India Welding Consumables Market Struggling with Labor Shortage

The India welding consumables market is driven by the rising consumption of steel observed in various end-use industries in the country. Furthermore, the expanding Indian oil and gas sector and the growing number of offshore projects will also benefit the India welding consumables market. According to Transparency Market Research, the India welding consumables market will expand a healthy CAGR of 5.60% during the forecast period from 2014 to 2020. In 2013, the India welding consumables market was estimated at INR30.8 bn and by 2020, the market is projected to be worth around INR45.3 bn.

Nevertheless, the India welding consumables market will be challenged by several factors. The key restraints on the India welding consumables market are the volatile supply of raw materials and the increasing competition from foreign players. Presently, the India welding consumables market is facing an acute labor shortage, which will further challenge the market.

Welding Industry is not Attractive to the Youth in India

The growth of the welding consumables market in India is directly proportional to that of the nation’s steel industry. According to the India Brand Equity Foundation (IBEF), India is the third largest producer of steel in the world and is expected to become the second largest producer by the end of 2016. This growth of the steel industry in India is attributed to the easy availability of raw materials and cost-effective labor. At present, the welding industry in the nation employs around 2.2 mn people in both the semi-skilled and skilled categories, according to Business Standard.

However, with the expanding India consumables market and steel industry, the demand for a skilled workforce in these industries is projected to rise sharply. The welding consumables market has not been an attractive market for the youth of the nation, both educated and uneducated. This has led to a further scarcity of labor in the industry.

Influx of Foreign Workers Major Highlight of India Welding Consumables Market

The scarcity of both skilled and unskilled workforces in the welding consumables and steel industries is so acute that many project contractors are leaning on foreign workers. Presently, several project contractors in the India welding consumables industry have invested in importing cutting and welding operators from foreign countries such as Russia, China, and various Eastern European nations.

Application-wise, the India welding consumables market is divided into building and construction, power, automobile and transportation, marine, oil and gas, wear plate, and others such as repair and maintenance. The ‘Make in India’ campaign has driven the growth of several manufacturing industries in the country, such as the automobile industry, power industry, and construction industry. However, the lack of skilled labor has become even more prominent in the past few years in these industries.

Research Press Release: http://www.transparencymarketresearch.com/pressrelease/india-welding-consumables-market.htm

To overcome the burgeoning issue of the lack of skilled and unskilled labor, the Indian Institute of Welding (IIW) has urged Narendra Modi, the Prime Minister of India, to incentivize skill development programs to attract the youth of the country towards the welding profession.

Rising Usage of Welding Consumables in Automobile and Transportation Industry to Boost Welding Consumables Market

Welding consumables are majorly utilized in the building and construction, transportation and automobiles, and marine industries. Welding consumables are utilized in the automobile and transportation industry for manufacturing subsystems and critical components. They are also used in building and construction, the power sector, marine, oil and gas, and others including maintenance and repair. The rising demand for welding consumables from the oil and gas industry and the expansion of the automobile and construction industries are amongst the chief factors fuelling the global market for welding consumables. Solid electrodes, flux-cored wires, solid wires, SAW wires and fluxes, and others are the major types of welding consumables and amongst these, stick electrodes led the market with a share of over 40% in the market in 2013.

Transparency Market Research (TMR), a market intelligence company, throws light on the state of the market in nations and regions such as Indonesia, India, and Europe, the Middle East and Africa (EMEA), and thus highlights the condition of the global market in forthcoming years.

India Welding Consumables Market: On the basis of volume, the India welding consumables market stood at 255.1 kilo tons in 2013 and the segment of welding stick electrodes held the largest share of over 45% in the market. On the basis of application, the segment of automobile and transportation led the welding consumables market in India and held a share of over 25% in the market in 2013. On the other hand, the segment of power will rise at the most rapid 5.80% CAGR from 2014 to 2020.

Indonesia Welding Consumables Market: The welding consumables market is predicted to rise in Indonesia owing to the expansion of the automobile industry in the country. The Indonesia welding consumables market stood at US$150.3 mn in 2014 and is anticipated to reach US$293.0 mn by 2023. This market is expected to rise at a 7.70% CAGR from 2015 to 2023. On the basis of volume, in 2014, the Indonesia welding consumables market stood at 64.5 kilo tons. In the same year, the segment of stick electrodes constituted a share of more than 50% in the market on the basis of demand. In terms of application, the segment of automobile and transportation led the market and held a share of over 20% in 2014.

The Europe, Middle East and Africa (EMEA) Welding Consumables Market: The EMEA welding consumables market is fuelled by the increasing oil and gas demand and expansion of the construction and automobile industries. On the other hand, the absence of skilled labor for the production of welding consumables may restrain the growth of the market in these two regions in forthcoming years. The EMEA welding consumables market stood at US$3.3 bn in 2013 and is predicted to reach US$4.5 bn by 2020. This market will expand at a 4.30% CAGR from 2014 to 2020. On the basis of volume, in 2013, Europe held a share of over 70% in the EMEA welding consumables market.

The prime players dominant in the wearable consumables market are Lincoln Electric, ESAB, ITW, Voestalpine AG, Ador Welding Ltd., and The Linde Group, among others.