Latest research from
Frost & Sullivan shows the European Metallic Welding
Equipment Market has started to recover from the downward spiral it had
found itself in over the last few years. Previous years have seen slow
demand and price falls, resulting in declining revenues.
Frost & Sullivan found greater price stability and
demand for more advanced equipment has helped revenues to rise to $1.73
billion. Revenues are forecast to grow at a modest rate over the next few
years, reaching $1.95 billion in 2007.
Research Analyst Ozan Dogruer says the laser
welding segment is the fastest
growing area of the market due to its superior performance. Revenues
totalled $101.3 million in 2000, and Frost & Sullivan forecasts strong
growth over the next few years will cause the market to nearly double in
size to $192.5 million in 2007.
"The main attractions of laser welding are the quality of the weld, which
requires little or no after work, as well as the speed and the flexibility
of the technique." says Mr Dogruer. "Nd Yag
lasers are also ideal for use
with welding robots, as the laser can be carried through fibre
optics,
making it perfectly suited for multi-dimensional welding applications. "
"Although this equipment incurs high capital costs, many end-users are
coming to realise that the savings in productivity will eventually produce
a return on the investment."
The study found technological advances had helped growth in the laser
welding and will continue to do so. "Laser welding has been around for
many years but the technology has only recently begun to see some
significant developments," Mr Dogruer continues. "For instance, light
sources have changed from lamps to
diodes which has increased the
efficiency of equipment by up to 10 percent. Power outputs have also been
increasing, allowing thicker sections of metal to be welded, this
represents an important area of growth. The continuing development of the
technology and improvements in performance are expected to result in
increased demand over the coming years."
Demand for laser welding equipment is strongest in the
automotive industry,
which accounted for 20 percent of revenues last year. The potential gains
in productivity also stimulated growth in demand from the metal fabrication
sector. The aerospace sector also showed an increase following the
increased use of welding applications in this area. Other industrial
applications recorded a slight decline but this is mainly due to higher
rates of growth in other applications, together with the other segments
such as chemical, shipbuilding and construction, these applications
represented a fifth of market revenues.
The study found the European metallic welding equipment market faces many
challenges over the next few years. One of the main concerns is the
migration of many manufacturing projects to Eastern Europe.
"The state of the global economy also has a strong bearing on manufacturing
output and the subsequent demand for welding equipment," Mr Dogruer says.
"The current slowdown in the American and Asian economics could have
serious ramifications for manufacturers in Europe. Recent
events in
America have escalated fears and have led to sharp declines in the stock
market. This is expected to have far reaching consequences for the rest of
the global economy and a medium term decline in global trade seems
inevitable."
Substitutes to welding also pose a threat to market growth: mechanical and
adhesive joining technologies have been developing and in some applications
offer more secure
joints at a lower costs. "Designers are constantly
looking for new methods for joining materials, as welding can sometimes be
costly and ineffective for certain applications," explains Mr Dogruer.
Report Code: B010, Publication Date: November 2001, Price: 5000 Euros
For more information contact:
Nikki Cole
nikki.cole@fs-europe.com
Tel. +44 (0) 20 7343 8325