Frost & Sullivan says the global mechanical seals market is holding fast against the ongoing economic turmoil and expected to grow at a steady pace over the long term across all major end-user industries. “Continued patronage from the oil and gas, chemical and pharmaceutical industries, together with the expanding base of pumps and compressors in the emerging BRIC economies, will stand the market in good stead,” said the Mountain View, Calif.-based analyst firm.
Its new analysis, Global Mechanical Seals Market, finds that the worldwide mechanical seals market had revenues of almost $2.7 billion in 2012 and estimates revenues to reach nearly $3.6 billion in 2015.
“Expansion into emerging economies such as Brazil, Russia, China, and India is expected to be a major driver of growth in the current economic environment,” noted Frost & Sullivan Industrial Automation & Process Control Program Manager Ashwin Annareddy. “With the market in North America and Western Europe reaching maturity levels, the focus is expected to shift to after-sales services and product enhancements.”
Well-established EU norms for energy recycling and efficiency, Frost & Sullivan says, have placed the onus on pump suppliers to consistently introduce novel product features. The EU also has strict guidelines related to fugitive emissions through equipment leaks. In the U.S., the Environmental Protection Agency air emission standards require specific work practices for equipment leak detection and repair.
This is placing pressure on manufacturers to improve product reliability, functionality, and lifecycle. Demand in these mature regional markets will be sustained on a platform of innovative design features, improved pump and motor efficiencies, higher price-performance ratio, and prompt after-sales service.
One of the key threats to mechanical-seal market growth is the increased adoption of seal-less magnetic drive pumps. Oil and gas, chemical, and petrochemical industries require mechanical seals to be API 682 standard compliant. However, compliance to this standard requires substantial R&D investment, which regional seal manufacturers are unable to provide.
Increasing customer satisfaction also poses a significant challenge to pump manufacturers. End-users now expect not just timely delivery of a high-quality product, but an array of effective services to back their product purchase.
“With mechanical seal reliability being a critical purchase criterion, R&D into different materials of construction, value-based design engineering, on-site system support, and value sharing hold the key for effective communication of enhanced value to end-users,” Annareddy said. “Overall, manufacturers need to develop a broad product portfolio and strong service backup, while boosting penetration into emerging regions.”
Global Mechanical Seals Market is part of Frost & Sullivan’s Automation & Process Control Growth Partnership Service programme. Frost & Sullivan’s related research services include European Vacuum Pumps Market, European Positive Displacement Pumps Market, European Pumps Market in the Water and Wastewater Industry, and Pumps Market in the European Pharmaceutical Industry. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.