July 2017 Special Report: Usage of HSE products most in oil and gas
According to a recent study, the oil and gas industry in Saudi Arabia dominates the personal protective equipment market in the kingdom, accounting for more than 40% of the total HSE market size
Health, Safety and Environment (HSE) personal protective equipment products are inclusive of eye and face protection, head protection, hearing protection, respiratory protection, fall protection, professional footwear, among others. Personal protective equipment also find application across several end-use industries, oil and gas being one of those prime industries where its usage is utmost. The demand for protective equipment in Saudi Arabia looks promising as it is one of the prime regions in the Middle East where the future of the HSE market looks promising.
Factors such as the increasing awareness for workers’ safety is the major reason fuelling the demand for the personal protective equipment market in Saudi Arabia. Accidents taking place in operations have paved the way for the influx of personal protective equipment. People working in the sectors of oil and gas, chemicals, construction and manufacturing, require proper safety, thereby pushing the demand for personal protective equipment.
Further, the kingdom is the prime locale for the oil and gas sector, constituting for more than 40% of the total personal protective equipment market in Saudi Arabia. Additionally, approval for the usage of personal protective equipment by the regulating bodies on account of the increasing incidents of workplace accidents is also channeling demand towards the HSE clothing and equipment market.
Increasing demand for advanced technology is one of the major factors that is inhibiting the growth of the personal protective equipment market in Saudi Arabia. The demand for automation in industries such as manufacturing, automotive, pharmaceutical, and of course oil and gas, among others, has reduced the need for human labour, as automated systems guarantee a swifter output. This factor is a major restraining element for the growth of the HSE clothing and equipment market in Saudi Arabia.
Untapped markets in the Northern and Southern Province is expected to pose as a suitable opportunity for the growth of the personal protective equipment market. These regions are currently unexplored as the number of end-use industries requiring the usage of HSE equipment are smaller, compared to the other regions. Owing to this reason, these provinces offer several expansion opportunities for this market.
The professional footwear segment held the largest market share accounting for more than 25% of the total personal protective equipment market in Saudi Arabia. The high market share is mainly attributed to the increasing demand for the same in the oil and gas sector. The energy industry dominated the personal protective equipment market in Saudi Arabia constituting for more than 40% of the total market size.
Supportive measures taken by the US Occupational Safety and Health Administration (OSHA) for the usage of personal protective equipment in the oil and gas sector, owing to the rising incidents of workplace accidents taking place, is another major factor stimulating the demand in the personal protective equipment market in the oil and gas industry.
The Eastern province dominated the personal protective equipment market in Saudi Arabia accounting for more than 50% of the total market. The province is the largest province in the kingdom, inclusive of 11 boroughs, and is home to Saudi oil giant Aramco. Apart from Aramco, other major companies operating in the oil and gas sector, such as Nama Chemicals, are also based in the Eastern Province. Further, the other end-use industries such as manufacturing and construction, among others, that require the usage of personal protective equipment have significant presence in the Eastern Province.
The HSE clothing and equipment in Saudi Arabia is marked by some intense competition from the major global players operating in this market. Extensive research and development activities leading the innovation of new products, frequent mergers and acquisitions and partnerships are some of the major strategies adopted by these players to maintain their stronghold in the personal protective equipment market in KSA and in the region.
Up next: Read the interview with our Knowledge Partner for this Report...