The welding equipment and consumables market in the global power industry declined 21.5 percent during the global financial crisis in 2009 but is rebounding since 2010 according to a report published by research firm Frost & Sullivan. Increasing number of investments into renewable power sources have fueled the need for new projects, the report said.
The report, Analysis of the Global Welding Equipment and Consumables Market for the Power Industry, finds that the market earned revenues of $445.5 million in 2011 and estimates the segment will reach $578.7 million in 2017, with a compound annual growth rate of 3.8 percent.
Asia Pacific is expected to have the largest growth prospective during the forecast period, owing to the vast number of ongoing and proposed projects in China and India.
“The market has continued to improve in 2010, particularly from the growing economies,” said Ruth Shipa Dushakar, research analyst at Frost & Sullivan. “However, emerging economies like China and India witnessed the lowest adoption of advanced technologies such as SAW and GTAW.”
The main restraint of the global welding equipment and consumables market in the power industry is the delay in nuclear power projects in the aftermath of the tsunami in Japan in 2011. Rebounds of these projects are expected to happen sooner in Asia Pacific than in Europe and North America. The impact of the euro crisis has caused closure of projects in Europe. Fear of a recession in 2012 has made end users more cautious on expenditures, which has led to budget cuts on welding.