Welding equipment and consumables market [The Freedonia Group]

The Welding Industry Predictions In 2011

The Freedonia group published their expectations for the global welding equipment and consumables market growth in 2011, predicting that the industry would grow at 6.1% annually. They were correct, and today, we are expecting a similar growth through 2026.

At the time, the significant growth factor was the continued recovery in the major US manufacturing industries and construction markets, and the rising amount of welding applications.

The provided report states that most of the demand for welding equipment and consumables is for the arc and arc resistance welding systems. These two represent 70% of the total welding market. The automation of arc welding systems has significantly improved the weld quality, efficiency, and deposition rates, making it the dominant welding method.

The filler metal and electrodes represented 73% of the welding consumables market share. The consumables industry mainly benefited from the overall economic recovery at the time and the dominance of arc welding methods in manufacturing. The forecast period predicted the 6.3% annual growth of the welding consumables market through 2015.

Solid wires and filler metals were the most significant product categories by dollar value. However, the flux-cored and metal-cored electrodes were the fastest growing product. This could be partly because the flux-cored and stick welding processes are more resilient and don’t require a shielding gas.

The remaining 27% of consumable demand on the market belongs to the oxy fuel welding gases like oxygen and acetylene. Argon is the most common shielding gas, and CO2 takes the second spot.

The Welding Equipment And Consumables Market Predictions For 2026

Compared to the 6.1% growth from the previous period, the expected CAGR of 4.6% through 2026 is lower, but we must consider the C-19 and its impact on the global welding equipment market.

Many construction projects, including the government infrastructure projects, were stopped or paused because of pandemic. Globally, manufacturing facilities came to a halt, causing the demand for welding equipment and consumables to drop. As a result, many people were left without a job, which led them to either seek a job elsewhere or return to their homelands. Now, when things are coming back to normal, it takes a while for the demand to ramp up.

The Biggest Economic Drivers Of The Welding Equipment And Consumables

The entire welding industry depends on transportation, construction, and heavy industries. Welding processes are employed in the transportation industry to manufacture almost all vehicle body parts.

The global passenger cars production amounted to 67.14 million units, according to the report by OICA.

While this is a drop of 5% compared to 2018, the pandemic has to be taken into account.

The global automotive industry is experiencing multiple innovations and technological advancements in response to various demands from the users, and as such, it’s expected to grow the welding equipment demand.

With the automotive manufacturers leaning towards a more sustainable approach, lighter vehicles and alternative energy sources are sought. The innovation in these fields also demands the welding industry to step up and help achieve those goals, increasing its demand in the process.

The building and construction industry is growing steadily, especially in the emerging economies of China, Brazil, and India. These countries have many infrastructure development projects that will increase the demand for welding equipment, consumables, and accessories.

The increased steel use in commercial and residential buildings is also expected to improve the welding market growth. According to Global Construction Perspectives and Oxford Economics, we will see the growth of 85% of global construction output in India, China, and the US. This will positively impact the welding industry, raising the demand for welding personnel and equipment.

Impact Of Emerging And Advanced Welding Technologies On The Market Growth

Underwater welding is also experiencing a demand growth. It’s the only way to repair underwater pipelines and offshore oil platforms, and often to perform maintenance of ships and other marine vessels.

As the battle for space dominance continues, it’s likely that the innovations in the aerospace industry will increase the demand for specialized welding equipment and consumables.

The automotive industry strives towards lighter vehicles to reduce environmental load. This requires steel materials to be light and have high tensile strength. Additionally, this improves the demand for aluminum welding and other lightweight materials. Welding is paramount in achieving the goals of the automotive industry.

The Negative Impacts On The Market Growth

The welding industry’s biggest challenges are the skilled welders shortage and high labor costs. While a big chunk of welding tasks are automated, the welding industry is still highly dependent on manual welding tasks.

This is good for welders, but it slows down the market growth. Since there is a shortage of skilled welders across the world, and it gets worse with each passing year, the salaries of welders increase following their demand.

All industries we talked about rely on skilled, certified welders to do these jobs. So, there are many new emerging schools and institutes that try to prepare the next generation of welders and influence young people to pursue skilled trades as careers.