Published: Dec, 2016
The Indonesia welding consumables market is a moderately consolidated one. The top five players in the market accounted for 57.3% share in the market in 2014. Those top five names are LincolnElectricalHoldings,Inc., NikkoSteel, Voestalpine Bohler Welding GmbH, P.T. Intan Pertiwi Industri, and PT. Ispat Indo. Among them, Lincoln Electrical Holding, Inc. was the ahead of all in terms of market share in 2014.
In the Indonesia welding consumables market, the companies compete strongly against each other through product differentiation, joint ventures, and strategic alliances. The market is also characterized by the presence of numerous small regional players. This coupled with cheap imports from neighboring countries such as China, Japan, and South Korea has further intensified the competitive atmosphere in Indonesia market. Another major factor responsible for heating up the competition is the high threat of new entrants, who have it relatively easy due to comparatively lower amount of capital required in the business.
Expanding at a CAGR of 7.7% from 2015 to 2023, the Indonesia welding consumables market is slated to clock in a revenue of US$293 mn in 2023 from US$150.3 mn in 2014.
Substantial Capacity Addition in Power Sector Boosting Growth
One of the main drivers in the market is the extensive capacity addition in the power sector in Indonesia, which is anticipated to generate substantial demand for welding consumables in the country. The swiftly reviving manufacturing sector in the nation is also upping demand in the market significantly. The analyst of the report explains, “The manufacturing sector in Indonesia is being driven by a strong domestic consumer base despite the unfavorable global economic environment. The manufacturing sector accounted for the major share of 25.54% of the country’s GDP in 2014. Manufacturing output is increasing due to the rising population and expansion in the middle class population in Indonesia.
Growth in the manufacturing sector in the country is estimated to drive the domestic welding consumables market driven by cheap labor and strong trade relations with other ASEAN economies and key economies such as China, Japan, and South Korea.”
Stick Electrodes to Pare Market Share due to Looming Product Life Cycle Maturity
The welding consumables market in Indonesia can be segmented on the basis of product into stick electrodes, flux-cored wires, SAW wires and fluxes, solid wires, and others such as gases, rods, etc. Among them, stick electrodes dominates the market with slightly over half the share in it. Going forward, however, it would likely pare its market share marginally as it has almost reached its product life cycle maturity. In terms of revenue, the Indonesia stick electrode market was worth US$83.6 mn in 2015.
Among end users, automotive and transportation dominates the market for Indonesia welding consumables. In the next couple of years, it is slated to exhibit maximum pace of growth too. It is followed by the oil and gas sector, which in the near future is anticipated to trim its share in the market on account of declining oil drilling activities in the nation. Building and construction comes in third vis-à-vis market share. In terms of growth rate, however, the power sector would clock maximum rate after automotive and transportation sector on the back of robust domestic demand for electricity.
This review is based on the findings of a TMR report titled “Welding Consumables - Indonesia Industry Analysis, Size, Share, Growth, Trends and Forecast 2015-2023.”
Indonesia Welding Consumables Market, by Product
- Stick electrodes
- Solid wires
- Flux-cored wires
- SAW wires & Fluxes
- Others (Including gases, etc.)
Indonesia Welding Consumables Market, by End User
- Automotive & transportation
- Building & construction
- Oil & gas
- Others (Including maintenance and repair, etc.)
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