Strategic Analysis of the Welding Equipment Market in China

Frost & Sullivan, March 2011, Pages: 83

This Frost & Sullivan research service titled Strategic Analysis of the Welding Equipment Market in China provides total market values and percentage of revenues for the welding equipment in different end-user industries in China. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: electric arc welding, resistance welding, gas welding, and other welding equipment (laser, friction stir and electron beam welding).

This is a market analysis for the welding equipment used in the different end user sectors in China. The study analyses the trends in the welding equipment market across the major end user industries like Automotive and Transportation, Construction, Oil and Gas/ Energy, Process, Shipbuilding, Other Industries. Product trends across arc , gas , resistance and other technologies like laser and friction stir have been presented in this research service. Key issues and trends have been identified in the Chinese region. The research service also highlights the issues and challenges faced across the different end user industries and provides a forecast until 2016.

Market Overview

The Chinese Welding Equipment Market to Soar from $1.74 Billion in 2009 to $3.42 Billion in 2016 on the Back of Rising Demand from the Automotive and Oil and Gas Industries

Rising consumer confidence and strong economic optimism has allowed the Chinese welding equipment market to rebound strongly after hitting a trough during the economic downturn. The market is expected to post a double-digit compound annual growth rate (CAGR) of 11.2 per cent from 2009 to 2016, bolstered by a robust automobile sector, higher oil imports from the Middle East and purchases of foreign oil properties. “China’s increasing dependence on oil imports has multiplied the number of pipelines as well as offshore and oil exploration and drilling projects, thereby generating higher demand for welding equipment from brownfield and greenfield pipeline projects,” says the analyst of this research. Further, the Government’s decision to invest $216 billion in renewable energy over the next five years will have a ripple effect on the number of projects in the nuclear and wind power industries. It could lead to higher foreign direct investments (FDI) in the Chinese energy industry, which in turn, will enhance demand for welding equipment.

The welding market will also feel optimistic with the rise in consumption of steel, as it is linked to the welding activities in the country. Growing at 10.8 per cent, China is expected to have the fastest growing construction sector in 2010, with projects ranging from transport infrastructure to residential housing. The central government's ‘Go West’ strategy can augment welding revenues, as ‘shell construction’ practices are phased out and most of the poorly constructed housing units are replaced with superior dwellings.

With this spurt in construction activities, technologies such as laser and automated welding machines that have traditionally experienced slow uptake are expected to get a move on. The welding market has also been importing several technologies, leading to a subsequent demand for an array of after-sales services and technical support. Although competition in the Chinese markets is price-based, services are fast emerging as a vital purchase factor. The entry of numerous participants has constrained manufacturers to provide services at competitive prices, while investments in efficient packaging, material handling and after-sales service systems have further narrowed their profit margins.

In the welding equipment market, there are close to 300 participants supplying a single product or a complete product line. This could place huge pressures on the margins of all participants. The lack of specifications and approvals in the market has catalysed the proliferation of domestic participants and diminished the market share available to global companies and newer technologies. Therefore, global welding manufacturers have to offer standardised goods with unique products to be competitive. “With low profit margins and stiff competition, the manufacturers have to improve a particular service or practice and design the best way of delivering it,” notes the analyst. “Establishing themselves in niche applications will also help them gain a larger market share and stave off price competition in the conventional product segment.”

Prompt and Efficient Services are the Order of the Day in the Market

Manufacturers must provide on-time delivery, higher-end technologies at competitive prices, sufficient technical assistance and after-sales support to stand out in such an intensely competitive market. Maintaining cordial relations with end-user industries and offering value-added services will ensure repeat business and enhance loyalty. They could also consider expanding into other projects with new contractors and end users to create a niche market. Many large multinational companies have started improving end users’ product awareness through demonstrations, seminars and welding events. Global companies can increase their market shares through mergers and acquisition with the local participants. They are also looking at expanding into emerging end-user markets and other general industries. The continuous technological upgrades and constant introduction of lasers, friction stir, beam welding and other automated processes that improve efficiency and accuracy will also give a leg up to the Chinese welding market.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Electric arc welding
- Resistance welding
- Gas welding
- Other welding equipment (laser, friction stir and electron beam welding)

1. Introduction
- 1.1 Aim and Objectives
- 1.2 Definitions and Scope of Research

2. Executive Summary
- 2.1 Market Overview
- 2.2 Market Segmentation
- 2.3 Industry Challenges, Market Drivers and Restraints
- 2.4 Market Forecasts
- 2.5 Conclusion

3. Industry Challenges
- 3.1 Challenges Facing the Welding Equipment Market

4. Total Chinese Welding Equipment Market
- 4.1 Introduction
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Total Market Forecasts
- 4.5 Trends by End-user Industries
- 4.6 Pricing Distribution and Competitive Structure
- 4.7 Market Share Analysis

5. Product Forecasts for the Chinese Welding Equipment Market
- 5.1 Forecasts for Arc Welding Equipment Market
-- 5.1 a Market Overview
-- 5.1 b Revenue Forecasts
-- 5.1 c Market Trends
- 5.2 Forecasts for Resistance Welding Equipment Market
-- 5.2 a Market Overview
-- 5.2 b Revenue Forecasts
-- 5.2 c Market Trends
- 5.3 Forecasts for Gas Welding Equipment Market
-- 5.3 a Market Overview
-- 5.3 b Revenue Forecasts
-- 5.3 c Market Trends
- 5.4 Forecasts for Other Welding Equipment Market
-- 5.4 a Market Overview
-- 5.4 b Revenue Forecast
-- 5.4 c Market Trends

6. End-user Forecasts for Chinese Welding Equipment Market
- 6.1 Revenue Forecasts for Automotive and Transportation
- 6.2 Revenue Forecasts for Oil and Gas
- 6.3 Revenue Forecasts for Construction
- 6.4 Revenue Forecasts for Shipbuilding
- 6.5 Revenue Forecasts for Process Industry
- 6.6 Revenue Forecasts for Other Industry

7. Top Market Participants’ Profiles

8. Conclusions

9. Appendix
- 9.1 Research Methodology
- 9.2 Snapshot of Key Participants
- 9.3 Abbreviations

10. About Frost & Sullivan

List of Figures

Total Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Arc Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Resistance Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Gas Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Other Welding Equipment Market: Revenue Forecasts (China), 2006-2016

LOC

Total Welding Equipment Market: Industry Challenges, Market Drivers and Market Restraints (China), 2010-2016
Total Welding Equipment Market: Revenue Forecasts (China), 2006-2016 Total Welding Equipment Market: Impact of Top Five Industry Challenges (China), 2010-2016
Total Welding Equipment Market: Market Drivers and Restraints (China), 2010-2016
Total Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Total Welding Equipment Market: Per cent Breakdown by End Users (China), 2006-2016
Total Welding Equipment Market: Pricing, Distribution, and Technology Trends (China), 2009
Total Welding Equipment Market: Market Share Analysis (China), 2009
Arc Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Arc Welding Equipment Market: Per cent of Revenue by Product (China), 2006-2016
Arc Welding Equipment Market: End-user Analysis (China), 2009
Arc Welding Equipment Market: Market Share Analysis (China), 2009
Resistance Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Resistance Welding Equipment Market: End-user Analysis (China), 2009
Resistance Welding Equipment Market: Market Share Analysis (China), 2009
Gas Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Gas Welding Equipment Market: End-user Analysis (China), 2009
Gas Welding Equipment Market: Market Share Analysis (China), 2009
Other Welding Equipment Market: Revenue Forecasts (China), 2006-2016
Other Welding Equipment Market: End-user Analysis (China), 2009
Other Welding Equipment Market: Market Share Analysis (China), 2009
Welding Equipment Market: Industry-wise Product Mix (China), 2009
Welding Equipment Market in Automotive and Transportation Industry: Revenue Forecasts (China), 2006-2016
Welding Equipment Market in Oil and Gas Industry: Revenue Forecasts (China), 2006-2016
Welding Equipment Market in Construction Industry: Revenue Forecasts (China), 2006-2016
Welding Equipment Market in Shipbuilding Industry: Revenue Forecasts (China), 2006-2016
Welding Equipment Market in Process Industry: Revenue Forecasts (China), 2006-2016
Welding Equipment Market in Other Industry: Revenue Forecasts (China), 2006-2016

Product Samples

A sample for this product is available. Please Login/Register to download this sample.

Customers who bought this item also bought

• Global and Chinese Laser Equipment and Processing Industry Report, 2012-2014
• A Profile of the Chinese Paint Industry – 6th Edition
• Survey of Trioctyl Trimellitate (TOTM) in China
• Survey of Flame Retardants Industry in China, Second Edition
• Production and Market of Boron Carbide
• Global and Chinese Laser Equipment and Processing Industry Report, 2012-2014
• Survey of Polycarbonate Market in China
• Survey of Glycine in China
• The Chinese Market for Thermal Insulation Products - 2010 - Second Edition
• Outlook for China Glyphosate Industry 2012-2016