WELDING EQUIPMENT MARKET ANALYSIS

Global Welding Equipment Market was valued at US$ 16.82 Billion in 2022, exhibiting a compound annual growth rate (CAGR) of 10.54% from 2023 to 2030.

Welding equipment is used to join two or more materials permanently, by using metals or thermoplastics. There are different types of welding processes such as electric arcs, gas flames, electron beams, electric resistance, friction, electron beams, lasers, ultrasound, and molten metal baths. Different equipment are used in welding including welding helmets, gloves, blankets, etc., in order to withstand hazardous heat, sparks, glare, and spatter generated during welding. Moreover, welding tables and accessories are used during welding to improve efficiency and accuracy during welding tasks.

Global Welding Equipment Market- Regional Insights

Global Welding Equipment Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

The global welding equipment market exhibits regional variations in terms of demand and growth opportunities. North America is a prominent region in the market, driven by the presence of major industries such as automotive, aerospace, and construction. The region's emphasis on technological advancements and automation has led to the adoption of advanced welding equipment for efficient and precise welding processes. Additionally, the rising demand for energy and infrastructure projects further contributes to the growth of the welding equipment market in North America.

Europe is another significant market for welding equipment, characterized by a strong manufacturing sector. The region's focus on renewable energy projects, automotive manufacturing, and infrastructure development drives the demand for welding equipment. Moreover, stringent safety regulations and the need for high-quality welds in industries like oil and gas and petrochemicals further fuel the market growth in Europe.

Asia Pacific is a rapidly growing market for welding equipment, primarily due to the robust industrial sector and infrastructure development in countries like China and India. The region's expanding automotive, construction, and shipbuilding industries contribute to the increased demand for welding equipment. Moreover, the presence of a large labor force and the shift towards automated welding solutions drive the market growth in Asia Pacific.

Latin America and the Middle East & Africa also offer significant growth opportunities in the welding equipment market. In Latin America, the demand for welding equipment is driven by the development of the oil and gas industry, infrastructure projects, and automotive manufacturing. Similarly, in the Middle East & Africa, the construction sector and the growth of the oil and gas industry contribute to the market expansion.

Figure 1. Global Welding Equipment Market Share (%), By Region, 2022

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Global Welding Equipment Market- Impact of Coronavirus (COVID-19) Pandemic

The spread of COVID-19 hampered the global economy severely. Lockdowns were imposed by governments of various countries. Many automotive component manufacturing companies were shut down temporarily due to financial crises, lack of manpower, and shortage of components. Welding equipment is used in the automotive industry to fix cracked vehicle panels, welding exhaust on cars or rusted metals, and improve the appearance and reliability of the welds. Hence, the global welding equipment market witnessed slow growth during the pandemic.

Global Welding Equipment Market– Drivers

Industrialization and Infrastructure Development

Rapid industrialization and infrastructure development projects worldwide drive the demand for welding equipment. As countries invest in the construction, manufacturing, and energy sectors, there is a need for welding equipment for fabrication, assembly, and maintenance purposes. For instance, in 2020, India launched the ambitious National Infrastructure Pipeline (NIP) initiative, which aimed to invest approximately US$1.5 trillion in infrastructure projects over the next five years. The initiative encompassed sectors such as roads, railways, airports, ports, and urban infrastructure. These large-scale infrastructure projects required extensive welding operations, driving the demand for welding equipment in the country.

Growing Construction Industry

The construction industry, including residential, commercial, and infrastructure projects, is a significant driver for the global welding equipment market. As urbanization and population growth continue, the demand for welding equipment for structural fabrication, steelwork, and building maintenance is expected to rise.

Energy and Power Sector relies on welding equipment

The energy and power sector, including oil and gas, renewable energy, and power generation, relies on welding equipment for various applications. The construction and maintenance of pipelines, power plants, and infrastructure require welding processes, contributing to the market's growth. For instance, the U.K. witnessed the completion of major offshore wind farms such as the Hornsea One and Hornsea Two projects. These projects involved extensive welding activities to join steel components, fabricate foundations, and install subsea cables.

Global Welding Equipment Market– Opportunities

Infrastructure Development

Infrastructure development presents a significant opportunity for the global welding equipment market. As countries worldwide invest in the construction of new infrastructure projects and the renovation of existing ones, the demand for welding equipment is expected to surge.

In developing countries, rapid urbanization and population growth are driving the need for improved transportation systems, including roads, bridges, and railways. Welding equipment plays a crucial role in the construction and maintenance of these infrastructure projects, ensuring structural integrity and safety. Moreover, the expansion of airports, ports, and other logistical hubs requires welding equipment for the construction of terminals, hangars, and storage facilities.

In developed countries, aging infrastructure presents a unique opportunity for the welding equipment market. Renovation and retrofitting projects are undertaken to enhance the lifespan and functionality of existing structures such as bridges, buildings, and pipelines. Welding equipment is indispensable in repairing and reinforcing these structures, ensuring their structural integrity and compliance with safety standards.

Furthermore, the development of renewable energy infrastructure, such as wind farms and solar power plants, requires welding equipment for the fabrication and installation of supporting structures. Welding plays a critical role in connecting and securing components, such as wind turbine towers and solar panel frames, ensuring their stability and performance.

Industrial Automation

Industrial automation in welding equipment offers several benefits, it improves the precision and consistency of welds by eliminating human errors and variations. Automated welding systems can ensure accurate weld placements, controlled heat input, and consistent weld quality, resulting in stronger and more reliable welds.

Furthermore, automation enhances productivity and reduces cycle times. Automated welding systems can operate continuously without the need for breaks, resulting in higher production rates. By eliminating manual handling and positioning of workpieces, automation streamlines the welding process and reduces non-productive time, leading to improved overall efficiency.

Global Welding Equipment Market– Trends

Adoption of Advanced Welding Technologies

The market is witnessing an increased adoption of advanced welding technologies, such as laser welding, friction stir welding, and electron beam welding. These technologies offer benefits such as higher precision, faster welding speeds, improved quality, and reduced heat-affected zones. As industries strive for enhanced productivity and efficiency, the demand for these advanced welding techniques is growing. Automation and robotics have revolutionized the industry, offering precise and efficient welding solutions. For Instance, in 2020, Hyundai Motor Company, (multinational automotive manufacturer) implemented a fully automated welding system at its Ulsan plant in South Korea. The system utilizes robotic welding arms to increase production efficiency and improve weld quality in the assembly of vehicles. This adoption of automation and robotics showcases the industry's pursuit of higher productivity and precision.

In 2021, the aerospace industry witnessed the increased use of laser welding for critical components. Boeing, for instance, implemented laser welding technology for the assembly of the fuselage sections of its new 777X aircraft. Laser welding enabled precise and high-quality welds, ensuring the structural integrity of the aircraft while reducing production time and costs.

Integration of Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are finding their way into the welding equipment market, offering capabilities such as automated defect detection, predictive maintenance, and adaptive control systems. These technologies enhance welding process control, quality assurance, and productivity, leading to improved overall performance.

Global Welding Equipment Market– Restraints

High Initial Investment

The initial investment required for welding equipment, especially advanced technologies, and automated systems, can be significant. This high upfront cost can act as a restraint for small and medium-sized enterprises (SMEs) and businesses with limited capital, hindering their ability to adopt modern welding equipment. To counterbalance this, Equipment leasing and financing are viable counterbalance measures for addressing the high initial investment restraint in the welding equipment market. By opting for equipment leasing, businesses can avoid the burden of significant upfront costs and instead make regular lease payments, which are often more manageable. This approach enables companies, especially smaller players, to access state-of-the-art welding machinery and technology without depleting their capital reserves.

Environmental Regulations

Environmental regulations related to emissions, waste management, and energy efficiency impact the welding equipment market. Welding processes can generate emissions and waste, necessitating proper control and disposal measures. Manufacturers must comply with environmental regulations, which can add costs and complexity to their operations.

Figure 2. Global Welding Equipment Market Share (%), By Welding Technology, 2022

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Global Welding Equipment Market- Segmentation

Global Welding Equipment Market report is segmented into Level of Automation, Welding Technology, Application, and Region

Based on Level of Automation, the market is segmented into Manual, Semi-automatic, and Automatic.

Based on Welding Technology, the market is segmented into Arc Welding, Resistance Welding, Oxy-Fuel Welding, Laser Beam Welding, and Others.

Based on Application, the market is segmented into Automobile & Transportation, Building & Construction, Marine Application, and Others.

Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa.

Based on Welding Technology, Laser beam welding technique may depict considerable market growth owing to the high implementation cost of the laser beam systems and the lack of knowledge of labors. The oxyfuel welding technique would also exhibit growth owing to the high initial costs of the fuel gases or liquids used in this technique.

Global Welding Equipment Market: Key Developments                          

In February 2023, TriMas announced that it has signed an agreement to acquire the operating net assets of Weldmac Manufacturing Company (“Weldmac”), a leading designer and manufacturer of high-performance, complex metal fabricated components and assemblies for the aerospace, defense, and space launch end markets.

In November 2022, Manufacturing Technology, Inc., (supplier of Rotary friction welding machines) acquired Friction Welding Technologies Pvt. Ltd. (FWT), a direct drive friction weld company. It was the result of their strategic partnership formed in 2017. Through the acquisition, MTI aims to increase its product offerings in North America and Europe.

In January 2022, Fronius International GmbH introduced an intelligent, high-end series of Option CycleTIG named “iWave,” which offers high-quality, flexible, and flawless weld results for all weldable materials. This multiprocess system provides customized solutions as per the requirements.

In December 2021, The Lincoln Electric Company, (global manufacturer of welding products, arc welding equipment, welding consumables, plasma and oxy-fuel cutting equipment, and robotic welding systems) introduced Welder/Generator‘Ranger 330MPX EFI’, a versatile and compact unit built for all seasons with a more powerful, smarter, smaller, and quieter machine.

Global Welding Equipment Market: Key Companies Insights   

Key players operating in the Global Welding Equipment Market are Amada Miyachi, Inc., Arcon Welding Equipment, Colfax Corporation, DAIHEN Corporation, ESAB Welding & Cutting Products, Fronius International GmbH, Illinois Tool Works, Inc., Nelson Stud Welding (Doncasters Group, Ltd.), Obara Corporation, Panasonic Corporation, Rofin-Sinar Technologies, Sonics & Materials, Inc., The Lincoln Electric Company, and Voestalpine AG.

*Definition: Welding is a manufacturing or assembly process that is used to join materials such as metals and thermoplastics. The fusion of intersecting materials joins metals or thermoplastics together. Welding is a constantly evolving technology. Shielded metal arc welding (SMAW), gas tungsten arc welding (GTAW), gas metal arc welding (GMAW), flux-cored arc welding (FCAW), and submerged arc welding are all common welding technologies (SAW).