Market Trends of Automotive Gaskets and Seals Industry
Increasing Vehicle Production to Propel the Market Growth
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 Europ茅ens 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.
Asia-Pacific and Europe to dominate the Market
- Over the last decade, the Asia-Pacific automotive industry has undergone the most significant transformation in its history. The market is recording an increasing share of global vehicle sales. Another major factor driving the growth of the automotive gaskets and seals market is increased production and sales of electric vehicles in the region.
- The Asia-Pacific region is home to major automotive markets like China, India, and Thailand. China is the world's biggest automotive market and the second-largest market for electric vehicles after Europe recently surpassed it in 2020. Since gaskets and seals find applications in both electric vehicles and conventional internal combustion engine (ICE) vehicles, China presents huge market opportunities. With a large market for passenger and commercial vehicles, India is another major area for potential growth for the gaskets and seals market.
- The Indian vehicle sector is predicted to reach USD 300 billion in revenue by 2026, growing at a CAGR of 15% from its present value of USD 74 billion creating opportunities for players operating in the vehicle gaskets and seals market.
- In addition, Europe is also expected to hold a significant share of the global automotive gaskets and seals market. The commercial vehicle demand is growing in the region, with high developments in both the ICE and electric vehicle segments of the automobile industry. Although a decreasing trend is being observed in terms of vehicle sales in its entirety, the increase in sales for used cars and other used vehicles, especially in the Asia-Pacific region, is a major growth factor in the aftermarket sales for gaskets and seals.
