The increased production of shale gas in developing and developed countries is expected to drive the oil & gas processing seal market.
The global oil and gas processing seals market size is projected to reach nearly USD 5.7 billion in 2020. Several seal manufacturers are putting a lot of emphasis on design and efficiency improvements. During the forecast period, increasing investments and the recent discovery of oil fields in emerging countries such as India, Australia, and Brazil are expected to boost sealing solutions. Oil and gas seal manufacturers are adopting innovative manufacturing practices and technologies as global awareness of sustainability grows.
Production is expected to be boosted by the adoption of smart precision manufacturing and the availability of raw materials for seal manufacturing. The COVID-19 outbreak has impacted a variety of industries, but the oil and gas industry has been the hardest hit. As a result of the coronavirus's spread, several companies have had to reduce their production, and in some cases, production sites have been shut down. As a result of the slowdown in production, demand for oil and gas processing sealing solutions has decreased proportionally.
Elastomer seals dominate the global oil and gas processing seals market in terms of material type, and this trend is expected to continue. Because of the growing demand from oil and gas and other related industries, APAC has the largest share of the elastomeric market. Elastomeric demand is expected to increase moderately during the forecast period, owing to the material's cost-effectiveness, high elasticity, and chemical resistance. The elastomeric segment's growth opportunity is likely to be hampered by its lower tolerance to high pressure and temperature than thermoplastics.
By thermoplastics type, oil and gas processing seals have the second-largest market share in the industry. The demand for thermoplastics is expected to grow even faster during the forecast period. Because of China's large market potential for polyethylene, the Asia Pacific region is expected to see increased demand. The thermoplastics market in Europe and North America has reached maturity, and increased investments and recent developments are expected to propel market growth even faster.
The study also assesses the demand using value chain analysis to highlight the different characteristics of the global pulse ingredients industry. Furthermore, the pulse ingredients market report covers various qualitative aspects of the industry, such as market restraints, key industry drivers, and opportunities. In addition, the report offers a comprehensive analysis of the competition by company profiles and the competitiveness of local and global vendors.
Middle East and Africa region generated the highest demand for O-ring due to a well-established oil and gas industry. However, APAC is expected to witness the highest growth among all other regions, growing at a promising CAGR for O-rings, u-cup, and back-up rings. In APAC, China and India are expected to witness the highest growth in demand and revenue. This is mainly attributed to increasing investments in the industry and recent discoveries of several oil and gas fields. It is expected that the demand for back-up rings will gain momentum during the forecast period. The major reason for the growth can be attributed to the high demand for O-ring seals. It has been estimated that revenue generated from back-up rings will further increase during the forecast period. Therefore, increasing the industry's investments leads to high demand for oil and gas processing seals to prevent leakage and natural hazards, thereby boosting the demand globally.
Key Segments of the Global Oil & Gas Processing Seals Market
Type Overview, 2018-2028 (USD billion)
Material Overview, 2018-2028 (USD billion)
- Face Material
Application Overview, 2018-2028 (USD billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America