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 $377.0 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,” says 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,” explains Mr 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.
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Strategic Analysis of the Welding Equipment and Consumables Market in the Global Pipeline Industry is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes the following research: Strategic Analysis of the European Welding Consumables Market, Strategic Analysis of Eastern European Pumps Market, Strategic Analysis of European Manufacturing Execution Systems Market, World Human Machine Interface Market, Strategic Analysis of Global Welding Equipment and Consumables Market in Oil and Gas Pipeline Industry, and World Oil Free Compressors Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Source: PRnewswire, August 5, 2010: