Welding Consumables Market
Welding is a process of joining metals and thermoplastics by the process of coalescence. It is often preferred process whenever joints are required, since it is effective and economical. Flux is commonly used to produce a shield of gas around the weld pool, in order to prevent oxidation pool of the hot metals. Flux and filler metals are called welding consumables where they melt while joining two metals, in order to form a strong joint and protect molten weld from atmospheric containments. There are different types of consumables such as stick electrodes, flux-cored wires, SAW wires & fluxes, and more.
The global welding consumables market was valued at US$ 13,118.9 Mn in 2018 and is expected to grow at a CAGR of 5.5% during the forecasted period (2019-2027)
Market Dynamics- Driver
- High growth of automobile and construction industry is expected to drive growth of the global welding consumables market during the forecast period
Welding is one of the essential processes used in construction and automobile industry where different types of welding such as arc welding, laser beam welding, friction welding, resistance welding, and ultrasonic welding are used. These welding technologies are used to join metals permanently. Moreover, welding used in repair and maintenance of automobiles, which has increase the demand for welding consumables. Industrialization and rapid urbanization have increased the demand for welding consumables. Thus, rampant growth of construction and automobile industry is expected to drive the market growth over the forecast period.
- Rapid growth of oil & gas industry is expected to propel the global welding consumables market growth over the forecast period
Consumption of oil and natural gas has increased significantly in the recent past due to growing urbanization, increasing sales of cars, and rising purchasing power around the world. According British to Petroleum (BP) Statistical Review of World Energy 2019, global oil consumption grew by around 1.4 million barrels per day or 1.5% in 2018. According to the same source, the U.S. and China were major contributors to growth. Moreover, global oil production increased by 2.2 million barrels per day. Oil & gas industry is one of the largest end-use industry for welding consumables. Different type of welding techniques have been developed for oil & gas industry such as submerged arc welding (SAW), tungsten inert gas welding (TIG), shielded metal arc welding (SMAW), and gas metal arc welding (GMW). Increasing demand for replacement of older gas pipelines is expected to drive the market growth in the near future.
North America region dominated the global welding consumables market in 2018, accounting for 32.2% share in terms of value, followed by Europe, and North America, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
- Slow adoption of advanced welding technologies is expected to hamper the global welding consumables market growth over the forecast period
There has been slow adoption of advanced welding technologies in emerging economies such as India and China, which is expected to restrain the market growth up to certain extents. Cost sensitivity is another factor hampering the market growth in these countries. Advanced welding technologies such as electron beam and laser beam are predominantly used on developed country though due to high costs it has witnessed low adoption in emerging economies.
- Lack of skilled labor force in emerging economies is expected to hinder the global welding consumables market growth over the forecast period
Certain welding practices such as laser beam welding, electron beam welding or ultrasonic welding requires highly skilled labor force. These techniques employ special tools that need to be operated by only trained workforce. Unavailability such skilled and trained workers in emerging economies such as India and China is expected to restrain the market growth during the forecast period.
- High demand for welding consumables from wind and solar energy industry
Stringent regulations imposed by government agencies regarding carbon emission have accelerated growth of wind energy industry. Moreover, government agencies are taking proactive initiatives to promote use of wind energy, which in turn, is expected to offer lucrative growth opportunities for market players in the near future. According to Global Wind Energy Council, in 2015, adoption of wind power increased by 50%. Moreover, Europe and North America are increasingly adopting solar energy, in order to promote the use of clean energy in various countries. Commercial and residential sectors across different countries are adopting solar energy as a main source of electricity, which in turn, is expected to offer significant growth opportunities for market players in the near future.
- Ongoing repair and maintenance work in various applications to offer growth opportunities
Various industries such as automobiles, transportation, construction, shipbuilding, metal fabrication, and energy are expected to offer constant repair and maintenance opportunities for market players. There is constant need for repair and maintenance work in these industries, which is expected to boost the demand for welding consumables in the during the forecast period.
Source: Coherent Market Insights
In global welding consumables market, by technology segment Arc welding sub-segment dominated the global welding consumables market in 2018, accounting for 42.0% share in terms of value, followed by Resistant welding, Oxy-fuel welding, Others , Laser-beam welding and Ultrasound welding sub-segment, respectively.
Source: Coherent Market Insights
- Growing strategic activities such as mergers and acquisitions among key players are expected to offer lucrative growth opportunities
Key companies in the market are focused on strategic activities such as mergers and acquisitions, in order to gain competitive edge in the market. For instance, in 2014, Voestalpine AG acquired Maruti Weld Pvt. Ltd., in order to expand its presence in Indian market. Furthermore, in 2012, Colfax Corporation acquired ESAB, a global manufacturer and supplier of welding and cutting products.
- Adoption of welding automation technology in fabrication
Increasing demand for welding applications has accelerated adoption of automated welding. It has been predominantly used in fabrication, which is expected to drive the market growth. In developed countries, the demand for welding automation technology in manufacturing processes has increased significantly due to shortage of skilled labors. This trend is likely to continue during the forecast period.
Key companies operating in the global welding consumables market are voestalpine AG, Arcon Welding Equipment, Colfax Corporation, Kemppi Oy, The Lincoln Electric Company, Tianjin Bridge Welding Materials Co., Ltd., Air Liquide, Fronius International GmbH, Hyundai Welding Co., Ltd., Denyo Co., Ltd., Obara Corporation, Illinois Tool Works Inc., and Panasonic Corporation.
- Key companies in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in July 2019, The Lincoln Electric Company acquired controlling stake of Kaynak Teknigi Sanayi ve Tecaret.
- Key players in the market are involved in mergers and acquisitions, in order to gain enhance market presence. For instance, in March 2019, Airgas, a subsidiary of Air Liquide, acquired TA Corporate Holdings, Inc., an independent distributor welding supplies.