Transcript of "Key Growth Accelerators For The Global Welding Consumable Markets"
Key Growth Accelerators for the Global Welding Consumables Market A Futuristic Approach Ruth Shilpa Sudhakar, Research Analyst, Industrial Automation & Process Control Europe November 23, 2011
Today’s Presenter: Ruth Shilpa Sudhakar 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 LtdRuth Shilpa Sudhakar What I bring to the TeamResearch Analyst, • Drive to achieve whatever standards I set towards myselfIndustrial Automation &Process Control • Fearlessness to venture into new arenas of work • In depth and out of the box analysis with technical expertise.Frost & Sullivan • Strong reasoning, interpretation skills with effective presentation & communication.GlobalChennai, India 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 Source: Frost & Sullivan analysis. 2
Market Overview Impacts of the PastTotal Welding Consumables Market: Growth 2009 Financial CrisisRates Impact (Global), 2008 -2010 & 2017 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 2010 Welding Consumables were largely used for repairs and 6.2% maintenance during the recession to maintain the 2008 existing welding infrastructure due to their lower cost 3.1% 2017 8.9% Present Situation Revival of the key markets – solid wires, flux cored 2009 wires (25.7%) 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 Source: Frost & Sullivan analysis. 4
Market Segmentation Product Segmentation Welding Consumables Stick Electrodes Solid Wires Flux Cored Wires SAW Wires & Fluxes End-User SegmentationAerospace & Defense Automotive & Construction Energy Heavy Machinery Ship Building Process & others Transportation Source: Frost & Sullivan analysis. 5
Key Market Drivers Total Welding Consumables Market: Growth Drivers (Global), 2010-2017 Increasing demand from energy, construction and Large usage of automotive sectors welding consumables for repairs and Influence of high maintenance performing alloys Low cost investments Demand from emerging economies Source: Frost & Sullivan analysis. 6
Key Market Restraints Total Welding Consumables Market: Growth Restraints (Global), 2010-2017 Shifting Customer price preferences toward sensitivity solid wires and flux cored wires Slow growth of the ship building, aerospace & defense industries Source: Frost & Sullivan analysis. 7
Product Analysis Total Welding Consumables Market: Product Analysis (Global), 2010 & 2017 Product Analysis $13.0B Product Key Market Trend $7.6B CAGR 6.9% Stick Electrodes • Manual welding in APAC CAGR • Repairs 7.7% • Least priced • Advantages over external conditions CAGR Solid Wires • Less slag output 9.0% • No wastage • No manual labor required • Higher productivity at lower cost CAGR • Widely used along with MIG/ 6.7% MAG technologies Flux Cored Wires • No slag/wastage • Perfect weld quality • Growing preference in ship building and construction industries SAW Wires & Fluxes • Used alongside SAW processes for downward welding (especially pipelines) Source: Frost & Sullivan analysis. 8
Key Regions Russia and CIS Eastern Europe Japan China Mexico Africa India Brazil Source: Frost & Sullivan analysis. 11
Voice of Customer Changing needs of customers Shifting trends Usability Substitution of solid wires by flux cored wires in ship building Bettermechanical Needs of Productivity/ Lesser labor Substitutionproperties Customers costs of stick electrodes by solid wires Emergence of high performing alloys Value for money Source: Frost & Sullivan analysis. 12
Future Trends: Alloys will gain more market share High Improves Phosphorus + temperature Titanium Machinability Sulphur strength and hardness Corrosion & Increases Silicon Molybdenum Heat weld ability Resistance A L Strength, L Resistance to toughness, Manganese Nickelharden ability O oxidation Y S Hardness & Carbide Carbon Chromium Strength stabilization SaltReduces the Aluminum Copper Corrosionoverall weight Resistance Source: Frost & Sullivan analysis. 13
Market Share Analysis Other Notable Participants Total Welding Consumables Market: Market Share (Global), 2010 Air Liquide Thermadyne ITW Kobe NipponMarket Share % Hyundai Welding Kiswel Key ESAB Lincoln Electric Bohler Tianjin Golden Bridge Tianjin Bridge Revenue ($ Million) Others Source: Frost & Sullivan analysis. 14
Conclusions Ni+Cr+Mo, Al based, Cu Increasing price of steel is based welding expected to impact the consumables are expected prices of welding to have the largest demand consumables and thereby India, China, Africa and the revenue Middle East are expected to be the key growth regions Key Opportunities Energy, Construction and in the Welding Automotive industries are Consumables expected to be the largest To meet large demands Market consumers of weldingfrom developing economies consumables like Russia, companies are involving into mergers and acquisitions Streamlining the distribution structure by Large demand for welding increasing wholesale consumables has resulted company distributors also in the emergence of new helps strengthen customer entrants into the market services and thereby brand image Source: Frost & Sullivan analysis. 15
Upcoming Research Titles WELDING 2011 World Solid Wires Welding Market(WIP) Global 2011 World Stick Electrodes Market(WIP) Global Global Welding Equipment and Consumables Market for Power 2011 Global Industry (Wind, Thermal, Hydro, Nuclear)(WIP) CEO 360 Degree Perspective on Welding/Joining• Arc Welding Systems 2011 Global Technologies(WIP)• Resistance Welding• Laser and Hybrid 2011 World Aluminium Filler Metals Market(WIP) Global Welding Analysis of Safety and Hazardous Procedures in the Global 2012 Global• Welding Consumables Welding Market• Mechanized Cutting 2012 Study on Submerged Arc Welding Market Global• Welding Applications Markets 2012 Global Speciality Welding Consumables Market Global 16
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. (firstname.lastname@example.org) Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) Source: Frost & Sullivan analysis. 17
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For Additional InformationAnna Zanchi Archana ChauhanCorporate Communications Program ManagerIndustrial Automation & Process Industrial Automation & ProcessControl Control - Europe+39 02 4651 4819 +48 22 4816 email@example.com Archana.firstname.lastname@example.orgMuthukumar Viswanathan Ruth Shilpa SudhakarPractice Director Research Analyst,Industrial Automation & Process Industrial Automation & ProcessControl - Europe Control - Europe+44 20 7915 7804 +91 44 6681 email@example.com RuthS@frost.com 20
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