The welding/ shielding gas market is believed to register healthy and sustainable long-term growth primarily driven by the key driver viz. healthy growth in automobile and construction industry. The global automobile industry is believed to witness sustainable long-term growth driven by rising disposable income of people, expanding desires of leading a luxurious lifestyle, wide variety of vehicle choices currently available for the customers of all pocket range from shallow ones to significantly deep one. The toughest expansion occurs for the Asia Pacific region followed by Latin America and North America which is primarily driven by the key automobile players including, Toyota (TM) Volkswagen AG (VOW), General Motors (GM), and Ford (F).
During 2013, the average selling price of Ford was $23,210, VOW having an average selling price of $29,212, and many more. The worldwide passenger car sales was reached around 73.9 million vehicles during 2015 coupled with the United States and China being the biggest automobile markets in terms of sales. The worldwide automobile market is driven by consumer confidence, the fuel price, credit availability, employment, consumer confidence, and the worldwide GDP. Essentially any economic figure that initiates improved disposable income throughout any notable growth market is estimated to positively impact the global automotive sales. Further, disposable income equals taxes subtracted from gross income. Therefore, the expanding automobile industry globally is expected to drive notable long-term growth for the shielding/ welding gas market. The rising trend of expanding need for complex welding mechanization technology all through the worldwide welding component market in the forthcoming years is believed to drive sustainable long-term growth for the worldwide welding and shielding gas market.
The weaker acceptance of sophisticated welding technologies all through the developing nations such as China and India is expected to be a key restraint for the welding tools market expansion. In addition, the lack of proper and sufficient knowledge regarding the precise usage of key welding technologies coupled with the absence of capable workers in the segment can again be considered as a restraining factor for the growth of global welding and shielding market. Governmental strict regulations may also be considered as a key restraint for the growth of global welding and shielding gas market including, environmental constraints that hugely and negatively impact the company’s profit margins while expanding the overall operational costs.
Some of the major players in the global welding and shielding gas market include, General Distributing Co., Adams Gas, Keen Compressed Gas Co., Welders Supply, TWSCO, ARC3 Gases, Thomas Publishing Company, Oxygen Service Company, Inc., WISCO, American Welding & Gas, AGL, Dixons of Westerhope Ltd., ARCO Welding Supply Co., Central Welding Supply Co. Inc., Indiana Oxygen Company, etc.
There are several key mergers and acquisitions being performed in the global welding and shielding gas market for the fiscal year 2017 including, Air Liquide which is a leading industrial gas supplier in France unique declaration of the strategic acquisition of Serdex which is a division of Bayer. This main acquisition is expected to reinforce the presence of Air Liquide in the worldwide healthcare market.