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The welding power supply market size is forecast to increase by USD 2.99 billion at a CAGR of 6.6% between 2023 and 2028. The market is experiencing significant growth, driven by the construction and shipbuilding industries' increasing demand for energy-efficient solutions. Inverter-based welding power supplies, which offer improved energy efficiency, are gaining popularity. The automotive industry's shift towards lighter magnesium alloys for vehicle weight reduction and better fuel economy is another key trend. Robotic welding is also on the rise, particularly in the automotive sector, due to its ability to enhance productivity and consistency. The Internet of Things (IoT) and Artificial Intelligence (AI) are transforming the industry by enabling predictive maintenance and real-time process optimization. Despite these opportunities, intense competition remains a challenge. The market is experiencing notable growth, fueled by the construction and shipbuilding sectors' demand for energy-efficient solutions. Inverter-based welding power supplies, which offer enhanced energy efficiency, are gaining traction. Robotic welding, which boosts productivity and consistency, is increasingly popular in the automotive sector. The integration of the Internet of Things (IoT) and Artificial Intelligence (AI) in welding processes enables predictive maintenance and real-time optimization. However, the market faces intense competition.
The market is a significant segment in the industrial manufacturing sector, playing a crucial role in various industries such as construction and shipbuilding. This market encompasses various technologies, including spot welding, which relies on electric current to join metals. Electric current is the backbone of welding power supplies, with direct current (DC) and alternating current (AC) being the primary power sources. DC power supplies are commonly used in applications requiring high current, such as welding magnesium alloys, due to their ability to provide consistent voltage regulator and current levels. In contrast, AC power supplies are suitable for applications where energy efficiency is a priority, such as hybrid laser-arc welding and welding with structural adhesives and fasteners. Inverter-based welding power supplies have gained popularity due to their energy efficiency and ability to deliver pulsed current, which improves weld quality and reduces energy consumption.
Furthermore, these power supplies are widely used in the automotive industry for welding vehicle components, including stick electrodes, saw wires, and fluxes. The construction and shipbuilding industries require high current welding power supplies to join large, heavy structures. In these applications, energy efficiency is not the primary concern, and the focus is on ensuring consistent power delivery and weld quality. This technology offers increased productivity, improved weld quality, and reduced energy consumption. In conclusion, the market is a dynamic and evolving sector that plays a vital role in various industries. The demand for energy-efficient, high-performance welding power supplies is increasing, driven by advancements in technology and the need for improved productivity and weld quality. The market is expected to continue growing, with opportunities in construction, shipbuilding, and the automotive industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The automotive segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to advancements in technologies such as aerial measurement and 3D modeling. These innovations are enabling more precise and efficient welding processes, particularly in industries like automotive.
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The Automotive segment was the largest segment and was valued at USD 1.64 billion in 2018. In this sector, manufacturers are striving to create lighter and stronger vehicles using alternative materials. Consequently, they require efficient welding techniques to produce high-quality, lightweight weld joints without adding excess material. Hybrid laser-arc welding, resistance welding technology, robotic, and oxy-fuel welding technology are some of the advanced welding methods being adopted. Structural adhesives and fasteners are also being increasingly used to enhance the bonding strength and reduce the reliance on welding. The automotive segment is expected to dominate the market due to the industry's focus on technological advancements and the continuous increase in vehicle production. The global automotive industry's growth, driven by urbanization and rising disposable income, is a significant factor fueling the demand for welding power supplies. Companies are investing in research and development to create more efficient and cost-effective welding solutions to cater to this growing market. The market is poised for substantial growth in the forecast period.
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APAC is estimated to contribute 60% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is projected to expand at a substantial rate between 2023 and 2028, with APAC being the leading market during this period. The expansion of industries such as automotive, transportation, building and construction, marine, repair and maintenance, oil and gas, electric cars, and hybrid cars in APAC is driving the demand for welding equipment.
Furthermore, the region's growing urban population has led to numerous government and public-private partnership (PPP) projects aimed at infrastructure development. TIG welding is a popular welding technique used in various industries, including automotive and transportation, building and construction, marine, repair and maintenance, oil and gas, electric cars, and hybrid cars. These industries are witnessing significant growth, particularly in APAC, which is expected to fuel the demand for TIG welding power supplies. The market is poised for steady growth due to the increasing demand from end-use industries and infrastructure development projects.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Energy efficiency due to inverter-based welding power supply is notably driving the market growth. Inverter-based welding power supplies offer significant advantages over traditional transformer-style power sources for businesses engaged in shipbuilding activities. The larger size and high power draw of conventional transformer-based power sources result in increased utility bills and a limited number of units that can be run on the existing power.
Moreover, inverter-based power sources for welding consume less power, enabling businesses to operate more machines and workstations without the need to expand or build in additional power infrastructure. For example, a 350-amp TIG power source with a conventional transformer draws 128 amps of input power under a rated load of 230-volt single-phase power. In comparison, a comparable TIG inverter power source only draws 32 amps under the same circumstances. This energy efficiency allows companies to optimize their power usage and expand their welding operations without significant investment in new power infrastructure. This shift is driven by the need for cost savings, flexibility, and increased productivity. Thus, such factors are driving the growth of the market during the forecast period.
Adoption of magnesium alloy in automotive welding industry is the key trend in the market. In the realm of industrial manufacturing, the adoption of magnesium alloys is gaining traction due to their lightweight properties and ease of sourcing. Magnesium is approximately four times lighter than steel, making it an attractive alternative for industries focusing on reducing vehicle weight and improving fuel economy. The automotive sector, in particular, stands to benefit significantly from this trend. Every 100 kg reduction in a vehicle's total weight enhances its fuel efficiency by approximately 3.5%. Consequently, magnesium alloys are increasingly being explored as a viable option for producing lightweight vehicles. Furthermore, the substitution of steel with aluminum results in a 40% weight reduction. Replacing aluminum with magnesium alloys could potentially lead to an additional 40% weight reduction. The construction and shipbuilding industries also stand to gain from the use of magnesium alloys. These industries are constantly seeking ways to reduce the overall weight of their structures while maintaining their strength and durability.
Furthermore, magnesium alloys offer a promising solution due to their high strength-to-weight ratio. Moreover, advancements in technology such as robotic welding, the Internet of Things (IoT), and Artificial Intelligence (AI) are revolutionizing the manufacturing process. These technologies enable more precise and efficient production methods, reducing waste and increasing productivity. The integration of these technologies with magnesium alloy manufacturing is expected to further boost their adoption in various industries. In conclusion, the use of magnesium alloys in industrial applications, particularly in the automotive, construction, and shipbuilding sectors, is on the rise. Their lightweight properties and ease of sourcing make them an attractive alternative for industries seeking to reduce vehicle weight and improve fuel economy. Additionally, advancements in technology such as robotic welding, IoT, and AI are enabling more precise and efficient production methods, further increasing their adoption. Thus, such trends will shape the growth of the market during the forecast period.
Intense competition is the major challenge that affects the growth of the market. The market is characterized by a high level of competition among various vendors, both established and new. Major players hold a significant market share, but the market's gradual expansion is drawing in new competitors. Cost-conscious end-users are increasingly opting for affordable solutions from emerging vendors, putting pressure on profit margins for existing players.
Furthermore, to remain competitive, leading vendors are focusing on innovation, developing advanced welding power supplies using technologies like inverter-based, direct current, alternating current, and pulsed current. These technologies offer energy efficiency and improved performance, making them attractive to manufacturers in industries such as automotive, construction, and aerospace. As the market continues to evolve, vendors will need to stay agile and responsive to changing customer needs and technological advancements. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Dukane IAS LLC - The company offers iQ auto plus ultrasonoc generator welding power supply, thus designed for automotive, aerospace, packaging and textile industries.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market encompasses a range of technologies used to generate electric current for various welding processes. These include spot welding, which requires high currents for short durations, and robotic welding, which often uses inverter-based power supplies for energy efficiency. Welding processes utilize different types of electric current, such as direct current (DC) and alternating current (AC), as well as pulsed current for specific applications. The construction, shipbuilding, and heavy engineering industries are significant consumers of welding power supplies. Magnesium alloys, vehicle weight reduction, and fuel economy are key considerations in these industries, driving the demand for advanced welding technologies. The integration of the Internet of Things (IoT), artificial intelligence (AI), smart sensors, and 3D modeling technologies in welding processes is revolutionizing the industry.
Furthermore, hybrid laser-arc welding, structural adhesives, fasteners, and resistance welding technology are some of the emerging trends in the market. The market caters to various industries, including automotive and transportation, building and construction, marine, repair and maintenance, oil and gas, electric cars, and hybrid cars. Welding consumables, such as stick electrodes, saw wires, fluxes, and various welding wire types, are essential components of the market. Aerial measurement and various welding technologies, including oxy-fuel welding technology, electron beam welding, induction welding, flow welding, electro-slag welding, laser hybrid welding, solid wire, and saw wire fluxes, are also part of this market. Stainless-steel alloys and TIG welding are widely used in various applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
150 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.6% |
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Market growth 2024-2028 |
USD 2.99 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.0 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 60% |
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Key countries |
China, US, Germany, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Ador Welding Ltd., AXXAIR, Dukane IAS LLC, Enovis Corp., Fronius International GmbH, GALA GAR SL, HBS Bolzenschweiss Systeme GmbH and Co. KG, Illinois Tool Works Inc., Jasic Technology Co., Ltd., Kemppi Oy, KUHTREIBER Ltd., MTM Power Messtechnik Mellenbach GmbH, Orbitec GmbH, Panasonic Holdings Corp., Rinco Ultrasonics AG, Telwin Spa, The Lincoln Electric Co., Weber Ultrasonics AG, and XP Power |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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