Gaskets and Seals Market: Current Analysis and Forecast (2022-2030)

Gaskets and Seals are a type of component that is utilized for sealing the connection between two parts, such as shafts and pumps, or rotating engine parts. The static seals are utilized for preventing leakage when there is a requirement for a union or flange. On the other hand, a gasket is utilized for sealing the connection between two flanges or components that have a flat surface. Gaskets and Seals are used in virtually all industries, including Food Processing, Petrochemical, Pharmaceutical, Water, and Gas. Both Gaskets and seals offer high flexibility, and strength, and are able to handle extreme pressure and temperature variations.

The Gaskets and Seals Market is expected to grow at a steady rate of around 5% owing to the burgeoning adoption of electric vehicles over the world. The emergence of new technology and the continuous effort made by various governments such as the U.S., China, and India to adopt electric vehicles aims to reduce pollution, and carbon emissions programs by 2050. Automotive manufacturers are working to support government initiatives and bind to follow government policies and thus, gaskets and seals play crucial roles in electric vehicles such as for the application of battery packs to provide sealing and insulation. Electric vehicles have more components than traditional vehicles that require sealings such as battery packs, electric motors, and power electronics. The electric motor of an EV is one of the important components which consists of a stator and a rotor, which are separated by a small air gap to enclose these seals and are used to prevent leakage. Electric vehicle components require more sealing due to a large number of small components. For instance, In 2021, according to the international energy agency(IEA), Consumers spent USD 120 billion on electric car purchases in 2020, a 50% increase from 2019, which breaks down to a 41% increase in sales and a 6% rise in average prices. Moreover, in February 2023, according to a report published by the U.S Bureau of Labor Statistics, the consumer demand for EVs has risen significantly from 22000 EVs on the road in 2011 to a little over 2 million in a decade till 2021.

Therefore, the growing adoption of electric vehicles over the world that supports the battery packs, electric motors, and power electronics like critical components of an EV drives the gaskets and seals market.

Based on the product, the market is bifurcated into gaskets and seals. The seal segment led the market and is expected to lead in the forecast period. The major factors contributing to the growth of the segments owing to utilize in various applications such as chemicals, industrial plants, automobiles, and consumer durable products to prevent leakage. The rise in the electric vehicles and food processing business drives the seal market in the forecast period. Moreover, the growing industrial sector also plays an important role in the development of the seal market as it is used in large machines which require the installation of mechanical seals. Moreover, with the downfall of air tickets, more and more passengers are able to fly, therefore the growth in the aerospace and defense sectors has a huge demand for gaskets and seals.

On the basis of end-user, the market is categorized into aerospace, electrical & electronics, automotive, oil & gas, industrial manufacturing, chemicals & petrochemicals, and others (Food & Beverages, Construction, others). Among these, the automotive segment held a significant share of the market in 2021. This is mainly due to the increasing demand for vehicles from all over the world due to the rising disposable income, and need for daily commuting purposes. According to OICA, automobile production in China and India witnessed a growth of 53% in the first nine months of 2021 when compared to the same period in 2020. One of the major demands of vehicles comes from the ride-sharing industry thus propelling the automotive segment in the gaskets and seal market. For instance, For instance, in February 2023, Uber Technologies Inc, a ride-sharing company having a presence worldwide signed a Memorandum of Understanding (MoU) with Tata Motors to bring 25,000 electric vehicles (EVs) onto the Uber platform in India.

On the basis of sales channel, the market is categorized into OEM and aftermarket. Among them, the OEM become the focal point of the gaskets and seals market and led the market in 2021, and expected to register the highest growth rate in the forecast period. This is mainly due to the continuous demand coming from vehicles and machinery from various industries because the OEMs are responsible for designing and developing new kinds of gaskets and seals that are being used in vehicles and types of machinery. Moreover, the OEMs are well known for their innovation and quality, as they heavily invest in research & development and the material used by them is top-class. Additionally, most of the OEMs are working on economies of scale that allow them to produce at a lower cost and they have a wide range of distribution channels where their products have ben offered at low-cost.

For a better understanding of the market adoption of the gaskets and seals industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Russia, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific region is projected to be the dominating region in the forecast period as the region has the highest number of automotive manufacturers and production units that caters to the demand for gaskets and seals. The major factors attributed to the growth of the market are the increasing urbanization population in the region as India and China cover almost 36% of the total world population. With the paradigm shift of population growth in the cities in the region looking for better work opportunities and living standards, the demand for personal mobility has increased in the past few years, contributing to the growth of gaskets and seals. For instance, According to OICA, automobile production in China and India witnessed a growth of 53% in the first nine months of 2021 when compared to the same period in 2020. Moreover, the growing industrialization in the region has witnessed substantial growth in the last couple of years, fueling the demand for gaskets and seals.

Some of the major players operating in the market include: Flowserve Corporation; SKF; Freudenberg Sealing Technologies; Datwyler Holding Inc.; Trelleborg AB; Tenneco Inc.; Dana Ltd.; Smiths Group PLC, Garlock Sealing Technologies LLC; Parker Hannifin Corporation.