Gas-based fire suppression systems - a market perspective for North America
Published: 01 July, 2008
As environmental concerns gain momentum in the industry, their domino effect is witnessed across industry sectors and markets. The fire suppression industry is not immune from these concerns, writes Konkana Khaund, Research Analyst, Environment and Building Technologies Practice, for Frost and Sullivan North America.
The high global warming potential of some of the gaseous fire suppression agents, along with the human exposure issues related to the use of carbon dioxide in occupied spaces, has prompted the use of alternative systems with agents that help reduce environmental footprint.
In chemical-based gaseous fire suppression systems, the halocarbons were the only products available after the ban on the use of halon under the guidelines of the Montreal protocol. Recently, fluorinated ketone agents such as Novec 1230TM manufactured by 3-M were introduced. These have zero ozone depletion potential, negligible global warming potential, and an atmospheric lifetime of five days. With this introduction, and with the use of halocarbons in Europe being restricted under the strict guidelines of the EC, environmentalists and statutory bodies in North America are also looking more closely at the environmental impact of fire suppression agents.
The gas-based fire suppression systems market in North America has shown a slow yet steady recovery since the downward trend witnessed during early 2000. A positive turnaround in the construction market during the last few years kept demand sustained, particularly in the critical data storage facilities and other industrial facilities markets.
Based on a detailed analysis undertaken on the systems market (covering carbon dioxide, halocarbon and inert gas systems) between 2006 and 2007, Frost & Sullivan estimates this market to be in the region of $120 million in 2007, growing with a compound annual growth rate of approximately five percent over the next five-year period.
The Halocarbon-based systems dominate this market. This conservative growth is attributed to the limiting factors that govern the wide applicability of gas-based fire suppression systems, growing environmental concerns over the use of halocarbons, and human exposure issues related to the use of carbon dioxide for occupied spaces. The changing economic scenario and other macro variables are also taken into consideration for the analysis.
Price pressures to remain strong
This sector is characterised by few competitors, with a high degree of competition among manufacturers and distributors. Moreover, the ability of new options such as water mist systems and powdered aerosols to cannibalise this market has also been considered. Although these options are not in the same genre as gas-based fire suppression systems, these are being considered as options for similar applications due to space limitations, environmental or safety considerations.
In the next five-year period, we expect to witness a declining trend in chemical type agents. In the North American context, however, this segment of the industry is not likely to witness any barriers to adoption on account of legislation in the near future. Currently, the products available within the halocarbon category in North America enjoy patent protection, which is likely to expire over a year’s time. This should open up the market to allow the influx of cheaper substitutes from Asian manufacturers to compete in the North American sector. Logistics and supply chain issues may hamper significant market capture for these cheaper substitutes. Nonetheless, this trend is expected to alter the market dynamics for the halocarbon segment during the next five years, and price pressure will continue to impact margins.
Cost barriers
High initial costs posed a dampening factor for fluorinated ketone-based products, thus keeping them away from achieving desirable market penetration. These products are slowly forming a distinct batch among the other HFC products available in the halocarbon systems sector as they are positioned as environmentally friendly, have zero ozone-depleting potential, and have negligible global-warming potential.
There are currently few OEMs who carry this line of products which are priced at a premium. With growing environmental concerns, however, these products expect to gain end-user preference over traditional HFC products in the market. Although opinions vary, an analysis of expressed industry estimates reveals these products currently account for approximately 15 percent of total revenues of the Halocarbon market segment.
Fire detection and suppression starts with the basic premise that a fire has already taken place. Despite the most sophisticated systems, the damage component cannot be ruled out. However, in the case of gas suppression systems, the risk of human exposure to gases gain precedence over anything else, ranging from non-toxic to toxic. The industry is of the opinion that Novec 1230 as an extinguishing agent has a much higher safety margin even at higher concentrations, when compared to FM-200 and inert gas. The safety margin here, takes into consideration the toxicity of the agent in use – from a ‘human exposure to gas’ standpoint.
In practice, all total flooding systems that are internationally approved for use in occupied spaces are considered safe for use if designed and installed properly in strict accordance with hydraulic calculations and industry standards.
The next few years will prove to be an interesting phase in the market for gas suppression systems as OEMs end users deal with price, performance and environmental issues in advocating the various types of systems and alternatives in the offer.
