The Automotive Gaskets and Seals Market size is estimated at USD 27.06 billion in 2024, and is expected to reach USD 37.63 billion by 2029, growing at a CAGR of greater than 5.70% during the forecast period (2024-2029).
The growth of the market studied depends on various factors, such as the adoption rate of electric vehicles in developing nations, increasing electric vehicle infrastructure trends in developed nations, variations in raw material prices, etc. Additionally, the impact of tariff rates among the United States, Europe, and China for automotive components may also contribute to the demand for gaskets and seals.
Manufacturers of gaskets and seals have been conducting R&D activities to develop special types of gaskets and seals for the expected rise in demand for IC engine vehicles and battery electric vehicles.
The growing electric vehicle fleet in the country will propel the market further. According to the newest figures from the Federation of Automobile Dealers Association of India (FADA), retail electric car sales in India increased by around 185% in October 2022, over the same month last year. The Indian government has already offered various production incentives along with heavy investments in electric vehicle infrastructure.
Some of the manufacturers in the market include Freudenberg, Dana Incorporated, Federal-Mogul, SKF GmbH, ElringKlinger AG, etc. As China dominates electric vehicle sales, local manufacturers, such as Kunshan Sanwa Engine Parts Industry Co. Ltd, have been supplying the necessary cylinder heads and exhaust manifold gaskets to the majority of the vehicles.
The global automotive industry has been experiencing significant growth in vehicle production over the years. This growth can be attributed to various factors, including increasing population, rising income levels in emerging markets, improved infrastructure, and technological advancements. According to the European Automobile Manufacturers' Association (French: L'Association des Constructeurs Européens d'Automobiles (ACEA)), in 2022, 85.4 million motor vehicles were produced around the world, an increase of 5.7% compared to 2021.
Developing countries, particularly in Asia, have witnessed a surge in vehicle production. Countries like China and India have experienced rapid economic growth, leading to a rise in disposable income and increased demand for automobiles. As a result, many global automakers have set up production facilities in these markets to cater to the growing demand.
The automotive industry has witnessed remarkable technological advancements, including electric vehicles (EVs) and autonomous vehicles (AVs). The growing popularity of EVs, driven by environmental concerns and government initiatives, has led to increased production of electric cars and hybrids. Additionally, the development of AVs has prompted manufacturers to invest in research and development, leading to the production of self-driving cars.
Vehicle manufacturers are continually exploring new markets and expanding their operations globally. They establish manufacturing facilities in different regions to meet local demand and reduce production costs. This expansion strategy enables companies to tap into new customer bases and leverage the potential of emerging markets.
Thus, as the number of vehicles increases, so will the opportunity for players operating in the automotive gaskets & seals market to generate revenue, facilitating overall market expansion.
The automotive gaskets and seals market is a fragmented market. Some of the major players in the market are Freudenberg Group, SKF Group, Dana Incorporated, Elringklinger AG, Jayem Auto Industries, Kunshan Sanwa Engine Parts Industry, and Sumitomo Riko, among others. Different manufacturers are gaining traction by developing and launching new products across the world. For instance,
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