The arc welding process is the most preferred welding process adopted worldwide in the current scenario. As arc welding requires the use of filler metal to initiate the joining process, the market share of filler metals is the largest in the overall parent market. Arc welding can be considered as a part of the metal welding family where the welding operation uses electricity as a source of energy to fuse two or more metal work pieces together. Though arc welding techniques can be achieved through different processes, there are almost nine commercially accepted processes today. The most common among these nine welding techniques is shielded metal arc welding (SMAW), which uses a single consumable electrode to drive the welding process; cheap and easy availability of this technique makes it a standout among welding personnel. Conversely, this technique cannot be deployed for industrial applications owing to manual nature of the process and also because it consumes precious lead time. FCAW is similar to SMAW but the electrode is fed continuously and the slag coating is cored in the filler metal.
In a new report titled “Arc Welding Equipment Market: Global Industry Analysis (2012-2016) and Forecast (2017–2025),” our analysts have observed that the most common welding techniques utilized for welding operations are PAW, GMAW and SAW. These techniques can be automated with the help of software and servo motors and are at present in the growth and maturity phase. Three types of arc welding techniques namely EGW, ESW and AHW are on the verge of being phased out in the near future owing to unfavorable working characteristics, complexities in construction and associated cost restraints. Our analysts have observed that reduction in prices, a capability to weld different materials, wider product portfolio and long-term supply relations with key end use industries as well as the employment of localized arc welding professionals are some of the key strategies of leading players to enhance customer base and market share.
The global arc welding equipment market is driven by the growth of its end-use industries
The global arc welding equipment market is driven by the growth of its end-use industries such as ship building and fabrication. Asia Pacific, North America and Europe will draw in a major market share in the current and upcoming years. Asia Pacific, North America and Europe hold the highest market potential in the global arc welding equipment market. The Middle East and Africa will remain a slightly underachieving market throughout the forecast period due to low automotive and industrial manufacturing activities in this region. Arc welding equipment represents a significant market share at the global level in terms of volume and will be the most preferred type of welding for fabrication, industrial and shipbuilding; making it an attractive opportunity for manufacturers to invest in the development and marketing of arc welding equipment.
Primarily, we have focused on highlighting the numerous developments that are likely to take place in the global arc welding equipment market in the coming decade. Our analysts have studied the market extensively and have identified multiple drivers, restraints, and trends that are expected to influence the global arc welding equipment market and consequently the business operations of the leading as well as second-in-line players functioning in the global arc welding equipment market. Through extensive research, our analysts have studied how the different market dynamics are likely to impact the current environment and future scenario of the global arc welding equipment market, thereby providing useful insights to market players to plan their differentiating strategies capable of evolving with the changing market landscape.
By Automation Level
By Technology and Gas Usage
We have adopted a systematic research approach while inspecting this market. In-depth secondary research is used to arrive at the overall market size, top industry players, top products and industry associations. Our analysts have formulated a detailed discussion guide to conduct interviews with industry experts, industry players, distributors and retailers. Data is validated using the triangulation method, wherein primary and secondary data along with Persistence Market Research analysis contribute to the final data. We have also analyzed companies’ annual reports, investor presentations, SEC filings and press releases to fetch substantial information about the market size, trends, opportunities, drivers and restraints.
Asia Pacific all set to dominate over North America with a US$ 750 Mn opportunity by 2025
Asia Pacific is projected to create a total incremental $ opportunity of more than US$ 1,100 Mn between 2017 and 2025. The region is expected to account for more than 30% share of the global market absolute $ incremental opportunity. Among all the assessed regions, Asia Pacific is projected to account for a relatively large market share in terms of both value and volume, while Latin America will account for a relatively low market share in terms of value by 2025. Among all the Asia Pacific countries, China is projected to account for a relatively large market share in terms of both value and volume, while ASEAN countries will account for a relatively low market share in terms of value by 2025.
Demand for welding services and solutions and expansion in general fabrication and manufacturing to boost the Asia Pacific arc welding equipment market
Economic growth in Asia Pacific countries such as China, India and South Korea is likely to accelerate in the coming years, which essentially means that there will also be an increase in construction and manufacturing activities in the region. This will lead to higher demand for arc welding equipment, which in turn is estimated to boost the demand for arc welding gases. Various parameters of arc welding equipment, such as cost effectiveness, strong weld and ease of operation add to the demand for arc welding equipment in the APAC region for applications such as energy, automotive & transportation, construction, ship building and metal fabrication and processing. The arc welding sector and arc welding gases industry are related to each other as far as economic gains and losses are concerned. Growth in one sector is almost always a good indicator of growth in the other and vice versa.
The Asia Pacific arc welding equipment market is likely to be driven by expansion activities in general fabrication and manufacturing, especially owing to the growth in the automotive, construction, shipbuilding and oil & gas industries. Initiatives taken by governments to expand fabrication and manufacturing activities by encouraging foreign investment in countries such as Thailand, Myanmar, Indonesia and Philippines is anticipated to spur the demand for arc welding equipment and gases. Moreover, a majority of manufacturers are shifting their manufacturing operations to South Asian countries such as Thailand, Vietnam and Indonesia owing to labour arbitrage, geographical advantages and a steadily growing skill base. Also, the recent ‘Make in India’ campaign and increased FDI is driving the growth of various manufacturing industries in India. These factors will fuel the growth of the arc welding equipment market in the Asia Pacific and subsequently contribute to global market growth.
Slow adoption of advanced arc welding technologies and low price offering by local players will restrain revenue growth of the Asia Pacific arc welding equipment market
Slow adoption of advanced arc welding technologies such as plasma arc welding, electro gas arc welding and submerged arc welding in Asia Pacific countries such as India, Thailand, Myanmar, Indonesia and Philippines is a major restraint for the growth of the arc welding equipment market in the APAC region. Cost sensitivity in Asia Pacific countries is another factor hampering investments in advanced arc welding technologies.
Local manufacturers hold a significant share in the arc welding gases market. Local players offer their products at a relatively low cost, resulting in high market competition and therefore compel manufacturers to sell at lower costs. In short, the sales of welding gases/mixtures namely argon, argon/carbon dioxide mixture and carbon dioxide is being challenged by local players who offer their products at a lower price, forcing international gas companies to carefully choose what segments they want to play in.