Market Trends of Gaskets and Seals Industry
The Oil and Gas Application is Expected to Dominate the Market
- The oil and gas industry operates in a challenging environment with maximum operational efficiency, which requires it to maximize the equipment uptime. In the industry, preventing leakage of potentially hazardous petrochemical products in valves, pumps, piping, fittings, storage tanks, and other vital components is paramount.
- The rising activity in oil and gas exploration and the expanding chemical processing sector is expected to increase demand for gaskets in pipeline and heat exchanger systems.
- Gaskets and seal tors are required in various equipment to maintain their timely function as these products help prevent leakage of any form of liquid and gas processing. All gaskets in the oil and gas industry adhere to ANSI/ASME standards.
- The global oil and gas industry holds enormous potential to create demand for industrial equipment, which is projected to drive the consumption of gaskets and seals simultaneously in the future. Numerous oil and gas projects are already lined up for development, while some are still under the planning stage.
- According to IBEF (India Brand Equity Foundation), Oil demand in India is projected to register a 2x growth to reach 11 million barrels per day by 2045. In February 2023, India’s oil demand rose to a 24-year high, which resulted due to a boost in industrial activity.
- In May 2022, ONGC announced plans to invest USD 4 billion from FY22-25 to increase its exploration efforts in India. This exploration demands the use of gaskets and seals in their projects and increases market growth as well.
- With recovery prices becoming visible in the oil and gas industry, exploration and production have increased worldwide. The significant increase in oil and gas offshore exploration and production activities is noticed in Asia-Pacific and North America. Countries such as the United States, Saudi Arabia, Russia, Canada, and China are the leading oil producers in the global market.
- This is expected to make the oil and gas application the dominant one in the market.
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The Asia-Pacific Region is Expected to Dominate the Market
- In Asia-Pacific, the factors that add to the market's growth are accelerated industrialization and augmented demand from numerous end-user industries.
- A significant amount of the gasket and seal market is also subjected to growth in the automotive sector, and according to OICA, automobile production in China and India was to increase by 3% and 24% in 2022 compared to the same period in 2021.
- China is a hub for chemical processing, accounting for a significant chunk of the chemicals produced globally. With the growing demand for various chemicals globally, the demand for gaskets and seals from this sector is projected to grow during the forecast period.
- China has plans to expand its network of inter-country pipelines, with new pipeline connections to Central Asia and Russia. China National Petroleum Corporation (CNPC) plans to complete significant sections of the massive Russian oil and gas pipelines in the northeastern province of Heilongjiang.
- India has now been ranked sixth among the world's ten largest manufacturing countries. The petrochemical industry contributes about 30% of raw materials to the chemical industry, which is expected to reach USD 300 billion by 2025.
- Furthermore, factors such as the growing industrial, electrical, and electronics sectors in the developing economies, including China, India, and ASEAN countries, are further expected to boost the demand for gaskets and seals in the region.
- All these factors are projected to impact the market growth in the region during the forecast period.
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