Oil and Gas Gaskets Market Forecast, Trend Analysis & Competition Tracking - Global Market Insights 2019 to 2029

Growing Pipeline Networks to Stimulate Oil & Gas Gaskets Market

Extraction of natural gas, such as shale gas and soaring prices of oil are increasing inter-regional trade in natural gas. Hence, transport and storage volumes of gas and oil are rising. Stringent environmental norms and an uptick in consumption of natural gas & oil is expected to fuel the growth of pipelines. These developments will lead to high demand growth of gaskets in pipelines. Gaskets are used in pipelines as  mechanical seals which fills the space between two or more mating surfaces and prevents leakage from joined objects under compression. Thus, rising number of greenfield and brownfield pipeline projects have driven the global oil and gas gaskets market. 

Oil & gas gaskets are estimated to create an absolute dollar opportunity worth US$ 377.7 Mn and are foreseen to cross the US$ 1.5 Bn mark by the end of the forecast period (2019-2029). However, spiral wound gaskets are foreseen to grow around 3X faster than the kammoprofile gaskets during the forecast period.

Downstream Segment Estimated to Capture Major Chunk of Oil & Gas Gaskets Demand Pie

These gaskets are used in compound and petrochemical enterprises like refineries for high-pressure framework applications such as channeling frameworks, joint associations, and ribs. Global refinery capacity is expanding steadily, as most of new capacity demand is being developed in the Asia-Pacific and the Middle East. In an attempt to capitalize on Asian oil demand, refineries are investing in larger refineries and expanding the existing ones, particularly in China and South Asia. China is increasing its refining capacity by 27 million tons to reach 887 million tons in 2020, to push exports of natural gas by 18%. Thus, with the rapid expansion in refineries it is estimated that global oil & gas gaskets market is poised to see an upward trend in the coming years.

Owing to an increase in the capacity of new refineries, the downstream segment is expected to cross US$ 1 Bn mark by the end of the decade by contributing over 65% in the overall value opportunity. On the other hand, the midstream segment is estimated to create an absolute dollar opportunity worth US$ 88 Mn and is expected to capture a market share of 21% by the end of the forecast period.

China to Lead with three-fourth Share, with Heightened Investment in Pipeline Infrastructure

China imports a large quantity of natural gas because of insufficient domestic production. China’s reliance on natural gas imports are rising sharply with the rapidly growing import volume of natural gas. China is building long distance natural gas pipelines to facilitate the transportation and allocation of natural gas. Construction of six pipeline networks in eastern, western and northern parts of Guangdong has started and is planned to be completed by 2020. Increase in pipelines networks for importing natural gas will raise the demand of gaskets as it is used as mechanical seals to prevent leakage.

East Asia is estimated to create an absolute dollar opportunity worth US$ 118.9 Mn, through the forecast duration. Furthermore, owing to the optimistic outlook, import of natural gas in China Japan and South Korea, the region is forecasted to account for over 26% in the overall value opportunity created in the global oil & gas gaskets market.

Expansion: Key Growth Influencer within Oil & Gas Gaskets Services Market

Industry leaders are continuously focusing on expansion to increase their geographic presence, and business operations and their share within the market

• In 2019, the Flexitallic expanded its operation in Aberdeen, which enabled it to provide increased support to its consumers in North American. Flexitallic Group also aims to expand its gasket stockholding and workshop capabilities.

• In 2018, Garlock opened a new office named Garlock & Technetics Group in Suzhou, China. With this expansion, the company strives to build a better relationship with Chinese customers in the fields of energy, steel, chemical, and pulp & paper.