Welding Products Market Analysis, By Technology (Arc, Resistance, Oxy-fuel, Laser Beam), By Product (Stick Electrodes, Solid Wires, Flux-cored Wires), By End Use (Transportation & Automobiles, Building & Construction), And Segment Forecasts, 2018 - 2025

Industry Insights

The global welding products market size was estimated at USD 11.82 billion in 2015 and is expected to witness significant growth over the forecast period. The factors can be attributed to rising demand from key application segments such as building and construction, transportation and automobiles, and marine.

During the period 2016 - 2025, the global market is expected to grow at a CAGR of 5.3% to reach USD 19.76 billion by 2025. This growth can be credited to rapid urbanization and infrastructure development especially from emerging economies such as India, China, and others. Asia Pacific and Europe together account for more than 53% of global market size. Rapid infrastructural development and technological advancements in the automotive industry are expected to encourage demand over the forecast period.

U.S. welding products market, by product, 2013-2025 (USD Million)

Automotive industry consumes these products in various sectors including the manufacturing of automotive components to produce high-quality, lightweight, and fuel efficient components. The process of joining two components using a weld is regularly used in the production of vehicle components and bodies in order to maintain the mechanical properties of the welded base metal. The selection of welding material depends upon the type of end use. For instance, saw wires and fluxes are used in topside structural or stress relieved applications which increase the strength and density of the base metal.

However, using welding products can pose health and safety issues to operators. Owing to these concerns, regulatory bodies such as the European Union, American Welding Society (AWS), ECHA, OSHA, REACH, and American National Standards (ANSI) have imposed regulations on usage over certain limits. ANSI has identified potential threat of injury and illness to an operator during operations and has recommended that tasks be carried out in open space to avert health hazards.

Stick electrodes accounted for the highest share in the global market with a size of USD 4,250.9 million in 2015 and is projected to reach at USD 6,777.8 million by 2025. They can be used on rusty or dirty surfaces and others. The core of the stick electrode is covered by flux material which contains the mixture of metal powder and mineral compounds. This flux helps in the efficient flow of electricity during the process. The usage of stick electrodes is very convenient pertaining to location of the operation. For instance, stick electrodes are widely used in applications, such as nuclear power plant construction, heavy fabrication, ship building, and others, which are relatively easy, cost-effective, and portable in nature.

Asia has transformed into a manufacturing hub with emerging economies, such as India and China, driving majority of the growth. Government endeavors coupled with rapid infrastructural developments are further propelling market demand in the region.

Application Insights

Welding products are widely used in various applications such as oil and gas, aerospace and aircraft, metals and materials, automobile, construction, and marine industry. The process is crucial for final output and is utilized in the automotive industry for manufacturing components and vehicle chassis in ship building for operations on structural components like engines, pipes, and machines.

In recent years, welding equipment manufacturers have emphasized on advanced technology. For instance, the rising adoption of automated technology enables welders to weld large and complex metals and avoid health hazards. In addition, identifying appropriate product has always been a major concern. The growth in demand for welding products is directly proportional to the growth advantage to the automotive industry.

Furthermore, welding products are extensively used in the construction of pipelines, building, bridges, and other engineering work in the construction application. Metals are selected in the construction industry on the basis of its weather resistance, durability, and strength. It is optimally designed with high precision in order to match the grade of metal alloys to the environment after welding. These characteristics will help in manufacturing light-weight buildings with flexible design and offer easy modifications.

Regional Insights

The Asia Pacific and Europe regions are expected to contribute significantly to market growth over the coming years primarily driven by technological innovations, overall end-user growth, and low production costs in countries such as Brazil, India, China, Japan, and others. The end-user applications, such as automotive and construction, have been experiencing significant growth in these countries over the past few years.

Global welding products market, by region, 2015 (%)

The construction industry in Asia Pacific is the prominent factor driving the growth of welding technology mainly driven by increasing investments in infrastructure development and rapid industrialization especially in the emerging economies in the region. Asia Pacific accounted for USD 3,883.7 million in 2015 and is projected to grow at the rate of 6.3% from 2016-2025. The growth of the automotive segment in hubs like Germany and China is expected to fuel demand in the upcoming years.

Competitive Insights

The key industry players in the global market include Colfax Corporation, The Lincoln Electric Company, Illinois Tool Works Inc., Hyundai Welding Co., Ltd., Denyo Co., Ltd., Panasonic Welding Systems Co., Ltd., Sandvik AB, Obara Corporation, and Air Liquide among others. In February 2014, Colfax acquired Victor Technologies Holdings, Inc. The acquisition has helped the company to increase its customer base. The companies in this market are focusing on partnerships and collaborations with key players to enhance their market presence and increase profitability.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country level and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2025. For the purpose of this study, Grand View Research has segmented the market on the basis of technology, product, application and region:

• Technology Outlook (Revenue, USD Million; 2013 - 2025)

  • Arc Welding

  • Resistance Welding

  • Oxy-fuel Welding

  • Laser Beam Welding

  • Others

• Product Outlook (Revenue, USD Million; 2013 - 2025)

  • Stick Electrodes

  • Solid Wires

  • Flux-cored Wires

  • Saw Wires and Fluxes

  • Others

• Application Outlook (Revenue, USD Million; 2013 - 2025)

  • Transportation & Automobiles

  • Building & Construction

  • Marine

  • Others

• Regional Outlook (Revenue, USD Million; 2013 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa