Industrial accidents could pose heavy liabilities for industries since they not only create distress or personal grief for workers but may also lead to negative publicity and huge monetary compensations. Environmental health and safety (EHS) tools are therefore used by organizations to adhere to prevailing norms laid down to promote health and safety of workers.
North America and Europe have been at the fore of adopting various stringent EHS norms. Post the global downturn in 2008, various companies located in the aforementioned regions have proactively implemented robust, yet costly EHS monitoring tools. As per a report published by Transparency Market Research (TMR), the global environmental health and safety market is expected to exhibit a CAGR of 12.0% between 2016 and 2024. The market is projected to reach a valuation of US$8.31 bn by 2024 from US$3.01 bn in 2015.
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Q: What factors will encourage or inhibit the growth of the global environmental health and safety market?
A: The global EHS market is poised to surge exponentially in the near future. The market will witness lucrative opportunities particularly in the emerging nations. However, the high cost of environmental compliance software dampens the rate of EHS adoption across SMBs at the early stage. In order to resolve this concern, several Federal agencies have been operational in mandating the implementation of EHS across developing nations. Additionally, these agencies have also introduced cost-effective solutions for SMBs and cost-sensitive economies to help them comply with the prevailing EHS standards. The market has been significantly gaining from the myriad statutory and legal regulations mandating organizations to maintain EHS standards. Driven by these factors, the global EHS market exhibits considerable growth potential worldwide.
Q: Why is North America considered the most lucrative regional market for EHS?
A: Based on in-depth research, analysts at TMR peg the EHS market in North America as the largest in the world. As per the TMR report, the global EHS market is expected to exhibit the highest CAGR of 13.2% between 2016 and 2024. The rapid expansion of the end-use industries in the region and the developed infrastructure of the U.S. have been significantly aiding the growth of the EHS market in North America.
An agency called the Occupational Safety and Health Organization (OSHA) is responsible for ascertaining a high EHS standard across industries in the U.S. Established in 1970, the institution encourages employers and employees alike to reduce the chances of workplace hazards. OSHA mandates companies to provide a workplace without any known hazards. With such stringent regulations in place, the EHS market in the U.S. is expected to witness robust growth in the forthcoming years.
Q: What gaps are noticed in the implementation of EHS regulations between developed and developing nations?
A: While developed countries are focusing on minimizing risk and maximizing awareness pertaining to the importance of deploying EHS programs, developing nations in many instances have fallen short of proving their dedication towards ensuring environmental health and safety. For instance, China witnessed two big explosions at a chemical warehouse in Tianjin port on August 2015 that killed over 159 people. The intensity of these blasts was so high that they sent shockwaves through apartment blocks located several kilometers away. Such incidents could be averted with stringent EHS program in place.
However, the scenario is much different in enterprises located in developed nations. For instance, in 2013, Johnson & Johnson, a multinational firm with diverse operations, began improving its safety culture by deploying a standardized approach across its supply chain. In 2015, the company started its global Safety Journey program. As many as 2,000 employees were trained under the Safety Culture Roadmap based on feedback obtained from over 56,500 employees and contractors on their present safety culture.
As more companies in developing countries follow in the footsteps of their counterparts in traditional markets, the demand for EHS is expected to rise steadily.