Oil & Gas Seals Market Analysis Projected to Generate a Revenue of $ 8,110.50 Mn by 2031Download Sample Reports Overview
The Global Oil & Gas Seals Market Size was $6,299.80 million in 2021 and is predicted to grow with a CAGR of 2.6%, by generating a revenue of $8,110.50 million by 2031.
Impact Analysis of COVID-19 on the Oil & Gas Seals Market
The COVID-19 pandemic impacted the economy, as lockdowns and social distancing norms caused enormous disruptions in worldwide supply chain networks. The COVID-19 outbreak has affected numerous businesses, but the oil & gas industry has been the most severely affected. The spread of the coronavirus forced some enterprises to cut down production, and in several cases, industrial units had been closed. As a result of the production slowdown, demand for oil & gas processing sealing solutions has fallen accordingly. However, now the market has somehow returned to pre-pandemic levels.
Global Oil & Gas Seals Market Analysis
A seal is a relatively impermeable layer of rock that forms a barrier or cap above and around a reservoir rock. A seal, which is commonly made of shale, chalks, clays, anhydrite, or salt, prevents fluids from migrating beyond the reservoir. Oil & gas output is anticipated to increase, leading to an increase in demand for oil & gas seals. Oil companies from all around the world are pouring billions of dollars into offshore drilling, reversing a steady drop in spending on projects that have been running for decades, some of which are in bleak iceberg waters deep off the Atlantic coast of Canada. However, Rystad Energy, a consultant, asserts that once they are operational, offshore production sites may return profits at lower costs than traditional production methods. Construction costs for offshore production sites are greater than for onshore shale. Offshore oil recovery is a popular activity among industry players due to its benefits. For instance, DeepOcean, an ocean services provider, expanded its portfolio for the offshore renewable energy and oil & gas sectors in October 2022, by signing a two-year time charter for Multipurpose Support Vessel Stril Server (MPSV).
External factors such as high temperatures, high pressures, and exposure to corrosive fluids have been important sources of worry for oil & gas companies. Growing operations by governmental organizations and, more aggressively, international organizations toward a greener environment, pushing the use of lower-carbon technologies, are having an impact on the oil & gas business. These issues are projected to hinder the market growth during the forecast period.
The worldwide oil & gas industry has enormous potential to generate demand for industrial equipment, which is expected to drive the use of oil & gas seals simultaneously in the upcoming years. This is because numerous oil & gas projects are already planned for development, while others are still in the planning stages. With oil & gas prices beginning to rebound, exploration and production have begun to rise around the world. Asia-Pacific and North America have seen significant growth in offshore oil & gas exploration and production activity. The top oil producers on the global market are the U.S., Saudi Arabia, Russia, Canada, and China. All these are the major factors anticipated to create several growth opportunities for key players operating in the market during the forecast period.
Global Oil & Gas Seals Market, Segmentation
The oil & gas seals market is segmented on the basis of type, material, application, and region.
The type segment is further divided into single processing seals and double processing seals. Among these, the double processing seals segment is anticipated to witness the fastest growth during the forecast period. Dual processing seals are intended to provide the highest level of sealing safety. These seals almost reduce fluid or gas leakage in pumps or mixers. Dual seals are becoming increasingly significant in the hydrocarbon processing industry and others. Major companies typically rely on double seals due to their high reliability with ideal lubrication, temperature, and pressure control, which is expected to drive market revenue growth for this segment.
The material segment is further classified into metal, elastomers, and face materials. Among these, the metal segment accounted for a dominant market share in 2021 and is anticipated to witness the fastest growth during the forecast period. Metal-cased oil seals are used when placed in a housing bore made of the same material. This allows for the materials to contract and expand in a balanced manner during operation, preventing leakage. Rubber seals are often more expensive than metal-cased seals.
The application segment is further divided into upstream, midstream, and downstream. Among these, the downstream segment accounted for a dominant market share in 2021. The manufacturing of raw natural gas and crude oil into finished goods like gasoline, diesel, and LPG is seen as being downstream from the oil & gas industry. Oil & gas processing seals are extensively used in the downstream process to transport and store these materials in various containers. Reactors, extraction chambers, and distillation chambers also need a variety of seals to prevent leaks. In addition, the downstream process includes market distribution and refinement of final oil & gas products.
The oil & gas seals market in Asia-Pacific is anticipated to witness the fastest growth by 2031. As China is the world's largest energy producer and user, it is regarded as a prospective market for oil & gas seals. Some of the important factors driving the growth of the oil & gas sealing market are the exploration of drilling techniques to boost productivity and the population's demand for gasoline and diesel-powered vehicles.
Key Player in the Global Oil & Gas Seals Market
Some of the leading oil & gas seals market players are
- AMG Sealing Limited
- BRUSS Sealing Systems GmbH
- Cooper Standard
- Daetwyler Holding Inc.
- Dana Limited
- ElringKlinger AG
- Flowserve Corporation
- Freudenberg Sealing Technologies
- GARLOCK FAMILY OF COMPANIES
- KLINGER Holding GmbH
For instance, in October 2022, KCA Deutag announced the completion of the largest phase of Saipem SpA's onshore drilling business purchase. KCA Deutag had sales of $1.3 billion and EBITDA of $254 million as of June 30, 2022.