U.S. Welding Consumables Market Size, Share & COVID-19 Impact Analysis, By Type (Stick Electrodes, Solid Wires, Flux-cored Wires, SAW Wires & Fluxes), By Application (Heavy Engineering, Automotive and Transportation, Railways, Construction, Shipbuilding, and Others), and Forecast, 2022-2029

The U.S. welding consumables market size was valued at USD 2.43 billion in 2021. The market is projected to grow from USD 2.50 billion in 2022 to USD 3.31 billion by 2029, exhibiting a CAGR of 4.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with welding consumables experiencing lower-than-anticipated demand across the country compared to pre-pandemic levels. Based on our analysis, the U.S. market had exhibited a decline of -1.5% in 2020 as compared to 2019.   

Welding contributes to the success of key industries including the construction sector, railways, and defense. Welding consumables play a vital role in the repair and life extension of manufactured products. In the welding industry, the utilization of consumables, such as solid wires, stick electrodes, SAW wires, fluxes, and flux-cored wires ensures a strong bond between two metals. It also shields the molten weld from atmospheric contaminants.

Manufacturers are utilizing advanced welding technologies such as hybrid, MIG & TIG, resistance spot, laser beam welding, and others that have become a growing trend in the U.S. market. Additionally, the rising consumption of steel, coupled with the resurgence of automotive industry, heavy engineering, oil, gas, energy, and shipbuilding industries in the U.S. is expected to bolster the demand for these consumables across the welding sector in the forecast period. Also, government investments in the manufacturing sector have provided opportunities for manufacturers to boost their fabrication and welding processes. Moreover, rising investments across the steel industry are also providing various growth opportunities to manufacturers.

COVID-19 IMPACT  

COVID-19 Pandemic to Impact Market Adversely Attribute to Halt of Manufacturing Processes

The COVID-19 pandemic has had an unprecedented impact on the U.S. economy since the first case was reported in January 2020. In June 2020, the World Economic Forum (WEF) stated that the U.S. has seen the sharpest decline across the manufacturing sector and the overall industrial production as a result of supply chain disruptions and the fear of recession across financial markets. It has, therefore, negatively impacted the welding industry across the country and decreased the demand for consumables across end-use industries. Additionally, as per the U.S. steel industry, U.S. steel production fell by 12.7% year-over-year at the end of March 2020.

To overcome the COVID-19 crisis, key players such as Illinois Tool Works Inc., the Lincoln Electric Company, and others are working with government organizations to create awareness among workers about their safety and a working culture that the pandemic has forced them to adopt. Therefore, on a long-term basis, manufacturers’ safety measures, coupled with technology-centric opportunities, are expected to bolster U.S. welding consumables market growth.

LATEST TRENDS

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The emergence of Metal Joining Technologies in the Auto Industry to Take the Market by Storm

Automotive vendors across the U.S. are reducing the weight of their vehicles by substituting metal parts with fabric materials to reduce fuel consumption, emissions, and minimize sound pollution, thus supporting in-line production processes. Additionally, the market participants are utilizing advanced welding technologies, such as laser beam, resistance spot, MIG & TIG, friction, and oxyfuel welding while adopting welding consumables that are specifically suitable with these technologies. For instance, the Lincoln Electric Company is offering aluminum MIG wires and stainless steel metal-cored wires to auto manufacturers that are specifically designed for automotive exhaust systems, including catalytic converters, body panels, truck panels, and others. Therefore, the above-mentioned welding techniques are bolstering future market growth.

DRIVING FACTORS

Accelerated Demand for Welding Consumables across Industry Verticals to Propel Market Growth

The utilization of SAW and fluxes, stick electrodes, solid wires, and others across aerospace, railway, construction, shipbuilding, and defense industries are growing exponentially. This is because these products are often coated with copper to prevent oxidation and corrosion even when welding materials and alloys with high thickness. The construction & infrastructure and railways industries, in particular, are growing at a rapid pace, owing to the increasing urbanization. For instance, AGC, the leading construction association in the U.S., stated that the construction industry across the U.S. is creating nearly USD 1.3 trillion worth of structures every year.

Additionally, in the railway industry, federal investments across California and other parts have been totaled to billions of dollars owing to procurement policies for programs such as the implementation of the Next-Generation Corridor and the high-speed intercity passenger rail initiatives. The growth of these key industries is foreseen to eventually boost the need for consumables across diverse industry verticals.

RESTRAINING FACTORS

Expensive Nature of Metal Fabrication Operations to Impede Market Growth

For the past couple of years, the metal fabrication industry across North American countries is facing adverse effects, thereby limiting the manufacturing of highly complex geometric shapes, as compared to plastic fabrication. Additionally, concerning the adverse COVID-19 impact across the steel industry, the U.S. market is currently witnessing a difficult situation between producers and consumers, with the lowering of prices that will cumulatively hamper the market.

SEGMENTATION

By Type Analysis

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Excellent Corrosion Resistance Ability to Portray Highest CAGR for SAW Wires & Fluxes Segment

By type, the market segments include stick electrodes, SAW wires and fluxes, solid wires, and flux-cored wires.

Among these, the SAW wires and fluxes segment is expected to capture the highest CAGR in the forecast period, attributable to its beneficial properties, such as the ability to withstand high temperatures and excellent corrosion resistance. These properties are highly coveted in the shipbuilding and heavy engineering industries.

The solid wires segment is appraised to have the foremost portion in the market owing to the utilization of solid wires in MIG applications across numerous industries. Additionally, they are mostly preferred to join non-metallic and dissimilar materials. They would thus aid electrical conductivity and increase the life of welded products.

The stick electrodes and flux-cored wires segments are anticipated to witness steady growth owing to their utilization across every industry for basic welding operations.

By Application Analysis

Increasing Demand for Reliable Welded Equipment to Depict Highest CAGR for Railways Segment

Based on application, the market is categorized into heavy engineering, automotive and transportation, railways, construction, shipbuilding, and others.  

The railway’s segment is anticipated to grow at the highest rate in the forecast period. This can be attributed to the utilization of welding wires and other consumables that are continuously developing welding programs to maintain the international coverage options across the U.S. in terms of rail infrastructure. Additionally, industry-leading welding technologies are primarily utilized in the manufacturing of reliable railway welded equipment.

On the other hand, the construction, heavy engineering, and automotive & transportation segments are expected to capture considerable market share owing to the rising infrastructural activities across the U.S. that are further resulting in the high demand for welding consumables as steel is the primary material that is being utilized.

COUNTRY INSIGHTS

This market is anticipated to showcase substantial growth in the forecast period. The growth is attributed to the rising government incentives, the expansion of construction and railways, and the high consumption of steel for various applications. Additionally, OEMs are utilizing technologies, such as resistance, oxy-fuel, ultrasonic and stir welding techniques, and the Internet of Things (IoT) across industries that are complementing the welding consumables market growth.

Moreover, governmental organizations are introducing newer industrial policies and investment plans to respond to the opportunities associated with new industrial revolutions, including cross-border and foreign direct investment (FDI). This, in turn, would provide multiple opportunities to welding consumable manufacturers in the near future.

KEY INDUSTRY PLAYERS

Key Players Focusing on Training Welding Technicians to Establish Strong Country-level Presence

Key participants across the U.S. are aligning with several associations to train welders with advanced technologies, such as resistance spot welding, hybrid welding technologies, and others. For instance, the Lincoln Electric Company, one of the key manufacturers in the U.S., is providing training to welders to facilitate the up-skilling of existing welders. The American Welding Society (AWS) and Resistance Welding Manufacturing Alliance (RWMA) authoritatively co-developed ‘Certified Resistance Welding Technician (CRWT) credential’ in 2020 for welders, technicians, and skill tradesmen to differ them from the untested welders. This certification is revolutionizing the U.S. welding industry.

Illinois Tool Works Inc. Predominantly Emphasizing Workers’ Safety to Expand Product Offerings

Illinois Tool Works Inc. is emphasizing providing a safe working environment to its workers that are operational in the welding division. For instance, in 2019, the company’s proactive strategy in improving safety measures at its facilities has resulted in a 15% reduction in the lost time due to accidents.

Following this strategy, the company has also redesigned its production process by adjusting shift schedules, arranging web-based safety training programs, implementing aggressive workplace sanitation practices, managing production stability, and controlling import and export business.

LIST OF KEY COMPANIES PROFILED:

• Illinois Tool Works Inc. (Illinois, U.S.)


• Kiswel Inc. (Florence, U.S.)


• The Lincoln Electric Company (Ohio, U.S)


• Selectrode Industries, Inc. (New York, U.S.)


• Colfax Corporation (Delaware, U.S.)


• voestalpine Böhler Welding Group GmbH (Kapfenberg, Austria)


• Kobe Steel, Ltd. (Hyogo, Japan)


• Fronius International GmbH (Wels, Austria)


• Linde plc (Guildford, U.K.)


• Welding Alloys (Hertfordshire, U.K.)

KEY INDUSTRY DEVELOPMENTS:

• January 2021: Welding Alloys Group, in collaboration with Intellegens Limited, focused on machine learning to engineer face hard-face welding consumables for the former.


• June 2020: As a part of the ‘Excalibur SMAW (stick) electrode series’, the Lincoln Electric Company introduced ‘Excalibur® 7018 XMR’, a low-hydrogen stick electrode that is utilized for all-purpose fabrication across industries including, shipbuilding, structural, chemical processing and pipeline.

REPORT COVERAGE

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The U.S. welding consumables market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and leading applications of the product. Besides, it offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned key factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope and Segmentation