Global Submerged Arc Welding Market Outlook
Revenue, 2024
$2.3B
Forecast, 2034
$5.3B
CAGR, 2025 - 2034
8.7%
The Submerged Arc Welding industry revenue is expected to be around $2.5 billion in 2025 and expected to showcase growth with 8.7% CAGR between 2025 and 2034. The strong upward trend of the submerged arc welding market indicates its nature and growing significance across different industries at present time. Depending factors comprise advancements inventive software solutions and the escalating need, for top notch welding services worldwide. A wide array of sectors are reaping benefits from the accuracy and productivity provided by submerged arc welding techniques. This trend further reinforces its importance in a variety of fields including construction and manufacturing industries.
Submerged arc welding is notable for its characteristics like a faster deposition rate and welding speed as well as its improved capacity to create consistent and flawless welds. This method finds use across various sectors including the construction of sizable steel structures and the manufacturing of pipes for the oil and gas sector in addition, to the production of heavy machinery.
Market Key Insights
- The Submerged Arc Welding market is projected to grow from $2.3 billion in 2024 to $5.3 billion in 2034. This represents a CAGR of 8.7%, reflecting rising demand across Shipbuilding Industry, Pipeline Construction and Automotive Industry.
- Lincoln Electric, Miller Electric, ESAB are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Submerged Arc Welding market and are expected to observe the growth CAGR of 6.4% to 9.1% between 2024 and 2030.
- Emerging markets including Vietnam, South Africa and Chile are expected to observe highest growth with CAGR ranging between 8.4% to 10.9%.
- Transition like Automation in Submerged Arc Welding is expected to add $174 million to the Submerged Arc Welding market growth by 2030.
- The Submerged Arc Welding market is set to add $3.0 billion between 2024 and 2034, with manufacturer targeting Infrastructure Construction & Automobile Manufacturing Industry Application projected to gain a larger market share.
- With The expansion of infrastructure projects, and Technological advancements in welding industry, Submerged Arc Welding market to expand 130% between 2024 and 2034.
Opportunities in the Submerged Arc Welding
Advancements in technology have also opened up avenues for growth in the field of submerged arc welding industry by introducing innovative tools like advanced power sources and flux combinations that enhance the efficiency and quality of weld work to deliver better results while cutting down costs and expanding its usability, across various industries segments.
Growth Opportunities in North America and Asia-Pacific
In North America's industrial sectors like manufacturing and construction projects for buildings and ships are seeing a rise in the use of submerged arc welding technology as it offers improved efficiency and cost savings for large scale welding tasks due to its high productivity rates. The competition, in this market is fierce as major players continually innovate to enhance the strength and longevity of welded structures. New possibilities have arisen as a result of advancements, in infrastructure development that require the application of state of the art welding techniques.
The Asia Pacific region is home to some of the industrial centers globally and requires advanced welding methods like submerged arc welding due to high demand for efficiency in this field of work. Rapid industrial growth in countries like China and India plays a role, in boosting this market. Competition mainly stems from companies providing budget friendly options which push international brands to carefully determine their pricing strategies. In the energy sector like wind power industry is witnessing growing opportunities. The demand for welding methods to maintain the structural integrity of turbines has significantly increased the need, for submerged arc welding.
Market Dynamics and Supply Chain
01
Driver: The Expansion of Infrastructure Projects, and Increasing Demand in Energy Sector
The ongoing growth of infrastructure projects plays a role in the submerged arc welding sector sustainability wise. With numerous construction and engineering endeavors necessitating welding tasks the popularity of submerged arc welding is also growing due to its ability to provide high deposition rates deep penetration capability and increased efficiency. This method is also especially vital, in the realms of pipeline development and ship construction, where efficiency and quality hold importance for large scale undertakings. The increasing need for energy supply is also leading to a rise in demand for submerged arc welding methods in industries that focus on energy sources, like wind turbines production.
The field of welding is also experiencing progress in technology with a growing interest in the use of submerged arc welding methods. Businesses are also creating submerged arc welding equipment that features digital controls to enhance the welding process efficiency and cost effectiveness. These advanced machines are also becoming increasingly favored for their performance. The introduction of automated submerged arc welding systems has also brought about changes, in various industrial sectors by enhancing weld quality and increasing production speeds.
02
Restraint: High Cost of Equipment
The submerged arc welding industry encounters challenges due to the equipment needed for this method compared to other welding techniques. The substantial investment required for the machinery and additional tools in submerged arc welding can be a hurdle for companies and those operating on tight budgets. This obstacle may hinder the adoption of this method in the market and affect the overall demand, within the industry.
03
Opportunity: Evolving Consumer Needs in Developing Countries and Strategic Collaborations Boosting Market Penetration
In emerging markets changing consumer demands and quick growth in infrastructure are fuel the growing demand for welded parts. Nations such as India, China and Brazil are experiencing a rise in interest in submerged arc welding for creating structures in the construction and automotive sectors. Focusing efforts on these developing regions, with customized and cost effective submerged arc welding solutions could drive market expansion.
Another overlooked opportunity lies in the partnerships between leading submerged arc welding firms and key players in the automation sector which could lead to the development of groundbreaking solutions that advance the use of submerged arc welding in sectors such, as shipbuilding and pipeline construction ultimately boosting technology adoption and driving industry growth as a whole.
04
Challenge: Lack of Skilled Labor
There is also a challenge in the submerged arc welding industry related to the lack of trained and skilled workers available for the job. Using submerged arc welding equipment requires a level of technical knowledge and training. The ongoing rapid industrial and infrastructural advancements call for skilled professionals; however there is a notable gap between the supply and demand, for such expertise that could hinder market expansion.
Supply Chain Landscape
1
Raw Material Suppliers
ArcelorMittalBaowu Steel Group
2
Equipment Production
Lincoln ElectricMiller Electric
3
Distribution Partners
Air LiquideAirgas
4
End Users
Automotive industryConstructionShipbuilding industry
1
Raw Material Suppliers
ArcelorMittalBaowu Steel Group
2
Equipment Production
Lincoln ElectricMiller Electric
3
Distribution Partners
Air LiquideAirgas
4
End Users
Automotive industryConstructionShipbuilding industry
Use Cases of Submerged Arc Welding in Shipbuilding Industry & Pipeline Construction
Shipbuilding Industry : The shipbuilding sector utilizes submerged arc welding to construct sections of a ships hull effectively and efficiently primarily through double sided submerged arc welding techniques due to their proficiency and output levels The implementation of this method minimizes workpiece distortion and enhances the seam welding process resulting in smoother and more stable weld joints Industry leaders such as Hyundai Heavy Industries and Samsung Heavy Industries are recognized for their commitment to quality standards and strict adherence, to regulations.
Pipeline Construction : The pipeline sector heavily relies on submerged arc welding for constructing and maintaining long distance pipelines carrying oil or natural gas commodities efficiently. Longitudinal submerged arc welding is commonly used in this field due to its ability to weld quickly and achieve deposition rates. TransCanada and European Gas Pipeline Link are players, in this sector known for their dependable services and widespread pipeline networks.
Automotive Industry : The automotive sector employs submerged arc welding for crafting parts like axle assemblies and chassis components in mass production settings due to its automation capabilities. Tandem submerged arc welding is commonly utilized for its speeds and deposition rates in this region of work. General Motors and Toyota Motors are players in this field known for their market dominance and commitment, to quality standards and pioneering strategies.
Recent Developments
In the realm of manufacturing and construction industries submerged arc welding has experienced notable advancements in the market as of late. This method is commonly applied in sectors that demand welding capabilities like pipeline installation and ship assembly offering significant benefits such, as increased productivity levels and top notch weld quality.
December 2024 : WeldCo introduced a technology called Laser Assisted Submerged Arc Welding that is set to revolutionize efficiency, in metallurgical industries.
October 2024 : ArcTech Inc implemented a cutting edge platform using ML technology within their submerged arc welding equipment to improve predictive maintenance and prolong the tools longevity.
August 2024 : UniWeld Solutions secured a patent, for a submerged arc welding method that lowers heat input and enhances the tensile strength during welding processes.
Impact of Industry Transitions on the Submerged Arc Welding Market
As a core segment of the Production Tools & Equipment industry,
the Submerged Arc Welding market develops in line with broader industry shifts.
Over recent years, transitions such as Automation in Submerged Arc Welding and Advancements in Power Source Technology have redefined priorities
across the Production Tools & Equipment sector,
influencing how the Submerged Arc Welding market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Automation in Submerged Arc Welding
The introduction of automation has brought about a shift in the realm of submerged arc welding. Automation not only speeds up and streamlines the welding process but also boosts accuracy resulting in significantly enhanced weld quality. Automated submerged arc welding systems also cut down on involvement reducing errors and potential risks. This change has had an impact on various related sectors, particularly those involved in high volume production, like automotive, construction and shipbuilding reshaping their manufacturing methods significantly. This industry transition is expected to add $174 million in the industry revenue between 2024 and 2030.
02
Advancements in Power Source Technology
The advancements in power source technology have had an impact on the submerged arc welding sector. The older transformer based power sources have been upgraded to inverter based systems that offer better control over welding settings. This shift has led to improved weld quality and increased deposition rates resultinf in more effective welding processes. Sectors such, as energy defense and aerospace have reaped the benefits of this change by producing top notch weld joints in durations.