Welding Electrodes Market Size, Share & COVID-19 Impact Analysis, By Type (Stick Electrodes and Coiled Wires), By Industry (Automotive, Building & Construction, Oil & Gas and Others), and Regional Forecast, 2020-2032

The global welding electrodes market size was USD 3 billion in 2019 and is projected to reach USD 4.46 billion by 2032, exhibiting a CAGR of  2.8% during the forecast period. The Asia Pacific dominated the welding electrodes market with a share of 33.24% in 2019.

The welding industry is growing rapidly backed by the growing demand for joining dissimilar and non-metallic materials, evolution of customized and innovative shapes/designs, introduction of various welding and cutting technologies, and many others. In such scenarios, the adoption of welding electrodes is widening owing to its ability to achieve high precision welding in real-time. Also, characteristics including compact size, flexible nature, and low spark occurrence is attributing to the rising deployment across various industries including automotive, building & construction, and others. For instance, the automotive industry is rigorously focusing on in-lining the products with the environmental norms and standards, particularly CO2 emissions. The usage of welding electrodes optimizes the welding procedure, reduces the wastage, and enhances the productivity and efficiency at every level. Owing to this, the market is expected to grow significantly in the coming years.

Imbalance in Supply-Demand Ecosystem Owing to COVID-19 Pandemic

The unprecedented COVID-19 crisis has caused considerable economic damage. Subsequent lockdowns has disrupted the overall supply chain ecosystems. The U.N. Department of Economic and Social Affairs (DESA) stated that COVID-19 has unsettled the international trade and global supply chain processes. Also, industries such as automobile, general manufacturing, and building & construction wherein fabrication plays a pivotal role is undergoing a steep downfall. For instance, China accounts for 27% of India’s automotive parts imports. Imbalance in the supply demand ecosystem halted the fabrication processes of fixtures and fittings of such automotive parts.

Also, the construction industry is continuing to underperform due to the dampened global demand owing to unavailability of workers on-site, delay, or cancellation of future projects, and others. According to the Associated General Contractors (AGC) of America, the COVID-19 pandemic has delayed construction projects for 28% of the contractors due to the shortage of subordinates.  Owing to the abovementioned factors, the fabrication industry is experiencing a down phase resulting in the low consumption of the welding consumables market.

LATEST TRENDS

Evolution of Advanced Welding Processes is a Key Trend

The welding industry is constantly evolving to seek out new technologies and processes with the introduction of new materials and an increasing need for welding automation, weld data monitoring, and more. Also, fabrication and manufacturing industries are emphasizing to better serve their customers and adapt new welding technologies and processes to create more flexible welding solutions that would suit both large and small companies. In such cases, the implementation of welding processes such as short-circuit MIG streamlined with the welding equipment is creating a potential room for the respective industry. Its ability to ease the welding operator to control the puddle and opt high-quality welds, improve user training, and performance efficiencies is a key trend anticipated to propel the welding industry further fueling this market.

DRIVING FACTORS

Demand for Welding Operations across Various Industries to Drive Growth

The demand for welding electrodes is gaining impetus across the globe with the increasing transportation projects such as new railway networks, seaports, and airports. Also, the construction of commercial & residential projects, retrofitting of offshore oil and natural gas exploration equipment such as vessels, boilers, pipes, are attributing to the market growth. Besides, the introduction of smart factories under industry 4.0 is encouraging manufacturers to install robotics for performing critical operations, further propelling the welding electrodes market growth.

Similarly, the emergence of welding and joining two different metals are gaining impetus in the welding industry. Therefore, the demand for electrodes is expected to surge in the forecast period as such materials would require high precision welding for joining two dissimilar metals. Smart materials that are embedded with computer chips, mainly in the manufacturing facilities to monitor the welder’s lifecycle performance, are getting recognition, thereby contributing to the growth of this market.

RESTRAINING FACTORS

Lack of Availability of Skilled Welders on Factory Floor to Be a Restraint for Market

Currently, the welding industry is exhibiting challenges as the engineers and welders performing welding activities at the factory floor have been enlightened with different welding precautions and discipline, but rarely guidance for conducting these operations. Also, it has been observed that welders and engineers usually learn to weld and perform their skills while they are undergoing welding operations and rarely through apprenticeships or formal welder training. In such a scenario, accidents are likely to happen as the user is not well aware of the factors such as the time needed to heat the metals, supply of required current, and more.

In order to overcome the aforementioned challenges, manufacturers are now focusing on making early investments in training engineers and welders at every level to avoid accidents at the workplace. Similarly, various welding associations, as well as the governments, are taking initiatives to train the welders with advanced technology. For instance, Weld Australia is working with the federal and state governments, as well as various (Technical and Further Education) TAFEs across the nation, to train new welders and facilitate the upskilling of existing welders.

SEGMENTATION

By Type Analysis

Stick Electrodes Holds Major Share Backed by Rising Welding Activities across Construction Sector

The stick electrodes segment holds the major welding electrodes market share and is anticipated to grow significantly in the coming years backed by the increasing welding activity across the construction sector in various geographies. Besides, fabricators business is gaining impetus in recent times, thereby creating a potential impact on the stick electrodes deployments. Customers are now trending towards customized designs and shapes on the workpiece. This requires constant accuracy at every level of welding wherein stick electrodes play a pivotal role as it is highly resistant and non-corrosive in nature and provides efficiency at every stage of welding.

The coiled wires segment is expected to slow down in the future owing to the rising adoption of electrodes over wires, lesser ability to withstand high welding current, and many others.

By Industry Analysis

Building & Construction Industry is Expected to be the Fastest Growing Segment

The rising number of residential, commercial, and industrial constructions across the globe is a major factor behind the growth of the construction industry. Also, the high implementation of foreign direct investments, favorable government initiatives, norms for developing economies, and the emergence of small and medium enterprises backed by the regulatory bodies are accompanying the construction industry.

Following building & construction, the automotive segment is anticipated to grow significantly in the forecast period with the introduction of electric vehicles, emergence of smart manufacturing such as smart automotive production facilities, stringent government norms and standards, and others. For instance, the automotive industry is rigorously focusing on in-lining the products with the environmental norms and standards, particularly CO2 emissions. Therefore, manufacturers are focusing on reducing the weight of the vehicle by replacing many metal parts with plastic materials so that the engine can be downsized, resulting in the reduced fuel consumption and lower emissions. In order to weld plastic materials, resistance spot welding is conducted. Owing to this, the market is expected to show significant growth in the forecasted period further contributing to the automotive industry.

The oil & gas segment is anticipated to show considerable growth in the future with the rising oil & gas production facilities, as well as retrofitting of the existing offshore oil and natural gas exploration equipment such as vessels, boilers, pipes, and others.

China to Grow Significantly Backed by Rising Investments in Construction Activities

The high pouring of funds in the construction activities is upscaling the economy of China to combat the pressure faced by the COVID-19 outbreak. According to secondary sources, China raised funds by new local government bonds of around USD 17.20 billion. The funds would be allocated for various welding applications, such as municipal construction and industrial park infrastructure, renovation of affordable housing and shanty towns, logistics and energy infrastructure, and many others.

REGIONAL INSIGHTS

Geographically, the Welding Electrodes market for is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

Asia Pacific is expected to exhibit the fastest growth in this market over the forecast period. Increasing construction activities owing to the rising demand from the residential and commercial sector is expected to drive this market in this region. Besides, the presence of organized and unorganized Chinese players operating in this region is also attributing to the high demand for welding electrodes in this region.

North America and Europe are anticipated to show considerable growth in the coming years with the presence of major manufacturers operating in these regions. Also, the higher adoption of different technologies such as lasers, plasma arcs, and resistance spot welding (RSW) are deployed across various industries such as automotive, manufacturing, construction, oil & gas, and others in both regions.

The Middle East & Africa and Latin America are expected to show sluggish growth over the forecast period owing to the increasing adoption of advanced welding techniques across various industries.

KEY INDUSTRY PLAYERS

Strategies adopted by Major Players to Stay ahead of Competition

Manufacturers such as Lincoln Electric, ESAB, voestalpine BÖHLER Edelstahl GmbH, and Illinois are focusing on introducing new products and consumables in order to meet the customers’ demand for welding specific materials and metals. In addition to this, several companies are adopting various marketing strategies to cater to the demand and strengthen their geographical reach across the globe by providing training and education to reduce accidents at the workplace. For instance, in May 2019, Lincoln Electric joined the curriculum platform U/LINC to provide education and learning related to welding activities. This strategic move will give Lincoln Electric a well-recognized position and will enhance the knowledge of welding trainers and instructors.

LIST OF KEY COMPANIES PROFILED :

• Lincoln Electric (Ohio, United States)


• KOBE STEEL, LTD (Hyogo, Japan)


• ESAB (Maryland, United States)


• ZULFI (Al Zulfi, Saudi Arabia)


• KISWEL CO., LTD. (Seoul, Korea)


• CS HOLDINGS CO., LTD. ( Gyeongsangbuk-do, Korea)


• RME MIDDLE EAST (Dubai, UAE)


• voestalpine BÖHLER Edelstahl GmbH (Linz, Upperaustria)


• capilla (Leopoldshöhe, Germany)


• Tianjin Golden Bridge Welding Materials Group International Trading Co., Ltd. (Tianjin, P. R. China)

KEY INDUSTRY DEVELOPMENTS:

• May, 2019: Lincoln Electric entered into an agreement with Kaynak Tekniği Sanayi ve Ticaret A.Ş company to strengthen its current product portfolio and to advance its regional growth strategy.


• October, 2017: ESAB Group acquired EWAC ALLOYS LIMITED Company worth USD 7.3 million in order to widen its existing product offerings and expand its geographical reach across the globe.

REPORT COVERAGE

This market research report provides an in-depth analysis of the market dynamics and competitive landscape. It provides various key insights including recent industry developments in this market, such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and company profiles.

Report Scope & Segmentation