Machine Risk Assessment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Deployment (On-Premises, Cloud-Based, Hybrid), By Application (Robotics, Metal & Machinery, Electrical & Electronics, Aerospace & Defense, Automotive, Others) By Industry Vertical (Manufacturing, Energy & Utilities, Healthcare, Others), By Region, By Competition, 2018-2028

Market Overview

Global Machine Risk Assessment market has experienced tremendous growth in recent years and is poised to maintain strong momentum through 2028. The market was valued at USD 6.05 billion in 2022 and is projected to register a compound annual growth rate of 6.21% during the forecast period.  The global machine risk assessment market has witnessed significant expansion driven by increasing digital transformation and industrial automation initiatives across industries. Critical sectors recognize the importance of effective risk assessment for ensuring workplace safety and regulatory compliance through data-driven insights. Machine risk assessment solutions enable real-time access to centralized monitoring systems, analytics capabilities and personalized risk reports. This allows organizations to generate predictive hazard analysis, automate compliance workflows and ensure safety regulations are followed. Such solutions help customize risk management programs, streamline processes for cost savings and strengthen overall controls.  Leading companies have partnered with major machine risk assessment vendors to digitally transform their safety and risk management functions. The solutions improve cross-departmental collaboration, provide situational awareness through mobile access and facilitate regulatory compliance management. Vendors continue advancing their solutions through innovations in areas like IoT, cloud and cybersecurity. This ensures secure, scalable and interoperable solutions for diverse industry safety needs. Ongoing R&D and growing acceptance of data-driven strategies indicate machine risk assessment solutions will play an increasingly important role in optimizing operations. Partnerships and compliance with emerging standards are expected to sustain the high growth momentum of this market. The long-term outlook for machine risk assessment remains positive.

Key Market Drivers

Stringent Safety Regulations

Regulatory bodies around the world have instituted stringent rules regarding workplace safety, risk management and emergency response planning. Laws such as OSHA in the US and the European Union Machinery Directives mandate comprehensive risk assessments to identify all potential hazards associated with machinery use. Regulations require assessments to be conducted systematically using a predefined methodology, and for the results to be documented thoroughly. Control measures to mitigate all risks must also be established, along with procedures for periodic review and continuous improvement.

Complying with such extensive guidelines involves significant investments of time and resources. Organizations rely on specialized machine risk assessment software and services to help streamline and automate the process. This drives continued demand for advanced solutions. As regulations evolve in line with new technologies, regular upgrades are also required to maintain compliance. Non-adherence carries heavy penalties, further incentivizing compliance spending on risk assessment programs. Overall, the stringent regulatory compliance needs have made it a business-critical function.

Growth of Automation

Industries across various sectors have rapidly increased automation in recent years to boost productivity and efficiency. Manufacturing facilities in particular have highly complex automated production lines involving industrial robots, autonomous vehicles, and other machinery. This raises the level of risk exposure dramatically. Comprehensive and ongoing risk assessment is needed to identify emerging hazards and ensure all risks are properly mitigated through engineering and administrative controls.

The rise of collaborative robotics or "cobots" working directly with humans has also increased risk assessment needs. Factors like predictive safety, workload monitoring, and operator assistance systems must be evaluated to guarantee worker safety. As automation continues to expand, assessment programs must evolve accordingly to stay ahead of new risks. This drives demand for the most advanced solutions that facilitate customized and dynamic risk management matching the pace of Industry 4.0.

Increasing Complexity of Machinery

Modern industrial machinery is more sophisticated with integrated technologies like IoT, cloud connectivity, machine learning etc. This level of complexity introduces new types of risks that traditional methods cannot adequately address. Dynamic, system-level risk assessment is required to analyze risk scenarios, especially those involving human-machine interaction. Cutting-edge digital tools are needed to systematically manage compliance and safety with such advanced systems. This drives demand for innovative assessment solutions..

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Key Market Challenges

Skill Shortage

Effectively conducting machine risk assessments requires highly trained professionals with multidisciplinary expertise. However, there is a growing shortage of qualified risk engineers and other safety specialists around the world. As industries rapidly automate and machinery becomes more sophisticated, the demand for risk assessment professionals is surging.

But educational programs are struggling to produce enough graduates with the advanced technical and analytical skills required. Risk assessment also demands deep application knowledge of various machinery types, control systems, robotics etc. which takes time to acquire. This skill gap challenges the ability of organizations and risk assessment firms to take on new projects and scale operations. It also limits the adoption of new digital risk assessment tools which require specialized training.

Reliability of New Assessment Techniques

As the nature of risks evolves with Industry 4.0, traditional qualitative and quantitative risk assessment methods are becoming inadequate. Newer digital techniques leveraging AI, simulation, predictive analytics and other technologies have emerged but are still being refined. The reliability and accuracy of risk predictions from these new techniques under real-world conditions is still being proven. Glitches or failures in assessment outputs could potentially lead to safety incidents. This uncertainty poses adoption challenges, as organizations are reluctant to fully replace tried-and-tested techniques with new approaches until their effectiveness is established over time. Considerable research and testing is still required to develop assessment techniques robust enough for widespread use.

Key Market Trends

Advancements in Digital Technology

Technology is transforming how risk assessments are conducted. Cloud-based software platforms provide a centralized hub for risk data, documentation and reporting. This allows real-time collaboration between assessment teams globally. Integration of risk registers with other systems like ERP facilitates automated compliance.

Wearable technologies like augmented reality headsets are enhancing on-site evaluations. Hands-free tools equipped with sensors, cameras and AI capabilities can identify hundreds of potential hazards compared to traditional manual methods. Detailed spatial mapping and simulation of risk scenarios further improves accuracy and reliability of assessments.

Advancements in sensor technologies are also fueling the market. The ability to continuously monitor variables like force, speed, vibration through Industrial Internet of Things (IIoT) networks enables predictive assessment of machinery performance trends over time. This helps proactively mitigate risks before incidents occur. As these digital assessment techniques become more sophisticated, they will continue disrupting traditional methods.

Rise of Outcome-based Risk Models

Risk professionals are shifting focus from compliance-based assessments to outcomes-based models emphasizing actual risk reduction. Qualitative risk ratings are being replaced by quantitative metrics of residual risk levels after control measures. Standard risk matrices based only on severity and probability are evolving into multi-dimensional models factoring real-time operating conditions.

This transition requires machinery assessment data from multiple sources be aggregated and analyzed using techniques like data mining, predictive analytics and simulation. Advanced software assists in developing customized digital models tracking key risk indicators (KRIs) and key risk measures (KRMs) for each organization’s unique hazards. Dynamic re-evaluation of risk levels based on KRIs ensures controls always keep pace with changing operations.

As outcome-based approaches prove more effective at prioritizing risks, resources will increasingly be allocated to risk assessment tools supporting their development and ongoing refinement through predictive algorithms. Regulators too will align guidelines to incentivize such data-driven, results-oriented assessment best practices.

Increasing Role of Predictive Analytics

Predictive analytics extracts insights from vast streams of risk data. Machine learning algorithms identify subtle patterns indicating emerging hazards.

Predictive maintenance alerts pinpoint machinery in need of repair before breakdown. Condition-based monitoring through IoT predicts future risk levels.

As predictive tools automate more of the assessment process, they will transform risk management into a data-driven function focused on prevention over inspection. This promises dramatic improvements in safety and cost efficiencies.

Segmental Insights

Deployment Insights

The cloud-based segment dominated the global machine risk assessment market in 2022, accounting for over 35% of the total market share when segmented by deployment. This segment is expected to maintain its dominance during the forecast period until 2027.

Cloud-based machine risk assessment solutions have seen widespread adoption in recent years due to their scalability, flexibility and low upfront costs. These on-demand solutions allow organizations to access risk management tools from anywhere without having to invest in expensive hardware. They are well-suited for organizations with distributed operations and remote/mobile workforces. Transitioning to cloud-based assessment programs also helps reduce IT maintenance costs and ensures seamless collaboration. As data volumes and analytical needs continue growing exponentially, the cloud provides the elastic computing power and storage capacity required to support advanced risk modeling techniques involving big data. Several machine risk assessment vendors are also focusing on enhancing the capabilities of their SaaS offerings, which cements the segment's leadership in the coming years.

Application Insights

The robotics application segment dominated the global machine risk assessment market in 2022 based on type, accounting for over 30% of the total market share. This segment is expected to maintain its dominance during the forecast period until 2027.

Robotics technology is increasingly being adopted across various industries like automotive, electronics, and healthcare for tasks that are dangerous, repetitive, or require precision and accuracy. However, the very attributes that make robots useful like mobility, speed, and force also make them potentially hazardous if not designed, installed and operated safely. Comprehensive risk assessment is vital throughout the entire lifecycle of industrial robots from design and manufacturing to installation, commissioning, and ongoing operation. Leading robotics manufacturers are also partnering with risk assessment solution providers to ensure their latest collaborative and autonomous robots can be integrated safely into shared human-robot workspaces. Stringent safety standards specific to robotics further drive regular assessments. As robot deployments continue rising with greater automation, their assessment needs will sustain the robotics segment's leadership..

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Regional Insights

The North American region dominated the global machine risk assessment market in 2022, accounting for over 35% of the total market value. North America is expected to maintain its dominance during the forecast period until 2028.

The large presence of major industrial and manufacturing companies in the region, along with stringent workplace safety regulations and standards, has created significant demand for machine risk assessment solutions in North America. The region is an early adopter of advanced technologies like AI, IoT, and predictive analytics that are transforming how risk assessments are conducted. It is also home to several leading risk assessment software developers and service providers.

Furthermore, North America has a highly developed industrial sector that relies on machinery, robotics, and automation across various verticals such as oil & gas, automotive, chemicals, food processing, and healthcare. Ensuring safety in these complex, data-intensive operations requires sophisticated risk management programs. Supported by a robust economic environment and focus on operational excellence, the region continues making sizeable investments to upgrade existing assessment capabilities. These factors will allow North America to retain its dominant position in the global machine risk assessment market during the forecast period.

Recent Developments

• In April 2023, risk assessment software leader Enablon was acquired by Wolters Kluwer in a $1 billion deal. This expanded Wolters Kluwer's governance, risk and compliance portfolio.
• In March 2023, AWS launched a new service called AWS Proton to help companies assess risks and monitor machine learning models over their lifecycle. It provides tools for model risk management.
• In January 2023, risk management platform provider LogicManager raised $100 million in Series D funding led by Accel. This will boost LogicManager's expansion of its AI-powered risk assessment solutions.
• In November 2022, process safety software company Intelex acquired Canada-based risk management consultancy RiskConnex. This strengthened Intelex's global professional services capabilities.
• In September 2022, risk assessment vendor Resolver launched a new module to help companies assess risks from third parties like suppliers and contractors.
• In July 2022, risk management SaaS provider NAVEX Global was acquired by private equity firm Thoma Bravo in a $2.1 billion deal to further scale its offerings.
• In May 2022, risk assessment software provider Cority was acquired by Verdantix to enhance its portfolio of EHS and operational risk management solutions..

Key Market Players

• Enablon
• Intelex Technologies
• Gensuite
• Wolters Kluwer
• Cority
• LogicManager
• NAVEX Global
•  Metrix Software Solutions
• Resolver
• Master Control

Report Scope:

In this report, the Global Machine Risk Assessment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Machine Risk Assessment Market, By Deployment:

o   On-Premises

o   Cloud-Based

o   Hybrid

• Machine Risk Assessment Market, By Application:

o   Robotics

o   Metal & Machinery

o   Electrical & Electronics

o   Aerospace & Defense

o   Automotive

o   Others

• Machine Risk Assessment Market, By Industry Vertical:

o   Manufacturing

o   Energy & Utilities

o   Healthcare

o   Others

• Machine Risk Assessment Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Machine Risk Assessment Market.

Available Customizations:

Global Machine Risk Assessment Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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