Abstract
Development of Sophisticated Welding Equipment - a Must to Increase Market
Potential
Laser cutting welding equipment and welding robots are in greater demand in
China, and this, in turn, is likely to provide fresh momentum to the metallic
welding equipment and consumables market that is currently witnessing moderate
growth. End users increasingly prefer sophisticated welding equipment as these
provide superior quality welds leading to higher productivity, safety, and cost
reductions. However, production capacity of advanced welding equipment still
remains low in China compared to the western countries. This calls for an
additional impetus for research and development that will result in manufacture
of adequate quantity of sophisticated welding equipment to meet the burgeoning
end-user demand.
This Frost & Sullivan research offers a comprehensive analysis of the
Chinese metallic welding equipment and consumables market and its seven product
segments: arc welding equipment, welding consumables, resistance welding
equipment, laser cutting and welding equipment, gas cutting and welding
equipment, other electric welding equipment, and welding robots. It also
provides detailed revenue forecasts and demand analysis for welding equipment in
different end-user industries including aerospace, automotive manufacturers and
their suppliers, construction, process, shipbuilding, and offshore.
Low Quality of Manual Welding Increases Demand for High-End Welding
Equipment
The cost advantage of cheap labor is nullified in the case of welding as
China lacks skilled welders. Despite this drawback, the degree of manual welding
used in the Chinese industry is high, leading to inconsistent results and
low-quality products. This mandates investment in sophisticated welding
equipment that will guarantee superior welds and other associated benefits. This
will eventually increase the market potential for high-end welding equipment.
Local welding equipment manufacturers faced a decline in revenue in 2003 due
to the continuance of global economic slow down and outbreak of SARS.
Participants managed to stay afloat because of the buoyant Chinese economy, an
exception to the general trend. "Market growth is likely to pick up
momentum again, driven by large-scale greenfield investments, booming automotive
industry, growing investment in infrastructure, proliferation of construction
activities, and the subsequent development in many associated industries,"
opines the analyst. The auxiliary thrust for growth is provided by the
transition from simple manual welding techniques to semi- and fully-automated
welding equipment.
Market Poised for Prolific Growth
"The migration of production facilities from other geographic regions
and increasing demand for welding equipment and related services from the
domestic markets have combined to fashion a positive future outlook for welding
equipment manufacturers," says the analyst. Interestingly, the need for
sophisticated welding equipment in the aerospace industry is increasing steadily
- an outcome of growing air traffic and apprehensions over safety of critical
parts and components.
Even the process industries - a minnow in terms of revenues generated by
various end users - are experiencing a greater need for welding equipment and
consumables with the rapid expansion of the Chinese industrial sector.
Participants are gearing up to capitalize on these emerging opportunities, and
this is likely to pave the way for a lively competitive environment in the
coming years.
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