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Despite Maturity European Welding Consumables Market Offers Pockets of Growth - The welding consumables market in Europe is highly mature and confronts heavy competition from suppliers based in East Asia
Despite Maturity European Welding Consumables Market Offers Pockets of Growth


NewswireToday - /newswire/ - London, United Kingdom, 2008/06/17 - The welding consumables market in Europe is highly mature and confronts heavy competition from suppliers based in East Asia.

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However, increasing awareness of the improved productivity, higher metal deposition rates and reduced fumes offered by wired consumables is driving the total consumables market in Europe. Metal-cored wires are spurring overall revenue expansion while the rising preference for automation is promoting the use of flux cored wires among several end-user industries.

Heightened demand from end users for new projects is underlining a positive outlook for the European welding consumables market. Volume growth is being supported by the development of consumable markets in Eastern Europe. To sustain their competitiveness, manufacturers have to maintain a strong brand image and an extensive distribution network, both geographically as well as across end-user industries.

New analysis from Frost & Sullivan (, European Welding Consumables Markets, finds that the market earned revenues of $1,162.7 million in 2007 and estimates this to reach $1,464.2 million in 2014.

"One of the most important catalysts for future market growth is the increasing demand for consumables from various end-user industries including automotive, construction and shipbuilding," states Frost & Sullivan Senior Research Analyst Archana Chauhan. "Stick electrodes are being continuously converted to highly productive wires and metal-cored wires, indicating surging demand for these wires from the construction, automotive and pipeline industries."

On the geographical front, the dwindling share of Germany, the largest market, will be offset by the expanding requirements of East European countries. A booming construction industry across Europe, reconstruction efforts coupled with the establishment of industrial bases in Eastern Europe, together with the restoration of old buildings and monuments in Western Europe, will support continued demand for welding consumables.

This trend will increase the volume sales of solid and flux cored wires. In addition, with shipping order books full until 2009, the demand for flux cored wires and SAW wires and fluxes will continue rising. The growing preference for automation and the need for higher productivity will create new markets for high-alloyed consumables and cored wires.

However, European market participants suffer from a slight disadvantage in comparison to their non-domestic counterparts who can provide low quality, low-cost consumables. With the market being price driven, it is very difficult for domestic participants to augment their market share.

"It is becoming harder for local participants to expand their market share owing to the shift of industrial bases to Asian countries," explains Chauhan. "On the one hand, manufacturers have to compete with low-cost manufacturers from other countries and, on the other, have to convince a broad customer base about the quality and standards of their product offerings."

These manufacturers have to move into untapped avenues, both in terms of new geographic regions and different end-user industries. This will help counteract the lack of potential revenue from declining regions and end-user sectors.

"Manufacturers should create a strong brand image catering to specific end-user segments and continue to secure significant business opportunities from these industries," advises Chauhan. "They should maintain a well connected distribution network, nurture historical relationships with their customers and focus on product differentiation initiatives."

Promisingly, end-user awareness about achieving superior productivity and higher deposition rates through advanced offerings such as flux cored wires and high-alloyed consumables is continually increasing. Recent research has concluded that higher deposition rate of the metals, limited splatter and, therefore, lower wear and tear of machinery, can be achieved through using cored wires. Due to such advantages, the demand for these products is rising despite their prices being higher than low-alloyed and unalloyed consumables and stick electrodes.

"Manufacturers should invest in R&D and develop their product range," says Chauhan. "They should introduce different metal alloys that suit varied end-user applications even while focusing on quality and value-added services."

Such efforts will be critical to sustaining profitable historical relationships with established customers. Investigating the potential of niche markets, improving service portfolios, broadening their market reach and building a strong distribution base will be essential to long-term success.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the European welding consumables markets, then send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.], with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

European Welding Consumables Markets is part of the Industrial Automation and Process Control Growth Partnership Service Programme, which also includes research in the following markets: European Metallic Welding Equipment Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

European Welding Consumables Markets / M216-10

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Despite Maturity European Welding Consumables Market Offers Pockets of Growth

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