Positive Projections for the Welding Equipment Industry

Written by: Asra Jawaid
Written by: Asra Jawaid

Persistence Market Research (PMR) has released a new report entitled “Welding Equipment Market: Global Industry Analysis and Forecast, 2016-2024”, in which they provide a comprehensive analysis of the global welding equipment market. The study offers insights into the key factors and trends likely to shape this market over the next eight years. Global sales of welding equipment are estimated to be valued at US$10.5B by the end of this year, posting a compound annual growth rate (CAGR) of 7.9% between 2016 and 2024.

The provider of market research reports and consulting services believes the global welding equipment market is likely to witness sustained growth in the next eight years. The increase is attributed to flourishing automobile and construction industries, especially in emerging economies such as China and India. Other driving factors include fast growth in the transportation industry and increasing demand from the oil and gas industry. Market growth is likely to be assisted further by an increasing number of end-use applications that employ different types of welding techniques and equipment. One of the major trends expected to be observed in the coming years is an increasing need for welding automation technology in fabrication. On the other hand, the slow adoption of advanced welding technologies in developing countries will likely hinder market growth.

The welding equipment market is described in terms of welding technology (for example, arc welding, resistance welding, oxyfuel welding, and laser beam welding, among others); level of automation (manual, semi-automatic, automatic); application (automobile/transportation, building/construction, marine, etc.); and region (North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific, and the Middle East and Africa). Researchers expect the overall market for arc welding equipment to expand at a CAGR of 7% between 2016 and 2024, closing out 2016 at approximately $5 billion (US$4,979.1M) and reaching just over $8.5 billion (US$8,580M) by the end of 2024. The laser beam welding segment is expected to grow by about $2 billion (US$1,772.9M) in the same period.

Automated welding equipment will account for 66% of the market by 2024.
Automated welding equipment will account for 66% of the market by 2024.

Not surprisingly, automated welding equipment accounts for the lion’s share of the global welding market. By the end of this year, that segment is expected to account for 65.9% of the overall welding equipment market. In contrast, the semi-automatic segment is projected to comprise 25.4% of the market in the same timeframe. In terms of applications, the automobile and transportation segment can expect to see a robust CAGR of 4.5% over the same 8-year forecast period. The PMR study estimates 394,200 units by the end of 2016 and 603,700 units by the end of 2024.

Among regions of the world, Asia-Pacific is the largest market for welding equipment and is expected to remain dominant throughout the forecast period. The value of the market in this region is projected to expand 1.9 times between now and 2024. It is currently valued at just under $3.5 billion (US$3,441M) and is expected to grow by almost the same amount (US$3,146.5M) by 2024. Although smaller, the welding equipment market in the Middle East and Africa can expect a formidable CAGR of 8.6% in the next 8 years, exceeding a value of $1.5 billion (US$1,640.4M) by the end of 2024.

The report mentions some of the leading companies operating in the global welding sphere, including vest alpine AG, Colfax Corporation, the Lincoln Electric Company, Obara Corporation, Panasonic CAGR Corporation, Illinois Tool Works Inc., Fronius International GmbH, Rofin-Sinar Technologies, Sonics and Materials, Inc., Arcon Welding Equipment, DAIHEN Corporation, Amada Miyachi, Inc., and Nelson Stud Welding, (Doncasters Group Ltd.). Major market players are consolidating the global market through strategic mergers and acquisitions and are investing in technological innovations to solidify their market toehold and expand their customer base.

If you are interested in growing your skills as a welding equipment sales professional make sure to check out the Online Certified Welding Sales Representative Seminar at AWS Learning. It is specifically designed for salespeople, distributors, manufactures, and supervisors that want to gain a technical understanding of welding principles, methodology, equipment, consumables, and variables.