Although moderately consolidated among a few leading players, the global nickel alloy welding consumables market demonstrates a highly competitive business landscape. A new research study by Transparency Market Research (TMR) states that the key players cater to around 50% of the overall demand for nickel welding consumables across the world. Players, such as Illinois Tool Works Inc., Voestalpine Bohler Welding GmbH, ESAB, Lincoln Electric Holdings Inc., and Colfax Corp., are constantly make efforts to outdo each other. They rely on innovation and technological advancements to increase their product sale and, in turn, their market share. Local players are also creating tough competition for leading companies. In a bid to gain a foothold in the market, they provide consumables on discounted rates. This, eventually, forces established brands to lower their prices, disturbing their returns, states the research study.
Market Opportunity to Rise at 5.4% CAGR between 2017 and 2025
The global nickel alloy welding consumables market has gained significant traction over the last few years. The abundant availability of nickel, worldwide, and the efficiency of nickel alloys as stick electrodes and wires is boosting their demand in various industries, such as construction, power, automotive, and marine. This, in turn, is creating an opportune marketplace for nickel alloy welding consumables.
According to the report, the opportunity in the worldwide nickel alloy welding consumables market is proliferating at a healthy CAGR of 5.40% between 2017 and 2025. In 2016, the market stood at US$3.5 bn and researchers estimate it to increase up to US$5.6bn by the end of the forecast period.
Although, the nickel alloy welding consumables market demonstrates a thriving future, it may face a few setbacks in the years to come. The fluctuating production of the metal may hamper the growth of this market over the next couple of years. The market may also suffer due to the price volatility of raw materials and the dearth of skilled manpower required to perform various welding tasks, notes the market study.
Asia Pacific Market to Report Exceptional Rise
In terms of the geography, the global nickel alloy welding consumables market is spread across Latin America, Asia Pacific, the Middle East and Africa, North America, and Europe. With a total market share of 33.80%, Asia Pacific led the global market in 2017. The presence of a well-established nickel alloy market in China and India is the key factor that has been propelling the Asia Pacific nickel alloy welding consumables market. The regional market is anticipated to remain rising at a strong pace and account for nearly 36% of the overall market share by the end of the forecast period. The expansion in the transportation and the manufacturing industries in Asia Pacific will support this imminent growth.
On the flip side, North America and Europe are expected to report a slowdown in their respective nickel alloy welding consumables markets as the demands are likely to mature in near future. However, the advancement in the building and construction industry in the U.K., Germany, and Canada will create opportunities for nickel alloy welding consumables producers in the near future. While Latin America and the Middle East and Africa currently hold less shares in the global market, they are expected to witness a rise in their valuation in the years to come. The growth in the oil and gas industry will support the Middle East and Africa market and the rise in construction projects will propel the Latin America market, states the research report.