The global market for welding and cutting equipment is to grow at a "substantial rate" through to 2020, a new report has claimed. Persistence Market Research said the welding tools industry will continue to expand over the next five years, as demand rises during the remainder of the decade.
In its 'Welding and Cutting Equipment Market: Global Industry Analysis and Forecast to 2020' report, the company outlined some of the major drivers contributing to market growth on a global scale. The firm said demand from the energy, automotive and construction industries in particular will help the industry expand.
Demand in these market segments will help offset slow growth in the shipbuilding, aerospace and defence industries, Persistence Market Research forecast. It predicted these sectors will pose challenges to the growth of the welding services and cutting equipment market over the next five years, but this should not prevent revenues from rising on a global scale.
Emerging nations lead the way
According to the report, Asia-Pacific remains the largest regional market for welding and cutting equipment, followed by North America and Europe - which includes the UK. However, it said the emerging economic superpowers of China and India hold the key for future market growth. Persistence Market Research claimed the two nations' high growth rates in construction, automotive manufacturing and general industry mean they will be crucial to the future of the sector.
The report explained that China emerged as the world's largest steel nation in 2012, helping to boost its market for joining, cutting and surfacing technology. In theory, more Chinese businesses and organisations have demand for welding services and associated technology. As the nation's economy continues to grow, interest is only expected to rise.
Persistence Market Research said "rapid industrialisation" is the principle reason why demand for welding and cutting equipment has increased globally and will continue to do so through to 2020. Other fast-growing nations such as Brazil and Russia will also help to sustain the industry and see an expansion in revenues, it claimed. Based upon the report, the industry as a whole is in good shape and should continue heading in the right direction for the remainder of the decade.