Key Growth Accelerators For The Global Welding Consumable Markets

Key Growth Accelerators for the Global Key Growth Accelerators for the Global Welding Consumables MarketWelding Consumables Market

A A Futuristic Futuristic AApproach pproach

Ruth Shilpa Sudhakar, Research Analyst,Ruth Shilpa Sudhakar, Research Analyst,

Industrial Automation & Process Control Europe

November 23, 2011

Functional Expertise

• Analyze and evaluate the European Industrial Automation & Process Control Market

• Identifying new markets, conduct research on market sizing and forecast.

• Evaluate emerging technologies and trends across various geographies covering the global sector

• Discover the best practices followed in the industry

Industry Expertise

• Experienced as a Technical Engineer in Power Solutions Business at Ashok Leyland Ltd and gained

functional experience within the manufacturing sector.

• Experienced as a Marketing Executive at Novatium Solutions Private Ltd

Today’s Presenter: Ruth Shilpa Sudhakar

Ruth Shilpa Sudhakar

2

What I bring to the Team

• Drive to achieve whatever standards I set towards myself

• Fearlessness to venture into new arenas of work

• In depth and out of the box analysis with technical expertise.

• Strong reasoning, interpretation skills with effective presentation & communication.

Career Highlights

• Hands on experience as a “Technical Engineer”, in the planning and development of 15 KVA to 40 KVA

power generators & control panels at the manufacturing giant, Ashok Leyland

Education

• Bachelor of Engineering in Electronics & Control Engineering from Sathyabama University, Chennai,

India

Ruth Shilpa SudhakarResearch Analyst, Industrial Automation & Process Control

Frost & SullivanGlobalChennai, India

Source: Frost & Sullivan analysis.

Market Overview

Market Drivers and Restraints

Market Segmentation

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Agenda

Key Regions

Demand Analysis

Market Analysis – Product Segmentation

Conclusions


� 2009 Financial Crisis

� Reduced capital expenditure

� Postponement and Closure of proposed projects

� Low Price to sell more volume

� Declining demand from end-user industries

� Revenues from North America, Western and Central

Europe decreased by more than -20 percent

� Welding Consumables were largely used for repairs and

Market Overview

Total Welding Consumables Market: Growth Rates Impact (Global), 2008 -2010 & 2017

2010

Impacts of the PastImpacts of the Past

4

maintenance during the recession to maintain the

existing welding infrastructure due to their lower cost


20106.2%

2017 8.9%

2009(25.7%)

20083.1%

� Revival of the key markets – solid wires, flux cored

wires

� Rebound of end users demand – especially Automotive

and Transportation and Energy industry

� China and India to emerge as the largest markets for

welding consumables

� Shift from manual to automation in developing

Present Situation Present Situation

Market Segmentation

Welding Consumables

Stick Electrodes Solid Wires Flux Cored Wires SAW Wires & Fluxes

Product SegmentationProduct Segmentation

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Aerospace & Defense Automotive & Transportation

Construction Energy Heavy Machinery Ship Building Process & others

End-User SegmentationEnd-User Segmentation


Key Market Drivers

Influence of high

Large usage of welding

consumables for repairs and

maintenance

Increasing demand from energy,

construction and automotive sectors

Total Welding Consumables Market: Growth Drivers (Global), 2010-2017

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Influence of high performing alloys

maintenance

Demand from emerging economies

Low cost investments


Slow growth of the ship building, aerospace &

defense industries

Shifting preferences toward

solid wires and flux cored wires

Customer price sensitivity

Key Market Restraints

Total Welding Consumables Market: Growth Restraints (Global), 2010-2017

7

defense industries


Product Analysis

$7.6B $13.0B

CAGR7.7%

CAGR

CAGR6.9%

Product AnalysisProduct Analysis

Product Key Market Trend

Stick Electrodes • Manual welding in APAC• Repairs• Least priced• Advantages over external

conditions

Solid Wires • Less slag output

Total Welding Consumables Market: Product Analysis (Global), 2010 & 2017

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CAGR6.7%

CAGR9.0%

Solid Wires • Less slag output• No wastage• No manual labor required• Higher productivity at lower cost• Widely used along with MIG/

MAG technologies

Flux Cored Wires • No slag/wastage• Perfect weld quality• Growing preference in ship

building and construction industries

SAW Wires & Fluxes • Used alongside SAW processes for downward welding (especially pipelines)


Demand Analysis – Trend Forecast

Total Welding Consumables Market: Demand Analysis (Global), 2010

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TRENDDecreasing Stable Increasing

▼ ●● ▲


Regional Analysis

EMEACAGR: 8.1%

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APACCAGR: 8.4%

ROWCAGR: 4.9%

AmericasCAGR: 7.2%


Key Regions

Japan

Russia and CIS

Eastern Europe

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Mexico India

China

Africa

Brazil


Voice of Customer

Usability

Substitution of solid wires by flux cored wires in ship

building

Changing needs of customersChanging needs of customers

Shifting trendsShifting trends

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Needs of Customers

Productivity/ Lesser labor

costs

Value for money

Better mechanical properties

Emergence of high performing alloys

Substitution of stick

electrodes by solid wires

building


Future Trends: Alloys will gain more market share

Titanium

Molybdenum

NickelManganese

Silicon

Phosphorus + Sulphur

Increases weld ability

Strength, toughness,

High temperature strength and

hardness

Resistance to

Corrosion & Heat

Resistance

Improves Machinability

ALL

ALL

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Nickel

Chromium

CopperAluminum

Carbon

Manganesetoughness, harden ability

Carbide stabilization

Hardness & Strength

Reduces the overall weight

Salt Corrosion

Resistance

Resistance to oxidation

LOYS

LOYS


Market Share Analysis

Other Notable ParticipantsOther Notable Participants

� Air Liquide� Thermadyne� ITW� Kobe� Nippon� Hyundai Welding� Kiswel

Total Welding Consumables Market: Market Share (Global), 2010

Ma

rke

t S

ha

re %

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� Kiswel

KeyKey

ESAB

Lincoln Electric

Bohler

Tianjin Golden Bridge

Tianjin Bridge

Others

Ma

rke

t S

ha

re %

Revenue ($ Million)


Conclusions

Energy, Construction and

Ni+Cr+Mo, Al based, Cu based welding

consumables are expected to have the largest demand

India, China, Africa and Middle East are expected

to be the key growth regions

Increasing price of steel is expected to impact the

prices of welding consumables and thereby

the revenue

Key Opportunities in the Welding

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Large demand for welding consumables has resulted in the emergence of new entrants into the market

Automotive industries are expected to be the largest

consumers of welding consumables

Streamlining the distribution structure by increasing wholesale

company distributors also helps strengthen customer services and thereby brand

image

To meet large demands from developing economies like Russia, companies are involving into mergers and

acquisitions

in the Welding Consumables

Market


Upcoming Research Titles

2011 World Solid Wires Welding Market(WIP) Global

2011 World Stick Electrodes Market(WIP) Global

2011Global Welding Equipment and Consumables Market for Power

Industry (Wind, Thermal, Hydro, Nuclear)(WIP)Global

CEO 360 Degree Perspective on Welding/Joining

WELDING

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2011CEO 360 Degree Perspective on Welding/Joining

Technologies(WIP)Global

2011 World Aluminium Filler Metals Market(WIP) Global

2012Analysis of Safety and Hazardous Procedures in the Global

Welding MarketGlobal

2012 Study on Submerged Arc Welding Market Global

2012 Global Speciality Welding Consumables Market Global

• Arc Welding Systems

• Resistance Welding

• Laser and Hybrid

Welding

• Welding Consumables

• Mechanized Cutting

• Welding Applications

Markets

Next Steps

� Request a proposal for our Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ([email protected])

� Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com)

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� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities(www.frost.com/news)


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For Additional Information

Anna Zanchi

Corporate Communications

Industrial Automation & Process Control

+39 02 4651 4819 [email protected]

Archana Chauhan

Program Manager

Industrial Automation & Process Control - Europe

+48 22 4816 281

[email protected]

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Muthukumar Viswanathan

Practice Director


+44 20 7915 7804

[email protected]

Ruth Shilpa Sudhakar

Research Analyst,


+91 44 6681 [email protected]

Key Growth Accelerators For The Global Welding Consumable Markets

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Transcript of Key Growth Accelerators For The Global Welding Consumable Markets