Product category:
Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial
Team on 08 February 2007
European welding market faces eastern
competition
The European welding equipment market for shipbuilding applications earned revenues of $43.2 million in 2006.
The highly mature European welding equipment and consumables market for shipbuilding applications is facing mounting competition from suppliers based in East Asia However, healthy orders from shipyards over the next three years will boost revenues for welding equipment and consumable manufacturers
This article was originally published on Engineeringtalk on 9 Aug 2000 at 8.00am (UK)
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At the same time, the intensifying trend towards automation in shipyards will help to support revenue growth.
Frost and Sullivan finds that the European welding equipment market for shipbuilding applications earned revenues of $43.2 million in 2006 and is estimated to reach $70.1 million in 2013, while the European welding consumables market for shipbuilding applications earned revenues of $61.5 million in 2006 and is projected to achieve $99.8 million in 2013.
The market is currently in an upswing owing to dynamic developments in the European shipbuilding industry.
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The push to modernise and expand fleets, accompanied by improved technology and highly productive equipment, is creating exciting growth potential in the welding equipment and consumables market.
"Shipbuilders are increasingly investing in more reliable and effective equipment and consumables that can reduce production costs and address issues of smoother welding processes and enhanced productivity", comments Frost and Sullivan Research Analyst Archana Chauhan.
"Shipyards are also constantly trying to automate welding processes, which is triggering demand for more sophisticated welding equipment".
"Such trends are expected to continue and result in higher revenues over the long term".
Despite this optimistic scenario, it is becoming increasingly difficult for European-based companies to expand their market share owing to the shift of manufacturing projects to East Asia.
Another key challenge for market participants will be to clearly demonstrate the high quality and standards of their equipment and consumable offerings to customers.
Advanced welding equipment and automated processes undoubtedly encourage faster, superior-quality welding.
However, the recent rise in steel prices is having a negative ripple effect on market growth.
"To counteract the lack of revenue potential from declining sectors in the shipbuilding industry, welding manufacturers should investigate untapped applications in the area", advises Chauhan.
"Product differentiation, effective cost-cutting and sales strategies, accompanied by a parallel emphasis on new technologies that offer improved productivity, will also be critical for manufacturers to safeguard their position in this end-user sector".
Growth strategies of large multinational companies include imparting product knowledge to end users through demonstrations, seminars and related events.
Efforts to maintain and strengthen traditional relationships with several shipyards have also continued, enabling manufacturers to gain further contracts.
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