Fire Protection System Market size is estimated at USD 89.5 billion in 2024 and is expected to cross USD 213.2 billion by the end of 2037, expanding at more than 7.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of fire protection system is evaluated at USD 96.3 billion.
A significant driver for the market’s rise is the growing focus on deploying advanced fire prevention systems across various sectors globally. These systems are essential safety measures to suppress fire hazards, minimize property damage, and save lives. The fire protection system market is projected to have lucrative revenue growth owing to the rising demand for advanced fire protection systems that can provide early warning and automatic fire control during emergencies. According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) of fire extinguisher systems has reached 282.1 in August 2024 from 267.6 in August 2023. Government spending on fire protection systems is steadily increasing, evidenced by a Eurostat report in September 2023 stating the total expenditure on fire protection services in European Union countries increased by 2.5% in 2021 compared to 2020.
In August 2022, the International Association of Fire and Rescue Services (CTIF) estimated that 24.2% of all fires globally occur in residential buildings. Due to rising cases of fire hazards globally, the demand for advanced fire solutions has increased significantly. Key market players in the fire protection system sector are innovating new technologies for advanced fire protection. For instance, in August 2022, Honeywell announced the launch of a new fire detection and alarm system, Morley Max, that is designed to enable faster communication in case of a fire hazard.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.5% |
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Base Year Market Size (2024) |
USD 89.5 billion |
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Forecast Year Market Size (2037) |
USD 213.2 billion |
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Regional Scope |
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Product (Fire Detection, Fire Analysis, Fire Suppression, Fire Response, Fire Sprinkler System)
The fire detection segment in the fire protection system market accounted for a 58.7% share in 2024. This growth can be attributed to the rising need for early detection and prevention of fire-related damages. Devices such as smoke detectors, heat detectors, flame detectors, multi-sensor detectors, etc., help in early detection of fire threats. Advancements in technology such as smart fire detection systems have led to the growth surge of this segment. For instance, in April 2024, Resideo Technologies launched the First Alert smoke alarm equipped with advanced precision detection technology.
The fire analysis segment in the fire protection system market is poised for growing revenue share during the forecast period due to rising demands for predictive management of threats in various sectors such as healthcare, manufacturing, oil & gas, etc. Fire analysis is imperative in identifying causes of fire, estimating damages, and analyzing steps for future prevention of fire hazards. A driver for this segment is the increasing integration of artificial intelligence (AI) and machine learning (ML) algorithms that can preemptively identify fire hazards by analyzing historical data. For instance, in March 2023, a forest fire spread simulation system with high-performance computing was launched in India that can activate once a forest fire is detected by satellites and inform authorities to minimize losses.
Application (Commercial, Industrial, Residential)
The commercial segment in application is expected to hold a large fire protection system market share during the forecast period driven by the increasing number of commercial buildings and complexes, and the government enforcement to comply with fire safety protocols. The demand for fire protection systems in commercial spaces is high owing to the high density of occupants and valuable assets. For instance, in the U.S. the Occupational Safety and Health Organization (OSHA) enforces the mandatory presence of fire extinguishers and fire suppression systems for commercial buildings.
The industrial fire protection system market revenue share is estimated to rise steadily during the forecast period owing to the need to protect highly-valued industrial equipment from fire-related risks. Industrial environments are often high-risk for fire hazards which leads to increased demands for advanced fire protection systems to prevent significant losses. Fire protection systems such as water mist systems, foam-based systems, gas suppression, and heat and flame detecting systems have high demands in the industrial sector leading to an increase in revenue share. Another driver is the scale of demand as due to industries covering large areas, the need for fire protection systems encompassing a greater swathe of area seamlessly is paramount.
Our in-depth analysis of the fire protection system market includes the following segments:
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Product |
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Application |
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Services |
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North America Market Analysis
North America is expected to dominate the revenue share during the forecast period after registering a 35.6% fire protection system market share in 2024. The growth in North America is due to technological innovations, strict fire safety regulations, a rise in smart buildings, and the continued adoption of modern fire safety techniques. The public awareness of fire safety in the region is also rapidly increasing contributing to the demand for advanced fire protection systems
In the U.S., the fire protection system market is poised to grow rapidly during the forecast period. The market growth is attributed to the enforcement of fire safety codes, the increase in commercial and industrial spaces requiring fire protection, rising public awareness of fire safety, and growing cases of fire hazards. In November 2023, the National Fire Protection Association (NFPA) published a report estimating 1.5 million fires in the U.S. in 2022 leading to property damages worth USD 18 billion.
The U.S. Fire Administration estimated a 21% increase in monetary loss due to fire-related causes from 2013 to 2022 and 374,300 cases of residential fires in 2022. Such fire hazards contribute to the demand for advanced fire protection systems in the region boosting the market growth. Additionally, Research Nester estimated the number of smart homes in the U.S. to increase by more than 60% from 2023 to 2028, leading to a hefty surge in demand for fire protection systems.
Canada is a significant contributor to the fire protection system market in North America. This growth can be due to the rising cases of fire incidents and large-scale wildfires leading to demands for advanced fire protection solutions. Canada also has a strong commercial and industrial sector where the demand for the installation of advanced fire protection systems is high. In August 2023, the government released data stating an increase of 2700 fire hazard incidents during the pandemic. In 2021, structural fires accounted for 42% of fire hazard incidents in Canada. The most significant driver for market growth is the wildfire-related losses in the country as the government reported a loss of 15 million hectares of land due to the massive wildfire in 2023. Novel solutions to combat forest fires to minimize damage through advanced fire detection and fire suppression technologies are poised to increase the market growth.
APAC Market Analysis
Asia Pacific fire protection system market is poised to witness significant growth in revenue share during the forecast period due to the presence of rapidly emerging economies such as India, China, Japan, South Korea, etc. A key driver in the region is the high population density leading to increased fire hazards and the need for advanced fire protection systems. The rapid urbanization across this region leading to a surge in residential, commercial, and industrial spaces contributes to greater requirements for fire safety solutions.
In India, rapid urbanization and a high population density are pushing the fire protection system market growth. National Crime Records Bureau (NCRB) data highlights 4028 incidents of residential fires in India in 2022 with cases concentrated over densely populated areas. Additionally, there has been a growing push to revamp the fire protection system in India to cater to areas with a high density of residential and commercial spaces. In July 2023, the government launched a scheme for the expansion and modernization of fire services in the states of India. Rising government investments in the sector coupled with increasing demands for residential and commercial spaces with fire safety systems are projected to boost the market growth steadily.
China is poised to have rapid market growth in the sector owing to high population density, increasing cases of fire-related accidents, technological advancements, and increasing urbanization. The National Fire and Rescue Administration reported that there was a 19% increase in fire-related accidents in 2023 between January to May. The trend in manufacturers is to release advanced fire protection systems to meet the burgeoning demands in the region. For instance, in September 2023, Dahua Technology reported the use of a fire analysis solution to increase the efficiency of fire alarm response by 30%.
Japan is projected to see a boom in the revenue share owing to rising demands for advanced fire protection solutions. Japan has stringent fire safety regulations owing to the country being prone to earthquakes and an increasing number of smart homes installed with advanced fire protection systems. A report by the Tokyo Fire Department stated that 91.3% of fire-related checks conducted by the department in 2023 were due to early alerts released by smoke and fire alarm systems. The success rate of fire protection systems in the country is projected to fuel the demand for fire protection systems. Another key driver is the rate of forest fires in the country requiring advanced fire safety solutions.
The sector is competitive with the presence of global and regional players vying to increase the revenue share. Key market players are investing in research and development to improve fire protection systems in different segments. Some of the key players in the fire protection system market are:
Author Credits: Richa Gupta
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