Oil and Gas Gaskets Market

Oil and Gas Gaskets Market Outlook (2022-2032)

The global oil and gas gaskets market is set to surpass a valuation of US$ 1,227.3 million in 2022 and expand at a CAGR of 2.9% to reach US$ 1,640.2 million by the end of 2032.

Sales of oil and gas gaskets are set to rise due to the growth in environmentally friendly natural gas consumption. The market is expected to grow by 1.3X times by 2032.

The number of new projects in the oil and gas gasket market provides manufacturers with new opportunities. As more refineries are built worldwide, sealing solutions demand also rise as seals are crucial for managing fluid and gas leakage.

Around the world, the number of Brownfield and Greenfield pipeline projects is rising quickly. Oil and natural gas extraction is growing, and more oil and gas are being stored and transported as a result of rising prices and increased interregional trade.

Moreover, the oil and gas industry uses more gaskets as a result of rising consumption. Consequently, during the projected period, this fuels oil and gas gaskets market share growth.

Innovative seals, like Trelleborg's XploR S-Seal and XploR FS-Seal, are being developed by top oil and gas gasket manufacturers with an emphasis on high pressure, high temperature, and quick gas decompression applications.

Global crude oil output is anticipated to increase, with OPEC projected to average 27.2 million barrels per day in 2021, up from 25.6 million barrels per day in 2020, according to the US Energy Information Administration. OPEC and its allies declared on January 5th, 2021, that they continue to boost output by 500,000 barrels per day. The deal also stipulates that by February and March, Russia and Kazakhstan must enhance their production.

Report Attributes	Details
Market Size (2021A)	US$ 1,192.1 Million
Estimated Market Value (2022E)	US$ 1,227.3 Million
Forecasted Market Value (2032F)	US$ 1,640.2 Million
Global Market Growth Rate (2022-2032)	2.9% CAGR
North America Market Share (2022)	~ 24.5%
North America Market Value (US$ Mn), 2022	US$ 300.5 Million
East Asia Market Share (%), 2022	~27.2%
East Asia Market Value (US$ Mn), 2022	US$ 333.3 Million
China Market Share (%), 2022	~21.6%
China Market Value (US$ Mn)	US$ 262.2 Million
Top 3 country Market Share (%)	~50.2%
Key Companies Profiled	Flexitallic Group Klinger Limited LGC US Asset Holding,LLC DONIT TESNIT Garlock Sealing Technologies Freudenberg Oil & Gas Technologies James Walker Teadit Group Leader Gaskets Technologies. Phelps Industrial Products

Sales Analysis of Oil and Gas Gaskets (2017-2021) Vs. Market Forecast Outlook (2022-2032)

The extraction of natural gas and rapidly increasing oil prices led to increased inter-regional trade in natural gas. As a result, storage volumes and transport of oil are rising, as well as gasses.

Lower energy demand due to the pandemic acted as a threat to the oil & gas industry for the last 2 years, as prices fell drastically. As a result, in 2020, the market value of the oil and gas gasket industry was US$ 1,160.2 million.

Another problem faced by the industry is the adoption of renewable energy sources by different industries. The gas industry may peak over the next 10-20 years. Southeast Asia, India, China, and the Middle East are expected to account for about 61% of the share by the end of 2030.

Hence, these regions can be considered major consumers of oil and gas gaskets during the forecast period.

These developments will lead to increasing demand for gaskets in pipelines. These products serve as mechanical seals in pipelines and fill the space between mating surfaces to prevent leakage under compression.

The increasing demand for greenfield and brownfield pipeline projects has positively impacted oil and gas gaskets. The market had a valuation of US$ 1,192.1 million in 2021 and is expected to reach a market value of US$ 1,640.2 million by the forecast period.

Among the gasket types, the spiral wound gasket segment is expected to have a market value of US$ 766.4 million in 2022.

• Short Term (2022 Q2 to 2025): As the global economy is back on track, oil & gas consumption is increasing, and this will spur the sales of oil and gas gaskets.
• Medium Term (2025-2028): Using technology, such as sensors, to better understand the gaskets will improve the sales of the devices.
• Long Term (2028-2032): Adding more variety of materials and innovation to oil and gas gaskets, along with improvement in the design of the product, to make it more user-friendly and improve its long-term growth in the market.

Over the 2017-2021 historical period, the global oil and gas gaskets market registered a CAGR of 2.6%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 2.9% CAGR between 2022 and 2032.

Oil and gas gaskets market share based on applications and region is provided in a nutshell in the above image. Under the application segment, the Piping sub-segment will dominate with 69.8% market share in 2022.

What’s Driving Demand for Oil and Gas Gaskets?

“Rapid Expansion of Pipelines Bolsters Oil & Gas Gaskets Market”

The downstream pipeline is a network of high-pressure large steel pipes which carries petroleum products from refineries to states or countries. Pipeline construction activities have been increasing in regions like North America, with the heaviest concentration around shale gas in the US.

According to the International Energy Agency (EIA), the United States has 3 million miles of pipes. China has plans to double its pipeline infrastructure in the next seven years.

The expansion of pipeline infrastructure is due to growing energy demand and policies leading to a shift to cleaner energy sources. This will boost the demand for LNG and gas imports.

Russia is also expanding its pipeline infrastructure, as the country is currently exporting 200 Bcm. Gazprom has 35% of the gas market in Europe and expects to increase its share due to declining European oil & gas production and the competitive cost of piped gas.

Thus, gaskets are used in pipelines as mechanical seals, which fill the space between two or mating surfaces and prevent leakage from joined objects under compression. Increasing pipeline infrastructure due to changing

“Increase in downstream capacity across the Middle East”

According to the BP Statistical Review of World Energy, the 13 Middle East countries had 12,150 mbd of total refining capacity in 2021. Middle East countries are planning to increase their crude oil distillation and upgrade the capacity of their refineries.

Increasing gasoline production is of utmost importance for some countries while exporting gasoline needs new capacity units. Countries like Oman are planning to export 230,000 BPD from Duqum. Abu Dhabi National Oil Company (ADNOC) is planning to increase the refining capacity of two large refining units from 837,000 BPD to 1.4mn BPD.

Saudi Arabia and Kuwait have built up extensive overseas refining assets. Most of the existing and proposed refineries are in Asia, where the demand for refined products and petrochemicals is growing.

Companies like Saudi Aramco have access through outright ownership or a joint venture to 0.2 mn BPD of distillation capacity in Japan, South Korea, China, and the United States. They intend to acquire 0.6mn Bpd in planned refineries in Malaysia, Indonesia, and India. 75% of new capacity addition is more than 300,000 BPD, which national oil companies finance.

These refineries severely affect the competitiveness of various regions. Thus, with the increase in refinery capacity and new planned refinery, the demand for oil and gas gaskets is likely to increase, as gaskets are extensively utilized by petrochemical enterprises, such as refineries, for applications such as channeling frameworks, joint associations, etc.

What Should Oil and Gas Gaskets Manufacturers Look for? 

“Shift in demand-supply fundamentals”

The world's top oil producers are looking for new customers now that the United States is no longer their core market. The US has finished almost 20,000 new shale wells in the last four years. As a result, American oil production has increased.

However, supply and demand fundamentals may not be altering just in the United States. For instance, even if the Middle East can satisfy its present demands, there is increasing demand for gas and oil.

Numerous new and re-emerging significant suppliers can alter the dynamics of the oil and gas markets, which parallelly impact the gaskets markets. The power struggle between established and up-and-coming oil suppliers is fueled by these shifting market dynamics, which significantly impact the oil and gas gaskets market share.

Comparative View of Adjacent Oil and Gas Gaskets Market

Oil and Gas Gaskets Market:

Attributes	Oil and Gas Gaskets Market
CAGR (2023-2033)	2.9%
Market Value (2033)	US$ 1,640.2 million
Growth Factor	Demand is high as the oil and gas industry uses more gaskets as a result of rising consumption.
Opportunity	The market for oil and gas gaskets is seeing a lot of new projects, which is giving manufacturers new chances.
Key Trends	Rapid Expansion of Pipelines Bolsters is expanding the market share.

Oil and Gas Services Market:

Attributes	Oil and Gas Services Market
CAGR (2023-2033)	6%
Market Value (2033)	US$ 476.9 billion
Growth Factor	Demand is high due to rising energy prices and subsea oil and gas industry expenditure.
Opportunity	Manufacturers now have new opportunities as production and exploration increase.
Key Trends	The market is growing as a result of an increase in oil and gas discoveries and technological advancements.

Oil and Gas Accumulator Market:

Attributes	Oil and Gas Accumulator Market
CAGR (2023-2033)	5.3%
Market Value (2033)	US$ 903.1 million
Growth Factor	The output of crude oil and natural gas is rising to meet the rising demand for energy.
Opportunity	Oil and gas accumulators are increasingly being used for drilling and exploration by oil and gas firms.
Key Trends	As industrialization grows, the market will benefit from rising electricity demand.

Country-wise Insights

How has the Importing of Natural Gas in China Affected the Sales of Oil and Gas Gaskets?

China, over the years, has imported a large quantity of natural gas due to insufficient domestic production and has, in return, become the largest importer of natural gas in the world. China’s dependence on natural gas imports is increasing rapidly, with the growing import volume of natural gas for various applications.

The Central Asia–China gas pipeline (Turkmenistan–China gas pipeline) is a natural gas pipeline system that runs from Central Asia to Xinjiang, China. This pipeline can transport gas for 7000 km from Turkmenistan to Shanghai. More than 50% of natural gas produced in Turkmenistan is exported to China with the help of this pipeline.

Over the years, an increase in these pipeline networks increased the demand for oil and gas gaskets, as it is important in preventing leakages. East Asia is estimated to have a market share of 27.2% in the global Market in 2022.

China is expected to have a market value of US$ 265.2 million by 2022. Owing to the above factors, the Market in China is expected to contribute profitably to the global Market.

How does Russia compete with other countries in the Oil and Gas Gaskets Market?

Russia has witnessed exponential growth in oil & gas refineries. Russia's oil and gas gaskets market value in 2022 is expected to be US$ 95.3 million. With time, new projects are expected to rise in the country, and the demand for oil and gas gaskets is expected to increase extensively.

Russia commands the highest market share in Europe and is expected to have a market share of 40.1% in 2022. Russia's oil output is estimated to be valued at more than 10.8 million b/d in 2022.

With the increasing growth of the natural gas industry as well, the use of gaskets is predicted to increase in the future. With the growth of end-use industries, the adoption of oil and gas gaskets is expected to increase during the forecast period.

Category-wise Insights

How does the Downstream Segment perform in the Oil and Gas Gasket Market?

Downstream gaskets find applications in petroleum and compound enterprises, such as refineries, for channeling frameworks, ribs, and joint associations. Global refinery capacity is growing steadily due to increasing demand in Asia-Pacific and the Middle East.

In order to capitalize on the Asian Market, refineries are investing in larger projects and finding ways to expand the existing ones, especially in South Asia and China. China is the largest importer of crude oil in the world and accounts for 17% of global refining capacity. Thus, with the rapid refinery expansion, it is predicted that the global Market is likely to observe an upward trend in downstream pipelines and downstream gaskets during the forecast period.

Owing to the construction of new refineries, the downstream segment is expected to have a value of US$ 839.6 million and have a market share of 68.4% in 2022.

How are the Different Materials used in Making Oil and Gas Gaskets Performing in the Market?

Non-metallic gaskets are made from CNAF, Rubber, PTFE, etc. These gaskets get easily compressed under low-tension bolting. They find applications in areas of low-pressure and low temperatures. Rubber and elastomer gaskets do not find applications in pipelines that transport hydrocarbons. The market value of non-metallic gaskets is predicted to be US$ 145.8 million in 2022.

Metallic gaskets find applications in ring-type joints. They are used in high-pressure situations, such as oil and gas supply production upstream as well as downstream. They also find applications in valves, pipework, refineries, and other such industries.

Moreover, they seal by using wedging action. They are available in octagonal and oval cross-sections. A metallic gasket is expected to garner an absolute dollar opportunity of US$ 243.2 million by 2032.

Composite gaskets are made by creating a combination of metal and non-metal materials. This segment includes gaskets such as spiral wounds, Kamprofile gaskets, and Metal Jacketed. They can be used in a variety of pressure and temperature situations. These gaskets are also cost-effective.

Competitive Landscape

Major Oil and Gas Gaskets manufacturers include companies like Flexitallic Group, Klinger Limited, LGC US Asset Holding,LLC, DONIT TESNIT, Garlock Sealing Technologies etc. Market strategies, such as collaboration with regional as well as international players, help increase the company's market penetration. Robust investment in oil & gas supply and pipeline infrastructures also helps companies expand their business.

• In 2022, the Flexitallic Group extended its global reach by acquiring Novus Sealing Pty Ltd, which is an Australia-based company. With the help of this acquisition, the company may be able to use the abilities of Novus Sealing Pty Ltd to improve its gasket products.

Fact.MR has provided detailed information about the price points of key manufacturers of Oil and Gas Gaskets positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Oil and Gas Gaskets Industry Research

• By Product Type:

  • Spiral Wound Gaskets
  • Soft Gaskets
  • Kammoprofile Gaskets
  • Ring Joint Gaskets
  • Corrugated Gaskets
  • Jacketed Gaskets
  • Others

• By Material:

  • Metallic
  • Semi – Metallic
  • Non – Metallic

• By Application:

  • Piping
  • Pressure Vessels
  • Diesel Generators
  • Heat Exchangers
  • Valves
  • Manifold, Wellhead & Christmas Tree
  • Others

• By End Use:

  • Upstream
  • Midstream
  • Downstream

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA