Global Mechanical Seals Market Size, Share & Trends Analysis Report By Type (Cartridge Seals, Balanced and Unbalanced Seals, Pusher and Non-pusher, Conventional Seals, Others), By Industry (Metals and Mining, Food and Beverage, Oil and Gas, Energy and Power, Aerospace, Marine, Construction and Manufacturing , Others) and By Region (North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global mechanical seal market size was valued at USD 3.5 billion in 2023 and is projected to reach USD 4.9 billion by 2032, registering a CAGR of 4.2% during the forecast period (2024-2032). The rising demand for mechanical seals in different industries will drive market growth in the near future. 

Mechanical seals are utilized to create a seal at the location where a spinning shaft enters or exits. Usually, it is employed to inhibit the escape of a high-pressure fluid into a lower-pressure fluid. Considering the increasing stringency of Health and Safety and Environmental legislation and the growing importance of process equipment efficiency, users of pressurized rotating equipment must prioritize the reliability and predictability of mechanical seal performance. 

The increasing need from the oil and gas sectors is a significant driver of growth in the mechanical seals market. The global market is expanding due to the rising need for power generation, the increase in shale gas production in developing and developed countries, the initiation of new oil and gas exploration operations, and significant investments in refineries and pipelines. 

Highlights

• Cartridge seals generate the highest revenue share based on type.
• Oil and gas account for the largest market share by industry.

Market Dynamics

Global mechanical seals market drivers:

Rising manufacturing industry

As per the United Nations Conference on Trade and Development (UNCTAD), worldwide foreign direct investment (FDI) is projected to experience robust growth in the upcoming years. This suggests that there will be a substantial expansion in the manufacturing industry during the next ten years. Furthermore, numerous nations are implementing investment strategies to enhance the manufacturing industry and stimulate the growth of the mechanical seal market.

In addition, in 2017, multiple governments and economies worldwide implemented investment policy measures, with 84% of these countries being favorable towards investors. Investors will have the chance to allocate their capital across multiple industries, emphasizing energy, transportation, and manufacturing. In addition, several manufacturing and industrial studies prioritize the production or supply aspect rather than the demand aspect. Over the past few decades, this strategy has diminished the significance of the manufacturing sector. This scenario can be rectified by prioritizing the demand side in the manufacturing sector ecosystem.

Consequently, the need for manufacturing is rising due to the alterations in the investment strategies of many developed and developing nations. The expansion will lead to higher manufacturing utilization of machine tools and industrial equipment, directly enhancing the worldwide mechanical seal market growth.

Global mechanical seals market restraints:

Introduction of alternative methods of sealing leakages and complex installation

The mechanical seal market caters to several sectors but encounters obstacles that impede growth. The use of alternative methods, such as mechanical packing and electronic seals, diminishes the market dominance and profitability of the mechanical seal sector. Electronic seals offer advanced surveillance and safety features for monitoring and controlling access to containers or assets in logistics and supply chain management applications. They can generate notifications in the event of tampering or unauthorized access, enabling prompt action to rectify security breaches. Hence, implementing electronic sealing in automated production facilities may impede growth within the expected period. 

Furthermore, installing mechanical face seals might be more complex and time-intensive than other sealing methods. The intricacy involved during the installation or replacement procedure can result in higher labor costs and longer downtime. Proficient knowledge and skills are frequently required to install mechanical seals correctly. Hiring or outsourcing specialists or engineers who specialize in seal installation may be essential, which might lead to increased labor costs. In addition, complex installations typically take a more significant amount of time to complete than straightforward operations. This can lead to higher labor costs, especially if the installation requires extensive disassembly, measurement, alignment, and testing.

Moreover, installing mechanical seals may require the utilization of specific methodologies and apparatus, such as accurate measuring instruments, alignment tools, and seal compression devices. Acquiring or renting these products raises the overall cost of the installation. Hence, installing mechanical face seals poses a substantial barrier to the industry's growth.

Global mechanical seals market opportunity:

Growing power industry

The power plant business requires sealing systems that offer optimal operational reliability, easy maintenance, minimal leakage rates, and suitable environmental protection measures. Mechanical seal systems and services enhance the manufacturing performance of power plants by boosting operational reliability, increasing equipment uptime, minimizing seal water usage and energy consumption, and assuring cost-effective adherence to environmental regulations.

Additionally, the global rise in electricity consumption is projected to raise the capacity utilization of various power sectors. Additional capacity will be promptly added to meet the surplus demand. In February 2022, the International Energy Agency reported a total net power output of 887.5 terawatt-hour (TWh). This is a decrease of 11.6% compared to January 2022, but an increase of 1.4% compared to February 2021. In 2021, the worldwide electricity demand had a 6% increase, following a little decrease in 2020. The yearly growth in electricity consumption reached about 1,500 TWh, making it the highest increase in absolute terms and the most significant percentage rise since the financial crisis in 2010. China contributed more than 50% to global growth, with the average demand rising by 10%. Eurasia experienced a significant increase in electricity consumption in 2021, with a growth rate of 6% compared to the previous year. This translates to around 80 terawatt-hours (TWh), marking the most considerable absolute rise since the fall of the Soviet Union. The electricity demand in 2021 had a 4% increase, following a decline of 1.3% in 2019 and another decline of 4% in 2020. It is now nearing the level it was at before the pandemic in 2019.

Moreover, renewable energy will surpass USD 300 billion in 2022 and will now be the primary source of investment in new power generation. Due to the Russian-Ukraine war, European countries are increasing their investment levels as they prioritize energy security. Multiple European Union countries have established new objectives and initiatives to enhance solar and wind energy utilization, explicitly focusing on offshore wind power. The market analyzed is anticipated to generate substantial investment prospects for equipment OEMs, project developers, and after-service suppliers, stimulating demand. 

Regional Analysis

The global mechanical seal market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global mechanical seal shareholder and is estimated to grow at a CAGR of 4.4% over the forecast period. The mechanical seals market in the Asia-Pacific region is now dominant and is projected to maintain its dominance in the near future. Japan, China, South Korea, and India are the primary drivers of economic growth in the Asia-Pacific region, as their economies are experiencing fast transformations. In December 2021, China unveiled its intention to construct at least 150 more nuclear reactors within the following 15 years, with a substantial expenditure of USD 440 billion. The nation currently has 19 reactors in the process of being built, 43 reactors awaiting official permits, and an impressive 166 reactors publicly announced. The total power output of these 228 reactors is 246 gigawatts (GW). The expansion of China's thermal and nuclear power facilities is projected to stimulate the need for mechanical seals in the foreseeable future.

In addition, India is projected to experience substantial expansion in its chemical sector, driven by the increasing need for polymers, specialty chemicals, and agrochemicals. In March 2021, the government expected an INR 8 lakh crore investment in the sector by 2025. This investment is driven by an estimated annual rise in demand of around 9% over the following five years. There are currently 168 investment prospects and 29 projects under construction. Similarly, Japan intends to construct 22 additional coal-fired power stations in 17 distinct locations by 2025. One of the facilities now being built is the Yokosuka coal-fired power plant, which will have a capacity of 1.3 gigawatts (GW). The Yokosuka coal-based power station will be fitted with two ultra-supercritical (USC) coal-fired units, each with a capacity of 650 MW. These units are expected to become operational in 2023 and 2024, respectively. Therefore, due to the trends above, it is probable that Asia Pacific would have the most market share in the investigated market for the duration of the projection period. 

North America is anticipated to exhibit a CAGR of 4.4% over the forecast period. During the projected period, the North American market for mechanical seals holds a significant 26.2% share of the global market. This is primarily due to the rapid growth of end-use industries like oil and gas, chemical, and electricity, leading to increased utilization of mechanical seals in these sectors. Approximately 9,000 autonomous oil and gas power plants are in the United States. North America is projected to experience the most significant growth due to the rising use of mechanical seals to achieve accurate and flawless sealing of pipelines. 

Moreover, the North American Region's prominent position in the global market can be credited to the growing manufacturing activity in the region. This indicates that there will be an increase in demand for industrial materials and equipment, such as mechanical seals, in the upcoming year. The market growth can be attributed to the substantial increase in the region's power, oil & gas, and refinery sectors.

Europe is expected to provide potential growth opportunities for the mechanical seal market. The European market accounts for a 22.5% global market share. The market in the region is increasing due to the expanding base oil transportation, rapid industrialization and urbanization, increasing population, and significant expansion in essential industries.

Furthermore, the market's expansion in Europe is driven by the existence of prominent manufacturers of mechanical seals. A.W. Chesterton Company, a prominent international company specializing in equipment sealing and reliability, has just established a production site in Sweden. This facility manufactures compression packing, which is utilized in pumps and valves. The facility is projected to cater to Northern Europe by offering compression packing in metric cut lengths, pre-made packing rings, and customized kits for original equipment manufacturers and Chesterton's direct service partners. 

Segmental Analysis

The global mechanical seal market is segmented based on type and industry. 

The market is further segmented by type into Cartridge Seals, Balanced and Unbalanced Seals, Pusher and Non-pusher, Conventional Seals, and Others. 

The cartridge seals category had the most significant market share in 2023. The cartridge seals segment is anticipated to grow in the projected period due to the ongoing implementation of sophisticated sealing materials in various industries. The cartridge seals segment is projected to have significant market potential due to their universal design as shaft seals for pump seal chambers, containers, or pipelines.

The pusher and non-pusher seals category is anticipated to experience significant growth in the projected period due to the rising utilization of small and big-diameter ring shafts in light-end services to manage elevated temperatures. The segment of mechanical seals, balanced and unbalanced, is expected to experience moderate growth due to the global expansion of the industry sector. Most industrial applications choose balanced seals because they generate less heat at the machine's surface, resulting in longer seal life and more efficient sealing.

Based on industry, the market is fragmented into Metals and Mining, Food and Beverage, Oil and Gas, Energy and Power, Aerospace, Marine, Construction and Manufacturing, and Others. 

The oil and gas industry is predicted to dominate the market by 2023 due to the growing need for petroleum in developed and emerging countries, resulting in an increased demand for mechanical seals. The global increase in energy use directly impacts the demand for electricity generation and consumption, resulting in significant market growth. Renewable sources such as wind and solar power account for 70% of electricity generation. This is expected to impact the demand for mechanical seals in the market positively.

The food and beverage category will experience significant growth in the projected period. Mechanical seals engineered explicitly for the food sector are intended to inhibit the accumulation of substances that could contaminate the processed product. Accumulation of food processing fluids within the pump can lead to mold and bacteria growth, ultimately resulting in product contamination. The potential for this issue is prevented by implementing mechanical food seals specifically engineered to eliminate sharp edges or corners that could facilitate the accumulation of stubborn deposits.

Additionally, mechanical seals are utilized in several stages of food processing, such as pumps that move liquids during various manufacturing steps, agitators that mix materials uniformly, and mixers that guarantee precise mixing. These devices, which are essential for preparing food, beverages, and related items, necessitate dependable mechanical seals to prevent contamination or quality reduction.

Recent Developments

• April 2024- John Crane, a prominent multinational company specializing in rotating equipment solutions and energy transition technologies and services and a subsidiary of Smiths Group plc, declared the inauguration of its state-of-the-art Dry Gas Seal Rio Claro Service Center in April 2024.
• April 2024- Trelleborg Group purchased South Korean MNE Group, a multinational enterprise specializing in precision seals for semiconductor production equipment. The main office and production plant are situated in Yongin, near Seoul. MNE Group's revenue in 2023 amounted to around SEK 300 million. Trelleborg's acquisition aligns with its strategic objective of extending its presence in the burgeoning semiconductor industry.
• April 2024- Trelleborg Group, specifically its business area Trelleborg Industrial Solutions, agreed to purchase BP-Tech Group, which includes Boldan and Spraypoxy, a Finnish company specializing in pipe maintenance. Based in Rajamäki, Finland, the company pioneered trenchless pipe repair, offering advanced solutions such as liners, resins, and specialized equipment. The sales figure for 2023 was slightly above SEK 220 million across 24 countries globally. The company possesses a robust collection of assets, including an exclusive spray-in-place solution and providing top-notch training for field contractors.