Metal Welding Market by Type, End-user and Geography - Forecast and Analysis 2023-2027

Metal Welding Market Forecast 2023-2027

The metal welding market is estimated to increase by USD 10.31 million, growing at a CAGR of 5.19% between 2022 and 2027. The market is propelled by various factors, notably the adoption of friction stir welding technology within the automotive sector and the rising demand for wind farms. Additionally, the emergence of laser equipment contributes to market growth, albeit hindered by a shortage of skilled workforce. Fluctuations in raw material prices further pose challenges, while the introduction of new technology escalates research and development expenses.

What will be the size of the Metal Welding Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by type (arc, resistance, oxyacetylene gas, solid state, and others), end-user (automotive, construction, aerospace, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Type Segment Analysis:

The arc segment will contribute a major share of the market, as arc welding is a common form of joining technique that uses an electric arc to generate heat and melt metals. The segment showed a gradual increase in market share with USD 10.95 million in 2017 and continued to grow by 2021.  The most used arc processes include flux core arc welding (FCAW), gas metal arc welding (GMAW), gas tungsten arc welding (GTAW), shielded metal arc welding (SMAW), and submerged arc welding (SAW). 

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Due to the low melting point and high thermal conductivity of aluminum alloys, which cause burn-through, GMAW may be difficult to work with aluminum. Such a task could present challenges to even skilled steel welders. A further difficulty with using aluminum wires for GMAW is that they are softer than steel and have a low column strength. The drive roll could tangle as a result of the process. These wires can be difficult to work with, which may prevent the product from being useful. However, choosing the right equipment will be the corrective action. All industrial sectors, including automotive, aerospace, oil and gas, power, and construction, use this standard joining procedure. Thus, the increasing application of arc metal is expected to drive the growth of the arc segment of the global market during the forecast period.

End-user Segment Analysis:

Given that a sizable number of metal parts are used, one of the top end-user segments in the global market is the automotive sector. Bus bars, electrical contacts, terminals, lead frames, shields, and clips are just a few of the metal parts that are used in a variety of vehicle parts, such as the chassis of vehicles and fuel delivery systems. When it comes to applications in motors, engines, batteries, alternators, brake systems, and fuel systems, manufacturers of cars, sports cars, and trucks have a high demand for metal parts. Some of the most widely used techniques in the automotive industry include resistance spot, resistance seam, metal inert gas, tungsten inert gas, laser beam, friction, and plasma arc type. Moreover, vehicle manufacturers are focusing on scaling their operations to meet the rising demand for vehicles. Hence, the growth of the automotive industry will fuel the demand for the equipment. This will drive market growth during the forecast period. 

Regional Analysis:

APAC is estimated to contribute 38% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.

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The market in APAC will expand due to the rising government spending on infrastructure development and the rising number of construction projects in emerging nations. The need for new residential and commercial infrastructure to accommodate the growing urban population base is another factor expected to contribute to the regional market's steady growth over the course of the forecast period. In the construction industry, it is crucial for fabricating and shaping steel structures to produce beams, columns, and steel members. This will positively impact market growth. 

Furthermore, numerous multinational corporations are establishing their manufacturing facilities in the region as a result of the region's growing demand for automobiles. For instance, in August 2021, Dr. Ing. h.c. F. Porsche AG announced that its new manufacturing plant would be open in Malaysia by the end of 2022, and it will be operated in partnership with Malaysian trading conglomerate Sime Darby Berhad.  These partnerships and increasing manufacturing plants of automobiles are expected to increase the demand for the equipment in the automotive industry in APAC. Thus, owing to such factors the regional market is expected to grow during the forecast period.

Technavio’s Exclusive Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Market Dynamics and Customer Landscape

The Market is influenced by various drivers and trends within the industry and heavy engineering sector. The demand for skilled welders remains high due to ongoing construction activities and manufacturing operations worldwide. However, market dynamics have been impacted by factors such as nationwide lockdowns, which temporarily halted non-essential manufacturing operations, affecting cash liquidity for market players, particularly in low revenue-generating regions.

With the gradual reopening of manufacturing facilities post-lockdowns, the fabrication industry is witnessing a resurgence, further boosted by advancements in robotic technology. The market is also fueled by infrastructure development initiatives like the Infrastructure for Rebuilding America (INFRA) program, which drives demand for equipment in construction projects. Additionally, the defense sector contributes to market growth with investments in robotic laser welding for applications in naval ships, patrol vehicles, and submarines.

At the same time, the market is characterized by technological advancements and increasing merger and acquisition (M&A) activity among industry players. The rising adoption in electrification initiatives and the evolving needs of the global transportation sector further shape market dynamics, driving innovation and growth opportunities.

Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver

The rise of laser welding equipment stands out as a significant catalyst propelling market expansion in the welding industry. This has gained remarkable traction due to its ability to deliver precise welds, driving its adoption among end-users alongside technological advancements. Particularly, it finds extensive application in welding materials with higher melting points and superior heat conduction properties. Compared to traditional methods, this method offers distinct advantages such as generating highly focused beams and operating within closed gas or vacuum chambers.

Moreover, the automation capabilities represent a key advantage over other techniques, complementing the automation initiatives embraced by a majority of end-users in their production lines. Automated laser welding allows for precise control and tracking of variables like power level, pulse shape, and power ramping, facilitating more accurate welding at increased production rates. As industries increasingly adopt laser technology, driven by its precision and automation benefits, the global market is poised for substantial growth during the forecast period.

Significant Market Trends

The increased adoption of automated products is an emerging trend in market growth. companies are under enormous pressure to set their products apart from those of their rivals as a result of the market's extreme fragmentation and rising level of competition. The two main areas of emphasis for companies are the creation of new products and the use of automated machinery. To expand their product line and provide a variety of services, they are increasingly using automated equipment for this technology and fabrication facilities.

Automation offers significant design flexibility, allowing for the definition and implementation of small features with precise tolerances and distinctive configurations. It makes it possible to quickly and affordably produce precise parts with a high degree of accuracy in order to fabricate many complex products. Additionally, it can be automated to include secondary operations and lowers the cost of materials per piece. Most businesses began to provide automated products to boost their output and production efficiency. Therefore, the increasing use of automated products will inevitably lead to higher levels of production efficiency among end users. Hence, such factors are expected to drive the growth of the global market during the forecast period.

Major Market Challenge

The shortage of skilled workforce is a major challenge impeding the market growth. It is getting difficult for businesses in the manufacturing sector to find skilled workers to operate sophisticated machinery. Due to their technical expertise, skilled workers are essential for some types of metal welding, including arc, carbon arc, tungsten inert gas, resistance, and metal inert gas welding. Due to improper techniques, inexperienced welders may result in failed welds. For instance, they might use the wrong electrodes, fail to maintain the base metal's minimum temperature, or fail to achieve the right weld sizing.

An inexperienced workforce results in more overtime and unproductive time, which raises labor costs. A longer production cycle and occasionally the production of subpar goods are other effects of a skilled workforce shortage. The manufacturing sector has been similarly impacted in many developed nations and struggles to recruit the necessary number of skilled workers. Therefore, during the forecast period, all of these factors are anticipated to hinder the growth of the global market.

Who are the Major Metal Welding Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Hypertherm Inc. - The company primarily focuses on manufacturing and selling industrial waterjet, laser, and plasma cutting systems. The key offerings of the company include weld repair through plasma gouging called HyAccess gouging.

Matsu Manufacturing Inc. - The company offers precision stamped and assembled metallic components for the automotive industry. The key offerings of the company include metal welding of steel and stainless steel.

We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:

• Air Liquide SA
• AMADA Co. Ltd.
• Atlas Copco AB
• DRAHTWERK ELISENTAL W. Erdmann GmbH
• EWM AG
• Gedik Welding Inc.
• Hermann Fliess and Co. GmbH
• Hilarius Haarlem Holland BV
• Illinois Tool Works Inc.
• Mayville Engineering Co. Inc.
• Novametal SA
• Otter Tail Corp.
• Safra Spa
• Bystronic Laser AG
• The Lincoln Electric Co.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook (USD Million, 2017 - 2027)
  • Arc
  • Resistance
  • Oxyacetylene gas
  • Solid state
  • Others

• End-user Outlook (USD Million, 2017 - 2027)
  • Automotive
  • Construction
  • Aerospace
  • Others

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

Market Analyst Overview

The market is experiencing significant growth driven by various factors, including the resurgence of the heavy engineering industry and the expanding global population. With manufacturing industries and industrial operations reopening, the demand for welding equipment is on the rise. Augmented reality technologies, such as those offered by Fronius International GmbH, are enhancing joining processes and increasing the need for skilled professionals certified by organizations like the American Welding Society (AWS). The market encompasses a wide range of welding consumables and equipment, from stick electrodes to flux-cored wires, catering to diverse applications like automotive, construction, shipbuilding, and oil & gas. With increasing defense expenditure and the growth of electric vehicles, the welding equipment market is expected to witness continued expansion, fueled by technological advancements and evolving industrial applications in the face of climate change and urbanization trends.

The reopening of manufacturing facilities has spurred industrial manufacturing operations, driving demand for various equipment and technologies such as robotic welding, solid wires, saw wires & fluxes, and welding jigs and fixtures. This trend is particularly noticeable in sectors like automotive, building & construction, heavy engineering, railway & shipbuilding, and oil & gas applications. In the shipbuilding industry, there's a significant reliance on welding technologies for various applications. As the market progresses through different growth stages, the usage of thermoplastics, resistance welding, oxy-fuel welding, and fuel gases continues to evolve. Other welding techniques like electron beam welding, magnetic pulse welding, and flux cored welding also find application across different industries. The integration of computer numeric control (CNC) equipment further enhances the efficiency and precision of welding operations. As manufacturing facilities continue to reopen and expand, the demand for welding technologies and equipment is expected to grow, driving further advancements in the industrial manufacturing sector.

Metal Welding Market Scope
Report Coverage	Details
Page number	175
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.19%
Market growth 2023-2027	USD 10.31 million
Market structure	Fragmented
YoY growth 2022-2023(%)	4.91
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 38%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Air Liquide SA, AMADA Co. Ltd., Atlas Copco AB, Bystronic Laser AG, DRAHTWERK ELISENTAL W. Erdmann GmbH, EWM AG, Gedik Welding Inc., Hermann Fliess and Co. GmbH, Hilarius Haarlem Holland BV, Hypertherm Inc., Illinois Tool Works Inc., Matsu Manufacturing Inc., Mayville Engineering Co. Inc., Novametal SA, Otter Tail Corp., Safra Spa, The Lincoln Electric Co., voestalpine AG, Vulcan Steel Ltd., and Welding Alloys Group
Market dynamics	Parent market analysis, market growth and trends, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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