The industrial gasket market - France (2023)

1.2 A growing global market

The global gaskets market peaked at US$*.** billion in ****, and according to Markets and Markets it should be around **.** billion by ****.

Sales of the global industrial seals market World, ****-****, in US$ billions Source: ****

According to Markets and Marketsthe main growth drivers are :

Demand for petrochemical infrastructure , particularly in developing countries. The industry that has seen the greatest demand for seals in recent years is the oil and gas industry. It is driven by the need to prevent hazardous chemicals and toxins from leaking into the environment. Demand for industrial seals for power generation and chemical transformation processes is also high. The region representing the largest market share is North America, although growth is stronger in developing regions.

Players:

worldwide, the main players in the industrial seals sector come from the USA (***).

Main markets:

The main markets for seal manufacturers worldwide are as follows:

oil and gas industry (***) heavy industry (***), particularly for French producers. chemical and pharmaceutical industry energy production industry machinery industry food and household appliance industry

The most frequent applications include (***):

piping systems pumps and compressors turbines centrifuges refiners cylinders and pistons closing devices robots

1.3 The French gasket market

The French gaskets market

Insee groups the gaskets segment in activity **.**B - Manufacture of other general-purpose machinery, under nomenclature **.**.**, which includes mechanical seals and sets of seals in different materials.

Eurostat defines the category as follows: Gaskets and similar seals in sheet metal combined with other materials or in two or more layers of metal. eurostat data can be used to estimate the value of French gasket production.

The amounts given refer to the value of marketed production. The value of production marketed or intended for marketing is calculated on the basis of the ex-factory selling price achieved or likely to be achieved during the period covered by the survey. It also includes the cost of packaging, but excludes sales tax, consumption tax, separately invoiced transport costs and customer discounts.

The value of French production is thus estimated at around **.* million euros in ****. Even so, there will be a **% drop in production between **** and ****.

Trend in the value of gasket production in France France, ****-****, € million Source: ****

Nevertheless, the Artema union of mechatronics manufacturers, of which the "Etanchéité" group is a member, lists manufacturers of industrial sealing components and systems. In France, these players directly employ more than *,*** people, ...

1.4 French trade balance

France has been a net importer of seals since ****.

French trade balance in gaskets and seals France, ****-****, in millions of dollars and in % UN COMTRADE HS code ******

France's trade balance for gaskets has seen fluctuating trends over the ****-**** period. Note impressive export growth between **** and ****, with an increase of almost **%. However, this momentum was followed by a significant decline in ****, probably due to the impact of the COVID-** pandemic on international trade. Imports also rose significantly, particularly in ****, when they peaked at $*** million.

Concerning the coverage rate, which represents a country's ability to pay for its imports through its exports, it has seena steady decline since ****, from ***% to **% in ****. This means that France imports more gaskets than it exports, indicating a growing dependence on foreign markets for this product.

All in all, the data show a volatile sales dynamic for gaskets.

France's main gasket suppliers France, ****, in millions of dollars ONE COMTRADE

Main destination countries for French gaskets exports France, ****, in millions of dollars ONE COMTRADE

Turkey is France's main supplier of gaskets, with imports worth $** million in ****. In terms of exports, Germany and the UK are the main customers, with ** and ** million euros in ****.

2.1 Levers of demand: the transport sector

Seals are ubiquitous in the transport sector: cars, trucks, trains, bicycles, scooters, boats and more all rely on seals.

As a result, the market for gaskets and seals is largely dependent on developments in the global transport market, and especially on its two most important markets: automotive and aerospace. These two sectors were particularly hard hit by the Covid-** pandemic.

*/ The automotive sector

In a car, for example, there are - among other things - seals in :

shock absorbers, in particular to improve roadholding fuel systems, to prevent leaks, these seals must be resistant to chemical attack cooling circuits, often in the form of mechanical seals, to ensure a tight circuit, reduce friction and prevent leaks wheels in automatic tire inflation systems. [***]

The chart below highlights that while the automotive manufacturing sector had been growing since ****, it saw a significant drop in ****. Since then, growth has picked up nicely, sincein three years, automotive construction sales have risen by **%.

Vehicle manufacturing sales (***) France, ****-****, base *** in **** Source : Insee */ Railway sector In the rail sector, for example, they are used in the axle reduction gears of TGV high-speed trains, in connection with the braking system. They have to cope with the extreme ...

2.2 Demand drivers: the energy sector

Virtually all energy production systems have seals that contribute to their smooth operation. These include

nuclear power plants thermal power plants hydroelectric dams wind turbines

Breakdown of primary energy consumption in France France, ****, as a percentage of volume Source: ****

For example, nuclear power, France's main source of electricity, relies heavily on seals for safety reasons. Cooling pumps require watertight systems to prevent leaks and radioactive contamination. [***]

In wind power, sealing guarantees the long service life of systems - whether offshore or not - because it enables them to operate :

extreme temperatures and weather conditions with a low coefficient of friction to limit wear and tear withstands millions of cycles while guaranteeing the system's watertight integrity

In the hydroelectric sector, the use of mechanical seals, a product similar to gaskets, is necessary for the operation of a power plant, for example. [***]

The boom in renewable energies is likely to be an increasingly important market for manufacturers of industrial seals - as the following two graphs underline.

Total production capacity of renewable energies France, ****-****, in gigawatts Source: ****

The renewable energies sector is growing steadily in France. Generation capacity in France has increased by two-thirds in just nine years.

French people's vision of ...

2.3 Demand drivers: fluid engineering and machinery

*/ Fluid engineering

Fluid technology" (***) is widespread in municipal installations such as drinking water and wastewater pipes. They are also widely used in factories in the form of industrial pumps and valves in various manufacturing processes. [***]

The chart below outlines sales trends in the manufacture of pumps and other compressors in France: we note a fairly stable sector between **** and ****. In ****, sales were *.*% higher than in ****. After a decline linked to Covid, sales rose by *% between **** and ****.

sales trend for other pumps and compressors manufacturing activities France, **** - ****, in billions of euros Source: ****

*/ Machinery

The machinery sector encompasses many sub-segments, we deal with one important sub-segment below - machine tools in Europe.

The chart below analyzes the value production of the machine tool industry in Europe from **** to ****. The decline in **** is thus significant - by around **%. By ****, the production level has almost reached the pre-covid state.

Annual production value of the machine tool industry in Europe, ****-**** Europe, ****-****, in billions of euros Source: ****

2.4 Demand drivers: food and household appliances

*/ Food industry

Sealing solutions are used in food packaging to :

prevent food leaks (***) prevent contamination by external intrusion prevent contamination of the product itself, which requires system sterility (***)

They are also used in many production machines, and their smooth operation helps to limit production maintenance [***]

As sealing solutions are linked to the "food safety" segment of the food industry (***), below is the evolution of this segment since ****, which is experiencing significant growth.

French food safety market France, ****-****, in millions of dollars Source: ****

*/ Household appliances

The graph below highlights the sales trend in the household appliance production sector, which has been fairly unstable since ****. For example, while production in **** was **% higher than in ****, by **** it had almost fallen back to its **** level. After peaking in **** at the end of the Covid crisis, the level has fallen back sharply by ****.

Average annual industrial production of household appliances France, ****-****, base *** in **** Source: ****

2.5 Microprocessors: one of many growth sectors

Growth sectors:

The microprocessor market has enjoyed stable growth in recent years. The sector's market size is expected to increase by **% between **** and ****!

Sales forecasts for the microprocessor sector World, ****-****, in billions of US$ Source: ****

Other sectors of the future include robotics, e-mobility and medical equipment .

Other sectors not developed in the study :

oil & gas petrochemicals and various chemical processes pharmaceuticals and biotechnology (***)

In these sectors, PFTE seals are particularly well represented because of the extreme conditions to which they are subjected. PTFE (***) up to around *** bar, and a long service life. [***]

2.6 Summary

3.1 Segmentation and player dynamics

The main value chain for seal manufacturers includes :

Upstream, suppliers of raw materials (***) Downstream, gasket manufacturers are highly dependent on major customers and their gasket requirements.

Players in the gaskets sector must support their customers' innovations by adapting to new production challenges. They must develop newmanufacturing techniquesand innovate to meet more demanding requirements. They must also adapt to different sectors. As a result, industry players often offer both standardized production and production with a greater or lesser degree of "customization".

These principals may also be tempted to buy out gasket manufacturers when the latter possess unique technologies, or in order to strengthen their position in a particular sector, as in the case of Saint-Gobain, which acquired American Seals & Engineering in **** to strengthen its position in aeronautics. The seals produced by American Seals & Engineering are suitable for rocket engines and can withstand extreme pressures and temperatures. Market consolidation operations are also frequent.

Because of the many possible areas of business for seal manufacturers, most of them specialize in certain segments.

Investment in plant, machinery and cutting-edge technologies is necessary, and represents significant fixed costs. Patents on certain technologies can also be important.

We can distinguish between global players like Trelleborg and smaller ...

3.2 The challenges of seal production

The diagram above depicts four pillars of the seal production challenge. By contributing to each of these pillars, a virtuous circle can be set in motion, since they are interdependent.

*/ Safety

Compliance with technical standards is essential not only for regulatory reasons, but also to guarantee the safety of installed systems. Players are also committed to participating in the development of these standards, and to promoting them.

This requires a high level of technical expertise in manufacturing processes and technologies. Safety is intrinsically linked to product quality.

*/ Quality and reliability of sealing products and systems

Product quality is essential to guarantee both the safety of systems and their smooth operation. In addition, by guaranteeing the proper mechanical operation of the various systems in which they are used, they promote a longer service life for these installations.

Obtaining ISO **** certification from AFNOR Certification is a market-recognized guarantee of quality.

For example, to guarantee the quality of its products, Francejoint relies on "zero defects" via "physico-chemical, dimensional and final appearance" control systems (***).

According to Francejoint, technical requirements are becoming increasingly stringent, and gaskets are often required to :

prevent leaks resist wear resist contact with other fluids withstand temperature shocks resist pressure withstand ...

3.3 The main distribution channels

Some manufacturers of industrial seals have their own distribution channels - especially the larger players - but others rely on external distributors. Most manufacturers offer both types of distribution. Most of the time, large orders go through their own distribution channels, whereas sales via specialized intermediaries are more likely to be small-volume.

For orders from large manufacturers, prices are often negotiated on a volume basis, and may therefore differ from those of specialist distributors.

4.1 Types of joints

Static joints vs. dynamic joints:

Static seals are designed to withstand high pressure and compression, whereasdynamic seals are designed to withstand extreme conditions and repeated movement. dynamic seals are designed to withstand extreme conditions and repeated movements (***).

Nevertheless, certain types of seals - such as O-rings - can be static or dynamic.

The table below lists some examples of standard seals used by BatiPresse and Manomano:

The most commonly used materials are :

elastomers (***) certain metals (***) fibers andvarious types of rubber pTFE (***), used in the petrochemical industry in particular certain plastics

Gaskets often combine several materials, depending on their properties, such as semi-metallic gaskets.

There are * main types of metallic gaskets: [***]

Tube-shaped, those with holes (***), and those with an opening. These features allow the gasket to have a certain elasticity and to return to its original shape when pressure is reduced. Circular-shaped, these are the most commonly used

4.2 Raw material costs and price analysis

Manufacturers depend on world prices for the raw materials used in the production process. Take the example of steel sheet and strip, the price of which has been falling since ****.

Producer price index for hot- and cold-rolled steel sheet and strip World, ****-****, in index values Source: ****

Trend in French industry's producer price index for rubber and plastic products France, ****-****, index base *** in **** INSEE

Production prices for rubber and plastic products have risen by **% over the past * years.

Price analysis:

In practice, gasket prices are highly variable and depend in particular on :

the type of joint and its degree of sophistication the degree of "customization the material used and its quality volumes ordered by manufacturers the customer's market/negotiating power over suppliers specific joint resistance requirements, which may vary from one sector to another

4.3 Seals at the heart of today's energy challenges

Environmentally-friendly production is the order of the day in all the seal manufacturers' customer sectors. Seals are one of the key elements in this more energy-efficient production.to take just one example, the emerging trend towards fuel-efficient vehicles has led to increased demand for lightweight components (***). Technological advances have led to the development of lightweight, high-strength seals capable of withstanding high pressure and heat.

Generally speaking, seals can contribute to sustainable development and energy savings in the following ways, according to Artema:

avoiding leakage of polluting gases or liquids. In the chemical industry, for example, graphite or PFTE gaskets help reduce leakage of polluting, greenhouse gases. avoid leaks in general, and therefore waste Improved energy performance of systems using gaskets. The energy performance of seals is measured by their ability to reduce friction, a major cause of energy waste. In the aeronautics industry, for example, manufacturers are working on autonomous systems to reuse energy dissipated during start-up and braking. Longer service life for systems incorporating sealing solutions.

These environmental requirements could stimulate innovation and R&D investment - and hence the entire sector.

5.1 Regulations

Regulations governing joints are specific to each of the industries for which they are intended: automotive, aeronautical, nuclear, etc. The following are just a few examples.

A decree dated **/**/**** covers the safety of pipelines for transporting combustible gases, liquid or liquefied hydrocarbons, and chemical products. This decree defines the minimum requirements applicable to the design, construction and operation of such pipelines, in order to ensure the safety of people and property, and to protect the environment. In particular, the decree specifies the precautions to be taken with seals in such situations. France also has national regulations governing the marketing and use of materials and objects that come into contact with water. These regulations stipulate that it is the responsibility of those responsible for placing such materials on the market to ensure that they comply with the intended use and current legislation.

According to Franz-Gysi_AG, in the past, leaks in piping systems or pressure vessels were detected by means of audible or visible emissions. Consequently, a silent, non-visible leak was not detected. Therefore,"the VDI **** guidelines, in force since June ****, define the procedure to be followed in order to obtain a leak-tight connection in accordance with the "TA-Luft" standard. EN ****-*, ...

6.1 Segmentation

Other companies in Artema's "Sealing" group include:

CYCLAM: dynamic seals. EagleBurgmann France: seals, gaskets and rings. Fluiten SpA Mechanical Seals: metal seals. John Crane, a Part of Smiths Group: mechanical seals Industrial Sealing Solutions - GROUPE LATTY Machined seals | SKF

• Precision Polymer Engineering
• Tremco Illbruck (CPG)
• Trelleborg Group
• Technetics Group France
• Techné
• GEB SAS
• Eynard Robin
• France Joint
• Anfray Etanchéité
• Dichtomatik (Groupe Freudenberg sealing)
• PXL Seals
• Emka Beschlagteile
• Eriks
• ElringKlinger
• Tremko Illbruck (DPG Europe)
• Frenzelit
• Mursec
• EGP Dépannage
• Protoumat
• SES sterling
• TC Concept
• Soletanche Bachy
• Le joint technique
• Kalicom
• AdhésionXtrem
• AJTM
• Atlantic Joint
• Efire groupe