The global gaskets and seals market is expected to grow on account of increased demand and application of gaskets and seals across multiple end-user sectors, especially in manufacturing. Although automotive is a major end-user segment, the prevalence of gaskets and seals is high in other industries as well owing to the rapid adoption of fresh technologies and innovations.
Gaskets are highly utilized in automotive production parts such as engines, aircraft, industrial machinery, and energy equipment to maintain pressure and prevent leakage of fluids as well as the entry of contaminated particles. Although the application of gaskets is crucial in most cases, the sales volume and revenue generated by seals account for a major slice. This is because seals are largely diversified in most of the applications. With rapid industrialization and the advancement of electronic appliances, the need for lightweight and efficient gaskets and seals will increase significantly during the forecast period.
This research report includes a detailed segmentation by product, type, end-user, buyers, geography. The seals segment is expected to register an incremental growth of over $11 billion by 2026 due to the increased commercial application of seals in industrial manufacturing machinery The need to improve efficiency and productivity in the global manufacturing sector, including automotive and aerospace, is increasing rapidly, especially in APAC, Europe, and North America. This is likely to affect the demand for seals, which helps in optimizing performance and boosting the efficiency of machines. Moreover, the application of seals in drones and other electronic appliances is increasing the scope for innovations in design. The application of seals is increasing in many end-use industries, such as automotive, food processing machinery, mining, water treatment plants, and HVAC equipment.
The application of gaskets is widespread across industries, and the demand and utilization in the aerospace and automotive sectors remained significantly crucial in 2019. The increased production and export volumes of aircraft spares and automotive parts in Latin America, APAC, and the Middle East is a major factor contributing to the growth of the segment. Automotive manufacturers are focusing on electric and hybrid vehicles for efficiency. This transition from conventional to smart engines fueled by electric and solar power has driven the manufacturers to shift to new technology and introduce new designs.
The automotive gaskets and seals market is expected to reach over $23 billion by 2026. As the role of gaskets and seals in increasing efficiency and durability engines, the demand is high from the automotive industry. Although the sales volumes witnessed a major decline in 2019 followed by the outbreak of the COVID-19 pandemic, the production and demand for aftermarket spares have been an essential driver for the market. While the global electric vehicles market is growing at a rate of 62% YOY, the number of production facilities is growing, which is expected to increase the application of gaskets and seals, especially in APAC countries. Manufacturers are investing in production facilities across borders owing to the growing popularity of electric bikes and hybrid cars. China, Japan, the US, and Western Europe are the major countries, where the production of electric vehicles is likely to accelerate during the forecast period.
The non-metallic segment is expected to reach over $51 billion by 2026. Non-metallic gaskets and seals are witnessing increased adoption of high-tech and electronics sectors as they have become corrosion resistant and offer excellent electrical insulating properties. A large number of industries depend on rubber, silicone, and other non-metallic gaskets and seals to integrate technology into their products, which is increasing growth opportunities in several non-conventional application areas such as in heavy machines and earthmovers. Metal gaskets and seals accounted for over 36% of the global gaskets and seals market share in 2020.
The demand for gaskets and seals from OEMs is high, however, it is increasing among aftersales players, and the segment is likely to exhibit a CAGR of over 5% during the forecast period. The demand from OEMs was affected on account of the COVID-19 outbreak, especially from the aerospace and automotive industries, however, with relaxation in restrictions in Q3 2020, the demand has shown a positive uptrend. Similarly, the demand for gaskets and seals in the aftersales market is expected to surge as general maintenance and repair activities in the automotive and aerospace sectors is picking up. Investments in R&D infrastructure are increasing on account of the rise in collaboration among industry players. A majority of vendors catering to automotive and industrial machinery are expanding their operations aggressively in the aftermarket domain, intending to enhance the aftermarket value chain and provide high-quality services to customers, thereby influencing the segment growth.
GLOBAL GASKETS AND SEALS MARKET BY GEOGRAPHY
The abundant availability of raw materials and technology is a key factor for the APAC gaskets and seals market growth. China remains the leader in the market owing to the robust production of steel and polymer resins. The country is a major manufacturing center for electronics, automotive, aerospace, and industrial machinery. However, the Demand has been steady over the years and slowed significantly after the outbreak of the COVID-19 pandemic. Aerospace and defense equipment manufacturing in Asia-Pacific has been booming in recent years, with key contributions from countries such as China, South Korea, and India. China set its target for a high-tech and “world-class” military force over the next two years, and its government channeled more spending into R&D activities on defense equipment
KEY PLAYERS ANALYSIS
The global gaskets and seals market is highly fragmented owing to the presence of a large number of vendors. Vendors in the market are adopting strategies to tackle the intense competition. Mergers and acquisitions are observed at frequent intervals to gain scale and scope opportunities. In addition, companies are focused on launching innovative products to strengthen their market position. Vendors are competing in terms of their brand, geographical presence, product portfolio, product features, and efficiency. The inorganic growth strategy is popular among major vendors. This strategy enables vendors to accelerate their aftermarket growth through product extension, which added immense value to their product portfolio.
This research report analyzes this market on the basis of its market segments, major geographies, and current market trends. Geographies analyzed under this research report include
- North America
- South Korea
- Latin America
- Middle East & Africa