The global gaskets and seals market was valued at USD 68.87 billion in 2022 and is expected to reach USD 95.10 billion by 2028, growing at a CAGR of 5.53%. The market's growth is ascribed to the increasing demand and wide application of gasket and seal components across various end-user sectors, especially in the manufacturing industry. The gaskets and seals market also found its usage to be extensively used in producing automotive components such as engine aircraft, industrial machinery, and energy equipment to maintain pressure, prevent fluid leakage, and block the ingress of contaminants. Moreover, the market has been driven by the surging demand for optimization of friction, seeding function, and absorption resistance. These products have a wide range of applications in manufacturing plants to improve sustainability and production efficiency.
Several new materials are being used to produce various gaskets and seals for numerous end-use applications. There is an increased demand for integrated gaskets and seals that can offer superior mechanical physicochemical and desirable electrical properties. Several manufacturers in the global gaskets and seals market are also focusing on the high demand for dynamic and static seals by launching a wide range of cutting-edge products and setting up new manufacturing facilities across the globe. Hence, the abovementioned factors significantly impact the demand for gaskets and seals during the forecast. Furthermore, the emergence of new technologies and continuous efforts by governments such as the U.S., China, and India to promote their adoption of electric vehicles are positively supporting the gaskets and seals market growth. Gaskets and seals are essential in electric vehicles, particularly in applications like ceiling and insulating battery packs. Electric vehicles have a more extensive range of components than the traditional vehicle, which requires an effective ceiling in battery pack electric motors and power electronics.
An increasing adoption of advanced materials such as PTFE gaskets and seals also contributes to the market. There is a rising demand for integrated gaskets and seals, which provide superior mechanisms and physiochemical and desirable electric properties and are anticipated to gain traction during the forecast period. In addition to this, the increasing use of rotating and pumping equipment within the manufacturing industry is gradually driving the gaskets and seals market growth. However, the increased wastage of raw materials during the production of gaskets and seals presents a challenge to the growth of the global gaskets and seals market during the forecast.
MARKET TRENDS & DRIVERS
Innovative Designs in the Manufacturing Sector
Most global gasket and seal manufacturers are increasing their yearly spending on R&D infrastructure to cater to a wide range of end-use applications with high product variability. Unlike traditional methods of making designs and prototypes through molds, manufacturers have installed Computer-Aided Design (CAD). This software is used to create visual prototypes using three-dimensional designs and manufacture products, significantly reducing the cost of design innovations and product updating. Moreover, CAD designs use highly sophisticated computer technology that creates designs and documentation.
Customization Based on End-Use Applications
Manufacturers in the global gaskets and seals market cater to various end-use applications, implying that specifications often change based on the industry and manufactured goods. In dealing with diverse end-use product offerings and their expected standards, vendors must have agile manufacturing lines that can quickly adjust to short-term demand fluctuations from end customers. Moreover, the demand for customization is expected to increase as the end-use sector strives to achieve differentiation in their products. The need for differentiation is higher in the automotive industry since it is highly competitive and requires continued innovation. Further, customization allows for the precise design of gaskets and seals to match the geometry and dimensions of the mating components.
INSIGHTS BY PRODUCT TYPE
The global gaskets and seals market by product type is segmented into seals (shaft seals, molded seals, motor vehicle seals, and other seals) and gaskets (jacketed gaskets, solid gaskets, spiral wound gaskets, kammprofile gaskets, and others). The seal product type segment is dominating the market in 2022 and is expected to maintain its position during the forecast. Seal market growth is primarily attributed to several factors involving its widespread application in chemical, industrial plants, automotive, and consumer durable products to prevent leakage. The growing industrial sector is also crucial in advancing the seal market as it involves using mechanical seals in large machinery and equipment installations. Furthermore, the application of gaskets is extensive across industries, and demand and utilization in the aerospace and automotive sectors remained crucial and increased significantly in 2022. This results from the production and export volumes of aircraft spares and automotive parts in emerging and developed countries in Latin America, APAC, and the Middle East.
INSIGHTS BY MATERIAL
The metallic material segment dominates the global gaskets and seals market, owing to its robot heat-resistant technology and efficient performance in high pressure. In the automotive industry, metal gaskets and seals are in high demand due to their crucial role in ensuring vehicles' reliable and efficient operation. However, the non-metallic segment is growing at a high CAGR rate owing to the increasing application of a large number of industries that 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.
INSIGHTS BY END-USE
The OEMs end-use segment held the most prominent share of the global gaskets and seals market in 2022. One of the major roles of gaskets and seals in OEM applications is to provide a reliable and leak-free seal between two or more mating surfaces. This is crucial in industries such as automotive manufacturing, where engines, transmissions, and other fluid-carrying components must remain sealed to prevent the escape of oil, coolant, or other fluids. However, the requirement for gaskets and seals for the aftermarket is also catching up, exhibiting a higher CAGR during the forecast period.
INSIGHTS BY APPLICATION
The global gaskets and seals market by application is segmented into industrial machinery, automotive, electricals and electronics, aerospace industry, marine and rail, and others. The industrial manufacturing segment dominated the global market in 2022 owing to the rising development of plants in emerging countries such as India and China, among others. Adoption of new technologies and product variation in design and efficiency are significant across all industries. OEMs and aftermarket vendors in the machinery market are looking to provide innovative offerings that exceed conventional performance and efficiency. In recent years, emerging countries like India and China have become green hubs for the gaskets and seals industry. This is due to increasing government emphasis on industrial revolutions to propel productivity, export volumes, and demand for industrial machinery and heavy equipment. Furthermore, growing investments in oil refineries, extraction pipes, and machinery are expected to bolster the gaskets and seals industry in the Middle East.
APAC was the largest revenue contributor to the global gaskets and seals market, accounting for a share of over 42% in revenue in 2022. The region has many automotive manufacturers and production units, which gradually increase the use of gaskets and seals as they are crucial elements of the automotive industry. Further, the rising urbanization and population in emerging markets such as India and China, which cover almost 36% of the world population, will likely impact the market. Additionally, the shift towards better living standards and demand for personal mobility has grown in the past few years, contributing to the market's growth. For instance, as per OICA, the percentage change in India and China was 3% & 24% respectively in 2022. Moreover, with luxury carmakers such as Audi, BMW, and Mercedes in the region, customer preferences have changed to vehicles with luxurious and advanced features. The new trend of giving importance to eco-friendly cars will propel the automotive parts and components market, which is expected to raise the demand for gaskets and seals during the forecast period.
The global gaskets and seals market is highly fragmented due to the presence of many vendors. Vendors in the market are implementing strategies to undertake the severe competition. M&As are observed at numerous intervals to gain scale and scope opportunities. The market for gaskets and seals is highly fragmented due to many vendors across regions. To gain a competitive edge, vendors must focus on developing innovative technologies and staying updated with upcoming innovations in the industry. Many international players are expected to strengthen their global presence, particularly in the fast-growing APAC and Latin American markets, by offering industry-leading smart gaskets and seals and capturing more market share during the forecast period.
The major global gasket and seal market vendors are Dana, ElringKlinger, Freudenberg, AB SKF, Tenneco, Flowserve Corporation, and Smith’s Group PLC. Further, companies are concentrating on launching innovative products to improve their market position. Vendors are competing regarding 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 adds immense value to their product portfolio.