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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
3
Agenda
Key Regions
Demand Analysis
Market Analysis – Product Segmentation
Conclusions
Source: Frost & Sullivan analysis.
� 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
Source: Frost & Sullivan analysis.
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
5
Aerospace & Defense Automotive & Transportation
Construction Energy Heavy Machinery Ship Building Process & others
End-User SegmentationEnd-User Segmentation
Source: Frost & Sullivan analysis.
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
6
Influence of high performing alloys
maintenance
Demand from emerging economies
Low cost investments
Source: Frost & Sullivan analysis.
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
Source: Frost & Sullivan analysis.
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
8
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)
Source: Frost & Sullivan analysis.
Demand Analysis – Trend Forecast
Total Welding Consumables Market: Demand Analysis (Global), 2010
9
TRENDDecreasing Stable Increasing
▼ ●● ▲
Source: Frost & Sullivan analysis.
Regional Analysis
EMEACAGR: 8.1%
10
APACCAGR: 8.4%
ROWCAGR: 4.9%
AmericasCAGR: 7.2%
Source: Frost & Sullivan analysis.
Key Regions
Japan
Russia and CIS
Eastern Europe
11
Mexico India
China
Africa
Brazil
Source: Frost & Sullivan analysis.
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
12
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
Source: Frost & Sullivan analysis.
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
13
Nickel
Chromium
CopperAluminum
Carbon
Manganesetoughness, harden ability
Carbide stabilization
Hardness & Strength
Reduces the overall weight
Salt Corrosion
Resistance
Resistance to oxidation
LOYS
LOYS
Source: Frost & Sullivan analysis.
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 %
14
� Kiswel
KeyKey
ESAB
Lincoln Electric
Bohler
Tianjin Golden Bridge
Tianjin Bridge
Others
Ma
rke
t S
ha
re %
Revenue ($ Million)
Source: Frost & Sullivan analysis.
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
15
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
Source: Frost & Sullivan analysis.
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
16
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)
17
� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities(www.frost.com/news)
Source: Frost & Sullivan analysis.
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
What would you like to see from Frost & Sullivan?
18
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by “Rating” this presentation.
Source: Frost & Sullivan analysis.
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http://www.facebook.com/FrostandSullivan
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19
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Source: Frost & Sullivan analysis.
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
20
Muthukumar Viswanathan
Practice Director
Industrial Automation & Process Control - Europe
+44 20 7915 7804
Ruth Shilpa Sudhakar
Research Analyst,
Industrial Automation & Process Control - Europe
+91 44 6681 [email protected]