The global welding market size was USD 19.53 billion in 2019 and is projected to reach USD 27.22 billion by 2027, exhibiting a CAGR of 4.3 % during the forecast period.

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The welding industry has evolved significantly over the past few years, with a widened applications scope, driven by advances in tools associated with the welding process. Also, shortage of welders across the globe is a major factor behind high adoption of robots across major industries. For instance, according to The American Welding Society, a welder shortage of 2,91,000 will be in effect by 2020. Besides this, advances in methodologies have enabled the integration of augmented reality, internet of things, fixtureless welding, intelligent sensors and others is enabling manufacturers to boost efficiency, scalability and early return on investments. For instance, in September 2019, Yaskawa Motoman unveiled ArcWorld 50 Series streamlined with advanced functions, such as weld inspection and process monitoring.

Outbreak of the Covid-19 Pandemic Slashed Fabrication and Construction Industry

The recent coronavirus outbreak has had a huge economic and labor market impact, and affected several manufacturing industries. Generally, China is considered to be the central manufacturing hub for various industries majorly automotive, manufacturing, heavy engineering and others. For instance, China accounts for 27% of India’s automotive parts imports. However, slowing down of many business operations are creating adverse repercussions on the regional and global value chains. Imbalance in the supply demand ecosystem halted the fabrication processes of fixtures and fittings of such automotive parts. Similarly, till March 2020, 20% of the global trade in manufacturing intermediate products originated from China. Besides, the construction industry continues to underperform due to dampened global demand owing to unavailability of workers on-site, delay or cancellation of future projects and others. For instance, according to the Associated General Contractors (AGC) of America, the COVID-19 pandemic has delayed construction projects for 28% of the contractors due to the shortage of subordinates.

LATEST TRENDS

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Evolution of Advanced Technologies Contributing to the Market Growth.

The surging trends towards joining dissimilar and non-metallic materials, customized metal shapes and designs, emergence of different techniques and others is bringing a new wave of advancement and reshaping the industry. In such scenarios, adoption of robotic welding is increasing as it reduces the time during operation, provides high precision welds and productivity in minimal time. Also, streamlining of various intuitive technologies embedded in robotic solutions such as the internet of things, artificial intelligence, cloud data, and smart sensors along with effective physical stature is enabling the reduction of accidents at the workplace. For instance, in July 2017, Fanuc Corporation launched Arc Mate 100iD robot configured with new graphical user interface and several intelligent functions ideally for narrow work spaces, repeatable quality and monitoring processes at every level of production.

DRIVING FACTORS

Availability of Equipment on Rental Basis is Contributing to the Market Growth

High upfront cost has encouraged suppliers to offer rental services or leasing schemes through various distribution channels. This is a major factor driving the welding equipment market. Apart from that, as a part of service contract, the equipment suppliers and sales distributors can create additional customer value by offering training, workshops, and other kinds of useful do-it-yourself information, which serves a marketing purpose and functions to highlight the increased value of products to customers. Execution of such contracts could generate significantly more value for customers than standard product purchases.

RESTRAINING FACTORS

Lack of Availability of Skilled Welders at Factory Floor is Anticipated to Hinder the Market Growth

Currently, the industry is witnessing several challenges as the engineers performing these activities on floor have been enlightened with different precautions and discipline, but rare guidance for conducting welding activity. In addition to this, these users usually learn to weld while they are performing the operations and hardly through apprenticeships or formal welder training. In such scenarios, there is a high risk of accidents as the operator is not well versed in the factors such as time needed to heat the metals, supply of required current, adjustments in noise and others.

SEGMENTATION

By Product Type Analysis

Consumables Segment is Generating the Highest Revenue Backed by Rising Deployment across Various Industry Verticals

Based on product type, the market is segmented into the equipment and consumables.

The consumables segment holds a dominant position in this market in terms of revenue due to the high demand for customized solutions for joining dissimilar and non-metallic materials, rise in consumption of steel, and others. Moreover, the welding industry is now emphasizing on adopting simple and cost-effective solutions to safeguard the work piece from the external environment. In such a scenario, consumables are gaining impetus as the raw material utilized for manufacturing consumables comprises copper, rutile, aluminum, which possesses high tensile strength and antioxidants.

The equipment segment is expected to show considerable growth rate in the forecast period owing to rising trend of automated machines deployed across various user industries such as automobiles and construction for joining thermoplastics, metals, and others

By Process Type Analysis

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Arc Welding is Expected to Grow Significantly in the Forecast Period with Rising General Fabrication Industry

Arc, Spot, MIG/TIG, Laser are the key types of welding considered in the scope amongst others (Gas welding)

Arc welding is anticipated to show significant growth in the coming years owing to the rising adoption of fusion processes, utilization of high strength low-alloy (HSLA) across various industries as it is a flexible and cost-effective process.

Spot welding is anticipated to grow at a moderate rate in the coming years owing to the low cost method’s, high reliability, efficiency, accessibility, and ability for robot automation, compared to other joining methods, make it ideal for automotive production.

MIG/TIG and laser welding is expected to grow at steady over the forecast period owing to demand for high precision for different grades of steel with mild steel as it provides better strength.

By Application Analysis

Heavy Engineering Segment Grow Significantly in the Coming Years Backed by Introduction of Smart Factories

The application segment is further categorized into automotive, building & construction, heavy engineering, railway & shipbuilding, oil & gas, others

The heavy engineering segment is expected to grow exponentially over the forecast period owing to introduction of smart factories, industry 4.0, rising automation and others. Moreover, high demand for precision welding is widening, mainly for joining two different metals without losing its properties, which is further supplementing the welding market growth.

The automotive segment is expected to grow significantly in the forecasted period as the automotive industry is focusing on reducing the weight of vehicles by replacing metal parts with plastics, which requires high precision. Moreover, the automotive industry is preferring to embrace advanced technology in order to make the best use of high tensile strength steels that are deployed in manufacturing the automotive parts and establish a global position of technological superiority further boosting the market.

Besides this, with the increasing number of residential, commercial projects, the building & construction segment is expected to grow at a considerable rate over the forecasted period. Also, government initiatives for infrastructure development, availability of bank loans at cheaper rates, are uplifting the construction sector, according to the industry analysis.

Oil & gas and railway segment is expected to grow moderately over the forecast period owing to rising infrastructure in developing economies, adoption of various precision techniques to perform critical operations such as railway tracks, underwater pipelines, and others

REGIONAL INSIGHTS

Asia Pacific Welding Market Size, 2019 (USD Billion)

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The scope of the study is further segmented across five major regions, namely North America, Europe, Asia Pacific, Middle East and Africa and Latin America. They are further categorized into countries.

Asia Pacific holds the highest welding market share and anticipated to grow in the forecast period owing to the presence of local registered and unregistered manufacturers, rising construction and heavy engineering industries majorly in countries like China, Japan and India. For instance, in March 2020, China government released investment plans and “major infrastructure” projects wherein around USD 4.8 trillion would be invested to overcome potential pressure of COVID-19 outbreak and boost the dipping real estate business.

Following Asia Pacific, North America and Europe are anticipated to grow at a steady rate in the coming years owing to the presence of major manufacturers operating in this region. Additionally, the explicit efforts of these companies regarding technological developments, focus on the aftermarket services, and high pouring of investments in research and development activities are contributing to the regional market growth.

The Middle East and Africa and Latin America are expected to grow at a moderate rate owing to increasing construction expenditure in these regions. For instance, according to The International Trade Administration (ITA), in 2019, the Brazilian Ministry of Infrastructure has planned 59 new construction projects with a total investment of around USD 10 billion. Besides, high investments in the oil & gas sector in the MENA region are also projected to influence the market potential in the coming years. For instance, in January 2019, China led investment in oil & gas projects in the Middle East and Africa of around USD 75 billion.

KEY INDUSTRY PLAYERS

Key Players are Focusing on Cost Leadership Strategy to Stay Competitive in the Global Market

Major manufacturers are focusing on adopting various pricing strategies to counter fluctuating raw material prices. For instance, Lincoln Electric adopted a product mix and effective pricing management approach to pursue profitability despite persistent raw material inflation. Also, suppliers are proactively improvising its existing product lines in terms of costs, quality and processes to meet the changing needs of the customers and maximize profitability. For instance, DENYO CO., LTD. is focusing on machines by reviewing the sales structure and developing new products to increase stay competitive in the market.

LIST OF KEY COMPANIES PROFILED:



Lincoln Electric (Ohio, United States)



KOBE STEEL, LTD (Hyogo, Japan)



ESAB (Maryland, United States)



ZULFI (Al Zulfi, Saudi Arabia)



KISWEL CO., LTD. (Seoul, Korea)



CS HOLDINGS CO., LTD. (Gyeongsangbuk-do, Korea)



RME MIDDLE EAST (Dubai, UAE)



voestalpine BÖHLER Edelstahl GmbH (Linz, Upper Austria)



capilla (Leopoldshöhe, Germany)



Tianjin Golden Bridge Welding Materials Group International Trading Co., Ltd. (Tianjin, P. R. China)



Miller Electric Mfg. LLC (Wisconsin, United States)



KEY INDUSTRY DEVELOPMENTS:



March, 2020: - Voestalpine Böhler Welding acquired Selco s.r.l. to make a strategic development to better serve to its customers and gain profitable business.

Voestalpine Böhler Welding acquired Selco s.r.l. to make a strategic development to better serve to its customers and gain profitable business.

May, 2019: - Lincoln Electric entered into an agreement with Kaynak Tekniği Sanayi ve Ticaret A.Ş company to strengthen its current product portfolio and to advance Lincoln Electric’s regional growth strategy.



REPORT COVERAGE

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The report provides an in-depth analysis of the market dynamics and competitive landscape. It provides various key insights including recent industry trends and developments in the market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.

Report Scope & Segmentation