Arc Welding Robots Market Size, Share & Trends Analysis Report By Type (Non-Consumable Electrode Type, Consumable Electrode Type), By Application (Automotive and Transportation, Electricals and Electronics, Aerospace and Defense, Metals and Machinery), By Sales Channel (Direct Channel, Distribution Channel) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global arc welding robots market size was valued at USD 5.3 billion in 2023 and is projected to reach USD 10.8 billion by 2032, registering a CAGR of 8.1% during the forecast period (2024-2032). The extensive implementation of automation in manufacturing is driving Arc Welding Robots' market share, increasing operational efficiency, maintaining accurate weld quality, and lowering labor costs across a wide range of sectors.

Arc welding robots are industrial robotic systems used to automate arc welding procedures. These robots use several welding processes, including metal inert gas (MIG), tungsten inert gas (TIG), and shielded metal arc welding (SMAW), to join metal components. Equipped with modern sensors, vision systems, and precise controls, arc welding robots offer enhanced efficiency, consistency, and accuracy in welding processes across sectors such as automotive manufacture, construction, and general metal fabrication. Their capacity to work in hazardous situations, do repetitive operations and adapt to varied welding applications makes them essential in modern manufacturing, leading to better efficiency and quality in welding processes.

Many countries are seeing an increase in the usage of arc-wielding robots as new emerging industries arise. Arc welding robots are becoming increasingly popular, particularly among key players in the manufacturing business. Arc welding robots offer numerous advantages, and the market is projected to expand as new models and technology emerge. However, because this technology requires a professional to operate, a limitation comes from a need for qualified individuals with equipment competence. The manufacturing business is becoming increasingly modernized, which raises worker costs. The sector may face high labor costs, installation, maintenance, and operational costs in the coming years

Market Dynamics

Global arc welding robots market drivers:

Surging Industrial Automation

The growing trend of industrial automation is a major driving force behind the deployment of arc welding robots. As industries worldwide adopt automation to improve efficiency and lower operating costs, arc welding robots play an important role in simplifying welding processes. The automotive industry is a prime illustration of how industrial automation boosts the demand for arc welding robots. Automotive manufacturers incorporate robotic welding technologies into manufacturing processes to ensure uniform, high-quality welds. For example, significant automakers use arc welding robots to assemble automobile bodies, ensuring precision and conformance to design criteria.

Additionally, according to the International Federation of Robotics (IFR), the worldwide industrial robot market is predicted to increase by 7% to more than 590,000 units by 2023. The automobile industry accounted for many robot installations, with welding being a widespread use case. The requirement for efficient and precise welding in-vehicle component production drives the automotive industry's introduction of arc welding robots. The Robotic Industries Association (RIA) reported that automotive OEMs and suppliers purchased 15,723 robots in 2023, accounting for more than half of the total. 

Similarly, the adaptability of arc welding robots enables producers to meet changing production demands, contributing to the overall increase in industrial automation. This versatility is critical, particularly in enterprises with a comprehensive product line and varying welding requirements. As the industrial automation wave continues, the arc welding robots market trend is projected to remain at the forefront, offering producers the instruments to optimize welding operations, achieve consistent quality, and meet the needs of current production environments.

Global arc welding robots market restraints:

High Initial Investment

The high initial investment necessary to adopt arc welding robots can be a significant barrier for firms, particularly smaller ones with limited financial resources. The expenditures of obtaining robotic equipment, integrating them into current workflows, and training personnel add to the financial burden. A robotic welder can start at USD 50,000 and cost more than USD 100,000 for moderate to large-scale applications. According to Standard Bots, a simple articulated arm spot welder costs roughly USD 50,000, while an articulated arm with a sophisticated electron-beam end-effector costs more than USD 500,000.

Additionally, the initial investment in the automotive industry, which widely uses arc welding robots, can be significant. A robotic welding cell outfitted with advanced technology can cost hundreds of thousands. The pricing includes the robot arm, welding equipment, safety features, and programming. For small and medium-sized businesses (SMEs), the initial investment in arc welding robots may be a more significant problem. According to the Robotics Industries Association (RIA), small and medium-sized enterprises (SMEs) accounted for a lesser share of overall robot sales in North America, highlighting the financial constraints they confront when implementing automation. Additional infrastructure upgrades, such as safety precautions and robotic workstations, can increase investment. These changes are critical for establishing a safe and efficient environment for automated welding operations.

Global arc welding robots market opportunity:

Rising Demand in Emerging Economies

Expanding industrialization and manufacturing operations in emerging economies provide a significant opportunity for using arc welding robots. As these economies increase, the demand for advanced automation technologies, such as robotic welding, will likely increase. China's manufacturing industry has been expanding rapidly. According to Statista, China's manufacturing sector is predicted to grow at a compound annual growth rate (CAGR) of 18.69% between 2024 and 2028. The number of manufacturing personnel is expected to reach 103.1 million by 2024. The country has emerged as a global industrial hub, especially in the automotive, electronics, and construction industries. As output and quality demands rise, arc welding robots are in high demand in Chinese manufacturing facilities. 

Furthermore, the International Federation of Robotics (IFR) estimates that 73% of all newly deployed robots in 2023 will be put in Asia. This compares to 15% in Europe and 10% in the Americas. The high robot density in China's manufacturing landscape reflects an increasing adoption and integration of robotic technologies. The Chinese government's efforts, such as "Made in China 2025," aim to improve the country's manufacturing capacity using new technologies. This project and comparable programs in emerging economies highlight the potential for the arc welding robots market to meet the changing needs of these growing manufacturing sectors.

Moreover, capturing increased demand in emerging economies requires strategic market penetration, knowing local requirements, and providing specialized solutions that address the specific needs of these nations' businesses. Manufacturers and stakeholders in the arc welding robots market can capitalize on this potential by building a strong presence and forming collaborations in emerging industrial landscapes.

Regional Analysis

North america dominates the global market

The global arc welding robots market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global arc welding robots market shareholder and is estimated to grow at a CAGR of 8.5% over the forecast period. Rising demand for industrial robotics is expected to be a key driver in the North American market. The automobile sector in the United States accounts for the majority of the demand for industrial robotics. According to the Association for Advancing Automation (A3), industrial robot sales in North America will fall 30% by 2023 following two years of record ordering activity. Companies purchased 31,159 robots last year, a decrease from 44,196 in 2022 and 39,708 in 2022. Modern manufacturing facilities rely on new, advanced, and inventive technologies to produce high-quality goods rapidly and cheaply.

Furthermore, industrial robots have significantly been penetrated in the US. Again, industrial robots have been considerably stabbed in the US. The Robotic Industries Association reports that over 250,000 industrial robots have been deployed nationwide. Manufacturers are developing innovative technologies and hardware that benefit the arc welding robot industry to obtain a strategic advantage in the new circumstances.

Asia-Pacific is anticipated to exhibit a CAGR of 8.8% over the forecast period. Asia-Pacific has the highest share due to the region's dominant industrial robot market, public and private sector opportunities, and a thriving manufacturing industry. China is regarded as the dominant industrial robot market due to government programs to modernize the country's manufacturing sector. Policy efforts such as the National High-Tech R&D Program, Made in China 2025, and the Robotic Industry Development Program all advocate for increased investment in automation and robotics.

Additionally, Japan's Society 5.0 strategy aims to optimize and sustain the industrial sector by leveraging sophisticated technologies such as AI, robotics, big data analytics, and the Internet of Things (IoT). The Japanese government expanded its science and technology budget to accomplish this objective. The total government budget request for science and technology in FY 2024 is 5,488.9 billion yen, up 701.7 billion yen (14.7%) from the previous fiscal year.

Europe holds a significant market share. With its modern manufacturing infrastructure and emphasis on automation, Europe has a large market for arc welding robots. Germany, France, and Italy's automotive, aerospace, and machinery manufacturing industries have been important drivers of demand for robotic welding solutions. The European automotive sector, known for its strict quality standards, makes substantial use of arc-welding robots in car production. The demand for precision, efficiency, and adherence to high safety regulations has fueled the adoption of robotic welding technologies.

Similarly, countries like the United Kingdom, France, and Germany have robust aerospace and defense industries, where arc welding robots are critical for forging aircraft components. The demand for lightweight materials and sophisticated welding in these industries contributes to market growth.

Segmental Analysis

The global arc welding robots market is segmented based on type, application, and sales channel.

The market is further segmented by type into non-consumable electrode types and consumable electrode types.

Consumable electrodes melt during welding, adding a filler material to the weld junction. Metal Inert Gas (MIG) welding uses consumable electrodes, typically wires that melt to generate the weld pool. Consumable electrodes provide efficient and continuous welding, making them ideal for high-speed production operations. The melted electrode material also functions as a filler, strengthening the link between the welded elements. This type is widely employed in automotive manufacturing and construction industries, where speed and efficiency are critical. The choice between non-consumable and consumable electrode types is determined by material, welding standards, and desired weld qualities, allowing versatility in addressing various welding requirements.

Arc welding uses non-consumable electrodes that do not melt during welding. Tungsten is commonly used for non-consumable electrodes in welding processes such as Tungsten Inert Gas (TIG). The tungsten electrode remains intact during this process, and the arc is formed between the electrode and the workpiece. Non-consumable electrodes are durable and stable, making them ideal for precision welding applications. The absence of electrode material melting reduces contamination in the weld pool, resulting in high-quality welds. This type is frequently used for welding materials such as aluminum and stainless steel, where maintaining material purity is essential.

The market can be bifurcated by application into Automotive and Transportation, Electricals and Electronics, Aerospace and Defense, and Metals and Machinery.

Arc welding robots are used extensively in the automotive and Transportation industries to fabricate vehicle components. Applications include welding chassis, body frames, exhaust systems, and other structural elements. These robots' speed, precision, and consistency improve the efficiency of automobile manufacturing operations. As the automobile industry evolves, the need for arc welding robots rises, driven by the necessity for high-quality welds in mass production. According to S&P Worldwide Mobility, worldwide light vehicle production is predicted to reach 89.8 million units in 2023, up 9% from 2022. Compact and mid-sized cars have gained popularity in emerging countries as people's purchasing capacity has increased. Furthermore, the need for a quick lifestyle, comfort, and convenience has made it necessary for people to own vehicles for personal and professional purposes.

Arc welding robots aid the electrical and electronics industries by allowing them to produce components that require accurate and detailed welding. This includes assembling enclosures, connections, and other electrical equipment. The ability of arc welding robots to handle small and fragile items with precision makes them valuable in this industry. As electronic devices grow more sophisticated and smaller, there is an increasing demand for accurate welding solutions in electrical and electronics manufacturing.

Based on sales channels, the market is fragmented into Direct and distribution channels.

The direct channel involves the direct selling of arc welding robots from manufacturers to end customers, with no intermediaries. Manufacturers interact directly with customers, creating a more efficient purchasing process. Close contact distinguishes this sales channel between the maker and the buyer, which enables direct communication, customization choices, and after-sales assistance. Direct channels are frequently preferred when the items require specialized knowledge or customization to fulfill unique client requirements. Manufacturers using a natural channel strategy may build dedicated sales teams or use web platforms for direct client connection.

The distribution channel connects the manufacturer and the end user through intermediaries such as distributors and merchants. Distributors serve as intermediaries, purchasing arc welding robots in bulk from manufacturers before selling and distributing them to merchants or end users. This channel might benefit producers who want to reach a larger market without handling individual client connections. It enables more excellent geographical coverage, more effective logistics, and the opportunity to connect to existing distribution networks. Distribution channel retail may offer additional services like technical support and training.

Impact of covid-19

The pandemic wreaked havoc for all key industries as there was a temporary shutdown of all the activities. Industries such as manufacturing, automotive and transportation, and aerospace and defense were among the worst hit, and the losses incurred by businesses due to temporary shutdowns affected production capacity, restraining new purchases. In time, new mandates of social distancing and working with minimal staff revived the adoption of robots in the workspace. Most of the key players effectively strategized with other companies or accelerated their R&D efforts to deploy new, effective, and affordable solutions.

Recent Developments

• February 2024- BorgWarner enhanced eMotor Business with XPeng.
• February 2024- Knorr-Bremse sold Kiepe Electric, which is situated in Düsseldorf, to Heramba. In doing so, Knorr-Bremse optimizes its portfolio and continuously aligns its business activities with critical capabilities and performance.