VALLEY COTTAGE, N.Y.—One market research firm on the west bank of the Hudson River, just north of New York City, reports that the oil and gas seals market is exiting a period of deceleration, and all indications are that it will recover in 2022.
The market will recover at about a 3.3-percent CAGR, on average, from 2022 through 2031, driven by exploration activities and infrastructure development across the globe, according to Future Market Insights.
The pandemic-driven downturn had caused about a -6.5-percent decline in 2021 over 2020, the industry watchdog reported last week.
"This downturn is majorly ascribed to the recessionary impact of the COVID-19 pandemic on the oil and gas industry across the world," FMI stated in a Dec. 9 summary of a recently released report. "Fortunately, recovery is on the cards beginning 2022, with a projected annual increase of approximately 3 percent."
Technological disruptions that are expected to improve efficiency are coming, FMI said, as blockchain technology should enhance data collection security and automation and robotic augmentation should improve drilling projects and reduce downtime.
Mechanical seals, about 17 percent of the overall global oil and gas seal market, saw about $176.1 million in sales in 2021, according to FMI.