Demonstrable RoI vital to attract customers that are looking to implement energy-efficient solutions, finds Frost & Sullivan
SANTA CLARA, Calif., Dec. 18, 2019 /PRNewswire/ -- The refurbishment of aging infrastructure, public investment in renovation, and the growth of the power generation industry are expected to drive the $3.64 billion mechanical seals market toward $4.70 billion by 2023. Seal manufacturers will especially benefit from end users' rising need to minimize costs and improve efficiency, which is generating demand for seal diagnostic solutions that can enable diagnostics and remote condition monitoring services.
"Both leading participants and smaller companies are developing and launching software- and Internet of Things (IoT)-based solutions to leverage the growing requirement for predictive maintenance and performance management solutions," said Anand Gnanamoorthy, Global Research Leader, Industrial Practice. "This will encourage companies to develop an analytics strategy as well as level the playing field for smaller participants with innovative solutions."
Frost & Sullivan's recent analysis, Global Mechanical Seals Market, Forecast to 2023, assesses whether the existing competitors are structured to meet customer needs. It examines the markets for pusher, non-pusher, and dry seals in the regions of North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa.
For further information on this analysis, please visit: http://frost.ly/3xd
"Asia-Pacific will continue to be the fastest-growing region due to rapid urbanization in countries such as India and China. Meanwhile, refinery closures in Europe and Asian countries such as Japan have shifted the market's focus toward the Middle East and Africa," noted Gnanamoorthy. "Countries such as Saudi Arabia, Kuwait, Iraq, Iran, and the United Arab Emirates (UAE) will be key investment destinations as they diversify from the upstream segment."
To stay relevant in a shifting market, mechanical seals manufacturers will be specifically targeting growth opportunities presented by:
- Industrial IoT (IIoT). Industry 4.0 is prompting the development of new business models such as gain sharing, pay-per-use, and product-as-a-service. This means seal manufacturers also need to create novel strategies and showcase use cases.
- Energy-efficient solutions. Owing to the rising preference for energy-efficient solutions, mechanical seals manufacturers have to demonstrate the cost and RoI benefits of their offerings.
- Emerging countries. To cope with lower profit margins in the oil industry, participants are expanding their footprint in new geographies that are poised to grow rapidly in the future, such as Mexico.
- Market positioning. Product quality will emerge a key differentiator. Manufacturers may use external resources to increase awareness among end users and strengthen their brand value.
Global Mechanical Seals Market, Forecast to 2023 is part of Frost & Sullivan's global Industrial Automation & Process Control Growth Partnership Service program.
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Global Mechanical Seals Market, Forecast to 2023
SOURCE Frost & Sullivan