Welding Consumables Is Estimated to Witness High Growth Owing To Increasing Demand in Automotive Industry

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Welding Consumables are essential equipment used for welding processes across various industries such as automotive, shipbuilding, construction, etc. The ongoing infrastructure development activities and growing automotive sector will continue to drive the demand for welding consumables

The Welding Consumables is estimated to be valued at US$ 15.92 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Welding consumables refer to various materials such as electrodes, filler metals, fluxes, gases and others that are used during the welding process. Welding consumables are used across different end-use industries including automotive, shipbuilding, construction, energy and others. Within the automotive industry, welding is widely utilized for manufacturing various components and parts of vehicles. Rising vehicular production globally is augmenting the demand for welding consumables.

Market Dynamics:
The market is primarily driven by increasing demand from the automotive industry. The automotive industry accounts for a significant share in welding consumables demand owing to widespread utilization of various welding techniques for manufacturing different components and parts of vehicles. According to Organization Internationale des Constructeurs d'Automobiles (OICA), global passenger vehicle production increased from around 82.1 million units in 2015 to around 90.4 million units in 2019, representing a CAGR of around 2.5% during the period. Such rising vehicular production is propelling the demand for welding consumables from the automotive industry. Furthermore, shifting focus towards lightweight materials is another factor providing impetus to welding consumable consumption in the automotive industry. Welding of materials such as aluminum allows production of lightweight vehicles, adding to the benefits.

SWOT Analysis
Strength: Welding Consumables are essential equipment used for welding processes across various industries such as automotive, shipbuilding, construction, etc. The ongoing infrastructure development activities and growing automotive sector will continue to drive the demand for welding consumables. Manufacturers are focusing on developing innovative welding consumables with improved properties such as corrosion resistance and mechanical strength.
Weakness: Fluctuations in raw material prices can increase the overall production cost of welding consumables. Stringent regulatory framework regarding the usage of welding fumes can hamper market growth.
Opportunity: Growing demand from the electric vehicle industry for advanced battery packs and lightweight auto-components is expected to present lucrative growth opportunities. Increasing focus on renewable energy will augment the demand for welding consumables from the wind and solar industries.
Threats: Rising popularity of adhesive bonding over welding processes in various industries poses a major threat. Trade wars and geopolitical tensions can disrupt the supply chain of raw materials.

Key Takeaways
The global Welding Consumables market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing investments in the construction and infrastructure development projects across the globe. Regional analysis: Asia Pacific dominated the welding consumables market in 2023 with a share of over 35%, owing to robust construction activities and rapid industrialisation in China, India. Europe and North America are also significant regional markets driven by strong automotive manufacturing base.
Key players operating in the Welding Consumables market are Voestalpine AG, Arcon Welding Equipment, Colfax Corporation, Kemppi Oy, The Lincoln Electric Company, Tianjin Bridge Welding Materials Co., Ltd., Air Liquide, Fronius International GmbH, Hyundai Welding Co., Ltd., Denyo Co., Ltd., Obara Corporation, Illinois Tool Works Inc., Panasonic Corporation, and others.

The global Welding Consumables market size was valued at US$ 15.92 Bn in 2023. Growing automotive production along with increasing aluminum welding application is expected to drive the demand for welding consumables over the forecast period. Rapid urbanisation and government investments in infrastructure development are fueling the construction activities especially in Asia Pacific region.

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