Welding Requirements for Repairs and Maintenance

Welding Requirements for Repairs and Maintenance: Increased Adoption of Preventive Maintenance Leads

the Market for Welding

Archana Chauhan, Program ManagerArchana Chauhan, Program Manager

Industrial Automation and Process Control

Functional Expertise

• 4 years of expertise in Industrial Automation and Process Control , which include consulting, research and sales

Particular expertise in :

- Analyzing emerging trends, technologies and market dynamics in the welding, cutting and joining technologies market

- Business planning and growth strategy formulation

- Process mapping and analysis

- Project Management, Planning and Development

Industry Expertise

� Experience base covering broad range of sectors with global assignments, leveraging long-standing working relationships with leading industry participants’ Senior Executives in

Today’s Presenter: Archana Chauhan

2

relationships with leading industry participants’ Senior Executives in

- Welding, Cutting and Joining Technologies

- Welding Automation and Robotics

What I bring to the Team

� Extensive client interaction and strategic project management

• Immense experience and expertise in project leadership

• Deep industry knowledge of the global welding, cutting and joining technologies

Career Highlights

• Research Manager for Frost & Sullivan – CEE and Russian Operations since July 2010

• Speaker, panelist and moderator in several industry forums

• Quoted in domestic and international publications on the trends and analysis in welding and joining technologies

• Long term clientele relationship with international welding equipment , consumables and automation suppliers

• Education

• Masters in Arts ( Economics ) from Fergusson College of Arts and Science, Pune University, India

• Bachelors in Arts ( Economics) from Ethiraj College of Arts and Science, Madras University, India

Archana ChauhanProgram Leader

Industrial Automation and

Process Control - Global

Research Manager

Frost & Sullivan S.A

Frost & SullivanCentral and Eastern Europe Warsaw, Poland

Welding

Requirements for Market Size and Forecasts

Key Market Drivers and Restraints

Industry Challenges

Focus Points

Overview and Scope of the Briefing

3

Repairs and

Maintenance

Key End-users Analysis

Conclusions

Key Market Trends by Region

Overview and Scope of the Briefing

Market for Repairs and Maintenance: Market Segmentation (World), 2010

Global Market for Repairs and Maintenance

Repairs Maintenance

Brazing and Welding* Hardfacing Thermal Spray*

4

SolderingWelding* Hardfacing

Gas* Arc* Consumables*

Thermal Spray*

Consumables

Equipment*

Plasma

HVOF (Liquid and Gas)

Flame

Arc (Powder and Wire)

* Will be discussed in detail Source: Frost & Sullivan

Overview and Scope of Briefing ( Contd... )

Welding Market for Repairs and Maintenance: Revenue Trends (World), 2010 and 2017

The increased adoption of preventive maintenance will lead

to higher revenues in the long term.

80.0

100.0

Reven

ues(%

)

46.0 52.0

Percentage of Revenues in America

Percentage of Revenues in EMEA

High Growth Region

5

0.0

20.0

40.0

60.0

2010 2017

Reven

ues(%

)

Year

Equipment and Consumables for Repairs

Equipment and Consumables for Maintenance

54.048.0

Percentage of Revenues in Asia Pacific

Asia Pacific is projected to be the fastest growing regional market and region. Rapid economic

development in China and India, and increasing industrial manufacturing in this region are the key

growth accelerators.

Industry Challenges

Welding Market for Repairs and Maintenance: Industry Challenges (World), 2011-2017

Need to locate service units strategically close to end

users

Perception and sensing of repair needs

6

Industry Challenges

Source: Frost & Sullivan

Lack of adequate manpower

Global Presence

Key Market Drivers and Restraints Strong Market Drivers Enable Investments and Catalyse Growth of the Welding Market

Maintenance needs of the

power industries

Extension of component life through repair

Reduction of capital expenditure

7

Source: Frost & Sullivan.

Low prevalence of preventive

maintenance

Lack of institutional tie ups for repairs

and maintenance

Revenue Forecasts for the Welding Equipment Market

Welding Consumables Market for Repairs and Maintenance: Revenue Forecasts (World), 2010 and 2017

Revenues in 2010: $650.3 Million

CAGR (2010-2017): $859.6 Million

Over the forecast period it is expected

that the share of the arc welding

market will increase. Arc welding

processes have been witnessed as

CAGR:4.0%

8

Note: All figures are rounded, the base year is 2010. Source: Frost & Sullivan

being best suited for application of

hard facing weld metal and hence its

share is expected to rise to 82.5

percent in 2017.

1000.0

1500.0

2000.0

2500.0

Re

ve

nu

e ($

Mill

ion

)

Revenue Forecasts for the Welding Consumables Market

Welding Consumables Market for Repairs and Maintenance: Revenue Forecasts (World), 2007, 2010 and 2017

CAGR (2007-2010): -4.1%

CAGR (2010-2017): 4.5%

• The welding consumables market for repair generated revenues of $1567.7 million in 2010 and had a growth rate of 0.9 percent.

• The repair consumables market witnessed a decline of 16.4 percent in 2009 owing

9

0.0

500.0

1000.0

2007 2010 2017

Re

ve

nu

e ($

Mill

ion

)

YearStick Electrode Solid Wire

Flux cored wire SAW wires and fluxes

Note: All figures are rounded, the base year is 2010. Source: Frost & Sullivan

16.4 percent in 2009 owing to the recession, which affected the volume of consumables demanded for welding repairs.

• Welding consumables for repairs are expected to see a marginal rise in growth rate over forecast years.

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Re

ven

ue

($

Mil

lio

n)Revenue Forecasts for the Thermal Spray Equipment Market

Thermal Spray Equipment Market for Repairs and Maintenance: Revenue Forecasts (World), 2007, 2010 and 2017

CAGR (2007-2010): 0.85%

CAGR (2010-2017): 7.4% The Thermal spray equipment (TSE)

market had revenues of $187.9 million

in 2010 after witnessing a decline of

12.0 percent in 2009, owing to the

economic recession. The market is

10

0.0

50.0

100.0

150.0

200.0

2007 2010 2017

Re

ven

ue

($

Mil

lio

n)

Year

Plasma HVOF (Liquid) HVOF (Gas)

Arc Flame (wire) Flame (powder)

Note: All figures are rounded, the base year is 2010. Source: Frost & Sullivan

Years

economic recession. The market is

expected to reach approximately

$310.2 million in 2017, growing at a

compound annual growth rate (CAGR)

of 7.4 per cent from 2010 to 2017.

Market Attractiveness and Growth by RegionsHigher Growth from the APAC regions over forecast years leading it to be the largest market in 2017

Repairs and Maintenance Welding Equipment and Consumables Market: Market Attractiveness by Regions (World ), 2017

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Note: Size of the bubble corresponds to the segments’ market size in 2010. The

base year is 2010. Source: Frost & Sullivan

Key End-user AnalysisThe Civil engineering failures and deterioration of structure in the metal fabrication, construction and energy industries will drive the market for repairs and maintenance.

Weld repair is one of the causes of downtime in the conventional power plants. Periodic repairs and

maintenance works in critical installations enhance safety and reliability of the parts.

The market is expected to be strongly driven by the

End User Industry Short Term Perspective

Long Term Perspective

CAGR(2010-2017)

Energy

4.9%

Automotive and transportation 5.0%

Construction

5.7%

Welding Consumables Market for Repairs and Maintenance: End User Analysis (World), 2007-2017

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TrendSource: Frost & Sullivan

Growth Stable Decline

The market is expected to be strongly driven by therising economic and infrastructural activities in Chinaand south east Asian nations.

Repairs in the metal fabrication and mining industry isexpected to be driven by an increase in mining activitiesand rising prices of metal commodities.

5.7%

Shipbuilding

2.4%

Metal Fabrication(includes Mining ) 5.8%

Process and Other Industry 0.3%

Summary of Key Opportunities

Key Opportunities

Establishing a local or regional distribution

network is important to

Largest market for the welding repairs and

maintenance to shift from EMEA to APAC

Key competitive forces in the market are product quality, services, price, brand reputation, and

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Key Opportunities in the Welding

Market for Repairs and Maintenance

Performance, longevity, and durability needs by different industries are

expected to drive the market over the forecast years.

network is important to tap the potential in the

emerging regions.

Improved deposition efficiency,

the key technologies .

Improved deposition efficiency, new weld materials, coating and

welding consumables for dissimilar metal repairs will be

the key technologies .

brand reputation, and technical support.

Source: Frost & Sullivan

Upcoming Research Titles

WELDING

• Arc Welding Systems

2011Welding Market for Repairs and Maintenance ( WIP)

Global

2011World Arc welding Equipment and Filler Metals Market (WIP)

Global

2011World Solid Wires Welding Market

Global

2011 Global Welding Equipment and Consumables Market for Power Global

14

• Resistance Welding

• Laser and Hybrid Welding

• Welding Consumables

• Mechanised Cutting

• Welding Applications Markets

2011 Global Welding Equipment and Consumables Market for Power Industry ( wind, thermal, hydro and nuclar power)

Global

2011 CEO 360 degree perspective on welding /Megatrends in joining technologies

Global

2011 An analysis of the Environmental Hazards and Safety Procedures in the welding Industry

Global

2011World Aluminum Welding Market (WIP)

Global

2011World Stick Electrode Market

Global

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Chiara Carella

Corporate Communications Director

Europe

+44 (0) 207 343 8314

[email protected]

For Additional Information

Archana Chauhan

Program Manager

Industrial Automation and Process Control

+48 (0) 22 3904152

[email protected]

18

Muthukumar .V

Research Director

Industrial Automation and Process Control

+44 (0) 207 9157804

[email protected]