Market Segmentation & Business Verticals
Industrial seal and gasket can be classified depending on their application, type of material, distribution channel and region. Global market for seals and gasket is valued at $59.73 billion in 2016 which is expected to grow at a CAGR of 5% to 6% until 2023.
The key factors driving the growth of this market is growth from developing countries in the Asian region.
Some key market growth enabler are
- growing demand in energy sector
- stricter legal requirements for automotive sector and industry products
- energy-saving efforts which makes seals more complex
- growing pressures in cooling systems due to changing cooling liquids
Other influencers like laser and technological upgradation, use of 3D printing technology for developing complex parts drives the market with consistent growth. Automotive industry contributes approximately 48% of the total market share. Whereas machine tools industry contributes up to 13% with the market size of US $ 6 billion approx.
Figure 1: Global Seal and Gasket market segments 2016
In terms of application the global gasket and seal market can be categorized in Automotive, Electrical and Electronics, Machine tool and Manufacturing industry, Oil & Gas, Chemical and Petrochemical, Aerospace industry etc. (see figure 2). Automotive industry is projected to contribute approximately 48% of the total market. The seals provide cushioning between the joined surfaces, thereby mitigating vibrations and noise in automobiles. In addition, rising impact of stringent norms regarding vehicle noise limits is leading the demand for the product across the global market. On the other hand, Machine tools industry will contribute up to 13% of the market size. Automotive sector will be the driving force for growth of gaskets where as significant demand increase for lightweight sealing solutions is expected to drive the market for non-metallic seals. Seals and gaskets find a wide range of applications, such as LCD displays, switches, timers, transformers, and telecommunications devices in electrical and electronics industry.
Figure 2: Sealmarket segments 2016
Continued rise in demand for consumer durable goods coupled with launch of advanced technological products is expected to drive the global market for gasket and seals. In addition, rising use of advanced products with superior sealing abilities across the healthcare and industrial manufacturing is also expected to boost the product demand. In addition, emergence of 3D printing techniques for manufacturing has led to low turnaround time and multi-material option to produce gaskets and seals. Abundance of raw materials is expected to benefit the industry growth over the forecast period.
Figure 3: Global Gasket and Seal market overview
Europe is expected to register a CAGR of 4.5% to 5% from 2018 to 2025 on account of the growing use of the products in aerospace, marine and rail industry. In addition, the market is also expected to rise on account of the presence of a notable chemical manufacturing industry wherein the products are used in equipment production and maintenance. Asia Pacific leads the global market, expected to increasing electronics and automobile production in China, Japan, India, and South Korea. Moreover, factor such as robust economic growth, increase in business spending, and strong economic gains in manufacturing output in developing countries is also expected to positively impact the regional growth. Favorable regulatory policies implemented by the government to promote the manufacturing output of automobile industry is expected to drive the demand for gaskets and seals in India. In addition, factors such as demand for passenger cars on account of rising disposable income and rapid industrialization, is also anticipated to drive the automotive industry. Europe’s aerospace and defense industry are anticipated to surpass that of the U.S. over the forecast period due to increase in defense spending. This growth of aerospace and defense industry is projected to drive the demand for gaskets and seals due to applications in engine, avionic, and other aircraft parts.
Figure 4: European gasket and seal market
Pest Analysis - macro-environmental factors
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