Until 2017, the automotive industry was seeing healthy expansion. The industry had a severe downturn in 2018 and 2019, mainly due to the US-China trade war, which resulted in a global economic recession. While a good recovery was projected in 2020, the pandemic hit the industry hard in 2020, causing significant disruption and losses for stakeholders. In 2020, the market for speciality gaskets dropped by -16.0%, causing an unthinkable loss to the shareholders. However, the long-term outlook appears to be favourable. According to the new research report by Stratview Research, the Automotive Specialty Gaskets Market by vehicle type, materials, application, end-user and by region - trend, forecast, competitive analysis, and growth opportunity: 2021-2026, the market for speciality gaskets in the automotive industry is expected to grow at a healthy CAGR of 5.6% during 2021-2026, taking the market to US$ 2.3 billion by 2026.
This strategic assessment report provides a comprehensive analysis that reflects today's automotive speciality gaskets market realities and future market possibilities for the forecast period of 2021 to 2026.
Speciality gaskets include all types of gaskets used in the automotive industry other than cylinder head gaskets. It is a flexible sealing system that helps prevent leakages, maintain internal pressures, and block the intrusion of foreign materials such as dirt and pollutants. With the increasing demand for lightweight materials in the automotive industry with a sole aim to improve fuel efficiency and reduce carbon emissions, the demand for highly efficient, robust, and reliable gaskets is evolving that meet the requirements of modern automotive engines & systems. In addition, with technical advancements, gaskets now provide a cost-effective way to improve fuel efficiency paired with lowering repair and maintenance costs, extending the average life span of vehicle components.
Some of the key players in the market include Dana, ElringKlinger, Talbros Automotive Components, Tenneco, Nichias Corporation, Freudenberg, Uchiyama Manufacturing Corporation, Yantai Ishikawa Sealing Technology, Nippon Gasket, Kokusan Parts Industry and Nippon Leakless Corporation.
EV Influence
Based on the vehicle type, despite a drop in 2020, passenger car is predicted to remain the largest and fastest-growing vehicle type in the market during the forecast period. With the increasing production of electric vehicles, there has been an incessant demand for speciality gaskets to protect electric motors from lubricants and cover battery housings from dirt, moisture, and external environmental conditions.
Metallic Gaskets
Based on the material type, metallic gaskets are expected to remain the most dominant material type in the market during the forecast period. Metallic gaskets are suitable for high-performance applications because of their strength, stiffness, and toughness. Major automobile gasket suppliers are focused on designing cost-effective gaskets made of high-quality materials and built to endure extreme heat and pressure.
Based on the application type, the central engine system is expected to remain the larger segment of the market during the forecast period. Stringing vehicle emission standards worldwide is enforcing automotive stakeholders to focus on engine downsizing and exhaust gas purification systems. This increases the demand for highly efficient engine gaskets that can withstand extreme temperature and pressure conditions.
OE is likely to continue to be the market's larger segment throughout the projection period based on the end-user type. The high durability and reliability of the gaskets is the major factor behind the dominance of the OE segment in the automotive speciality gaskets market.
Region
Asia-Pacific is expected to remain the largest market for automotive speciality gaskets during the forecast period in terms of regions. Asia-Pacific is the leading producer of automobiles with massive production bases in China, Japan, India, Korea, and Thailand. However, North America is projected to witness the highest growth in the automotive speciality gaskets market during the forecast period, mainly driven by the USA.
Courtesy: Stratview Research. NB: Photo is representational; courtesy: Freudenberg.