Welding is a fabrication process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material (weld pool) that cools to become a strong joint, with pressure sometimes used in conjunction with heat, or by itself, to produce the weld. Welding equipment includes welding machines, supplies and consumables used in the welding process. It has wide applications in various end-use industries such as automotive, construction, shipbuilding, etc. Growth in these industries is expected to increase the demand for welding equipment over the forecast period.
The global welding equipment market is estimated to be valued at US$ 21.19 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Welding equipment finds widespread application in various industries such as automotive, construction, shipbuilding, etc. Growing demand from these end-use industries is expected to boost the Welding Equipment Market Size over the forecast period. Advancements in welding technologies such as friction stir welding, laser welding, and others are simplifying welding operations and improving weld quality. This is expected to fuel the demand for advanced welding equipment in the coming years.
Key Takeaways
Key players operating in the welding equipment market are Alcast Technologies, Arconic, Consolidated Metco, Inc., Dynacast International Inc., Gibbs Die Casting, Ryobi die casting Inc., Bodine Aluminum, Martinrea Honsel Germany GmbH, Leggett & Platt, Endurance Technologies Ltd., Empire Die Casting Company, Alcoa Inc., Hitachi Metals Ltd, Nemak S.A.B. de C.V., GF Casting Solution AG, Shiloh Industries Inc., Rheinmetall Automotive AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi.
Market Trends
Growing automotive production: The automotive industry is one of the largest consumers of welding equipment. Growing automotive production across major economies is expected to drive the welding equipment market.
Increasing infrastructure development: Growing construction and infrastructure development activities in developing nations is expected to augment the demand for welding equipment from industries such as shipbuilding, construction etc.
Market Opportunities
Growing adoption of industrial internet of things (IIoT): Integration of IIoT with welding equipment enables remote monitoring of equipment, predictive maintenance, and enhances efficiency. This presents an opportunity for welding equipment manufacturers.
Growth in electric vehicles: Production of electric vehicles requires specialized welding techniques. This opens up opportunities for manufacturers of advanced welding equipment such as laser welding.
Impact of COVID-19 on Welding Equipment Market Growth
The COVID-19 pandemic has significantly impacted the welding equipment market. During the initial lockdown periods in 2020, manufacturing facilities were shut down which led to a decline in demand for welding equipment. With stalled construction activities and disturbances in the supply chain, the market witnessed a downturn. However, as restrictions started easing in late 2020 and 2021, demand gradually recovered.
In the pre-COVID scenario, the market was growing at a steady pace driven by increased manufacturing activities, infrastructure development projects, and investments in industries like automotive, oil & gas, and shipbuilding. Welding finds extensive usage in various manufacturing processes. However, during the peak of the pandemic, economic uncertainty prevailed which temporarily impacted new investments and projects.
As the economies are recovering post-COVID, the welding equipment market is also expected to bounce back. Governments across regions are announcing measures to boost manufacturing and infrastructure spending which will drive renewed demand. With resumption of operations across core end-use industries, replacement needs are also being fulfilled which is supporting growth. Meanwhile, players are focusing on automation, digitization, and new product launches to cater to evolving requirements. Investments in renewable energy generation are opening new opportunities for specialized welding equipment as well. The long-term growth outlook remains positive supported by continued industrialization worldwide.
In terms of geography, North America accounts for the largest share of the welding equipment market in terms of value. This is due to sizable investments and ongoing projects in sectors such as oil & gas pipeline infrastructure, industrial machinery manufacturing, automotive production, and shipbuilding & offshore activities which drive significant welding equipment demand. At the same time, Asia Pacific region is projected to emerge as the fastest growing regional market during the forecast period. This can be attributed to rapid industrialization and infrastructure development taking place across developing economies like China and India where welding finds widespread usage. Governments are promoting domestic manufacturing through incentives and policies which is propelling welding equipment adoption across industry verticals.
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