MECHANICAL PUMP SEALS MARKET ANALYSIS

Market Challenges And Opportunities

Global Mechanical Pump Seals Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a significant impact on the global economy and various industries, including the mechanical pump seals market. The pandemic disrupted global supply chains, causing delays in the production and delivery of mechanical pump seals. Restrictions on international trade, factory closures, and transportation challenges led to a shortage of raw materials and components required for manufacturing. This resulted in supply chain disruptions and affected the availability of mechanical pump seals in the market. Many industries, such as oil and gas, manufacturing, and construction, experienced a decline in activities due to lockdown measures and reduced demand. This decline directly impacted the demand for mechanical pump seals, as they are primarily used in industrial applications. Reduced industrial activities and project postponements led to a decrease in the demand for mechanical pump seals during the pandemic.

Global Mechanical Pump Seals Market- Drivers:

Increase in Demand for Mechanical Pump Seals in Oil & Gas Industry is expected to Aid in Growth of the Global Mechanical Pump Seals Market.

In oil & gas industry application, safety and reliability are two major key phenomena. Therefore, players in the oil & gas industry are adopting innovative mechanical seal solutions such as elastomer seals, O-ring seals, and bellow seal, to support highly regulated and mission critical business operations. Furthermore, leakages from the oil & gas industry are expensive, therefore the use of mechanical seals are mandatory in these industries, which helps the global mechanical seals market to grow. Governments of several countries are taking various initiatives to develop the industrial sector in their country. For instance, government of India launched a policy known as ‘Pharma Vision 2020’, which aims to attract pharmaceutical industry in India and become a global leader in end-to-end drug manufacturing which will also help the market to grow. According to Bloomberg a business and market moving information provider in November 2021, China has unveiled its ambitious strategy to construct a minimum of 150 additional nuclear reactors over the next 15 years, entailing a substantial investment of USD 440 billion. Presently, the country has 19 reactors under active construction, with 43 reactors awaiting permits, and an impressive 166 reactors that have been officially announced. The cumulative capacity of these 228 reactors is estimated to reach 246GW. The burgeoning expansion of China’s thermal and nuclear power plants is anticipated to serve as a significant catalyst for driving the demand for mechanical seals within the projected timeframe.

Stringent Safety and Emission Regulations

Stringent regulations and standards related to equipment safety, emissions, and environmental protection propel the demand for high-quality mechanical pump seals. Industries need to comply with these regulations, which often require the use of reliable sealing solutions to prevent leaks and minimize the risk of hazardous emissions. The situations like Oil leakages is common and can be hazardous to the nature. For Instance, on March 02, 2023 workers of the Chennai Petroleum Corporation Limited a producer of fuels and lubes base stock plugged the leakage of the crude oil underwater pipeline. A leakage incident occurred within a nine-kilometer long pipeline which was designed for transporting crude oil from the Narimanam oil wells which belongs to the Oil and Natural Gas Corporation (ONGC) to the now non-operational secondary refinery of the Chennai Petroleum Corporation Limited (CPCL) which is located in Nagapattinam. An authorized representative of CPCL stated that the fracture detected in the pipeline on Thursday night was successfully remedied during the early hours of Saturday.

Global Mechanical Pump Seals Market- Opportunities:             

Increasing Demand for Pump Systems

The demand for pump systems is expected to rise across various industries such as oil and gas, water and wastewater, chemical, and power generation. As pump systems are widely used in these industries for fluid handling, the demand for mechanical pump seals will also increase. In March 2021, According to official government communication, it has been projected that the chemical Industry will witness an estimated investment of INR 8 lakh crore by 2025. This projection is based on the expected annual growth in demand of approximately 9% over the next five years. Furthermore, there are approximately 168 investment prospects and 29 projects currently in various stages of development within the sector.