OHD

Part
01
of six
Part
01

Industrial Safety Devices: Market Size

The value of the United States industrial safety devices market is estimated to be roughly $515 million.

Market Size

  • The size of the United States industrial safety devices market-- comprising "safety sensors, safety switches, programmable safety systems, safety valves, and emergency stop devices"--was $515 million in 2019.
  • According to Markets and Markets, the size of the global industrial safety devices market was $3.3 billion in 2019.
  • The global market is expected to grow at a CAGR of 8.6% in the 2019-2024 period.
  • The growth will be driven by "mandates for safety regulations, rising demand for safety systems in the oil & gas industry, rising need for reliable safety systems for personnel and asset protection, industrial revolution 4.0, and growing automation in hazardous industrial areas".
  • The United States accounts for 15.61% of the global industrial output and 18% of the global manufacturing output.
  • The United States "industrial safety relays and timers" market will grow at 3.9% till 2025.

Research Strategy

We searched research reports, industry portals such as Industrial Safety & Hygiene News (ISHN), and the websites and annual reports of key players such as Honeywell and Emerson; however, we did not find market size estimates for the United States. We also looked for reports specific to segments within the industrial safety market such as safety switch, "safety relays and timers", and safety valves but found no market size estimates for the US market. Given the above limitations, we triangulated the statistic assuming that the adoption of industrial safety devices is the same across all nations.

According to Markets and Markets, the size of the global industrial safety market--includes "safety sensors, safety switches, programmable safety systems, safety salves, and emergency stop devices"-- in 2019 was $3.3 billion. The United States has a 15.61% share of the global industrial output (calculations have been shown in the attached spreadsheet). Assuming that the adoption of industrial safety devices is not significantly different between nations, the market size for industrial safety devices in the United States is $515 million (15.61%*$3.3 billion).

While developed markets such as the United States, Europe, Japan, South Korea, and Canada are also among the top industrialized regions and account for a major share of the global industrial output, developing countries such as China and India also have a significant share (the two countries collectively account for 27.5% of the global industrial output). However, developing countries have been laggards in adopting workplace safety standards. The adoption of safety standards will propel growth in developing markets. For example, the China "safety relays and timers" market will grow at 7.9% as against a 3.9% rate in the United States, a mature market. There is no metric available to factor in workplace safety adoption differences. Therefore, the estimate provided is a rough estimate.
Part
02
of six
Part
02

Industrial Safety Devices: Market Forecast

The global compound annual growth rate (CAGR) of the industrial safety devices market is 8.6% for the next.

Growth Rate

  • The industrial safety market comprising "safety sensors, safety switches, programmable safety systems, safety valves, and emergency stop devices" is expected to grow at a CAGR of 8.6% till 2024.
  • The global industrial wireless sensor network market is also expected to grow at a CAGR of 11% until 2023.
  • The US industrial safety relays and timers market will grow at a CAGR of 3.9% till 2025.
  • The use of pressure sensors is expected to grow at a CAGR of 5% from 2019 to 2023.
  • The US market is estimated to have grown by 51% after 5 years, 39% after 4 years and 28% after 3 years.

Research Strategy

The research team could not find a specific growth rate of the US industrial safety devices market. The team thought that it would be prudent first to check whether the key players in the industry provided this information on their websites. We, therefore, searched websites and financial reports of key players like Honeywell and Emerson, among others. The team looked at the industry outlook that was provided in these financial reports but could not get any relevant data in regard to the growth rate of the industrial safety devices market.
Next, the team decided to find the data in market reports, research reports, and industry portals such as Industrial Safety & Hygiene News (ISHN). A research report on the industrial safety market by Market and Market provided information about the global growth rate of the industry. However, the team was unable to find the growth rate of the US market only from these reports.
The team went a step further and decided that it should break down the US market into various segments and try to look for the growth rate of each segment. The team hoped that it could identify the growth rate of each segment in the US industrial safety devices market. We were only, however, able to locate the growth rate of wireless sensor network market, pressure sensors market, and safety relays and timers market. The growth rate of these segments has been provided in the report.
Since the information was not available, the research team used the global CAGR of the industrial safety devices market to determine the percentage by which the US industrial safety devices market would have grown in three to five years as additional information.
According to Markets and Markets, the size of the global industrial safety market--includes "safety sensors, safety switches, programmable safety systems, safety valves, and emergency stop devices"-- in 2019 was $3.3 billion. The United States has a 15.61% share of the global industrial output (calculations have been shown in the attached spreadsheet). Assuming that the adoption of industrial safety devices is not significantly different between nations, the market size for industrial safety devices in the United States is $515 million (15.61%*$3.3 billion).
The future market share of the US industry can be calculated as follows using the global CAGR of 8.6%:
Future Market Value (FMV) = Current Market Value * (1+CAGR)^5
FMV = 515 million * (1+8.6%)^5
FMV = 515 million * 1.51
FMV = 778 million.
Considering that the market will grow to $778 million in five years, then the US industrial safety devices market will have grown by 51%. Calculations are as follows:
= (778 million — 515 million)/515 million * 100
= 51%
Calculations for the percentage growth of the industry after four years.
FMV = 515 million * (1+8.6%)^4
FMV = 515 million * 1.39
FMV = $716 million.
Percentage growth
= (716 – 515)/515 * 100
= 39%
Calculations for the percentage growth of the industry after three years.
FMV = 515 million * (1+8.6%)^3
FMV = 515 million * 1.39
FMV = $660 million.
Percentage growth
= (660 – 515)/515 * 100
= 28%


Part
03
of six
Part
03

OHD SWOT

Occupational Health Dynamics (OHD) is the company behind the well-known respirator fit tester brand Quantifit. Its strengths lie in its strong presence in North America, its association with Schauenburg International and Quantifit, and its extensive experience in the occupational health market, while its weaknesses lie in its limited social media presence and decreasing revenue and number of employees. The company can partner with companies that offer complementary products and expand further in Europe and Asia Pacific, while it faces challenges posed by high product prices, long product life cycles, and competitors launching more advanced products.

Strengths

  • Having started its operations in the Southeastern United States, OHD has a strong presence in the region. It is OHD’s success in this region’s occupational health market that enabled it to expand nationwide and internationally. As a result of the expansion, OHD now has a vast distribution network that spans United States, Canada, and many other countries.
  • OHD has the support of its parent company Schauenburg International GmbH, a German company with over 40 subsidiaries worldwide. Schauenburg, which acquired OHD in February 2017, supplies products and services mostly to the mining, mineral processing, and tunneling industries, and their related industries. Its businesses are categorized into electronic technologies, engineering, hose technology, plastics processing, and industrial solutions.
  • Founded in 1992, OHD has over 25 years of experience in the occupational health market. It is the company behind the brand Quantifit, a respirator fit system that is considered the gold standard in employee mask fit measurement.

Weaknesses

  • OHD’s revenue appears to be decreasing, based on ZoomInfo’s estimates of OHD’s quarterly revenues. According to ZoomInfo, the company’s quarterly revenue dropped from $8.6 million in the third quarter of 2018 to $7.4 million in the second quarter of 2019.
  • The number of employees that the company has seems to be on a downward trend as well. From 43 in the third quarter of 2018, it dropped to 34 in the first quarter of 2020.
  • OHD’s social media presence is limited, as the company only has LinkedIn and Facebook accounts. Additionally, the company only has 359 followers on LinkedIn and 230 followers on Facebook.

Opportunities

  • To take full advantage of its vast distribution network, OHD can team up with more foreign or domestic companies that offer products or services that complement OHD’s products, and offer to be these companies’ distributor. It has already entered into an agreement with British company Cirrus Research to be the sole or exclusive distributor of the latter’s noise measurement instruments in the United States. It has also teamed up with Occupational Performance Corporation (OPC) to offer the latter’s Physical Capacity Profile (PCP) Testing System across the United States.
  • It can also offer to be these companies’ service and calibration center. It is worth noting that OHD is one of the few service and calibration centers in the world for Cirrus Research’s doseBadge.
  • Given its recent appointment of Luke Allen as its new president, OHD has the opportunity to course-correct or change direction as necessary. It can also benefit from Allen’s experience as an employee who rose through the ranks of the company. Allen, who started out as a Regional Sales Manager in October 2006, slowly climbed the ladder until he was appointed president in January 2020.
  • OHD can take advantage of the fact that people’s awareness of employee safety is growing.
  • Both the European and Asia Pacific regions present opportunities for growth. These regions were identified by Future Market Insights as the other two regions apart from North America that will drive growth in the respirator fit tester market.

Threats

  • Competitors launching new and more advanced products pose a threat. TSI Incorporated, for example, has recently launched Portacount Respirator Fit Tester, a new product that does away with error-prone, traditional test approaches.
  • TSI Incorporated is one of the many competitors of OHD in the respirator fit tester market. Other competitors include 3M, American Airworks, Envirocon Instrumentation, Moldex Metric, and Levitt-Safety.
  • Both the high price and the long life cycle of respirator fit testers hinder market growth. Respirator fit testers, such as OHD’s Quantifit, are expensive, and they last a very long time. They are not products that are bought frequently.

Research Strategy

We typically use sources that were published in the past two years, but given the limited information on OHD, we were forced to include older sources, particularly sources published in 2016 and 2017. Though a SWOT analysis of OHD is not readily available in the public domain, we were able to prepare one by examining the website, social media accounts, press coverage, and reviews of OHD. Business information databases and industry reports were consulted as well.
Part
04
of six
Part
04

OHD Competitors

Top competitors to OHD include TSI, Testo, MSA and Honeywell. Testo and Honeywell offer similar and different products that can fill the need for employee safety in different industries and are both indirect and direct competitors. Information regarding these competitors is provided below.

TSI

Testo

  • Testo is the "world leader in design development, and manufacture of portable test and measurement instrumentation and solutions". Its website can be accessed here.
  • Testo manufactures and calibrates instrumentation for HVAC, refrigeration, combustion and emissions testing, catering and food safety, food processing, indoor air quality, and the pharmaceutical industry. In addition to offering portable flue gas and emission measuring instruments, museums use the company's WIFI data logger system to monitor temperature and humidity.
  • Testo provides precision technology and services for cleanrooms with highly precise measuring instruments to monitor temperature, differential pressure, air flow testing and exchange rates, and measurement in a laminar flow cabinet.
  • Testo is a competitor in applications for customers in pharma and health, industrial hygiene and safety managers, and mobile emission testing. Its food safety and food processing capabilities make it an indirect competitor to OHD, since it does not offer those solutions.
  • Testo's estimated annual revenue is $300 million, placing it as a top competitor.

MSA Safety

  • MSA's website can be accessed here.
  • MSA Safety is an indirect competitor that offers some similar and some different applications that fill the same needs for workers in confined spaces. Similar applications offered by MSA include applications for confined space, emergency response, firefighting, search and rescue, plant outages, welding and working at heights. Markets served by MSA Safety applications include building/HVAC, construction, fire service, general industry, oil and gas, and utilities.
  • MSA Safety products include air-purifying respirators, eye protection, face protection, fall protection, fixed gas and flame detection, head protection, hearing products, portable gas detection, and supplied air respirators. MSA Safety competes with OHD in its solutions for fire and emergency workers.
  • MSA's annual revenue was $1.4 billion placing it a top competitor.

Honeywell

  • Honeywell's website can be accessed here.
  • Honeywell Forge for Worker provides safety solutions, such as gas detection systems, hearing protection, industrial safety, fire and life safety systems, personal protective equipment, portable gas detection, process solutions, and worker safety.
  • It provides services for aerospace and defense, buildings and cities, chemicals and manufacturing, retail, safety, and supply chain.
  • Honeywell Forge's competitive advantage over OHD is the company's Industry 4.0 integration. Honeywell Forge offers different products that fill the same needs as OHD and similar products, making it both an indirect and direct competitor.
  • Honeywell's annual revenue was $37 billion establishing it as a top competitor. The company does not disclose how much revenue was generated from Honeywell Forge alone, nor was that information available from external sources such as HoD&B Hoovers or Owler.


Part
05
of six
Part
05

Industrial Safety Devices: Trends

Advancements in technology and automation are driving the growth of the industrial safety market. While there may be a lack of awareness regarding workplace safety, there is still a growing need for reliable safety systems. The move toward new technologies such as safety sensors is proving to be inevitable for greater cost-effectiveness, safety, and efficiency. This report analyzes current trends for industrial safety devices for 2020 and beyond.

IoT Sensors and Computer Vision

  • Industrial companies are starting to increase their use of IoT (Internet of Things) sensors and computer vision for safety purposes.
  • Using IoT sensors, computer vision systems can accurately detect any abnormalities in the environment. These systems will function like human eyes to prevent accidents.
  • Computer vision technology can scan for abnormal situations that can potentially cause injury. They can then automatically stop equipment to prevent injuries.
  • IoT sensors scan for defects in products and reduce the chance of injury to employees or customers. Computer vision systems from InData Labs have been shown to identify flaws in raw materials both quickly and accurately.

Real-Time Location Systems and Location-Based Analytics

  • The industrial sector is beginning to utilize real-time location systems (RTLS) and sensor technology for improved safety in the workplace.
  • Simon AI by Kontakt.io has developed this technology to see when and how people enter or leave the workplace. The technology can detect whether unauthorized people walk into any restricted areas.
  • RTLS and sensor technology can also facilitate an evacuation in dangerous situations. The system can determine whether people reach specified safety checkpoints for accountability.
  • For location-based tasks in an emergency, panic buttons can also be connected to the system to provide additional assistance.

IoT-Based Wearables Fitted for Workers

  • IoT wearables are being used to improve safety in the workplace. These wearable devices can enhance worker visibility and help monitor things such as noise and physiological data.
  • Eleksen has developed this type of technology for workers. Some devices use sensors for fall detection alerts and warnings for any imminent collisions with equipment.
  • In a broader sense, data from IoT sensors can be transmitted to a central database. Managers can then analyze this data to keep track of safety trends in the workplace.

Part
06
of six
Part
06

Industrial Safety Devices: Perceptions

False-positive errors are one of the primary downsides to using sensors and alarm systems in the construction sites. The majority of the sensor and alert systems available in the market prove to be ineffective or inadequate to detect early fires in mines.

CONSTRUCTION INDUSTRY

  • Construction sites are considered to be one of the most hazardous work environments.
  • Compared to other industries, the construction industry has the highest rate of fatality in the United States.
  • Recent investigations revealed that humans fail to recognize the harmful scenarios due to various factors such as cognitive overload, attention lapses, and distractions.
  • As a result, warning systems and safety sensors are installed to automate hazard recognition and alert the workers when they are too close to safety hazards that can lead to injuries.
  • However, studies report that workers become insensible or unaware of the alarms due to false-positive errors.
  • False-positive errors can be defined as unnecessary and redundant alarms that are raised during unsafe conditions. False-positive errors can ultimately lead to alarm fatigue.
  • As a negative consequence, workers tend to ignore legitimate alarms. In some cases, workers also turn off the alert systems.

MINING INDUSTRY

  • In order to improve the level of safety and avoid hazardous situations caused by mining fires, smoke sensors are installed to automate fire detection.
  • Photoelectric sensors and ionization sensors are used for detecting flaming and non-flaming fire, respectively.
  • An experiment was conducted on these two sensor types for early fire detection in mines to analyze their efficiency and suitability. Several popular sensors available in the market such as Axonx and Vesda were used in the experiment.
  • The results of the experiment indicated that there was room for improvement in the sensor systems.
  • “The MSHA regulations specify that the smoke sensors shall alarm at smoke optical densities no greater than 0.044 m−1, but for these experiments, this single alarm criterion was never met by any single smoke sensor over the range of combustible materials used in the experiment”.
  • Additionally, the results also proved that the sensors were “grossly inadequate, either producing no alarm in many of the experiments or alarming only at high levels of smoke optical density”

RESEARCH STRATEGY

The customer perception of industrial safety sensors and alarm systems is non-existent in the public domain. The following strategies were deployed to identify the required data:
We began our research by identifying the top providers of industrial safety sensors and alert systems. Our goal was to find customer reviews about the company’s sensor and alert systems to get an overall view of their perceptions. For this, we utilized a precompiled market research report that listed the top five companies. Some of the companies listed were not US-based, therefore, we additionally found companies that are located in the United States. Following this, we visited review websites such as Reviews.io and Trustpilot to find data about the companies. However, we were unable to trace the companies in some of the review websites. Additionally, review websites that carried the company information did not contain reviews related to the companies’ sensors and alert systems. We also looked for testimonials on the official website of the companies, however, the testimonials only spoke in the favor of the companies. Therefore, this approach proved to be futile as well.

Subsequently, we identified the top industries using safety sensors and alarm systems. The same market research report which was mentioned earlier was used. Our goal was to identify research papers that explored the current state of safety sensors and alarm systems in the said industry in the United States. The identified information was intended to be provided as proxy data that provides customer perception from an industry’s point of view and not a specific company or consumers. Additionally, research papers also provide authentic information by utilizing qualitative and quantitative data based on experiences and experiments. Through this approach, we were able to identify the perception of construction and mining industries regarding industrial safety sensors and alert systems in the United States. The perception includes the positive (likes) as well as the negative (dislikes) aspects of industrial safety sensors and alert systems.

To conclude, there is no precompiled customer perception of the industrial safety sensors and alert systems in the public domain and there is not enough data available to triangulate the customer perception.
Sources
Sources

From Part 01
Quotes
  • "The industrial safety market is expected to grow from USD 3.3 billion in 2019 to USD 5.4 billion by 2024, at a CAGR of 8.6% during the forecast period. "
From Part 02
Quotes
  • "The industrial safety market is expected to grow from USD 3.3 billion in 2019 to USD 5.4 billion by 2024, at a CAGR of 8.6% during the forecast period"
Quotes
  • "The Global Industrial Wireless Sensor Network Market was valued at $573 million in 2016, and is projected to reach at $1,200 million by 2023, growing at a CAGR of 11.0% from 2017 to 2023."
Quotes
  • "Growth in the use of pressure sensors since then has been steady but analysts such as Markets and Markets believe the broadening of applications for the technology is leading to a higher rate of adoption. The result is a compound average growth rate of 5 per cent until 2023 from a base of approximately $8.3 billion this year."
Quotes
  • "Representing the developed world, the United States will maintain a 3.9% growth momentum. "