Frost & Sullivan: Thailand's Automotive Industry Holds the Key to the Country's Welding Equipment and Consumables Market's Fortunes
- Rising Eco Consciousness Could Lower the Demand for Welding in the Automotive Industry
BANGKOK, May 10, 2012 /PRNewswire/ -- Global automotive giants are recognizing Thailand's suitability as a R&D hub to manufacture fuel injection pumps, transmissions, anti-lock braking systems and central locking systems, bringing cheer to the local welding equipment and consumables market.
New analysis from Frost & Sullivan (http://www.motors.frost.com), Analysis of Welding Equipment and Consumables Market, finds that the market earned revenues of US$293.0 million in 2010 and estimates this to reach US$450.0 million in 2017 at a compound annual growth rate of 6.3 per cent.
The Government offers exemptions on import duties and excise taxes on cars to attract investors; however, the current thrust on eco cars are likely to dampen the market for welding equipment. If pollution control enforcement becomes stricter or the manufacturing technology changes, auto companies will seek alternate manufacturing bases, taking business away from the welding equipment and consumables market.
"Increasing energy costs can play a role in determining the demand for welding equipment and consumables," says Frost & Sullivan Research Analyst Krishnan Ramanathan. "For instance, if the focus shifts to renewable sources of energy/power generation and automobiles are made to run on batteries, the demand for welding consumables will reduce."
Apart from automotive, the oil and gas and construction industries will also influence the fortunes of the welding equipment and consumables market. The Thai Government has been keen to introduce new technologies to accelerate industrialization in the country. The welding equipment market will certainly be buoyed by its efforts but it still has several issues to thresh out before it can make the most of the initiatives.
Investors will be aware that standardization will not be possible in this market, since only appropriate equipment can be used for specific applications. Moreover, technological transfers will be bumpy as the local workforce lacks the skills to develop and use technologies.
"Once measures are taken to regulate and ensure quality at several sites, investors will feel more confident about moving their manufacturing to Thailand, thereby boosting the local welding equipment market," notes Ramanathan.
If you are interested in more information on this study, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com.
Analysis of Welding Equipment and Consumables Market is part of the Mechanical Power Transmission Growth Partnership Services program. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
Analysis of Welding Equipment and Consumables Market
P58B-17
Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
E: djeremiah@frost.com
Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
E: carrie.low@frost.com
Sasikarn Watthanachan
Corporate Communications – Thailand
P: +66 2 637 7414
E: sasikarn.watt@frost.com
Share this article