Apropos, a latest report published by research membership organisation ESOMAR-certified market research and consulting firm Future Market Insights, the global demand for gaskets and seals is projected to surge at a steady rate during the forecast period 2016 to 2026.
The report estimates that in 2016, more than $60-billion worth of gasket and seals were sold across the globe.
Key projections compiled in the report predict that global gaskets & seals revenues will surpass $100-billion by the end of 2026, registering a value compound annual growth rate (CAGR) of 5.4%.
The report, titled “Gaskets and Seals Market: Global Industry Analysis and Opportunity Assessment, 2016-2026,” further projects that in 2017 and beyond, the demand for non-metallic gaskets and seals will be considerably higher than metallic materials. By the end of 2026, more than 60% of global revenues will be accounted for by sales of non-metallic gaskets and seals.
Non-metallic materials will remain in great demand owing to its competitive advantage over metallic materials on the grounds of environmental imprint and cost-effective procurement.
The report has also compiled key factors impacting the growth of the global gaskets and seals market during the forecast period. Firstly, there is a rising instance of leakage in industrial units that causes considerable loss in terms of property damage and health risks which can be averted by use of gaskets and seals.
Secondly, the global demand for gaskets and seals is also expected to rise on account of its compliance with several strict regulations, that prompt minimisation of leakage and fugitive emissions. Thirdly, the advent of three-dimensional, or 3D, printing is likely to lower costs of manufacturing gaskets and seals, and will also facilitate the urgency to deliver customised products.
However, there are key challenges inhibiting the market’s growth during the forecast period such as complex manufacturing processes, altering designs and limited material applicability for production of gaskets and seals.
Nevertheless, the report expects that customisations made to existing gasket and seal products will hold lucrative opportunities for manufacturers in the years to come.
The report observes manufacturing companies such as Freudenberg Group, KG, Henniges Automotive, manufacturer SKF, Federal-Mogul Corporation, Smiths Group subsidiary John Crane, ElringKlinger, Trelleborg, Dana Incorporated, Banco Products (India) and Parker Hannifin as key manufacturers in the global market for gaskets and seals.
A comparative forecast on the global sales of gaskets and seals during the forecast period projects that global demand for seals will remain somewhat higher than that of gaskets. By the end of 2026, solid and spiral wound gaskets will be observed as top-selling products in the market, procuring more than $25-billion in global revenues.
On the other hand, a majority of global sales of seals will be dominated by dynamic seals. Static seals are projected to procure just over 42% share of global seals revenues by the end of 2026.
The report further reveals that the automotive industry will be one of the largest end-user of gaskets and seals in the world. However, the imprint of automotive end-use on the global gaskets and seals market will witness a downtrend, while revenues accounted for by machinery and electronics and electrical industries during the forecast period will register 5.5% and 5.6% CAGRs respectively.
Key findings in the report also predict that by the end of 2026, more than three-fourths of gaskets and seals revenues will be accounted for by original-equipment manufacturer sales channels.
The report also expects the Asia-Pacific excluding Japan region to dominate global gaskets and seals revenues by registering a CAGR of 6.8% and bringing in over $43-billion in revenue by the end of 2026.
Other regions are expected to showcase a sluggish growth in terms of gaskets and seals sales, exhibiting CAGRs below 5%.