell Automation, Inc. launched Logix SIS, an advanced safety instrumented system  certified for SIL 2 and SIL 3. It supports process and hybrid safety applications using Rockwell Automation’s latest 1756 controller, FLEX 5000 I/O platform, and Studio 5000 Logix Designer software.
• In February 2024, Codasip obtained certification for the functional safety standard ISO 26262 and the cybersecurity engineering standard ISO/SAE 21434, reinforcing its focus on  delivering secure and reliable automotive solutions.