Iran is one of the most untapped markets in entire Middle-East region. The country is second largest economy in Middle-East and North Africa region after Saudi Arabia and is home to second largest population. Over the years, Iranian economy has been adversely affected due to UN sanctions.
Further, since the country’s economy is dependent on the export of hydrocarbons, with recent oil prices turmoil, the market conditions are expected to remain challenging. However, with the ease in imposed sanctions, the country is anticipated to witness new business opportunities owing to flow of fresh investments.
These developments would spur construction industry in Iran, primarily driving expansion activities in transportation, energy, residential and hospitality sectors. According to 6Wresearch, Iran’s fire safety market is projected to grow at a CAGR of more than 10% during 2016-22. Over the next six years, with the growth in construction market, demand for fire safety equipment would increase. Iran’s construction market is forecast to grow at a CAGR of 5.9% during the same period.
Rising number of fire incidences in the country is driving the need for installing fire detection and suppression equipment. Oil & gas is one of the major sectors where key deployment of these would be registered in the coming years. Recent fire incident at petrochemical facility in the province of Khuzestan is exhibited to influence safety measures in all major petrochemical facilities across the country.
The fire safety market growth is dependent on new construction, where fire detection equipment would emerge as key growing segment. On the other hand, replacement of old fire safety equipment in existing infrastructure would be led by stringent government rules & regulations.
In the coming years, many new players are expected to enter in Iran’s fire safety market, which would surge the competition leading to decline in prices of fire safety equipment.