Welding Market - Forecast (2024 - 2030)
In March 2024, the United States Department of Energy (DOE) announced up to $6 billion for 33 initiatives aimed at transforming Americaâs industrial sector, strengthening domestic manufacturing, and reducing greenhouse gas emissions. This transformative federal investment is matched by the selected projects, which will increase welding activities and contribute to market growth. Furthermore, the welding industry has seen considerable technological breakthroughs in recent years, including the introduction of new techniques and equipment such as robotic and laser welding. For example, in November 2022, Comau SpA installed an automated welding system for Beijing Foton Daimler Automotive Co. (BFDA) The company stated that its welding technique will assist BFDA in meeting both present and future objectives, including a 50,000-unit annual production capacity target. These innovations improve productivity, quality, and safety, resulting in increased industrial usage.
The report âWelding Marketâ Forecast (2024â2029)â, by IndustryARC, covers an in-depth analysis of the following segments of the welding market.
By Product Type: Equipment/Accessories (Welding Machines, Gas Cylinders & Regulators, Welding Helmets, Welding Goggles, Welding Gloves, Others), Consumables (Electrodes & Filler Materials, Gases, Fluxes & Wires, Others)
By Mechanization: Manual/Mechanized Welding, Automatic Welding, Robotic Welding
By Technique: Arc Welding, Resistance Welding, Oxy Fuel Welding, Others (Laser Beam Welding, Ultrasonic Welding, etc.)
By End-Use Industry: Automotive & Transportation, Aerospace & Defense, Building & Construction, Energy, Heavy Machinery, Others
By Geography: Korea, China, Japan, USA, EU, Others
The shift towards environmentally friendly welding consumables is on the rise. Companies like, Ultrasonic Metal Welding, and Voestalpine BĂśhler Welding, ITW Welding are developing green consumables. More brands are expected to prioritize sustainable products, appealing to environmentally sensitive customers, and adhering to rules.
The welding market witnesses a growing trend in the adoption of automation and robotics. For example, in September 2023, Neuromeka demonstrated a 3D Vision Collaborative Robot for Welding at FABTECH. With the advent of advanced robots such as Novarc Technologiesâ âSpool Welding Robot,â a single human welder can achieve a 3â5x boost in pipe welding output.
The accelerated development of the electric vehicle sector presents opportunities for welding technology, particularly in battery manufacturing and assembly. For example, the Brazilian Association of Electric Vehicles (ABVE) projects a 60% increase in fully electric and hybrid car sales in Brazil in 2024 compared to 2023. Many welds are required in EV battery packs to join different parts, such as cells and connections. Busbars, collector plates, and tabs are a few examples of these connections.
By Product TypeâââSegment Analysis
Consumables dominated the welding market in 2023. The consumables segment is further divided into electrodes, filler materials, gases, fluxes, and wires. Welding electrodes and filler materials are critical components of the welding process that influence the quality and longevity of the finished weld. Matching the right welding electrodes and filler materials is crucial for certain applications. Companies are extending their line of filler metals, driving up the market for welding consumables. For example, in August 2021, ESAB launched a new line of B3 SC electrodes and fluxes for SMAW, GTAW, and SAW for 2.25% Cr 1% Mo alloyed steels, SA-387 Grade 22, A335 Grade P22, and comparable materials. The new B3 SC filler metals have modernized formulas optimized for applications that demand exceptional toughness in both post-weld heat treatment and after-step cooling treatment.
By MechanizationâââSegment Analysis
Automatic Welding dominated the welding market in 2023. Owing to its use, especially in industrial and manufacturing sectors where precision and productivity are paramount, automatic welding is advancing mechanization. Automatic welding technologiesâ popularity has been gradually expanding as sensors and automation software have advanced. For example, John Deere, an American manufacturer corporation that manufactures agricultural machinery is using Intelâs AI technology to assist fix a costly, long-standing issue in the industrial welding process. As a result, new welding technologies, such as hybrid welding, additive manufacturing, or other ways, are opening up new possibilities in welding and attaching complex materials.
By TechniqueâââSegment Analysis
Arc Welding dominated the welding market in 2023. According to TWI Ltd, a multinational engineering and technology firm, arc welding procedures continue to be the primary source of material joining, accounting for 80% of all welding in India. Arc welding requires less expensive equipment and consumables. Arc welding is popular because it can join a wide range of metals and thicknesses, making it useful in a variety of applications such as construction, automotive, shipbuilding, pipeline welding, and fabrication. Arc welding equipment is also available in manual and automatic forms, giving it the flexibility to meet the needs of various production environments and requirements.
By End-Use IndustryâââSegment Analysis
Building & Construction dominated the welding market in 2023. Welding products are used to weld complex and huge buildings in the construction industry. The marketâs expansion is being driven by the rapidly industrializing Asia Pacific region and other developing countries worldwide during the forecast period. Indiaâs real estate and construction industries are thriving, and there is always a need for welding services for residential, commercial, and industrial projects. For example, in March 2022, the Airports Authority of India (AAI) began developing new and existing airports, with a projected capital investment of approximately Rs. 25,000 crores over the next five years. This includes building new terminals, expanding and modifying existing terminals, Airport Navigation Services (ANS) infrastructure, control towers, and technical blocks, among other things. These infrastructure projects will focus on modernizing and expanding ports, enhancing port connectivity, boosting port-linked industries, and developing coastal communities, all of which will spur demand for welding.
By GeographyâââSegment Analysis
China dominated the dominated the welding market in 2023. The regionâs dominance is attributed to the flourishing manufacturing sectors, rapid urbanization, and extensive infrastructural developments. For instance, In January 2022, China unveiled plans to develop its construction industry during the 14th Five-Year Plan (2021â2025), paving a pillar of the countryâs economy on a greener, smarter, and safer path. According to the OECD TiVA database, China is the worldâs sole manufacturing superpower, and in terms of gross production, Chinaâs share is 3 times the USâ share, 6 times Japanâs in 2023. With production hubs for electronics, automotive, construction, and shipbuilding, China has a consistently high demand for welding consumables.
DriversâââWelding Market
⢠Large-scale infrastructure projects are necessitating substantial welding operations as a result of rising industrialization
The welding and cutting business has enormous potential for expansion primarily due to the growing emphasis on infrastructure development projects. Large-scale welding projects include the construction of buildings, bridges, ships, offshore oil platforms, and oil and gas pipelines. For example, in March 2023, US President-elect Joe Bidenâs $7 trillion âBuild Back Betterâ proposal featured huge new infrastructure spending aimed at revolutionizing the countryâs old and underutilized infrastructure networks.
Infrastructure development will also play an important part in implementing the âŹ1 trillion European Green Deal. According to the China National Bureau of Statistics, the total projected investment in recently started projects during the period climbed by 23.3% in 2022 on an annual basis. To guarantee that these welding projects are finished safely, effectively, and within the allotted time and budget, a great deal of planning, coordination, and execution is needed. This rising industrialization and accompanying infrastructure development drive the demand for welding operations across various sectors.
⢠The surging automotive and transportation sector
The automobile industry is a major contributor to welding market growth. To create various types of cars and parts, complex welding techniques and equipment are required. Rapid urbanization is driving up global demand for automobiles in developing countries like China, India, Brazil, and Russia. For instance, the automotive industry in India produced a total of 2,59,31,867 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Three Wheelers, and Quadricycles in in FY-2022â23, as against 2,30,40,066 units in FY-2021â22.
According to the European Automobile Manufacturersâ Association (ACEA), worldwide car manufacturing reached approximately 76 million units in 2023, a significant 10.2% rise from the year before. This boom was fueled by positive production trends that occurred across the globe. As of June 2023, the EU Commission had chosen 107 transport infrastructure projects to receive nearly âŹ6 billion in EU funding from the Connecting Europe Facility (CEF), the EUâs strategic investment instrument in transport infrastructure. The need for specialized automotive welding technology and services therefore drives the welding market along with the production of various vehicle segments.
ChallengesâââWelding Market
⢠Shortage of skilled workers and high labor cost
According to the American Welding Society, the US will require more than 360,000 welders by 2027 and the current welder shortage is mostly caused by the expansion of the new industry and the resulting requirement for skilled labor. According to data from the Weld Australia 2023 member poll, there will be a minimum of 70,000 welders shortage in Australia by 2030. This lack of welders is endangering industries across the globe and pushing down welding revenue. Manufacturing requires welding, and since there has been a labor shortage in the welding sector for several years, there are a lot of worries about this sector. The demand for qualified welders has consistently outpaced supply.
Several causes are listed as contributing to the skills gap, including retired workers, an increasing sector, and young menâs and womenâs preconceptions about working in manufacturing. However, one of the leading contributors is an aging workforce. For example, the Bureau of Labor Statistics predicts that welder positions will rise by 2% between 2022 and 2031, which is significantly less than the average for all occupations. The global welding market is facing issues as older tradespeople, many of whom belong to the baby boomer generation, are retiring at a faster rate than firms can replace them.
⢠Deployment of sustainable manufacturing strategies
Environmental concerns are becoming increasingly important in all industries, including welding. Implementing eco-friendly methods such as using renewable energy, decreasing waste through effective material management, and using environmentally friendly welding technology will help to reduce the industryâs environmental impact while promoting sustainability. For example, Metal Active Gas (MAG) welding is one of the most sustainable welding procedures. It is extremely efficient, clean, fast, precise, and adaptable in practice. Laser gas metal arc welding is another eco-friendly welding process.
Metalworkers face several hurdles while implementing green welding methods. Managing implementation concerns is one of the most difficult challenges. The transition from traditional welding processes to more sustainable ones takes time, effort, and investment in new equipment and training. Another problem is achieving a balance between environmental effects and productivity. Green welding approaches frequently necessitate slower welding speeds or lower heat inputs, which can impact efficiency and project timeframes. Metalworkers must discover strategies to address these issues while also reducing the environmental impact of their work.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the welding market. Major players in the welding market are the Lincoln Electric Company, ACRO Automation Systems, Inc., Miller Electric Mfg. LLC, Kobe Steel, Ltd., Hyundai Welding Co., Ltd., Voestalpine AG, Air Liquide, Ador Welding Ltd., Tianjin Bridge Welding Materials Group Co., Ltd., Gedik Welding among others.
In April 2024, Kemppi launched the Minarc T 223 ACDC GM, which is a portable multi-voltage welding equipment that provides high-quality AC/DC TIG welding and excellent weld cleaning.
In February 2023, Miller Electric Mfg. LLC, one of the well-known manufacturers of welding equipment and consumable products, has unveiled its Copilot collaborative welding system. This system will enable welders to achieve higher welding quality and optimize the usage of consumables, allowing users to meet increased demand.
In February 2023, TriMas, a manufacturer of a wide range of products primarily for the consumer, aerospace, and industrial markets, agreed to acquire Weldmac Manufacturing, a manufacturer of metal fabricated assemblies and components for aerospace and military. Weldmac made roughly $33 million in revenue in fiscal year 2022.
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