|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
3.88 billion
|
|
CAGR
(2023-2028)
|
6.29%
|
|
Fastest
Growing Segment
|
Tungsten
Gas Arc Welding
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global
Welding Gas/ Shielding Gas Market has valued at USD 3.88 billion in 2022 and is
anticipated to project robust growth in the forecast period with a CAGR of 6.29%
through 2028. Infrastructure development projects, including the construction
of roads, bridges, airports, and buildings, require welding processes for
structural fabrication. Shielding gases play a crucial role in ensuring the
integrity of welds in these critical applications. The global push for
infrastructure development, particularly in emerging economies, contributes
significantly to the growing demand for welding gases.
Key Market Drivers
Growing
Demand for Welded Products in Various Industries
The
global welding gas/shielding gas market is experiencing a significant boost due
to the increasing demand for welded products across diverse industries. Welding
is a fundamental process in the manufacturing sector, playing a crucial role in
the fabrication of products ranging from automobiles to construction materials.
As industrialization continues to expand globally, there is a parallel surge in
the demand for welding gases.
One
key driver of this demand is the thriving automotive industry. Automotive
manufacturing relies heavily on welding processes for the assembly of
components, body structures, and other vital parts. With the rise in consumer
purchasing power and the global trend toward electric vehicles, the automotive
industry is undergoing rapid transformations, driving the need for advanced
welding technologies and, consequently, welding gases.
Similarly,
the construction industry is another major contributor to the growing demand
for welding gases. As urbanization and infrastructure development projects
proliferate worldwide, the construction sector is witnessing increased adoption
of welding processes for the fabrication of steel structures and other critical
components. Welding gases, particularly shielding gases, play a crucial role in
ensuring the quality and strength of welded joints in these applications.
Technological
Advancements and Innovation in Welding Processes
The
welding industry is experiencing a paradigm shift with continuous technological
advancements and innovations in welding processes. This is a significant driver
for the global welding gas/shielding gas market as new and improved welding
techniques often require specialized gases to enhance efficiency, precision,
and safety.
One
notable advancement is the increasing use of advanced welding processes such as
laser welding and electron beam welding. These processes offer advantages such
as higher welding speeds, reduced heat-affected zones, and improved weld
quality. However, they often necessitate the use of specific shielding gases
tailored to the requirements of these high-tech welding methods. As industries
increasingly adopt these cutting-edge welding technologies, the demand for
corresponding shielding gases is set to rise.
Moreover,
innovations in gas mixtures are contributing to enhanced welding outcomes.
Customized gas blends are designed to meet the specific needs of different
materials and welding processes, optimizing weld penetration, minimizing
spatter, and improving overall weld quality. This focus on precision and
efficiency is propelling the welding gas market forward.
Growing
Infrastructure Development in Emerging Economies
The
welding gas/shielding gas market is experiencing robust growth due to the
increasing infrastructure development activities in emerging economies.
Countries in Asia, Africa, and South America are witnessing significant
investments in infrastructure projects, including the construction of roads,
bridges, airports, and industrial facilities.
Rapid
urbanization and population growth in these regions are driving the need for
expanded infrastructure, boosting the demand for welding gases. In construction
projects, welding is integral for joining steel and other metal components, and
shielding gases are essential to ensure the integrity of the welds. The growth
of the construction sector in emerging economies, coupled with
industrialization initiatives, is a key driver for the welding gas market.
Additionally,
the expansion of manufacturing activities in these regions further fuels the
demand for welding gases. As these economies become increasingly
industrialized, the usage of welding processes in manufacturing applications
rises, leading to a parallel increase in the consumption of welding gases.
In
conclusion, the growing demand for welded products in various industries,
technological advancements in welding processes, and the surge in
infrastructure development in emerging economies are three significant drivers
propelling the global welding gas/shielding gas market forward. These factors
collectively indicate a positive trajectory for the industry as it continues to
play a vital role in the world of manufacturing and construction.
Download Free Sample Report
Key Market Challenges
Fluctuating
Prices of Raw Materials and Supply Chain Disruptions
One
of the major challenges facing the global welding gas/shielding gas market is
the volatility in the prices of raw materials and the susceptibility of the
supply chain to disruptions. The production of welding gases relies heavily on
raw materials such as atmospheric gases (oxygen, nitrogen, and argon) and
hydrocarbons. The prices of these raw materials are subject to various factors,
including geopolitical tensions, natural disasters, and fluctuations in global
energy markets.
Geopolitical
events, such as trade tensions or regional conflicts, can disrupt the supply of
raw materials, leading to sudden and unpredictable price spikes. Additionally,
natural disasters, such as hurricanes or earthquakes, can impact the production
and transportation of these materials. The interconnected and global nature of
the supply chain for welding gases makes it vulnerable to disruptions,
affecting the availability and affordability of these gases for end-users.
In
recent years, the COVID-19 pandemic has further highlighted the vulnerability
of supply chains. Lockdowns, restrictions on movement, and disruptions in
logistics have led to delays in the production and delivery of welding gases.
Such uncertainties in the supply chain pose a considerable challenge for market
players who must navigate these challenges to maintain a stable and
cost-effective supply of welding gases.
Stringent
Regulatory Standards and Environmental Concerns
The
welding gas/shielding gas industry is subject to stringent regulatory standards
and increasing environmental concerns, presenting a challenge for market
participants. Governments worldwide are imposing stricter regulations to ensure
workplace safety, control emissions, and reduce the environmental impact of
industrial activities. Compliance with these regulations requires continuous
investment in research and development to develop environmentally friendly gas
formulations and processes.
One
significant regulatory concern is the emission of greenhouse gases (GHGs)
during the production and use of welding gases. For example, the manufacturing
of nitrous oxide (N2O), a byproduct in the production of nitric acid, is
associated with environmental concerns due to its contribution to global
warming. Market players need to invest in technologies that minimize these
emissions or develop alternative gas formulations that have a lower
environmental impact.
Additionally,
workplace safety standards are evolving, demanding better control measures to
protect workers from exposure to hazardous welding fumes and gases. This
necessitates continuous innovation in gas formulations and welding techniques
to reduce the generation of harmful byproducts and enhance workplace safety.
Intense
Market Competition and Technological Disruption
The
global welding gas/shielding gas market is characterized by intense competition
among key players, and the industry is susceptible to technological
disruptions. Established companies and new entrants alike are constantly
innovating to gain a competitive edge, leading to a dynamic market landscape.
Technological
disruptions, such as the development of alternative welding methods or the
introduction of novel gas formulations, can quickly alter market dynamics.
Established players may face challenges in adapting to these changes, and new
entrants with innovative solutions can disrupt traditional market hierarchies.
This creates a constant need for companies to invest in research and
development to stay ahead of technological advancements and maintain their
market positions.
Moreover,
price competition is a persistent challenge in the industry. With numerous
suppliers offering similar products, price becomes a significant factor
influencing purchasing decisions. This pressure on pricing can impact profit
margins and hinder the ability of companies to invest in research and
development or maintain high-quality standards.
In
conclusion, the fluctuating prices of raw materials and supply chain
disruptions, stringent regulatory standards and environmental concerns, and
intense market competition with technological disruptions are three key
challenges facing the global welding gas/shielding gas market. Successfully
navigating these challenges requires strategic planning, continuous innovation,
and a commitment to sustainability and compliance.
Key Market Trends
Adoption
of Advanced Gas Mixtures for Enhanced Welding Performance
An
emerging and influential trend in the global welding gas/shielding gas market
is the widespread adoption of advanced gas mixtures tailored to optimize
welding performance. Traditional shielding gases, such as argon and carbon
dioxide, have long been staples in welding processes, providing inert
atmospheres essential for preventing oxidation and ensuring high-quality welds.
However, the demand for improved efficiency, higher productivity, and enhanced
weld quality has led to the development and adoption of more sophisticated gas
blends.
Customized
gas mixtures, often including a combination of argon, helium, carbon dioxide,
and other specialty gases, are designed to meet the specific requirements of
different welding applications and materials. These advanced gas formulations
offer advantages such as improved arc stability, reduced spatter, enhanced
penetration, and better control over the welding process. As a result,
industries such as automotive, aerospace, and heavy machinery manufacturing are
increasingly incorporating these advanced gas mixtures into their welding
operations to achieve superior results.
The
trend towards advanced gas mixtures is also fueled by the demand for greater
precision in welding processes. For instance, in industries where weld quality
is critical, such as aerospace and nuclear power, the use of precise gas
compositions is essential for achieving the desired mechanical and
metallurgical properties in the welded joints. This trend is likely to persist
as manufacturers seek ways to optimize their welding processes and stay
competitive in a rapidly evolving industrial landscape.
Rising
Focus on Sustainability and Green Initiatives in Gas Production
A
significant and transformative trend in the global welding gas/shielding gas
market is the increasing emphasis on sustainability and green initiatives in
gas production. With a growing awareness of environmental issues and the carbon
footprint associated with industrial activities, stakeholders in the welding
gas industry are actively exploring ways to reduce the environmental impact of
gas manufacturing processes.
One
notable aspect of this trend is the development and adoption of more
sustainable gas production methods. For example, advancements in gas separation
technologies, such as pressure swing adsorption (PSA) and membrane separation,
allow for more energy-efficient and environmentally friendly production of
gases like nitrogen and oxygen. These technologies enable the recovery and
reuse of gases, minimizing waste and reducing overall energy consumption.
Furthermore,
there is a push towards developing alternative gas formulations that have lower
greenhouse gas emissions during their production and use. Companies in the
welding gas industry are investing in research and development to formulate
gases that meet industry standards while minimizing their environmental impact.
This aligns with the broader global movement towards eco-friendly practices and
corporate responsibility.
As
sustainability becomes a key consideration for businesses and consumers alike,
the welding gas industry is likely to witness a shift towards greener practices
and products. This trend is not only driven by regulatory pressures but also by
a genuine commitment to environmental stewardship, reflecting the industry's
recognition of its role in contributing to a more sustainable future. Companies
that proactively embrace and promote sustainable practices are expected to gain
a competitive advantage in the evolving market landscape.
Segmental Insights
Type Insights
The
Carbon Dioxide segment emerged as the dominating
segment in 2022. Carbon dioxide (CO2) is a significant component in the welding
gas/shielding gas market, playing a crucial role in various welding processes.
It is commonly used as a shielding gas in metal inert gas (MIG) and metal
active gas (MAG) welding applications. The unique properties of carbon dioxide,
including its affordability and effectiveness in certain welding scenarios,
contribute to its widespread adoption in the industry.
Carbon
dioxide is extensively used as a shielding gas in MIG welding, where it serves
the dual purpose of protecting the weld pool from atmospheric contamination and
facilitating the arc stability. The affordability of CO2 makes it a preferred
choice in applications such as automotive manufacturing, general fabrication,
and construction, where cost-effectiveness is a critical consideration.
The
primary driver for the use of carbon dioxide in welding applications is its
cost-effectiveness. As compared to some other shielding gases, CO2 is
relatively more affordable, making it an attractive choice for industries where
cost considerations are paramount. This affordability is particularly
advantageous in high-volume manufacturing processes, such as automotive
production lines.
The
cost-effectiveness of carbon dioxide makes it a compelling choice for
manufacturers in developing economies. As industrialization and infrastructure
development continue to rise in these regions, the demand for welding gases,
including carbon dioxide, is expected to grow.
End
User Insights
The
Construction segment is projected to experience
rapid growth during the forecast period. The construction industry is a
significant consumer of welding gases, with applications ranging from the
fabrication of structural components to the assembly of infrastructure
elements. Welding processes play a crucial role in joining metals and ensuring
the structural integrity of buildings, bridges, and other construction
projects. Shielding gases, including a variety of gas mixtures, are utilized to
protect the weld pool from atmospheric contamination, ensuring high-quality and
durable welds.
Welding
gases are extensively used in the fabrication of structural steel components, a
fundamental element in construction. Gas metal arc welding (GMAW) processes,
such as metal inert gas (MIG) and metal active gas (MAG) welding, are commonly
employed. Shielding gases, often a mixture of argon and carbon dioxide,
contribute to the stability of the welding arc and the quality of the
welds. Gas pipelines, a crucial
component of energy infrastructure, often involve welding processes for joining
sections of pipes. Shielding gases are employed to prevent oxidation and ensure
the integrity of the welds. In this application, gas blends may be customized
to meet specific requirements, considering factors such as pipeline material
and environmental conditions.
The
global focus on infrastructural development, including the construction of
roads, bridges, airports, and utilities, is a significant driver for the
welding gas market in the construction segment. As countries invest in
expanding and modernizing their infrastructure, the demand for welding gases to
support construction activities increases.
The
construction industry is witnessing the adoption of advanced welding
technologies, including robotic welding systems and automation. The integration
of these technologies may drive the demand for precise and specialized
shielding gases that complement the requirements of modern welding processes.
Download Free Sample Report
Regional Insights
Asia
Pacific emerged as the dominating region in 2022, holding the largest market
share. The Asia Pacific region is a dynamic and rapidly growing market for
welding gases, driven by robust industrialization, infrastructure development,
and manufacturing activities. The demand for welding gases, including shielding
gases, is influenced by the expanding construction, automotive, and
manufacturing sectors across countries in the Asia Pacific region.
Many
countries in the Asia Pacific region are undertaking extensive infrastructure
development projects to support urbanization and economic growth. Large-scale
construction activities, including the building of roads, bridges, and
commercial structures, require welding gases for various applications such as
structural steel fabrication. The construction boom contributes significantly
to the demand for shielding gases in the region.
The
Asia Pacific region is home to some of the world's largest and fastest-growing
automotive markets. The expansion of the automotive industry, driven by
increasing consumer demand and the rise of electric vehicles, fuels the need
for welding gases in manufacturing processes. Welding gases play a crucial role
in joining and fabricating components in the automotive sector.
The
Asia Pacific region is witnessing a shift towards advanced welding
technologies, including robotic welding systems and automation. This trend is
driven by the need for increased efficiency, precision, and productivity in
manufacturing. As industries adopt these advanced technologies, there is a
corresponding demand for specialized shielding gases that complement these
modern welding processes.
Growing
environmental awareness is prompting industries in the Asia Pacific region to
focus on sustainable practices. This includes a consideration for
environmentally friendly welding gases and processes. Suppliers that offer
eco-friendly gas formulations may gain a competitive advantage as businesses
increasingly prioritize sustainability in their operations.
The
Asia Pacific region is expected to continue its robust growth in the welding
gas market, driven by ongoing industrialization, infrastructure development,
and advancements in manufacturing technologies. The adoption of innovative
welding processes and a focus on sustainability are likely to shape the future
trajectory of the welding gas market in this dynamic and diverse region.
Companies that can navigate regulatory complexities, offer cost-effective
solutions, and align with emerging trends are poised for success in the Asia
Pacific welding gas market.
Recent Developments
- In
May 2023, Praxair and Linde announced a merger agreement to create the world's
largest industrial gas company. The combined company will have annual sales of
over USD 51 billion and will operate in over 100 countries.
Key Market Players
- Air
Products & Chemicals, Inc.
- The Linde Group
- Messer Group GmbH
- Iwatani Corporation
- Praxair, Inc.
- Iceblick Ltd.
- Gulf Cryo
- Taiyo Nippon Sanso Corporation
- SIG Gases Berhad
- Air Liquide SA
|
By Type
|
By Application
|
By Storage
|
By End User
|
By Region
|
- Argon
- Carbon
Dioxide
- Others
|
- Gas Metal Arc Welding
- Tungsten Gas Arc Welding
- Others
|
- Cylinder & Packaged Gas Distribution
- Merchant Liquid/Bulk Distribution
|
- Construction
- Energy
- Aerospace
- Metal Manufacturing &
Fabrication
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Welding Gas/ Shielding
Gas Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Welding Gas/ Shielding Gas Market, By Type:
o Argon
o Carbon Dioxide
o Others
- Welding Gas/ Shielding Gas Market, By
Application:
o Gas Metal Arc Welding
o Tungsten Gas Arc Welding
o Others
- Welding Gas/ Shielding Gas Market, By Storage:
o Cylinder & Packaged Gas Distribution
o Merchant Liquid/Bulk Distribution
- Welding Gas/ Shielding Gas Market, By End User:
o Construction
o Energy
o Aerospace
o Metal Manufacturing &
Fabrication
o Others
- Welding Gas/ Shielding Gas Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
§ Netherlands
§ Belgium
o *Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
§ Thailand
§ Malaysia
o South America
§ Brazil
§ Argentina
§ Colombia
§ Chile
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Turkey
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Welding
Gas/ Shielding Gas Market.
Available Customizations:
Global Welding Gas/ Shielding Gas Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Welding Gas/ Shielding Gas Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]