Welding Products Market Size, Share & Trends Analysis Report By Technology (Arc, Resistance), By Product (Stick Electrodes, Solid Wires), By Application, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global welding products market size was estimated at USD 14.49 Billion in 2019 and is projected to register a revenue-based CAGR of 6.2% over the forecast period. Factors such as design flexibility, reduction in the overall weight of the building structures, and the ease of modification are projected to promote the demand from construction and industrial application segments.

The rapid expansion of the construction industry across the globe owing to the rising demand for residential and non-residential construction across economies, such as India, China, and Indonesia, is projected to propel the market growth. In addition, extensive application in manufacturing, automotive, and transportation industry is likely to fuel the market growth.

The construction sector in the U.S. is expected to witness high growth over the forecast period, which, in turn, is predicted to drive the demand for welding products. A wide range of applications in construction coupled with technological advancements, development of innovative manufacturing methods is likely to benefit the market growth.

The ongoing infrastructural development across economies such as the U.S., Germany, U.K., India, China, and Indonesia coupled with the rising government investments is projected to promote the demand. In addition, the rise in renovation and refurbishing activities across the globe is expected to augment the market growth over the forecast period.

Notable threats from substitutes such as clinching, adhesives, and rivets are expected to limit the growth in demand for welding products. However, factors such as continuous improvements, technological advancements and manufacturing methods, application of standard and specific welding techniques are expected to help overcome the challenges.

Shortage of skilled labor across the globe is expected to affect various application industries including automotive and transportation, building and construction, and marine. In order to meet the current and future demand, there has emerged the need to develop less complex but highly efficient equipment and technology.

Technology Insights

The resistance welding technology segment is projected to expand at a CAGR of 6.2% from 2020 to 2027 and reach USD 1.01 billion in 2027. Growing use of resistance welding technology in the automotive industry for various processes such as spot welding, projection welding, and seam welding is likely to promote the growth of the segment.

Continuous innovations in arc welding technology, such as robotic arc welding, is one of the key factors driving the segment growth. The technology is used to weld metals in a wide range of thicknesses with good flexibility. Rising application of the technology is projected to drive the segment growth in the forthcoming years.

Oxy-fuel welding technology is gaining significant growth on account of its rising use in industrial manufacturing applications. The equipment used in this technology is highly cost-efficient which promotes its implementation in welding fillet, butt, and lap joints with the object thickness up to 5mm.

Other technologies include electron beam, induction, flow, electro-slag, and laser hybrid welding. These technologies are employed in various applications such as heavy plate fabrication, shipbuilding, switchgear devices, railway tracks, and storage tanks.

Product Insights

In 2019, stick electrodes were the largest product segment in welding products market and accounted for a revenue share of 36.6% in 2019. Growing use of stick electrodes as filler materials for joining metals to protect the metal from damage and improve the welding strength is anticipated to benefit the expansion of the segment over the forecast period.

Solid wires segment accounted for USD 4.48 billion in 2019 and is projected to expand at a CAGR of 5.8% from 2020 to 2027. Solid wires exhibit favorable mechanical properties such as ruggedness and have less surface area, which helps protect the base metal from corrosion. These wires are extensively utilized in various application segments such as marine and house electrical wiring.

Saw wired fluxes react with the weld pool to provide high-quality metals with desired properties. This promotes its utilization in applications, such as exploration platforms, pressure vessels, fabrication of offshore drilling platforms, and post-weld heat treatment. Growing use of saw wire fluxes for manufacturing the aforementioned applications is likely to fuel the segment growth.

Other welding products, such as stainless steel alloys, MIG wires, metal-cored wires, aluminum MIG, and TIG, and thermal spray wire are contributing significantly to the market growth. These products are extensively utilized on account of their unique mechanical properties and cost-efficiency.

Application Insights

Building and construction accounted for 36.36% of market share in 2019 and is anticipated to expand at a CAGR of 6.5% from 2020 to 2027. Rapid industrialization and infrastructure development in the emerging economies has contributed to the growing demand for the welding processes and consumables and is anticipated to support the segment growth. Continuous technological innovation to weld complex and large structures in construction industry is fueling growth. In addition, rapid urbanization is the crucial factor in boosting demand. A rise in infrastructural development projects across the globe is projected to further fuel the market.

Ship engines include structural components, such as bridges and pipes that are made of metals and alloys. The welding process is majorly used in the shipbuilding industry to enable the production of oil-tight and watertight joints. In addition, it also helps improve structural durability and maintenance costs as compared to rivet joints. Factors, such as increasing importance of manufacturing high-quality marine components and growing marine applications are anticipated to drive the demand for welding operations and thus are likely to have a positive impact on the growth. The demand for production of smooth hull surfaces by decreasing the bare hull resistance is also anticipated to fuel the growth.

Regional Insights

Europe accounted for USD 3.3 billion in 2019 and is estimated to expand at a CAGR of 5.6% from 2020 to 2027. The presence of global automobile manufacturers including Volkswagen, BMW, and Mercedes among others, exhibits high production volume every year, thereby maintaining high demand for the products in the region.

European countries are initiating efforts to balance their economic trade, which is expected to boost the maritime activities in the region. In addition, rising tourism sector is also expected to drive demand for recreational marine products, thereby driving the growth of shipbuilding activities in the region. This in turn is likely to augment the growth of welding operations.

The market in Asia Pacific is expected to exhibit the highest growth over the forecast period, on account of the rapid expansion of automotive industry on account of the highest automobile production. The region is expected to benefit from the presence of rapidly growing economies such as China, India, Indonesia, and Japan.

The increasing demand for electric cars and hybrid cars on account of shifting consumer preferences towards affordable energy-efficient plug-in cars such as Nissan-leaf, Toyota Prius PHV, and others is expected to drive the automotive industry, which in turn is expected to benefit the market for welding products over the forecast period.

Welding Products Market Share Insights

Prominent players are investing heavily in R&D and introducing new products and welding techniques. Major players have introduced products that are durable and rigid in a bid to serve welding applications. The Lincoln Electric Company and Colfax Corporation are the prominent players with a wider product portfolio and established distribution network across the globe.

The market is also affected by the presence of small- and medium-scale regional manufacturers who offer products at considerably low prices. Also, these players position themselves as regional experts and excel in state and national level sales. This enables them to establish a strong foothold in the competitive market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global welding products market report on the basis of technology, product, application, and region:

• Technology Outlook (Revenue, USD Million, 2016 - 2027)

  • Arc Welding

  • Resistance Welding

  • Oxy-Fuel Welding

  • Laser Beam Welding

  • Others

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Stick Electrodes

  • Solid Wires

  • Flux-Cored Wires

  • Saw Wires and Fluxes

  • Others

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Automotive & Transportation

  • Building & Construction

  • Marine

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • Thailand

    • Malaysia

    • Philippines

    • Australia

    • Vietnam

  • Central & South America

    • Brazil

  • Middle East & Africa