LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global welding equipment market to grow at a CAGR of 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global welding equipment market for 2016-2020. The report also lists automotive, construction, aerospace and shipbuilding as the major segments where welding equipment is used the most.
Technavio heavy industry analysts highlight the following three factors that are contributing to the growth of the global welding equipment market:
- Emergence of friction stir welding technology in automotive sector
- Positive outlook of global construction sector
- Growing demand from wind energy sector
Emergence of friction stir welding technology in automotive sector
Friction-stir welding technology is a unique and innovative technique that uses frictional heat coupled with precisely controlled forging pressure to join two metals. This technique imparts high-integrity to the final product, and makes it defect-free. Mechanical distortions are eliminated as the entire operation takes place under a low operating temperature.
The friction stir welding process aids in overcoming possible limitations that other welding procedures involve. This methodology has already found significant prominence in the aerospace sector, and is now slowly gaining popularity in the automotive sector as well. Advantages such as inherent mechanical properties and low operating costs make it ideal for automotive applications. According to Anju Ajaykumar, a lead analyst at Technavio for tools and components, “The most notable advantage of this type of welding process is that it can work with dissimilar metals. The process allows welding of various aluminum alloys as well as aluminum and steel.”
Technavio thus expects the friction stir welding process to significantly impact the growth of the welding equipment market as it is expected to be adopted in every sphere of the automotive industry in the future. It is anticipated that profit margins may increase by almost 50% by the end of the forecast period due to sales generated from the automotive industry in emerging economies.
Positive outlook of global construction sector
The global welding equipment market is expected to witness significant growth due to the positive outlook of the overall construction industry. Welding equipment is used extensively in the construction industry, especially for welding of structural steel which is an important raw material for this industry. Developments in new steel applications call for developments in the welding technology. Reliability, durability, and safety of the steel structures are important in construction activities, which is ensured by proper welding of the structural steel.
Global construction output is expected to grow by 85% to be worth USD 15 trillion by the end of 2030. Technavio expects the global construction industry to grow at 4% per annum until 2030, which is more than the expected global GDP growth rate of 3% per annum. This steady growth will be fueled by the continuous industrialization in emerging countries and the recovery of the developed economies from economic instability. The booming construction business will lead to the growth of the global welding equipment market.
Growing demand from wind energy sector
With depleting fossil fuel resources and stringent environmental regulations pertaining to the generation of electricity from non-renewable sources, there has been a gradual shift of focus towards the use of non-renewable sources, such as wind energy.
In wind energy, wind tower fabrication requires the formation of huge tubular shapes from individual cans. Internal and external longitudinal welding is required for the cans, while forming, tacking, and welding of internal and external circumferential joints are essential for the formation of the tower. Foundation flanges, portholes, and sub-components are the other areas that require welding solutions. Advanced automation is required to obtain better, repeatable welding results. Thus, the welding process equipment comprises a system of components, each customized for its respective function.
“As it is evident, the growth in the installed capacity of wind energy will lead to increased demand for installing wind towers, which eventually will give rise to the growth in demand for welding equipment,” says Anju.
Browse Related Reports:
- Global Welding Consumables Market 2015-2019
- Metal Fabrication Equipment Market in the US 2015-2019
- Global Abrasives Market 2016-2020
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About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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