Mexico Welding Consumables Market Size, Share & Trends Analysis Report By Technology, By Product (Stick Electrodes, Solid wires, Flux-cored Wires, Saw Wires and Fluxes), By End Use, And Segment Forecasts, 2019 - 2025

Industry Insights

The Mexico welding consumables market size was estimated at USD 568.1 million in 2018 and is anticipated to witness a CAGR of 7.1% from 2019 to 2025. The growing manufacturing industry in the country is expected to drive the demand for welding technologies and consumables over the forecast period. Rising needs for strong bonding and weld mechanism in heavy-duty machines are likely to support industry growth.

Technological improvements aimed at enhancing the durability and performance of the machinery and automotive components are likely to aid industry growth. The consumables offer systematic bonding of metal parts that are used in varied applications in the manufacturing industry. Moreover, cost-efficiency offered by these products is anticipated to have a positive impact on the market.

In Mexico, stick electrodes emerged as the major product category in 2018. Well-established automotive and aerospace manufacturing sectors in the country have contributed to the growth. Furthermore, increasing the penetration of multinational manufacturing companies in the country is expected to propel the demand for welding consumable products.

The welding consumable products are manufactured using high-performance metals such as copper, nickel, and stainless steel. Technical innovations by the leading players to introduce rigid and durable products have enhanced the operations. The above-mentioned factors are likely to drive the demand for the product in the manufacturing of automotive parts and heavy machinery.

These products are majorly used in welding technologies such as arc, resistance, oxy-fuel, and laser beam welding. Strong bonding with a smooth finish coupled with the easy handling of the products has increased their popularity in major end-use industries. However, high labor cost for welding operations is anticipated to slow down the growth over the forecast period.

The introduction of automation technologies in the manufacturing industry has initiated the utilization of robotic arms for welding operations, and thus, offers efficient and errorless welding and cutting of the metal components. Rising needs for precision in joining operations and growing trends for miniaturization of machinery has influenced the Mexico welding consumables market.

Technology Insights

Arc welding emerged as the largest technology segment in 2018 and accounted for 39.3% of the market revenue in Mexico. The ability to weld a large number of metals in a wide range of thicknesses with good flexibility has contributed to the growing popularity of this technology. Moreover, the introduction of robotic arc welding machinery in the industry has supported the growth.

High structural stability and cost efficiency offered by the resistance welding has contributed to the ascending demand. This technology is widely utilized in automotive manufacturing for spot, projection, and seam welding. Further, low environmental impact and rigidity offered by the technology are likely to support the growth over the forecast period.

The equipment and products used in oxy-fuel welding technology are highly cost-efficient, and hence are being widely used in the industrial manufacturing applications in the country. The ability to control heat and temperature irrespective of filler material quantity has supported its utilization in straightening, bending, surfacing, brazing, braze welding, and other related operations.

The demand for consumables for laser beam technology was valued at USD 90.0 million in 2018 and is anticipated to witness the highest CAGR over the forecast period. The technology provides a concentrated heat source that is used for deep and narrow welds and is widely used for welding small components or inaccessible designs, wherein other methods are difficult to be deployed.

Product Insights

In 2018, stick electrodes accounted for the largest product category and contributed USD 202.4 million to the overall revenue. In stick electrode welding, electricity is supplied by the equipment, which energizes the electrode, thereby generating an electric arc and producing intense heat. Stick electrodes are widely used in arc welding on account of their beneficial properties including corrosion resistance, ductility, and high tensile strength.

The flexibility and ruggedness of solid wires have propelled their utility in application areas such as house electrical wiring and breadboards that require flexible wires. These wires are easy to bend and route and are extremely cost-efficient, thus are widely used in various welding applications. Moreover, these wires are cheaper to manufacture as compared to their counterparts and are used in applications that require flexibility.

Flux-cored wires allow a high deposition rate, which helps create strong and clean welds as they perform better when the base metal is thicker and work well for objects that are difficult to weld. These wires are used in welding applications including shipbuilding, bridge construction, and general fabrication. Furthermore, flux-cored wires are extensively utilized in application areas where vertical up or flat welding is required.

The demand for saw wires and fluxes in Mexico was valued at USD 82.5 million in 2018. Saw wires and fluxes impact the composition of metal and wires, which in turn enhances the mechanical properties of the final product. Mexico saw wires and fluxes market is expected to experience moderate growth over the forecast period owing to the presence of stringent regulations and lack of skilled labor.

End-use Insights

In 2018, the automotive and transportation application accounted for the largest revenue share and is likely to exhibit a CAGR of 8.1% over the forecast period. Increasing automotive and transport manufacturing sectors in the country on account of the presence of prominent manufacturers and skilled workforce are expected to have a positive impact on the demand.

Continuous innovation in welding technologies to weld complex and large structures in the construction industry is fueling industry growth. Urbanization and growing infrastructure development projects are boosting the demand for such products. Ascending demand for green construction and bridge lock-up device systems to improve the lifespan of building structures is further projected to drive the market in the country.

The primary contribution of such products in marine applications includes the production of smooth hull surfaces by considerably decreasing bare hull resistance, which further helps lower the ship’s power requirement. The positive outlook of Mexico marine industry, owing to a strong global chemical demand and high export-oriented refinery capacity, is expected to propel the demand for such products in marine applications over the forecast period.

Rising demand for the manufacturing of high performance, better quality, and critical components for various applications in the upstream and downstream oil and gas industry is anticipated to support the market for welding consumables over the forecast period. The natural gas consumption in the country is likely to upscale by 64% till 2027, increasing the demand for essential components, thus influencing the market on a positive note.

Mexico Welding Consumables Market Share Insights

Key players are also focusing on the enhancement of their offerings by introducing advanced technology products and services to the consumers. Moreover, a strategic initiative such as mergers and acquisitions, joint ventures, and third-party contracts are considered for strengthening their presence in the industry.

Prominent players in the market include Colfax Corporation; Voestalpine AG; The Lincoln Electric Company; Obara Corporation; and CenterLine Holding Inc. These players compete based on designs, material quality, and pricing structures. Moreover, players are focusing on providing other products and services to stay competitive in the market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the Mexico welding consumables market report based on technology, product, and end use:

• Technology Outlook (Revenue, USD Million, 2014 - 2025)

  • Arc Welding

  • Resistance Welding

  • Oxy-Fuel Welding

  • Laser Beam Welding

  • Others

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Stick Electrodes

  • Solid Wires

  • Flux-Cored Wires

  • Saw Wires and Fluxes

  • Others

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

  • Automotive & Transportation

  • Building & Construction

  • Marines

  • Others