The global welding consumables market is anticipated to be valued at USD 18.02 billion in 2023. The market is expected to expand at a CAGR of 6% from 2023 to 2033, surpassing a valuation of USD 32.27 billion by 2033.
Driving Forces:
Challenges:
Investment Opportunities:
Trends:
| Attributes | Value |
|---|---|
| Welding Consumables Market Valuation (2023) | USD 18.02 Billion |
| Welding Consumables Market Projected Size (2033) | USD 32.27 Billion |
| Welding Consumables Market Expected CAGR (2023 to 2033) | 6% |
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The global welding consumables industry witnessed a substantial rise at a CAGR of 5.6% from 2018 to 2022. A surge in industrialization, particularly in developing economies, played a pivotal role in driving the market forward. The escalating demand for high-quality welding consumables and advancements in welding technologies propelled the market to new heights.
During this period, the construction and infrastructure sectors exhibited robust growth, increasing demand for welding consumables such as electrodes, wires, and fluxes. Moreover, the automotive and aerospace industries experienced significant expansion, further bolstering the market.
The rising emphasis on worker safety and the need for efficient welding operations also fueled the demand for premium welding consumables. Manufacturers responded by introducing innovative products with enhanced features, including improved arc stability, reduced spatter, and increased productivity. Furthermore, stringent environmental regulations prompted the development and adoption of eco-friendly welding consumables. This shift towards sustainable solutions positioned market players as responsible contributors to ecological conservation.
The welding consumables industry is expected to witness a compound annual growth rate (CAGR) of 6% during the forecast period. Looking ahead to 2023 to 2033, the global welding consumables market is poised for continued growth and evolution. Several factors are expected to shape the market landscape during this forecast period.
One of the key drivers of market expansion will be the ongoing industrialization in emerging economies. Rapid urbanization, infrastructure development projects, and the growing manufacturing sector will generate substantial demand for welding consumables across diverse industries. New materials and alloys with unique welding requirements will also present opportunities for specialized welding consumables. Lightweight and high-strength materials, such as aluminum and advanced steel, will require tailored consumables to ensure optimal weld quality and performance.
Principal Consultant
Increase in the application of welding robots
Welding robots are known to work with great precision and have effectively addressed a lot of safety concerns. Apart from that, they offer the most precise repeatability, as a result of which the time taken for mass production of certain items is drastically reduced.
Furthermore, the manufacturers also believe that the application of welding robots is known to optimize quality and minimize manufacturing costs. Apart from that, easy offline program generation and the ability to easily import third-party paths enable customers to swiftly take solid models from the digital world to real-time.
A cost-effective way of joining metals
The method of joining metals via coalescence using welding consumables is an economical and, at the same time, effective process for creating strong joints. Apart from that, the ability to produce a shield around unsuitable gas for avoiding oxidation and, at the same time, acting as a deoxidizer is expected to further increase the demand for welding consumables during the forecast period.
The ability to provide so many benefits at an economical cost has convinced investors to go in for the welding consumables.
Adoption of IoT
Incorporating the Internet of Things in the welding consumables market has changed the face of the market to a great extent for good. One of the primary advantages is that the IoT assists in gathering and monitoring the data that can be crucial for improving efficiency.
Apart from that, IoT can also provide valuable insights into what might work and what might not work on a long-term basis. Moreover, the application of IoT in welding consumables has also reduced the wastage of materials.
The increasing price of raw materials
Supply chain management problems currently exist because of several conflicts taking place at the international level. This has led to an increase in the price of raw materials because of their lack of availability.
In some countries, the situation is like there is an acute shortage or even absence of raw materials, which has forced many organizations to temporarily suspend their operations.
Lack of skilled workers
If there is one factor that can potentially hamper the demand for welding consumables, it is the absence of skilled workers. Hence, the manufacturers must train the labor to display the required skills in automotive, marine, etc.
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The growth of the welding consumables sector is expected to be driven by the massive growth of the automotive, transportation, and construction sector. The reason is that the welding consumables are used for several reasons, like straightening, bending, surfacing, brazing, etc., in these sectors.
Additionally, increased usage of welding consumables for maintenance and repair purposes in sectors like aviation, automobile, etc., presents further opportunities for the market.
| Region | Details |
|---|---|
| North America | Based on the data available, it is anticipated that not much growth would be observed in the North American market. It is expected to be a steady market during the forecast period. However, the growth of robotics and IoT can change the fortunes of the welding consumables sector in this region. It is expected that the North American market anticipated to grow at a CAGR of 4% during the forecast period. |
| Europe | Being home to many automobile and automotive manufacturers, the Europe market is expected to grow during the forecast period. Moreover, increasing investment in workers' safety is expected to propel the market growth going further. Apart from that, increased investment in renewable sources of energy might as well propel the market's growth in the region. |
| Asia Pacific | Asia Pacific is expected to dominate the welding consumables market during the forecast period and is also expected to be the fastest-growing market. The Asia Pacific market was valued at nearly USD 5 billion in 2022. The increasing adoption of welding robots in China and Japan represents attractive opportunities for the welding consumables sector. Moreover, owing to flexible government policies, key players in the construction, automation, and automotive segment have started investing in the Indian market. |
The welding consumables market in the United States is expected to expand at a modest CAGR of around 2.5% during the forecast period. The primary driver behind this anticipated growth is the increased application of automation in the automotive sector. As automation gains prominence, the demand for welding consumables is expected to surge, driven by the need for reliable and efficient welding solutions.
Manufacturing Capabilities Expansion Fuels Demand for Welding Consumables in the United States
To meet the growing demand and enhance production capabilities, manufacturers in the United States are taking strategic steps. This expansion of manufacturing capabilities is expected to increase welding consumables' application nationwide. As industrial plants aim to improve efficiency and productivity, utilizing welding products becomes vital in ensuring robust welding operations.
Rise of Low-Heat Input Welding Techniques Boosts Automation Adoption in the United States Automotive Industry
The automotive industry in the United States has witnessed increased adoption of low-heat input welding techniques. This shift has significantly contributed to the application of automation in automotive original equipment manufacturing (OEM). By embracing these techniques, the industry achieves enhanced precision and productivity, paving the way for the broader adoption of automation technologies in welding processes.
Infrastructure Development Drives Welding Consumables Demand in the United States
The United States is experiencing a notable increase in infrastructure activities, necessitating consistent welding of metal sheets and tubes. In these applications, oxy-fuel welding equipment plays a prominent role in straightening, brazing, and other welding-related operations. The demand for welding consumables in infrastructure development projects continues to grow as these materials ensure reliable and durable welds for critical structures.
The China market is witnessing substantial growth, primarily driven by the robust development activities in the robots and cobots market. Robotic welding, known for its superior speed, efficiency, and process monitoring capabilities, has emerged as a game-changer in the welding industry. The significant advantages of robotic welding tools and processes have propelled their adoption, fueling the demand for welding consumables in China.
Customized Metal Shapes Drive Demand for Welding Consumables in China Market
In China, the increased demand for customized metal shapes across various industries, including oil and gas, manufacturing, renewable energy, automobiles, and aviation, presents a significant opportunity for welding consumables. The versatility and adaptability of welding consumables allow for precise and reliable welding of complex metal structures, catering to the diverse needs of these industries.
The Japanese construction industry holds concrete growth opportunities for the welding consumables market. Approximately 13% of the industry's labor share is dedicated to welding and welding supplies-related activities. This highlights the significant potential for welding consumables in Japan, where welding is crucial in construction projects.
Hot-Laser Welding Machines: Driving Welding Consumables Adoption in Japan
Japan is expected to witness increased adoption of hot-laser welding machines, particularly for coating materials that utilize textiles and plastic. These advanced welding machines offer precise and efficient welding capabilities, improving productivity and quality in welding operations. The availability of such cutting-edge technology further drives the demand for welding consumables in the Japanese market.
The Indian market is projected to grow at a CAGR of nearly 5.9% during the forecast period, with an expected valuation of USD 1 billion by 2030. The architecture and engineering industry and the construction sector provide substantial growth opportunities for the welding consumables sector in India. The country's vibrant construction landscape, coupled with various infrastructure projects, creates a favorable environment for the application of welding consumables.
Innovative Gas Cylinders and Built-In Regulators: Driving Welding Consumables Growth in India
The presence of innovative gas cylinders in India has significantly contributed to the growth rate of the welding consumables market. These advanced cylinders ensure the safety of workers and optimize welding operations by integrating built-in regulators. The combination of innovative gas cylinder technology and optimized welding processes enhances the overall efficiency, reliability, and safety of welding operations in India.
The demand for arc welding type is expected to remain the highest during the forecast period. Having said that, the segment is facing stiff competition from different forms of beam welding techniques. The reason being these do not make use of electrodes. Moreover, the filler materials that are used in the beam welding technique do not impact the consumption of welding consumables.
The stick electrodes segment is expected to occupy the highest market share, based on the data available from FMI analysts. They are expected to have a market share of USD 8.97 billion over the forecast period. The stick welding electrodes are mainly used as filler materials for linking metals to protect them from any kind of damage.
However, if we talk about the fastest growing category, it is the wires because of their ruggedness and less surface area, which protects the metal from corrosion.
The construction segment is likely to hold the highest market share during the forecast period. Rapid infrastructural development, along with technological developments in the construction sector, is expected to drive the construction segment during the forecast period. Moreover, increasing investments from governments across the globe to develop their infrastructure is another factor that might further surge the growth of the construction sector, as these make use of welding robots and welding rods.
Being a relatively new niche for the start-up ecosystem, the entrepreneurs are taking gradual but strong steps to cater to the market using their innovative ideas.
Path Robotics is one such start-up, which was founded in 2014. The company provides solutions pertaining to robotic welding. It makes use of scanning, computer vision, and AI to adjust itself to different parts. Apart from that, the operations are further synergized when dealing with highly reflective materials, and it is in this phase that robotics is put into application.
In July 2022, Path Robotics managed to raise USD 100 million in an investment round which was led by Tiger Global and also included the participation of Silicon Valley Bank. This round bought the total funding received by Path Robotics to USD 171 million.
In the fast-paced and competitive world of welding consumables, key players are engaged in fierce competition to establish their dominance in the market. These industry leaders employ various strategies to stay at the top while navigating challenges and capitalizing on investment opportunities.
The key players are introducing a wide range of welders, and these have been developed keeping in mind end users from different niches. Moreover, all the welders have been manufactured in such a way that they are portable enough to find their way in almost any place. The reason is that these are provided with multiple lift points and inverter technology that reduces weight and maximizes power.
Strategies for Success: Key Players' Approach
Recent Developments in the Market:
Taiyo Nippon Sanso: Innovating for Global Expansion
Taiyo Nippon Sanso stands out as a frontrunner in the welding consumables industry, focusing on the commercialization of innovative products through its strategic innovation approach. With a global business expansion plan for self-developed products and those acquired through open innovation, the company is committed to pushing the boundaries of welding technology. Taiyo Nippon Sanso also offers stable isotope-labeled compounds that find applications in various research fields, including medicine, biotechnology, chemistry, science, engineering, and nuclear energy. The company's proactive, collaborative, and nature-integrated philosophy, evident in its logo, represents its dedication to delivering superior quality and transparency. Recently, they announced a joint investment with Nippon Steel Corporation to establish the Kimitsu Sanso Center, further cementing their growth objectives.
Hyundai Welding: Unrivaled Welding Solutions
Renowned as a world-class welding company, Hyundai Welding prides itself on delivering the finest welding solutions to meet diverse industry needs. Their commitment to excellence shines through their provision of high-quality welding consumables and equipment. Hyundai Welding's Pohang R&D Center is at the forefront of developing welding solutions tailored to customer requirements. With a focus on high-functioning, eco-friendly, and highly efficient welding materials, the research institute consistently adapts to evolving market dynamics. By continuously addressing customer needs and anticipating global market changes, Hyundai Welding ensures that their welding solutions remain at the cutting edge of the industry.
VBC Group: Global Distribution Excellence
Recognized as a leading global distributor, VBC Group specializes in a comprehensive range of products, including welding wire, brazing alloys, and more. With an unwavering commitment to customer satisfaction, they prioritize timely product delivery. VBC Group's core markets encompass aerospace, aviation MRO, power generation, and thermal management technologies. Their extensive product portfolio ensures they cater to the unique demands of these industries. As a trusted partner in the welding consumables market, VBC Group remains dedicated to meeting customer expectations and maintaining its prominent position in the industry.
North America region generated maximum share of the global demand in 2023.
The United States is estimated to record 2.5% of CAGR through 2033.
An arc welding type segment contributes a maximum share in the global market.
The construction segment holds a maximum revenue of the global market share.
From 2018 to 2022, the global market exhibited 6% CAGR.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumables 5.1. Stick Electrodes 5.1.1. Mild steel 5.1.2. Stainless steel 5.1.3. Low Alloy 5.1.4. Nickel 5.1.5. Aluminium 5.1.6. Others 5.2. Gases 5.3. Strip Cladding Electrodes 5.4. Submerged Arc Wires and Fluxes 5.5. Wires 5.5.1. Metal Cored Wires 5.5.2. MIG/MAG Wires 5.5.3. Flux Cored Wires 5.6. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Welding Type 6.1. Arc Welding 6.1.1. Shield Metal Arc Welding 6.1.2. Gas Metal Arc Welding 6.1.3. Flux Cored Arc Welding 6.1.4. Gas Tungsten Arc Welding 6.2. Energy Beam Welding 6.3. Plasma Arc Welding 6.4. Submerged Arc Welding 6.5. Electro Slag Welding 6.6. Resistance Welding 6.7. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Automotive 7.2. Construction 7.3. Oil and Gas 7.4. Marine 7.5. Power Generation 7.6. Aerospace and Defence 7.7. Industrial Fabrication 7.8. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. The Lincoln Electric Company 18.2. Illinois Tool Works Inc 18.3. Taiyo Nippon Sanso Corporation 18.4. Air Liquide S.A. 18.5. Hyundai Welding Co, Ltd. 18.6. Air Products and Chemicals, Inc. 18.7. EWM AG 18.8. MESSER Group GmbH 18.9. Ador Welding Limited 18.10. WB Alloy Welding Products Limited 18.11. FSH Welding Group 18.12. GCE Group AB 18.13. Industrial Welding Corporation 18.14. The VBC Group Ltd. 18.15. Hilarius Haarlem Holland B.V. 18.16. Kiswel Ltd 18.17. Magmaweld 18.18. Gedik Welding 18.19. Chosun Welding 18.20. Selectrode Industries 19. Assumptions & Acronyms Used 20. Research Methodology
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Welding Consumables Market
