Fire protection system market to grow 6.7%

AEI Cables is asking for further guidance on the application of new measures which make sprinkler systems mandatory

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The global fire protection system market size, which was valued at USD 72.72 billion in 2021, is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2022 to 2030.

In recent years, the market was negatively impacted by the Covid-19 pandemic and knock on supply chain disruption across countries and regions. However, the post-pandemic market is expected to grow as the rising urban population which will likely boost demand for fire protection systems.

Fire protection systems include equipment such as fire detectors, fire response systems, fire analysis software, fire suppression systems, and fire sprinkler systems. These systems are installed in various infrastructures, including industrial buildings, residential buildings, and commercial buildings, to safeguard people and reduce the loss of destruction from fire hazards.

The adoption of fire protection systems in several developing countries was initially slow compared to developed nations due to the lack of awareness among consumers regarding the product as well as reduced regulatory pressure. However, the launch of fire safety programs and the use of targeted marketing explaining the benefits of a fire protection system have drawn the attention of large as well as small and medium enterprises, leading to steady market growth in recent years.

Construction of new properties, including residential and non-residential, is expected to offer new opportunities for installing fire alarm and detection systems. An increase in the number of property damage due to fire accidents is also driving the market.

The market for fire protection systems is also being driven by the regulations, standards, and codes imposed by different regulatory bodies as the growing standard has resulted in organisations installing up-to-date fire protection systems. These factors are expected to boost the growth of the market over the forecast period.

Detection

The fire detection segment accounted for more than 50.0% share of the global revenue in 2021. A fire detection system comprises various devices working collectively, which help detect and warn people through video and audio equipment during an incident involving smoke, carbon monoxide, fire, or other emergencies.

The fire analysis segment is expected to register the highest CAGR of 13.6% from 2022 to 2030. The segment growth can be attributed to the increasing need for fire analysis, which helps make proper decisions during fire prevention.

Installation and maintenance

The installation and design service segment accounted for more than 40.0% share of the global revenue in 2021. This refers to the practice of outsourcing the solution for design, development, upgrades documentation and installing processes of the fire protection system. Fire protection systems are being installed across buildings of all sizes as inhabitants increasingly understand the benefits they offer in small, mid-size, and large buildings.

The maintenance services segment is expected to register the highest CAGR of 6.8% from 2022 to 2030. Fire protection systems play a vital role in detecting and alerting people in the event of smoke or fire; however, any fault in the system may lead to accidents and asset losses.

Application Insights

The commercial application segment dominated the market and accounted for more than 45.0% share of the global revenue in 2021, which includes applications for retail, BFSI, government, healthcare, and telecom and IT educational institutions. The demand for fire protection systems in commercial applications is increasing due to the formulation of stricter government rules for fire prevention and control being put in place across the globe.

The industrial application segment is expected to register the highest CAGR of 7.8% from 2022 to 2030. The industrial application covers major sectors such as oil and gas, mining, energy and power, and manufacturing. The need to safeguard automated systems from fire accidents is expected to fuel the growth of the segment.

Regional Insights

North America dominated the market for fire protection systems and accounted for over 35.0% share of the global revenue in 2021, which can be attributed to the rising demand for intelligent houses and smart buildings.

Asia Pacific is expected to register the highest CAGR over the forecast period, with countries including as India, China, and Japan expected to drive the regional market. Growing urbanisation and rising awareness among the consumers are also expected to contribute to the growth of the market in this region over the forecast period.

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