Welding Wires Market Size, Share & Industry Analysis, By Type (Metal Inert Gas (MIG) Wire, Tungsten Inert Gas (TIG) Wire and Others), By Industry (Automotive, Building & Construction, Oil & Gas and Others) and Regional Forecast, 2032

The global welding wires market size was valued at USD 9,678.4 million in 2018 is projected to reach USD 21,260.7 million by 2032, growing at a compound annual growth rate (CAGR) of 5.4% during the forecast period. The Asia-Pacific welding wires market was valued at USD 3446.4 million in 2018. Metal Inert Gas (MIG) Wire segment accounted for 50.5% of the global welding wires market share in 2018. The welding wire industry is expected to expand, primarily due to an increase in demand from end-use sectors & notable technological advancements. Additionally, rise in the emphasis on safety and quality has resulted in an augmented demand for welding wires.

Welding Wire is used as a filler metal and conductive wire welding material for a wide range of industrial applications such as coal mining, construction machinery, automotive, petroleum, shipbuilding, and utility sector due to its high production efficiency. Welding wires market materials are mostly used in the fabrication workshops, building and construction, automotive and oil and gas industries for welding two metal base materials.

The market manufacturers and contactors constantly suffer welding-related issues such as need to reduce welding costs, untrained labor, simplified welding process, and affordable equipment. These issues can be resolved by reducing the welding cycle time, increasing deposition rate, improving operating factor and implementing new and lean manufacturing techniques.

Modern technological implementations in the welding industry are hybrid MIG welding technology and TIG welding technology that depicts lucrative market growth. Hybrid welding technology is the combination of arc and laser welding process that requires temperature-dependent absorption due to loss of energy.

In hybrid MIG welding process, filler wire and surface of workpiece eliminates vapors, facilitating input of laser radiation and averts dropout process. Hybrid MIG welding offers deeper penetration at higher welding speeds, high tensile strength, lower thermal input, and narrow weld-seams, providing less weldment distortation of post-welding work. Moreover, MIG hybrid welding is beneficial for applications in metalwork, fabrication, construction, automotive, and oil and gas industry.

The rising investments in R&D activities are leading towards the development of advanced welding technologies. For instance, Miller Electric Mfg. LLC has developed Dynasty AC TIG welding technology that aid to boost productivity by around 18 percent for aluminum ladder manufacturing.

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Operators face several challenges using conventional welding technologies, such as poor control of arc direction, poor arc starting and the inconsistent arc in AC mode, etc. However, the novel TIG welding technology, with microcontrollers and advanced inverter-based power sources, aid to eliminate common productivity gremlins.

The recent global welding wires market trends include the resistance spot welding (RSW) technique that is applicable in most of the industries considered in scope of research. Resistance spot welding (RSW) method is used in automotive industry for welding of workpieces with the flow of current and application of pressure.

RSW is an automated welding technique used as robotic spot welding in automotive industry for welding sheet metals and managing the production line. RSW is an economical process, aiming to improve the monitoring and control of automotive components. The impulsive usage of this technique reduces manual quality control and the high cost of rejection, therefore increasing the demand for new innovative welding techniques.

MARKET DRIVERS

“The rapid growth of the building & construction industry across the globe owing to the developments in the emerging countries”

The construction & infrastructure industry around the globe is growing at a rapid pace, owing to the increasing urbanization. Governments, as well as private building contractors, are undertaking large construction projects to cater to the demand.

Middle East countries are developing at a faster pace due to alluring foreign direct investments (FDI) from the developed countries. According to an Abu Dhabi Executive Council’s circular of March 2019, the government of Abu Dhabi amended a contract for the payment of subcontractors within 30 days of government payments, enhancing construction facilities without hampering the overall growth of construction industry.

For instance, As per the data shared by the International Trade Administration (ITA), over 15,000 projects worth approximately USD 791 Million are at various stages of completion across the country, providing lucrative opportunities to the welding wires market manufacturers along with industry growth. For the upcoming building and construction projects, the government is investing USD 306 Million; wherein urban projects account for 42%, infrastructure for 38%, oil, and gas for 20%.

China acts as the world’s largest construction market that has most of its imports from the United States, with an import market share of 13%. Chinese construction industry is projected to grow at an average growth rate of 5% in the near future. Therefore, demand for the building and construction sector is increasing concerning the changes in investment policies of developing countries. Growing investments in this sector will increase the adoption of welding consumables as a filler material for welding process, which will enhance the growth of welding wires globally.

 “Increasing investments in the power utility industry around the world”

The era of new energy sources, smart grids, digital transformation, distributed generation, and empowered customers tend to energy transformation in the future. A wide range of customer-interface technologies is likely to enhance the utility sector. Improvement with the great cost of performance and scalability in wind and solar energy sources, along with smart grid technologies that provide real-time information of distributed or localized energy sources leads to an interesting transition in the utility industry.

According to the International Trade Administration, Saudi Arabia needs to expand its power generation capacity from 82 GW in 2017 to 160 GW in 2040. This will compel the demand for the installation of SGW of capacity and T&D infrastructure. To achieve the power generation target, the government has to make a yearly investment of approximately USD 5 Million in power generation and USD 4 Million in the T&D infrastructure. The Saudi government companies are expected to invest substantially in the development of new projects along with the replacement of aging power plants.

SEGMENTATION

By Type Analysis

“Metal Inert Gas (MIG) Wire is projected to display a productive market growth rate in the forecast period.”

Based on the type, the report scope is segmented into metal inert gas (MIG) wire, tungsten inert gas (TIG) wire, and Others.

MIG wires are used in the arc welding process where a continuous solid MIG wire electrode is fed through a welding gun for joining the two base metals. MIG wires are manufactured using various raw materials namely stainless steel, nickel alloy, aluminum, cobalt, etc. providing high tensile strength for the welding process. MIG wire serves as both heat source and filler metal for thin sheet and thick section components welding. MIG accounts for more than 50% of its usage in most industrial sectors as it offers flexibility and is suitable for mechanization.

Welding procedure requires approximate percentage of gas mixture nearly 75% of argon and the remaining 25% of carbon dioxide blend. This mixture of gas acts as the best shielding gas-producing least amount of spattering with best bead appearance, while in some cases, 100% carbon dioxide is useful due to deep penetration but leading to large amount of spatter. MIG wire welding is mostly used in fabrication division for manufacturing and sheet metal work. Gas metal arc welding is the technical name used by engineers and on welding certifications.

TIG welding uses the TIG electrode and pure argon gas to heat and weld the base materials by dabbing the filler TIG wire on the weld paddle. TIG wire welding is more versatile welding process, as it is easier to change the filler wire. TIG wire is basically used in light bulbs, heating elements, and rocket engines, as it is hard in nature, brittle, and slightly radioactive metal. Air-cooled TIG torch and water-cooled TIG torch are used in the aerospace industry, usually to weld small-diameter, thin-wall tubes in pipe, oil, and gas industry.

Other welding wires are submerged arc welding (SAW) wires and flux wires that are commonly used in heavy structural and vessel construction industry, chemical plants, and oil and gas sector. SAW wires stabilize the arc during welding thus preventing splatter and spark from flying. SAW wires are strong, emits less arc light, suitable for outdoor and indoor welding works due to less distortion and deep weld penetration.

By Industry Analysis

“Building & Construction Industry segment is anticipated to exhibit significant growth in the near future.”

Industries considered in the scope are automotive, building and construction, oil and gas, and others. As per the secondary research, the global building and construction industry is likely to grow by 85% to USD 8 trillion in the near future, thus increasing the welding wires market demand. Most of the industries are undergoing through tremendous changes over the last few decades due to product innovations and technological opportunities in building and construction sector.

The rapid advent of drones, 3D scanning, and printing, augmented reality, Building Information Modelling (BIM), boost the productivity of the entire welding wires market. This industry is growing at faster pace with 6% of global GDP, and nearly 8% of GDP comes from developing countries such as India, leading to growth in shipbuilding, pipe construction, etc.

The automotive industry is an important sector contributing to 3 – 3.5 percent of overall GDP globally. The automotive sector requires designing, engineering, and manufacturing of components demanding the welding wires to weld automotive components. According to the preliminary research, the automotive industry spends approximately USD 16 Million to USD 18 Million every year on research and development, innovating new and essential products, thus expected to drive the welding wires market potential.

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The oil and gas sector has a steady demand for welding wires as it needs to manage the fluid and gas through large pipes, with a basic necessity of welding pipes. As stated by the International Energy Agency, out of the global energy investment, oil and gas supply in the year 2017 was accounted for USD 716 Million, enhancing the welding wires market concentration globally.

REGIONAL ANALYSIS

Geographically, the scope of the study is segmented across five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, which is further categorized into countries.

The Asia Pacific is projected to show the highest growth in the welding wires market value across the globe. A robust rise in the construction and automotive sector from emerging countries, such as China and India is expected to increase the dependency of the market on the end-use industries. China is the key regional market of automotive and construction sector development with growing foreign direct investments.

North America is estimated to depict notable growth in the global Welding wires market during the forecast period. Welding consumables including welding wires and electrodes are certified using the AWS classification of the American Welding Society. This classification symbolizes the quality standard of the welding wires, thus becoming an important certification and need for the welding consumables market. An increase in the aerospace and defense, construction, and automotive sectors is estimated to lead the wires market growth in the region.

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Europe, Middle East, and Africa, and Latin America are anticipated to have stable market growth related to the demand for welding wires in these regions. The automobile industry of Middle East is witnessing high growth due to the steady rise of household disposable income in the region.

According to the Automotive Association Middle East and North Africa (AMENA), Toyota sold approximately 2,896,848 vehicles over the period of 2014 to 2018 in the GCC countries. The governments of GCC countries are encouraging electric automotive vehicles with wide range of alternatives by pitching such products to Uber and DTC (Dubai Taxi Corporation).

INDUSTRY KEY PLAYERS

“Market Players like the Lincoln Electric Company, ESAB, KOBE STEEL LTD., and Ador Welding Ltd.  are the major players reinforcing the market position”

Lincoln Electric introduced new GTAW (TIG) cut lengths with high silicon formulations using stainless steel alloys for the clean and high-quality welding process. Upgraded manufacturing processes for the new products are enhancing the products quality by reducing complexities in welding process. The company announced purchase of the controlling stake of Kaynak Teknigi Sanayi ve Ticaret A.S. (“Askaynak”), a leading manufacturer of welding electrodes to advance its regional growth in Europe and the Middle East and Africa.

ESAB has launched new Cut Master Black Series with the enhanced feature by plasma cutting of consumables. This feature extends the operating life of the welded wires and electrodes by 60%, which comes with Cutmaster 60i handheld air plasma cutting system. This gratifies market demand through its distributors and suppliers around the globe.

LIST OF KEY COMPANIES PROFILED :

• The Lincoln Electric Company


• KOBE STEEL, LTD


• ESAB


• Ador Welding Ltd.


• ZULFI WELDING ELECTRODES FACTORY CO. LTD


• Kiswel Ltd.


• Chosun Welding Co., Ltd.


• Gedik Welding


• Tianjin Golden Bridge Welding Materials Group International Trading Co., Ltd.


• Capilla Welding Materials GmbH


• FSH WELDING GROUP


• RME MIDDLE EAST FZCO

REPORT COVERAGE

A growing trend is observed in the penetration of the welding wires market position across the industries. 

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This global market research report provides various key insights such as adoption trend analysis, recent industry developments including mergers & acquisitions, ecosystem analysis, macro and microeconomic factors, consolidated SWOT analysis, key industry trends, competitive landscape, and company profiles.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

May 2019: Lincoln Electric partnered with the Tooling U-SME to build up U/LINC welding curriculum platform to be more user-friendly and accessible for training solutions with the purpose to serve the welding instructors and educational institutions.

October 2018: ESAB introduced its Quick Weld Productivity Analyzer (QWPA), a calculator for total weld cost analysis at Georgia World Congress Center in Atlanta. This online tool helps fabricators to manage the cost impact of various production aspects