The global industrial seals market was valued at USD 11.78 billion in 2021. The market is projected to grow from USD 12.11 billion in 2022 to USD 17.86 billion by 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with industrial seals experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -6.6% in 2020 as compared to 2019.
The primary function of an industrial seal is to optimize the performance of a machine with its process reliability. Seals are also used in applications that involve rotary and reciprocating motions. Over the past few decades, industrial seals have played an important role in providing optimum efficiency and productivity. It can retain lubrication and block contamination in bearing systems. The manufacturers develop seals in various sizes, depending on the shaft diameter of machines. Also, such industrial seals are made up of several different materials such as industrial rubber, fluorosilicone (FVMQ), polytetrafluoroethylene (PTFE), polyurethane (AU, EU), and others.
The global market has shown significant growth in the past decades and is expected to grow moderately in the coming future. However, the immediate shutdown of manufacturing plants in several countries and growing industrialization in developing countries are expected to aggravate the market growth during the forecast period.
Seals manufacturing companies produce these seals for static, dynamic, and special (customized) applications. In static applications, the manufacturer produces seals for stationary surfaces while in dynamic applications, the manufacturer produces seals for reciprocating and rotating components. In special applications, manufacturers produce these seals customized shafts, which are used in different machines.
Immediate Shutdown of Industries and Lack of Labor to Impact Market During COVID-19
In the first quarter of 2020, industries in several countries stopped their manufacturing processes owing to the impact of the COVID-19 pandemic. The manufacturing sector worldwide has witnessed a slow growth rate in the second quarter of 2020. Important factors that have affected the sector are lack of raw material due to dwindled import and export activities, unavailability of workers, low demand from end-users, and many more.
The unprecedented impact of COVID-19 has slowed down economies around the world. This factor is due to the disruption caused in some industries that majorly contribute to the country’s GDP. In 2020, the overall impact on the manufacturing sector severely affected the global market growth. However, the impact would be short-term as the manufacturing companies have started working with full supply to serve the demand of the end-users.
Additional challenges, such as lack of cash-flow liquidity, logistics, government norms during the pandemic, and many more, have affected the market during the pandemic. Furthermore, industrial seal manufacturers are facing challenges in exporting their end products to the end-users, owing to the temporary obligations in the import-export of goods and products by the governments of many countries.
Nevertheless, these challenges have not been converted into restraints for the manufacturing sector. However, the growth of the market would be flattened till 2022, and later the growth in the manufacturing sector would go toward positive inclination, which will depend on the continuous supply and demand for the end product in different industries.
Rising Adoption of Customized Elastomeric Seals to Fuel Market Progress
The sealing technology has been adopted by several industries over the past few years, owing to its leakage prevention applications under extreme pressure, temperature, and shaft speed. A trend of adopting customized seals in various industries is propelling the market growth. The major application of customized elastomeric seals in the oil and gas industry is attributed to its high use in exploration activities.
Furthermore, the manufacturing companies are working continuously in creating a sustainable and scaled offering for their customers. Several small and mid-sized manufacturing companies have successfully adopted the process of customization for their clients. This process allows the manufacturing companies to provide reliable, fitted, flexible, and durable elastomeric seals in the market. Additionally, the properties of an elastomeric seal differ from the traditional seals, as it provides enhanced services to consumers.
High Demand for Thermal, Durable, and Resistant Seals to Enable Swift Development
The large capacity manufacturing unit requires equipment that can work for long hours in continuous production processes. For better machine optimization, consumers are installing thermal resistant seals, which allow machines to work properly and for long hours. Furthermore, temperature plays an important role in the operation of seals in every industrial machine. Therefore, the demand for thermal resistant seals is increasing with the development of the manufacturing sector across the globe. Also, the demand for large-capacity manufacturing units has increased in various industries from the past few years.
Also, industrial seal manufacturing companies are now more focused on developing thermal resistant industrial seals. Thermal-resistant seals are manufactured by using elastomeric materials. Also, the consumers are looking forward to adopting such seals that can work in high temperatures and provide better performance than traditional seals.
Increasing Adoption of Seal-Less Driving Shafts to Hamper Market Growth
Over the past few decades, consumers have adopted industrial seals due to their high durability and reliability. However, consumers are shifting toward seal-less driving shafts, owing to the high maintenance and complicated installation processes of seals.
Furthermore, seals require extra motors and shafts to transfer power. Whereas the seal-less magnetic drive pump is surrounded by a set of magnet, which helps transfer the magnetic field to the shaft. Thus, this system provides a completely sealed enclosure to any fluid.
Also, increasing demand for seal-less driving shafts due to multiple advantages is another factor that restricts the growth of the market.
By Type Analysis
Due to Increasing Adoption of Contacting Seals in Diverse Industries Radial Seals Segment to Generate Highest Revenue over Forecast Period
Continuous adoption of contacting seals in several industries is anticipating the growth of the radial seals segment during the forecast period. The radial shaft segment is estimated to witness significant growth opportunities followed by the mechanical seals’ segment, owing to the increasing usage of small diameter radial shaft (SDS) and large diameter shaft (LDS) in end-use applications.
The axial and mechanical segments are expected to grow moderately, owing to rapid increase in the industry sector’s growth in several regions.
In the mechanical segment, compared to other sub-segments, the cartridge sub-segment is projected to reach at a higher CAGR over the forecast period, owing to the trend of adoption of cartridge seals in multiple applications.
By type, the global market is segmented into axial seals, radial seals, and mechanical seals. The mechanical segment is further segmented into pusher and non-pusher, conventional seals, balanced and unbalanced seals, and cartridge seals.
Heavy Demand for Fuel Across the Globe is Expected to Provide Major Share to Oil and Gas Segment During Forecast Period
Usage of energy is playing an important role in influencing the market growth. According to the International Energy Agency, renewables are expected to witness the fastest growth in the electricity sector by providing almost 30% of power demand in 2023. Although, 70% of electricity will be generated from conventional fuel sources, which is anticipated to augment the demand for fossil fuel and gas. Therefore, the oil and gas segment is projected to reach faster growth, followed by food & beverages, aerospace, and other segments.
The usage of seals in the mining industry is expected to decrease in future, owing to the continuous decrease in the growth of the mining industry. Therefore, the mining industry segment is anticipated to grow slowly over the forecast period.
By end-use industry, the market is classified into mining, food & beverage, oil & gas, energy and power, aerospace, marine, construction, and others (chemical and others). The food & beverage segment is estimated to hold the highest industrial seals market share in the near future.
The Asia Pacific industrial seals market size stood at USD 4.43 billion in 2021 and is expected to rise as a dominating region in the global seals market during the forecast period. The increase in the number of registered and unregistered manufacturing companies in the region is primarily driving the market in the region. Moreover, companies are offering better quality seals at low prices to their customers, which is also a major reason for customers worldwide to purchase seals from India and China.
India to Witness Noteworthy CAGR with Promising Application in Energy and Power Sector
India is estimated to exhibit a swift market growth over the slated period of time. The fast-paced progress of end-use industries in the country and the increasing development of application-specific seals are the critical factors making the country one of the most promising markets across the regions. The market players have initiated their efforts for the establishment of a strong and effective supply chain across the market of India and are also working to deploy a strong network of distributors and retailers across multiple states to have better direct customer reach and understand the exact requirements of clients across the region.
Some of the prominent manufacturers have adopted a go-to-market strategy in the market of India and are participating in various trade shows and tech expo to promote their products and gain valuable insights regarding customer viewpoints and demands. Companies are also involved in finalizing acquisitions and mergers to cement their position in the market.
According to our market research report North America is projected to reach at a higher rate, owing to the presence of key players in the U.S. Furthermore, increasing number of small & mid-sized seal manufacturing companies and government initiatives of establishing manufacturing plants of different products are factors influencing the market growth.
Moreover, in Europe, the market in Italy is expected to grow significantly over the forecast period, owing to increasing manufacturing plants in the country. Overall, Europe is anticipated to grow gradually in the coming future.
The markets in the Middle East & Africa and Latin America would have moderate growth due to lack of raw material, dearth of technological advancements, and moderate growth of industrialization in both regions.
KEY INDUSTRY PLAYERS
SKF and John Crane (Smiths Group Plc.) Focus on Increasing their Regional Presence
Among several companies, SKF holds the largest market share in the global market. This factor is owed to the company offering many varieties to its clients. Also, the company operates in almost every region and has many customer engagements for the market. Furthermore, Flowserve Corporation, Eagleburgman, Tenneco Inc. (Federal-Mogul LLC), John Crane (Smiths Group Plc.), and others have established their manufacturing plants in developing countries, where the production cost is less as compared with others.
Furthermore, most companies are focused on partnering with small and mid-sized companies to strengthen their regional presence. Also, by adopting such strategies, companies can offer an enhanced product portfolio to their clients with minimum timelines.
List of Key Companies Profiled:
- SKF (AB SKF) (Sweden)
- Flowserve Corporation (U.S.)
- John Crane (Smiths Group plc) (U.S.)
- Trelleborg AB (Sweden)
- EnPro Industries, Inc. (Garlock GmbH) (U.S.)
- Dover Corporation (Waukesha Bearings) (U.S.)
- SHV (ERIKS Group) (Netherlands)
- Freudenberg SE (Germany)
- Tenneco Inc. (Federal-Mogul LLC) (U.S.)
- Fenner Group Holdings Limited (Hallite Seals) (U.K.)
KEY INDUSTRY DEVELOPMENTS:
- September 2021: Hallite Seals International Ltd. recently inaugurated its newly developed product and material test house. State of the art and technologically advanced facility will cater to the organization’s novel product research and development capabilities.
- August 2021: Trelleborg Sealing Solutions announced the inauguration and initiation of operations in its manufacturing facility situated in Ontario, California. The manufacturing facility will serve as a west coast warehouse in the U.S. and cater to industrial and aerospace customers.
The industrial seals industry report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use industries of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the growth in recent years.
REPORT SCOPE AND SEGMENTATION
|Unit||Value (USD Billion)|
|By End-Use Industry|