The EMEA welding consumables market is moderately consolidated and the top four players accounted for nearly 40% of the overall market in 2013. The top four players are ESAB, Lincoln Electric, ITW, and Voestalpine AG. To stay ahead in the competition, companies are investing in the innovation and development of new grades of welding consumables, finds Transparency Market Research (TMR) in a new study.
“The availability of substitute processes such as lock bolts, brazing, and soldering is likely to produce a moderate threat to the demand for welding consumables,” says the author of the report. The entry barrier for new companies in the market is high owing to the presence of well-established players and large capital expenditure required for the establishment of manufacturing facilities.
The EMEA market stood at 1,324.4 kilotons in 2015 and is estimated to reach 1,595.0 kilotons by 2020, expanding at a CAGR of 3.7% from 2014 to 2020. Based on product type, the stick electrodes segment is expected to maintain its leadership until 2020, accounting for 40.4% of the overall market in terms of volume. However, the flux-cored wires segment is anticipated to grow at the most promising CAGR during the same period.
High Metal Deposition Rates to Put Europe in Prominent Position
Geographically, Europe was the leading segment by volume in 2015 and is anticipated to retain its dominance until 2020, with a share of nearly 74% of the overall market. High metal deposition rates and rising awareness for the superior productivity offered by wired consumables is anticipated to boost the consumption of welding consumables in Europe in the next few years. The Middle East will grow at a significant rate owing to the rapidly growing building and construction sector.
Rising Demand for Automobiles to Bode Well for Demand for Welding Consumables
The rapid growth of the automobile and construction sectors in the EMEA region is expected to boost the demand for welding consumables. Metals used in the manufacture of automobiles and at construction sites can be joined through temporary methods such as screws, rivets, and bolts or permanent methods such as welding. “Consumable electrodes act as both the filler material and as the electrode during welding,” says a TMR analyst. Moreover, changes in automobile designs related with energy-efficiency and exhaust emission coupled with rising demand for automobiles are likely to drive the EMEA welding consumables market.
Furthermore, due to rising demand for oil and gas in the energy markets globally, activities such as rehabilitation of existing oil infrastructure and construction of new pipelines and gas manufacturing facilities are expected to increase significantly in the near future. An increase in these activities is anticipated to bolster the growth of the market.
Shortages of Skilled Labor to Hinder Growth of Market
The shortages of workforce with adequate skills makes it challenging for manufacturing firms to provide quality services to customers. Additionally, the high cost of labor, especially in Western Europe, increase the cost of production, thereby adversely affecting the profit margins of manufacturers. These factors are hampering the growth of the EMEA welding consumables market.
However, the introduction of automated welding machines is expected to provide tremendous growth opportunities to the market. Moreover, the rising construction of wind turbines, especially in emerging economies, is expected to drive the growth of the welding consumables market in the wind industry.
The information presented in this review is based on a Transparency Market Research report, titled, ‘Welding Consumables - EMEA Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020.’
The report segments the EMEA welding consumables market as follows:
Welding Consumables Market - Product Segment Analysis
- Stick electrodes
- Solid wires
- Flux-cored wires
- SAW wires and fluxes
- Others (Including gases, etc.)
Welding Consumables Market - Application Analysis
- Automobile & transportation
- Building & construction
- Others (Including repair and maintenance, etc.)
Welding Consumables Market - Regional Analysis
- The Middle East
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