The global explosion-proof lighting market is anticipated to grow at a significant CAGR of around 6.7% during the forecast period (2021-2027). The explosion-proof lightings which are also known as hazards location lights designed to offer extensive illumination in the hazardous location where there are high chances of explosion. The stringent regulation towards the safety of workers in the remote and hazardous work environment is the major factor creating the demand for explosion-proof lightings. The explosion-proof lightings found their major applications in end-user industries such as oil & gas, mining, marine, food & beverages, transportation, chemical & pharmaceuticals, among others. Among these, the oil & gas industry is the major end-user of explosion-proof lighting systems. The increasing investments in oil & gas offshore projects globally are further projected to increase the demand for explosion-proof lightings. Moreover, the rapid transition from traditional light systems to connected lighting solutions coupled with high efficiency and low maintenance, and volatility in raw material cost for lighting systems are the factors due to which their adoption is increasing in various end-user industries. 

However, the high initial cost of explosion-proof lighting systems is a major concern that may hinder the market growth. The cost of an explosion-proof lighting system is 10 times higher than compared to the fluorescent light. The advancement in cost-effective and wireless explosion-proof lighting can offer lucrative opportunities in the market during the forecast period. 

Impact of COVID-19 on Global Explosion-Proof Lighting Market

The global explosion-proof lighting market is negatively impacted by the outbreak of the COVID-19 pandemic. Many explosion-proof lighting manufacturing companies have incurred significant losses during the period of the pandemic. Due to a halt in manufacturing and production units owing to the lockdown imposed by the government, they have experienced a drastic declination in their revenue. The disruption in the supply chain of components has also affected the overall production of explosion-proof lighting manufacturing. In addition, during the pandemic, to get over the global crises, the government has shifted its prime focus to towards healthcare industry resulted in delays in oil & gas projects across the globe. This led to the low demand for explosion-proof lighting products and solutions from oil & gas, and chemical and pharmaceutical industries. Hence, market value got down. Post Covid-19, the market will regain its speed with the expansion of production capacities end-user industries and increase in the number of oil & gas projects globally.  

Segmental Outlook  

The global explosion-proof lighting market is trifurcated based on type, light type, and end-user. Based on type, the market is sub-segmented into fixed lighting, mobile lighting, and small & portable lighting. The mobile lighting segment is expected to be the fastest-growing market during the forecast period. The adoption of mobile lighting in various end-user owing to the features provided by it such as high durability and extensive illumination is gaining popularity thus driving the segment growth. The market is further analyzed based on the type of light into incandescent, fluorescent, LED, and HID. Among these, the LED segment is projected to gain the leading position during the forecast period. The LED explosion-proof lighting are highly efficient, and low in cost and it requires less maintenance as compared to their counterparts, these features make it ideal for hazardous environment. Similarly, based on end-user, the market is categorized into oil & gas, mining, food & beverages, manufacturing & power plant, chemical & pharmaceutical, and others (transportation, military bases). The oil & gas industry among end-users is expected to be the hold the largest share in the market during the forecast period. 

Global Explosion-Proof Lighting Market Share by End-User, 2020 (%)

The Oil & Gas Segment is Projected to Gain Leading Position in Global Explosion-Proof Lighting Market

The oil & gas industry among various end-users of explosion-proof lightning is expected to gain a dominant position during the forecast period. The environment in oil & gas industries are highly prone to explosion, this is the reason the demand for explosion-proof lighting solution is high in this industry. The ongoing development in the industry is further expected to create the scope for explosion-proof light during the forecast period. To increase the exploration and production of oil & gas assets, companies are focusing on increasing oil & gas stations across the globe. For instance, In July 2019, Kuwait Oil Company has signed a contract agreement of $597 million with Halliburton, a US oil service company to increase its crude oil production to 100,000 barrels per day (BPD). With upcoming oil & gas projects, the demand for explosion-proof lighting is expected to increase, which in turn, drives the market growth during the forecast period. 

Regional Outlook 

Geographically, the global Explosion-Proof Lighting market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN, and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). Among these, North America is projected to hold the largest share in the market during the forecast period. The factors attributed to the growth of the market include increasing investment in the oil & gas industry, stringent government regulation for adoption and installation of explosion-proof lighting in a hazardous environment, and consumer shift towards advanced LED lighting systems from traditional lighting. 

Global Explosion-Proof Lighting Market Growth, By Region 2021-2027

Asia-Pacific is Anticipated to Grow at Faster Rate in Global Explosion Proof Market

Geographically, Asia-Pacific is anticipated to be the fastest-growing region in the global explosion-proof lighting market during the forecast period. The major economies such as China, India, Japan, and South Korea are contributing high to the development of the market in the region. The investment in oil & gas, and chemical and pharmaceutical industries is high in these economies, due to this their expansion of these industries is increasing at a rapid pace. For instance, according to Invest India, the chemical & pharmaceutical industry is projected to reach $300 billion by 2025. This further lead to the increase in demand for explosion-proof lighting. Furthermore, the availability of raw material at low cost in the region is also the factor due to which the explosion-proof lighting companies are now focusing on expanding their business in emerging economies of Asia-Pacific. The presence of major players also boosting the market growth. 

Market Players Outlook

The key players in the Explosion-Proof Lighting market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include ABB Ltd, Abtech Ltd, Adolf Schuch GmbH, Eaton Corp PLC, Emerson Electric, GE Lighting LLC, Hubbell Inc., Phoenix Products LLC, Philips Lighting Holding B.V, Unimar Inc., Osram Licht AG, among others. These market players are adopting several market strategies including product launch and approvals, merger and acquisition, partnership collaboration, business, and capacity expansion, and others. For instance, in May 2020, Eaton Corp PLC has launched the HRL series LED Ex Lighting with 50% cost-saving and energy consumption for extreme temperature environments and hazardous explosion-proof areas. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Explosion-Proof Lighting market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.