O&G pipelines boost welding equipment, consumables market

The construction of onshore and offshore oil and gas pipelines is driving growth in the welding equipment and consumables market. Growth is largely due to high demand from major pipeline construction companies requiring welding equipment, consumables, manufacturing automation, steel pipes, cables and wiring, technology expertise and training, system design and integration, as well as testing and optimisation services. Several regions in Asia Pacific, North America and Latin America offer a plethora of opportunities for both new and established welding companies. New analysis from Frost & Sullivan, Strategic Analysis of the Welding Equipment and Consumables Market in the Global Pipeline Industry, finds that the market earned revenues of $377 million in 2009 and estimates this to reach $547.7 million in 2016. The markets covered in this research service are onshore pipelines, offshore pipelines and cross-country pipelines. "Pipeline transportation is far more advantageous than road and railway transportation," said Frost & Sullivan Program Manager Abhishek Gokhale. "Some of the key benefits that give pipeline transportation of oil and gas a competitive edge are as follows: lower transportation costs, reduced transit losses, less energy intensity, economies-of-scale, fewer disruptions of safety and reliability, and environmental amicability." It is expected that the construction of new pipelines will remain stable over the next few years, sustained by both continual projects and those commencing in 2010. Additionally, the Greenfield cross-country pipeline projects are anticipated to drive long-term growth in this market. However, despite high demand, the prices of welding equipment and consumables are steadily being reduced to suit the budgets of engineering, procurement and construction (EPC) contractors. Highly competitive markets, such as Europe and the United States, are particularly encouraged to reduce product prices. "Major participants are constantly providing goods at lower prices to seek more contracts, as EPC contractors are decreasing the budget allocation for welding applications," explained Gokhale. "Manufacturers should use resources efficiently, formulate cost-cutting strategies and attempt to expand to low-cost manufacturing locations. Additionally, they should target projects in developing regions." Energy sector In addition, the rapid growth in the energy sector areas, such as increase in wind turbine constructions, as well as repairs & maintenance of machinery are major contributors of demand for the global welding machinery market. Adopting newer technologies has emerged as the single-most significant trend in the market, whereby numerous segments have given up traditional welding methodologies in favour of modern ones. With environmental and health concerns catching up, efficient and safe technologies have become the need of the hour. The global market is witnessing growth in the aluminium welding equipment segment, vis-à-vis steel across various industries including automotive, aerospace, heavy machinery, construction and others. There has been a sharp decline in the demand for metal welding equipment, with demand for plastics and other synthetic materials on the rise. The trend has resulted in spurring the demand for ultrasonic bonding systems and related welding devices. The welding machinery industry is taking new strides into the world of sophisticated automation. The advent of robots, laser systems, and computer-aided design and manufacturing systems has defined new horizons for all industries worldwide. Innovations and enhancements in work management, beam delivery, and laser sources are being integrated for use in a broad range of welding solutions. Major application areas for laser welding in the forthcoming years are expected to be in heavy industrial manufacturing, especially sNike Air max Dominate