Global Welding Materials Market - 2023-2030

Market Overview

Global Welding Material Market reached US$ 13.5 billion in 2022 and is expected to reach US$ 17.3 billion by 2030 growing with a CAGR of 4.6% during the forecast period 2023-2030.

In order to combine metal components and make solid, long-lasting connections, welding materials are a vital part of structural building. The components have been designed to withstand the demands of the structure and ensure the strength and security of the building. Fluxes, electrodes and shielding gases are all required throughout the welding process to produce welded joints.

Welding fluxes, which are non-metallic substances, are employed for a variety of purposes, such as shielding the arc and weld puddle from the environment's impacts and reducing spatter during arc welding. Gas welding uses flux to clean the base metal's surfaces, while electro slag welding uses it to create an electrically conducting melt with unique engineering properties.

In 2022, it is expected that the welding materials market would be dominated by Asia-Pacific with more than 33%. The vast construction industry is anticipated to drive Asia-Pacific welding materials market. Global construction production is anticipated to increase by 85% and reach US$ 15.5 trillion by 2030, according to Global Construction Perspectives and Oxford Economics, with India, China and U.S. leading the way and accounting for more than 50% of the global expansion.

Market Dynamics

Technological Development and Expansion of Construction Industry

Owing to the increasing adoption of welding methods like laser and ultrasonic welding, the global welding materials market has grown. The need for welding materials will likely increase further because welding is the only joining method that can be used for applications including those in space and under water. The construction sector has expanded quickly in recent years.

Investments in infrastructure projects, economic growth and technical advancements are all contributing to the industry's growth. U.S. Census Bureau predicts that 1,760,000 new housing permits will be issued nationally in April 2021. Additionally, according to IBEF data, the Indian real estate market is expected to exceed US$ 650 billion by 2025.

Shortage of Skilled Labor

Skilled labour is essential to the welding market. Experts in the welding sector believe that there is a global lack of trained welders. A significant issue for the welding market is the high cost of labour in the industrialised world. The majority of contractors working on infrastructure projects use welding and cutting equipment and they frequently run short on trained welders.

Metal joining techniques are crucial to infrastructure projects in the fields of transportation, power and infrastructure (roads, trains, bridges, etc.). In 2020, there will be a shortage of 1.2 million welders, cutters, fitters and equipment operators, according to the Indian Institute of Welding (IIW). Additionally, it predicted that by 2023, India may have a 1.35 million labour shortfall.

COVID-19 Impact Analysis

A decline in industrial production, particularly in the automotive and machinery sectors, had a direct influence on the demand for welding materials. The industry of welding has gradually reduced employment, which is a result of COVID. Many experienced welders are nearing retirement age, while younger workers now prefer to work for white-collar jobs over metal fabrication jobs.

The fact that many personnel were unable to arrive on site made things much harder for welding manufacturers. U.S. Bureau of Labour Statistics reports that despite the severe labour shortage, demand for welders and other related jobs climbed by 2% between 2021 and 2023. It implies that the welding industry will keep expanding and advancing as technology does.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine has increased geopolitical risk and uncertainty, which has an effect on market stability and investor confidence. The geopolitical environment may change the ways that welding materials are traded and sourced. Businesses could search for other suppliers to lower the risk of the conflict. Changes in trade routes, higher transportation prices and delays in the supply of welding supplies have an effect on the global market.

The conflict and its fallout have caused economic instability, a decline in investment and commercial uncertainty in both Russia and Ukraine. The infrastructure, industrial and construction industries in these countries have all been harmed. As a result, these businesses have less need for welding materials, which has an impact on the market.

AI Impact Analysis

By enabling predictive designs in welding, AI can positively affect the global welding materials market. Robotics and automation will have a major impact on the market for welding materials in the future. The welding industry is changing as a result of developments in artificial intelligence (AI), machine learning (ML) and robotic welding technologies.

Many advantages come with robotic welding systems, such as increased production, accuracy and affordability. The systems are capable of handling repetitive jobs accurately, which leads to constant weld quality. Robots can learn and adapt by combining AI and ML, which improves their capabilities and productivity. Businesses that adopt these technologies can streamline operations, shorten manufacturing times and more effectively manage resources.

Segment Analysis

The global welding materials market is segmented based on type, technology, end-user and region.

Growing Welding in Structural Infrastructure

The construction & building end-user segment, which is the largest, is projected to account for more than 1/4th share of the global welding materials market. Welding is typically used for structural purposes when building infrastructure. The reason for this happens because the majority of structures built in this industry are megastructures that rely on strong metal frames made by welding.

Steel, in particular, may be used to construct some infrastructure, such as bridges, virtually entirely. The players are working to create new welding materials to suit the demand since the construction industry has a variety of welding needs. For instance, Lincoln Electric unveiled new GTAW (TIG) cut lengths in 2020 that have high silicon compositions and stainless steel alloys for a precise and high-quality welding process.

Geographical Analysis

Growing Infrastructure Projects in North America

Due to the significant penetration of cutting-edge welding materials technology for the region's building & construction and automotive industries, the North America welding materials market is expected to account for about 1/3rd of the global market during the forecast period. The need for welding in North America is anticipated to expand as infrastructure projects progress.

For instance, the Southwest Florida International Airport will spend US$ 250 million in 2023 to expand its terminal to accommodate additional checkpoints and check-in sections that need metals and blocks to be fixed and welded at specific locations. It is expected to increase demand for welding materials and fuel market expansion in the region.

Competitive Landscape

The major global players include: ESAB, Colfax Corporation, Air Liquide S.A., Air Products & Chemicals, Illinois Tool Works, Linde PLC, Lincoln Electric Holdings, Tianjin Bridge Welding Materials Group, Kobe Steel and HYUNDAI WELDING CO., LTD.

Why Purchase the Report?

• To visualize the global welding materials market segmentation based on type, technology, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of welding materials market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global welding materials market report would provide approximately 61 tables, 59 figures and 201 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies