Oil and Gas Seals Market to grow at 3.3% CAGR through 2031
Pune, India – The global oil & gas seals market is likely to exhibit significant deceleration, pegged at -6.5% in 2021 over 2020. This downturn is majorly ascribed to the recessionary impact of the COVID-19 pandemic on the oil & gas industry across the world, according to ESOMAR-certified market research company Future Market Insights (FMI). Fortunately, recovery is on the cards beginning 2022, with a projected annual increase of approximately 3%.
The long-term outlook on oil and gas seals market remains positive, with revenues set to grow at 3.3% CAGR. Substantial increase oil & gas exploration activities and development of oil & gas distribution infrastructure across the globe are expected to remain key defining factors in the global oil & gas seals market.
Besides the burgeoning numbers of exploration projects, the industry is likely to witness immense technological disruptions. Blockchain technology has been touted as a highly effective approach towards enhancing data collection security while automation and robotic deployment across key oil fields is expected to enhance drilling projects, reducing error margins and yielding high throughput.
Key Takeaways of Oil & gas seals Market Study
Mechanical seals to remain preferred, reaching US$ 176.1 Mn and capturing nearly 17% revenue by 2021
Distribution applications to spearhead growth, with refining & distillation units experiencing maximum sales
PEEK plastics/polymers to remain highly preferred by material type, generating 55% revenue share by 2021-end
Midstream oil & gas exploration projects to generate lucrative opportunities, followed by upstream projects
US and GCC countries to remain lucrative throughout the forecast period
U.K. oil and gas seals market to witness a stable growth of over 3% through 2031
Oil and gas seals demand in Germany and France to be relatively muted, with growth of nearly 2%
“Manufacturers are focused on developing new seals using cost-efficient manufacturing techniques and advanced raw materials such as elastomers and plastic/polymers like polytetrafluoroethylene, polyetheretherketone and others with high pressure and temperature resistance standards,” says FMI analyst.
The oil & gas seals market witness significant consolidation, in which the leading players account for more than three fourth of the market value share. The diffusion of small regional players is expected to increase competitive intensity during the forecast period.
Some of the key players in the market are Parker Hannifin Corporation, EnPro Industries, Flowserve Corporation, Dätwyler Holding Inc., Freudenberg Group, Trelleborg AB, among others. These players have higher shares in the global market, and have longstanding relationships with a number of leading end users, giving them an upper hand among their peers.