Welding Consumables Market Expected to Reach $27.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Welding Consumables Market," The welding consumables market was valued at $16.1 billion in 2022, and is estimated to reach $27.5 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032. 

Welding consumables are materials used up during the welding process to join two or more pieces of metal together. These materials are essential for creating a strong and reliable weld.

The aerospace and defense industry requires precise and high-quality welding for the fabrication of aircraft, missiles, and military vehicles. The demand for lightweight materials and advanced welding techniques in this sector contributes to the market growth.

Moreover, the oil and gas industry relies heavily on welding for the construction and maintenance of pipelines, refineries, and offshore structures. The growth in the energy sector, including the expansion of shale oil and gas production, contributes to the demand for welding consumables.

However, in some applications, welding consumables are replaced with alternative joining methods such as adhesive bonding, fastening, and 3D printing. These alternatives can offer advantages in terms of weight reduction, design flexibility, and reduced heat-affected zones, which can limit the demand for welding consumables.

However, environmental regulations and sustainability considerations are pushing industries to adopt more efficient welding techniques and materials that produce fewer emissions and waste, which can influence the choice of welding consumables. This may offer remunerative opportunities for the welding consumables market in the coming future.

The welding consumables market is segmented on the basis of type, welding technique, and region. By type, the market is segregated into electrodes, flux, shielding gas, filler metals, and others. The electrodes segment dominated the global market, in terms of revenue in 2022. As urbanization and infrastructure development continue to rise globally, there is a growing demand for welding in the construction of buildings, bridges, roads, and other infrastructure projects.

Electrodes are commonly used in various welding processes to join structural components, reinforcing the demand for electrodes. Furthermore, many industries, including automotive, aerospace, shipbuilding, and manufacturing, rely heavily on welding processes to fabricate and assemble components. The expansion of these industries leads to increase in need for electrodes for various welding application; thus, fueling the market growth.

By welding technique, the market is divided into arc welding, resistance welding, oxy-fuel welding, laser-beam welding, and others. The arc welding segment dominated the global market, in terms of revenue in 2022 with 30.0% share in the global market. Arc welding is a versatile process that can be applied to a wide range of materials, including carbon steel, stainless steel, aluminum, and various alloys. Its versatility makes it suitable for a broad spectrum of applications across different industries.

Furthermore, arc welding is often considered a cost-effective welding process. The equipment and consumables required for arc welding are relatively affordable as compared to some other welding methods, making it an attractive option for many businesses. Moreover, while mastering any welding process requires training and skill development, arc welding is often considered more accessible for beginners as compared to some of the more complex processes. This accessibility makes it a popular choice for training programs and welding schools. These factors are expected to drive the welding consumables market for arc welding technique to witness a significant growth.

Region-wise, the welding consumables market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific welding consumables market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2022, the Asia-Pacific region represents a significant and rapidly growing market for welding consumables. Factors such as rapid industrialization, urbanization, and infrastructure development are driving the demand for welding products and services. Furthermore, the ongoing industrialization and urbanization in countries such as China and India are the major drivers of the welding consumables market.

Increase in construction, manufacturing, and infrastructure development activities contributes to the market growth. Moreover, infrastructure projects, including the construction of buildings, bridges, roads, railways, and energy facilities, drive the demand for welding consumables. Investments in new and upgraded infrastructure are substantial in many countries across the region. In addition, the automotive and transportation industries in Asia-Pacific are significant consumers of welding consumables. With the growth of the automotive sector and the shift toward electric vehicles (EVs), there is a need for advanced welding technologies and materials. These factors are anticipated to boost the demand for welding consumables in the Asia-Pacific region.

Key players operating in the global welding consumables market include Kobe Steel, Ltd., The Lincoln Electric Company, VDM Metals, ESAB, Royal Arc, DAndH Scheron, ESS AAR INDUSTRIES, Weldcom Electrodes Pvt. Ltd., Senor Metals Pvt. Ltd., Sharp Electrodes (P) LTD.

COVID-19 analysis

The novel coronavirus was an incomparable global pandemic that had spread in over 180 countries and caused huge losses of lives and the economy around the globe. The COVID-19 pandemic has had a significant impact on the global welding consumables market, as it has on many other industries. The extent of the impact and the specific outcomes vary depending on several factors, including the region, the type of welding consumables, and the industries served. 

Like many industries, the welding consumables market experienced disruptions in the supply chain. Lockdowns, travel restrictions, and factory closures in various parts of the world disrupted the production and distribution of raw materials and finished products. Several industries that are major consumers of welding consumables, such as automotive, aerospace, and construction, saw reduced demand due to lockdowns, reduced economic activity, and supply chain disruptions. This led to decrease in orders for welding consumables.

However, as economies globally gradually reopened and vaccination efforts progressed, many industries that use welding consumables experienced increase in activity. This economic recovery led to a rebound in demand for welding consumables, especially in construction, infrastructure development, and manufacturing sectors. Furthermore, the pandemic caused delays in projects and investments across multiple industries. As a result, there was increase in demand for welding consumables, especially in industries such as construction and automotive, which saw a surge in activity as restrictions were lifted.

In addition, governments in various countries launched infrastructure plans to boost economic recovery. These initiatives often included investments in construction, transportation, and energy infrastructure, leading to increase in demand for welding consumables in related projects. These factors altogether may lead the welding consumables market to witness a significant growth.

Key Findings Of The Study

• By type, the electrodes segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.4% from 2023 to 2032.
• By welding technique, the arc welding segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.0% from 2023 to 2032.
• Asia-Pacific garnered the highest share of morethan 40% in 2022, in terms of revenue.