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Africa Welding Consumables Market - Forecast(2023 - 2028)
Africa Welding Consumables Market Overview
Africa Welding Consumables Market size is forecast to reach US$3.8 billion
by 2026, after growing at a CAGR of 3.8% during 2021-2026. Filler metals and flux
together are known as welding consumables. During Welding, filler metals or consumables are extensively
used to give a strong bond to the substrates. The welding industry evolution is
favorably reliant on the filler metals consumption in numerous end-use
industries. The fundamentals that are influencing the growth of the market are
the impending technologies that are being developed, and particularly those machinery
which are intended to weld filler metals. Additionally, the players in the Africa
welding consumables market are oriented towards automation in the welding
process, and it is anticipated that the development of robots and automation
software would be feasible trends that would influence the growth of the Africa
welding consumables industry over the forecast period. Stick electrode are metal wires with baked-on chemical
coatings.
COVID-19 Impact
The
novel coronavirus disease (COVID-19) pandemic has caused a disruption worldwide
and almost all the industries have seen an abrupt downfall in their development
graphs, Africa is no exception. The pandemic has severely affected the region
mostly in the industries like construction, automotive, oil and gas, and others.
For say, the expansion of South Africa's auto industry development strategy by
the African government was indeed forced into survival mode and ambitious
growth was pushed further. Similarly, in the oil and gas industry, according to
the African Energy Chamber, pre-pandemic planned capital expenditure in
2020-2021 was US$ 90 billion but has fallen to US$60 billion. The Africa
welding consumables market demands are mainly from these sectors and the crisis
overall has inclined towards a negative impact on the market. Although, World
Health Organization (WHO) is positioning additional experts to more or less of
the worst-affected countries, including Uganda and Zambia as well as subsidiary
South Africa-based regional laboratories to supervisor alternates of concern.
Report Coverage
The report: “Africa Welding Consumables Market- Forecast (2021-2026)”, by IndustryARC, covers an
in-depth analysis of the following segments of the Africa Welding Consumables Market Industry.
By
Material Type: Metal Welding, Glass Welding,
Plastic Welding, Wood Welding, and Others
By Consumables:
Coated Electrodes, Rods and Wires, Flux-Cored Wires,
SAW Fluxes, Shielding Gases, and Others
By Techniques:
Arc Welding (Shielded Metal Arc Welding, Gas Metal
Arc Welding (MIG Welding), Gas Tungsten Arc Welding (TIG Welding), Carbon Arc
Welding, and Others), Resistance Welding (Spot Welding, Projection Welding, Flash
Welding, and Others), Oxyacetylene Welding, Solid State Welding (Forge Welding,
Cold Welding, Hot Pressure Welding, and Others), Stud Welding (Capacitor
Discharge Stud Welding, Drawn Arc Stud Welding, Short Cycle Stud Welding),
Laser Beam Welding, and Others
By
Application: Steel and Pipeline, Robotics,
Plumbing, Shipbuilding, Mining, Railroads, Auto body repairs, and Others.
By End-Use
Industry: Building and Construction (Residential,
Commercial, Industrial, and Infrastructure), Automotive (Passenger Vehicles,
Light Commercial Vehicles, and Heavy Commercial Vehicles), Marine, Locomotive,
Aerospace (Commercial, Military, and Others), Electrical and Electronics,
Energy, Oil & Gas, Medical, Food & Beverages, and Others
By
Country: South Africa, Nigeria, Ethiopia,
Mozambique, Kenya, Egypt, Ghana, Morocco, and Rest of Africa
Key Takeaways
- South Africa is dominating the market for welding equipment and consumables due to the rising population, growing economies, and government initiatives focused at endorsing automobile and construction industries in the country.
- The market drivers and restraints have been assessed to understand their impact over the forecast period.
- The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
- The other key areas of focus include the various applications and end-use industry in Africa welding consumables market and their specific segmented revenue.
- Africa welding consumables market is forecast to witness high growth due to the positive outlook of end-use industries such as the automotive and transportation, marine, and construction industries.
Figure: Africa Welding Consumables Market Revenue, By Country 2020-2026 (US$ Billion)
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Africa Welding Consumables Market Segment Analysis - By Material Type
The metal welding segment held the largest share in Africa
Welding Consumables Market in 2020. Metal welding is widely used in
construction, automotive, oil and gas especially while serving the pipeline and
others. For structural purposes, metals are inserted deep underground before
the foundation is laid to provide stability and for transportation, it is used
for oil, gas, sewage, and water. Since welding involves heating of the surface
and however due to low adhesion plastics and glass welding comes with great
challenge whereas, metals are easier in comparison. Hence, metals are mostly preferred
by contractors and builders as they boast desirable properties and often choose
over any other materials. Owing to certain properties, metal welding is
preferred in most of the end-use industry and the demand for metal welding is
highly contributing in the Africa welding consumables market.
Africa Welding Consumables Market Segment Analysis - By Consumables
Flux-cored segment wire held the
largest share in the Africa Welding Consumables Market in 2020. Flux-cored wire
is preferable owing to its exclusive properties to any other categories of
welding consumables. The flux-cored wire does not have need of peripheral shielding
gas since the weld pool is safeguarded by gas produced when flux from the cable
is burned. Accordingly, the flux-cored wire is more transportable as it does
not involve an external gas tank. Also, they permit for an elevated deposition
rate and operate appropriately outdoors and in windy surroundings. Flux-cored
wire is excellent when it comes to pipeline especially in oil and gas sector
and with the recent development in the region, for instance, in 2021 Tanzania has signed a Host Government
Agreement (HGA) with a Total-led joint venture to launch the East African Crude
Oil Pipeline Project (EACOP), which is expected to boost the demand for
flux-cored wire which drives the market growth of Africa welding consumables
market.
Africa Welding Consumables Market Segment Analysis - By Techniques
Arc welding segment held the
largest share in the Africa Welding Consumables Market in 2020. Arc welding is
basically a process of joining two metal parts with the help of electricity
and is the easiest process compared to any other. Due to the extreme heat
concentration, the process can be perform quickly and saves lot of time by
higher welding speeds. The demand for arc welding techniques is rising owing
to its properties like less distortion, less smoke or sparks are involved, can
be carried out in any atmosphere, cheap cost and high corrosion resistance
which have direct impact on the growth of Africa welding consumables market.
Africa Welding Consumables Market Segment Analysis - By Application
Steel and Pipeline segment held the largest share in the Africa
Welding Consumables Market in 2020 and is growing at a CAGR of 4.1% during
2021-2026. Pipeline welding is used in water lines, gas lines, oil refineries
and others in industries like oil and gas, automotive, and construction. It is used to carry out fluids such as natural gas, petroleum-based products, fuel
from underground. Since, a welded pipe can be easily repaired compared to the
one using screwed fittings. With welding, repair seems to be done right win the
place. Owing to the benefits of pipeline welding, it is mostly preferred by the
end-use industries and to which might boost the growth of Africa welding
consumables market.
Africa Welding Consumables Market Segment Analysis - By End-Use Industry
Building and Construction segment
held the largest share in the Africa Welding Consumables Market in 2020 and is
growing at a CAGR of 6.3% during 2021-2026. There is an escalating demand for
welding consumables for the building and construction industry. The building
and construction activities repeatedly involve welding techniques to connect the
steel I-beams, columns, trusses, and footers that construct the operational
structure of a building. These components are cut to size, lifted into position
with a crane or construction jack, and then welded together to support the
floors, walls, and roof of a building. There have been rapid developments in
the building and construction sector, for instance, Kenya has embarked on
construction of a US$14.5 billion technology city in Machakos County in a bid
to attract technology talents and investors to drive its economic growth. Then
again, in 2020 the World Bank has approved US$130.8 million in financing to
support the US$150.80 million Uganda Roads and Bridges in the Refugee Hosting
Districts Project, the demand for welding consumables will also substantially
increase, which will enhance the Africa welding consumables market during the
forecast period.
Africa Welding Consumables Market Segment Analysis - By Country
South Africa dominates the Africa Welding Consumables Market held the largest share up to 41% in 2020 owing to the rise in demand and production of automobiles and the need for rapid construction in the region, due to the increasing population. For instance, in June 2020, African government announced the roll-out of an extensive infrastructure investment drive that would cover 55 projects across six sectors. And according to International Trade Administration, South Africa’s global vehicle production ranking is 22nd with a 6.9% vehicle production market share. South Africa has the best rail infrastructure in Africa and according to International Trade Administration, the South African Government has announced plans to spend US$62.9 billion by 2027 on transportation infrastructure. The development in the country’s automotive and construction has direct impact on the market growth of Africa consumables welding market.
Africa Welding Consumables Market Drivers
Rising demand of welding consumables in the automotive sector
Demands placed on vehicles are constantly escalating, for instance, in 2019 the production rate of passenger cars in Africa increased by 1.3% from the previous year according to Organisation Internationale des Constructeurs d'Automobiles (OICA). Extraordinary functioning is vital along with energy efficiency and low weight, while more rigorous international legislation implements gradually reduced emissions. Welding consumables like stick electrode, flux-cored wires, solid wires, SAW wires and fluxes offer cost savings in terms of higher production output, increased weld quality, less rejects and less post weld repair and cleaning. Additional, welding metal-cored wires for exhaust systems in a vehicle have a much higher deposition rate and welding speed than solid wires of the same diameter. There has been a constant rise and development in the African automotive sector. The initiatives and the developments will bring certain positive growth to Africa welding consumables market.
Welding requirements in Oil and Gas Offshore industry
Oil and Gas sector is one of the major consumers of welding consumables as the sector is used during welding of high strength steels used in drilling units or offshore cranes, corrosion resistant alloys used for subsea and top side processing applications and low alloyed consumables for the welding of pressure control equipment. The demands are high as it offers high quality metal-base wires for the hot wire GTAW process and the most advanced solutions in electroslag strip cladding. With the forthcoming projects of Nigeria’s Petroleum Industry Bill (PIB), South Africa passing its upstream legislation, Somalia’s first ever licensing round in early 2021, and the speedy development of Tanzania LNG Liquefaction project, point to a future of reliable energy production for Sub-Saharan Africa indicates the upcoming developments in the region. Additionally, Rovuma LNG Liquefaction Plant project worth US$22.4 billion, is expected to produce 8.2 million tonnes of LNG per year. With the constant development of oil and gas industries in the region and considering the demand of welding consumables from the sector will enhance the market growth of Africa welding consumables market.
Africa Welding Consumables Market Challenges
Unavailability of raw Materials
Fluctuation
in the raw material like steel, cast
iron, mild steel, alloys and othors, prices is a state of concern which are
mainly observe due to change in trade policies, fluctuations in foreign
exchange rates and imbalance supply and demand system. This further creates
unfavorable impact on the manufacturers and ultimately impact the cost of consumables,
forcing to reduce the profit margin in order to stay in the competition. Besides
lack of skilled welder is another reason hindering the market growth of Africa
welding consumables market.
Africa Welding Consumables
Market Landscape
Technology
launches, acquisitions and R&D activities are key strategies adopted by
players in the Africa Welding Consumables Market. Major players in the Africa
Welding Consumables Market are voestalpine Böhler Welding, Afrox Ltd, Illinois
Tool Works Inc., Sonics and Materials, Inc., Fronius International GmbH, Obara
Corporation, Daihen Corporation, ROFIN-SINAR Technologies Inc., Panasonic
Corp., Lincoln Electric Holdings Inc.
Acquisitions/Technology Launches/
Product Launches
- In November 2020, Voestalpine Böhler Welding and Afrox Ltd. formed a joint venture to manufacture welding consumables, which strengthen their presence in the South African and Sub-Saharan African region. Afrox has contributed its current welding consumables factory located in South Africa into a new company and sold 51% thereof to Voestalpine Böhler Welding.