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The global welding consumables market size was valued at USD 12.2 billion in 2021 and is projected to grow from USD 12.6 billion in 2022 to USD 16.7 billion by 2029, exhibiting a CAGR of 4.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with welding consumables experiencing lower-than anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global welding consumables market exhibited a growth of 1.9% in 2020 as compared to 2019.
Welding consumables are flux and filler metals used during the welding process. Filler metals are melted to form a strong bond between two metals while flux prevents heated metals from oxidizing during the process. Copper, nickel, ilmenite, rutile & aluminum are some of the basic minerals used in the manufacturing of these consumables. These consumables help to ensure cost-effective welding, protect the molten weld from impurities in the air, and prevent porosity from forming in the weld pool. As a result, they are common in the construction, automotive, energy, shipbuilding, and aerospace sectors.
With an increasing tendency toward combining two different metals, the need for bespoke and novel metal designs/shapes, increased fabrication, and uses in other intensive industries, such as manufacturing, automotive, and oil & gas, the market is exploding. Furthermore, the introduction of different welding technologies, such as resistance spot and plasma welding, and the widespread implementation of robotic welding solutions are the primary drivers of market expansion.
Disruption of Manufacturing Operations & Low Steel Demand Hampered the Market
The coronavirus pandemic had a substantial impact on the labor market and the global economy as a whole, radically changing the dynamics of manufacturing and other industries. Due to lockdowns, travel bans, and company closures, the COVID-19 pandemic has affected economies and businesses in a number of nations. The manufacturing industries experienced substantial disruptions such as supply chain disruptions, technology event cancellations, and workplace closures.
China, the pandemic's epicenter and key industrial base, has significantly delayed global corporate operations and caused huge disruptions in regional and global value chains. The market collapse caused by COVID-19 due to factory closures, supply chain disruptions, and the global economic downturn has also impacted market growth and expansion.
Additionally, the consumables industry for welding is also facing some major disruption in their business & manufacturing operations. According to the American Iron & Steel Institute Data, the U.S. steel mills reduced production, and they worked at roughly 50% capacity, compared to 80% in the previous year. Whereas steel output in Europe decreased by 50% due to lack of new orders, decreasing by roughly 75%.
Furthermore, the fabrication industry also experienced a downturn, such as total production unit shutdowns, construction project delays or cancellations, and a shortage of trained welders on the worksite.
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Utilization of Smart Materials in the Welding Industry to Bolster Market Growth
Energy-efficient and ecologically friendly "smart" materials are gaining traction in the market. There is a growing understanding of how materials perform at the atomic level to combine two dissimilar metals without compromising their strength, corrosion resistance, or other performance properties. Additionally, the smart material has an embedded computer chip to track weld life and provide a multi-functional design.
Additionally, for example, NiTi shape memory welding and joining facilitate flexibility in terms of the intelligent design of multifunctional systems. Additionally, incorporating such materials consumes less energy and reduces pre- and post-heating processes. Manufacturers, product designers, and welders benefit from integrating such technology to improve the entire manufacturing cycle.
Hence, the increasing consumption of smart resources is further contributing to the welding consumables market growth across the globe.
Multiple Applications of Welding Technology & Demand in the Automotive Industry are Fueling Market Growth
Welding has progressed significantly in recent years as one of the most fundamental and adaptable ways of constructing metals. Additionally, it is a widely utilized metal manufacturing method in a variety of sectors.
For instance, welding is an important procedure in the construction of buildings, bridges, and pipelines as well as a variety of other engineering objects.
Against this backdrop, the market is poised for excellent growth, with some high-potential areas experiencing increased government investment in infrastructure construction. Furthermore, the market is further utilized in the automotive industry to create lightweight, high-quality car parts. Due to improvements in vehicle safety features and the development of automobile designs, this industry has strengthened its position in the market. Similarly, in growing countries, such as China, India, and South Africa, the launch of various development and housing projects has given the construction sector a boost.
However, the energy sector is likely to benefit from rising demand for renewable energy plant capacity, including solar and wind farms. The construction of pipe systems will also help in the growth of the market over the forecast period. Hence, industrialization, urbanization, growing Foreign Direct Investments (FDI), and technical improvements are some of the main factors driving market expansion.
Volatility in Supply of Raw Materials to Hinder Market
Raw material price inconsistency is a key issue restricting the growth of the welding consumables industry. Steel, aluminum, graphite, iron, and a variety of other raw materials are used to make these consumables. In addition, changes in trade rules, imbalances in the supply and demand ecology, volatility in foreign currency rates, and heightened geopolitical threats are all contributing to price fluctuations in these resources. This has a negative influence on manufacturers and affects the cost of consumables manufacturing, forcing manufacturers to cut profit margins to remain competitive in the global market. Apart from that, the industry is being restrained by an increase in workplace accidents due to a scarcity of competent welders.
Furthermore, the welding consumables industry is facing challenges due to the retirement of experienced personnel and a shortage of competent people. Welding-intensive businesses, such as heavy engineering, automotive, and construction, are suffering as a result of this predicament. The scarcity of competent welders has ramifications in other industries. As a result, these constraints are posing challenges to the welding industry and limiting the market growth.
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Solid Wires Holds Major Share Due to Increasing Utilization in Various Applications
Based on type, the market is classified into solid wires, flux-cored wires, stick electrodes, and SAW wires & fluxes.
Solid wires are frequently used in many end-user industries for metal inert gas welding (MIG). The welding industry is now focusing on simple, cost-effective welding solutions to protect workpieces from the external environment. A single line plays an important role as it prevents oxidation; the mild steel solid wire is plated with copper, which improves conductivity and extends the life of the weldment.
Furthermore, the flux-cored wires segment holds a dominant position owing to the increased demand from several end-use industries. This wire is expected to be the first choice for new entrants due to its high deposition rate, efficiency of work execution, and production of clean and strong welds. In addition, the increasing preference for cored wires in the construction and shipbuilding industries is expected to increase the global demand for these wires.
Moreover, stick electrodes are intended for use in welding operations involving mild and low alloy steel due to their inexpensive cost and a wide range of uses in end-use industries, and thus they are favored over other consumables.
The acceptance of SAW wires & fluxes is projected to increase attributed to their properties that allow the welding to withstand high temperatures, resist corrosion, and high-thickness materials.
Arc Welding to Have Substantial Growth due to Rising Smart Factories & Industry 4.0
Based on welding technique, the market is further categorized into arc welding, resistance welding, oxy-fuel welding, solid state welding, and others (electron beam welding).
The arc welding segment to exhibit substantial growth during the forecast period. The growth is attributed to the procedure that uses concentrated heat of an electric arc to join metallic materials. These processes include two categories, consumable electrode processes and non-consumable electrode processes.
Moreover, resistance welding witnessed a considerable rise as it involves applying force and passing of an electric current through the metal workpiece to heat and melt the area defined by the electrode and/or workpiece.
Additionally, oxy-fuel welding is projected to have a remarkable increase in the upcoming years. This is owing to its utilization of fuel gases and pure oxygen to increase the flame temperature for the local melting of the workpiece.
Furthermore, solid state welding is expected to have a sluggish growth as it includes the use of temperatures below the melting points of base materials.
Heavy Engineering Industry to Grow Significantly due to Rising Smart Factories & Industry 4.0
Based on application, the market is further divided into automotive, building & construction, heavy engineering, railway & shipbuilding, oil & gas, and others (aerospace).
Due to building of factories that are high-end, such as smart factories, Industry 4.0, broad use of robotic welding across different industries, and the evolution of new technologies, heavy engineering is predicted to increase at a modest rate in the next few years.
The construction industry is growing fast due to government efforts for infrastructure development, restructuring of current residential and commercial projects, and increased foreign direct investment in developed and developing countries.
The automotive industry is expected to develop at a significant rate. This is due to the rising trend toward customized automobiles, integration of robotic solutions in automakers' manufacturing facilities for bespoke welding, introduction of smart and high-end factories, and other factors.
Railways are expected to rise steadily in the next few years as a result of increased investment in current and new transportation projects, growing disposable income, and government measures to improve connectivity. With the growing use of two different metals in this industry, the adoption of robotic solutions to create essential portions of ships, and the rising momentum of corrosion-resistant underwater chamber welding, shipbuilding is expected to expand at a slower rate.
Asia Pacific Welding Consumables Market Size, 2021 (USD billion)
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The report's scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
Asia Pacific holds the largest market share and is expected to expand at the fastest rate over the forecast period due to the presence of developed and developing welding consumables companies operating primarily in China, India, and South Korea. Furthermore, the regional market is being driven by a large intake of capital and high adoption of smart technologies such as robotic welding.
According to the India Brand Equity Foundation (IBEF), leading domestic firms in the technology, manufacturing, and construction industries are investing outside of India, which will fuel market growth in the future. For example, Larson & Turbo (L&T) is continually investing in power equipment manufacture, whereas Bharat Heavy Electrical Limited (BHEL) intends to sell its goods to Syria and Vietnam.
Following Asia Pacific, North America is likely to develop at a consistent rate due to the existence of significant manufacturers in these regions. Furthermore, companies in these areas are making specific efforts toward technical advances, a focus on aftermarket services, and increased spending in research and development operations, all of which are helping with the market growth.
Europe is likely to demonstrate continuous market expansion during the forecast period due to the region's fully developed marketplaces for consumables suppliers. The European Union is taking stringent actions regarding increasing pollution levels across the region, which is resulting in producing environment-friendly products. This is leading the consumables manufacturing companies to produce efficient products that can help in reducing the pollution level in the coming future & contributing toward increasing the global Welding consumables market share.
The Middle East & Africa region is expected to increase significantly as a result of the rising demand for automobiles and the availability of raw resources in the region's car and transportation sectors. The government of Saudi Arabia has launched a project named Vision 2030, under which various international investors are expected to invest in several sectors, including construction, IT, logistics, tourism, and many more. This results in the market growth of welding consumables in the country, which is ultimately influencing the regional growth of the market.
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Latin America is likely to grow at a modest rate due to the adoption of modern welding technologies, the government's concentration on infrastructure development, and the expansion of large manufacturers' production facilities across the area to serve the unattended market.
Leading Welding Consumables Players are Emphasizing on Training Welders Professionally to Create a Strong Brand
Various welding groups and governmental entities are collaborating with key manufacturers to train welders with modern technology. Weld Australia, for example, is collaborating with the federal and state governments, as well as different Technical and Further Education (TAFE) institutions around the country, to teach new welders and upskill existing welders.
An Infographic Representation of Welding Consumables Market
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The research report provides a detailed analysis of the type, application, and industries of welding consumables. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.
Value (USD billion)
By Type, Welding Technique, Application, and Region
By Welding Technique
Fortune Business Insights says that the market was valued at USD 12.2 billion in 2021.
In 2029, the market is expected to be valued at USD 16.7 billion.
The global market is estimated to have a noteworthy CAGR of 4.1%
Asia Pacific is expected to hold a major market share. The region stood at USD 4.46 billion in 2021.
Within the type segment, solid wires segment is expected to be the leading segment in the market during the forecast period.
Multiple applications of welding technology and demand in the automotive industry are fueling the market growth
Lincoln Electric, KOBE STEEL, LTD, ESAB, CS HOLDINGS CO., LTD., Hyundai Welding Co., Ltd, Panasonic Corporation, Fronius International GmbH, RME MIDDLE EAST, voestalpine BÖHLER Edelstahl GmbH, and Tianjin Golden Bridge Welding Materials Group International Trading Co., Ltd are the top companies.
Heavy engineering industry is expected to drive the market.
The major players in the market constitute approximately 15%-20% of the market share, which is majorly owed to their brand image and presence in multiple regions.
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