Power Generation Industry Expansion Increases Demand for Welding Consumables
Electricity consumption has been rising significantly all around the world. The total amount of electricity consumed in the United States in 2022 was approximately 4.05 trillion kWh, according to the U.S. Energy Information Administration. Furthermore, to meet the rising demand for electricity, the United States is focused on renewable energy sources such as geothermal, hydropower, municipal solid waste (MSW), landfill gas (LFG), biomass, solar, and wind. Renewables are expected to account for about 95% of the increase in global electricity capacity by 2026, according to the IEA. Several governmental and private power generation players are investing in the development of power generating facilities. As per the US Energy Information Administration (EIA), energy generators and power plant owners added 39.7 gigawatts (GW) of new electricity generating capacity in 2022. Significant growth in renewable-based electricity production facilities, particularly wind, is expected to drive worldwide demand for welding consumables in the coming years. Welding consumables are widely used as joining materials in power generating facilities for the construction of important structural components and heavy equipment and machinery such as pipe, rims/wheels, turbine, pressure vessel, and so on. Thus, it is expected that the growth of the renewable sector for energy generation would enhance the global welding consumables market throughout the forecast period.
Multiple Uses of Welding Technology as well as Demand in the Automotive Sector are Driving Market Growth
Welding is a crucial procedure in the construction of structures such as buildings, bridges, and pipelines, as well as a range of other engineering objects. Against this backdrop, the industry is poised for strong expansion, with increasing government investment in infrastructure projects in several high-potential areas. Additionally, the welding consumables is used in the automotive industry to make lightweight high-quality car parts. This business has enhanced its market position as car safety features have improved and automobile designs have evolved. Similarly, the launch of major development and housing projects in developing nations such as India, and South Africa has boosted the construction sector. The construction of pipe systems will also contribute to the market's growth throughout the forecast period. As a result, industrialisation, urbanisation, rising Foreign Direct Investment (FDI), and technological advancements are among the primary drivers driving market development.
Recent Trends in Welding Consumables Market Industry:
- Innovations in welding consumables, such as enhanced flux formulations.
- Improving performance and efficiency in various welding applications.
- Growing emphasis on eco-friendly and sustainable welding consumables.
- Driving demand for welding consumables in construction, automotive, and energy sectors.
- Integration of digital technologies, such as welding monitoring systems.
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Volatility in Raw Material Supply Will Hamper Market Expansion
Inconsistency in raw material prices is a major barrier to the expansion of the welding consumables market. These consumables are made from steel, aluminium, graphite, iron, and a number of other basic materials. Furthermore, changes in trade restrictions, supply and demand ecology, fluctuation in foreign currency rates, and increased geopolitical risks all contribute to price variations in these resources. This has a detrimental impact on manufacturers and raises the cost of producing consumables, requiring manufacturers to reduce profit margins in order to compete in the global market. In addition, a shortage of competent welders is hindering the company's ability to operate due to an increase in workplace accidents. Furthermore, the welding consumables business is facing issues due to the retirement of experienced workers and a shortage of competent people. As a result, these limits pose challenges for the welding sector and hinder market expansion.
Developments in Materials and Technology Enhancing Performance and Efficiency Drive Market Growth
Advancements in materials and technology that improve performance and efficiency are a major factor driving market growth in welding consumables. Enhanced flux and filler material compositions are enhancing weld performance and longevity, as advancements in consumables designed for automation support the increasing adoption of robotic welding technology. For instance, Lincoln Electric released the POWER MIG 215 MPiTM multi-process welder in July 2022, a lightweight dual-input voltage machine with an innovative ergonomic design. The POWER MIG 215 MPi welder expands on the excellent foundation provided by Lincoln Electric's POWER MIG 210 MP welder by providing more capability in a rugged container optimised for mobility. Additionally, WB Alloy, a welding and cutting firm based in Glasgow, extended its operations in December 2022 by acquiring a 50% stake in TVC, an English data and welding inspection company.
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High Adoption of Smart Technologies in Asia Pacific Region Drives the Market Expansion
Asia Pacific holds the biggest market share and will likely expand at the fastest rate during the forecast period due to its abundance of developed and emerging welding consumables firms especially in India, China, and South Korea. Furthermore, the regional market is being propelled by significant capital flows and widespread adoption of advanced technologies such as robotic welding. Leading domestic companies in the technology, manufacturing, and construction industries, according to the India Brand Equity Foundation (IBEF), are investing outside of India, which will fuel market development in the future. For instance, Larson & Turbo (L&T) continues to make investments in the production of power equipment, whilst Bharat Heavy Electrical Limited (BHEL) plans to export its products to Syria and Vietnam. Due to the presence of significant manufacturers in these regions, North America is projected to expand at a steady rate after Asia Pacific. Furthermore, firms in these sectors are focusing on technological advancements, aftermarket services, and higher expenditure on research and development activities, all of which are contributing to market growth.
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The report provides a detailed overview of the welding consumables market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for welding consumables market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the welding consumables market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the welding consumables market. Some key country and region included in the welding consumables market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Austria, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Welding Consumables Market Research Report Covers In-depth Analysis on:
- Welding consumables market detailed segments and segment-wise market breakdown
- Welding consumables market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in welding consumables industry)
- Current, historical and forthcoming 10 years market valuation in terms of welding consumables market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Welding consumables market demand analysis
- Welding consumables market pricing analysis over forecast period (by key segment and by region)
- Welding consumables market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in welding consumables market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in welding consumables market
- Welding consumables market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on welding consumables market forecast by countries
- Mergers and acquisitions in welding consumables market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the welding consumables market?
The growth is primarily driven by the increasing demand for automation in industries, rising infrastructure investments, and advancements in welding technologies, enhancing overall efficiency and productivity.
What are the key trends influencing the welding consumables market?
Key trends include the adoption of eco-friendly materials, automation in welding processes, and the integration of advanced technologies such as artificial intelligence and robotics in welding operations.
Which regions are expected to dominate the welding consumables market in the next decade?
North America and Asia-Pacific are projected to dominate the market due to industrial growth, technological advancements, and a rising number of construction and manufacturing projects.
