U.S. gasket and seal demand to expand to 3.8% rate.
The U.S. market for gaskets and seals is expected to expand 3.8% annually through 2018 to $10.6 billion, according to a new study by the Freedonia Group. The report says gasket and seal manufacturers will benefit from solid increases in motor vehicle output, machinery production and capital spending. Rising demand for more expensive sealing products made from advanced materials will also boost market value. Flowever, greater utilization of better performing, longer lasting gaskets and seals will have a mixed effect on demand as initial value gains will be somewhat offset by decreased aftermarket sales opportunities, the report added.
Demand for seals is expected to grow at a 4.5% rate through 2018 to reach $6.5 billion. Gasket demand is expected to grow at a 2.8% clip and total $4 billion in sales in 2018.
Compression packings and molded seals and packings will register some of the most rapid sales advances among sealing products, while demand for expanded graphite gaskets will grow the fastest among gasket products. Sales of compression packings and molded seals and packings will be primarily fueled by a favorable outlook for machinery output. Rising motor vehicle output and machinery production will spur demand for expanded graphite gaskets, which will continue to replace more traditional gasketing materials in a number of motor vehicle and machinery applications due to their superior chemical and temperature resistance.
Electrical and electronic products are forecast to post the most rapid gains of any major gasket and seal market through 2018. Higher output of measuring and controlling instruments, as well as an upturn in computer and electronic equipment production after an extended period of decline, will bolster product demand. However, due to their much larger size, the motor vehicle and machinery markets will provide greater sales opportunities for gasket and seal suppliers. Increases in motor vehicle production, as well as in the number of motor vehicles in use, will stimulate associated gasket and seal demand. Greater use of better performing, higher-priced gaskets and seals will further boost sales in value terms. Manufacturers of gaskets and seals used in the machinery industry will benefit from continued growth in capital spending and a strong aftermarket created by harsh operating environments.
U.S. gasket and seal demand (million dollars) Annual growth 2008 2013 2018 2008- 2013- 2013 2018 Gaskets 2,915 3,480 4,000 3.6 2.8 Seals 4,375 5,260 6,550 3.8 4.5 Total 7,290 8,740 10,550 3.7 3.8
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|Title Annotation:||Market Focus|
|Date:||Nov 1, 2014|
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