Nondestructive Test Equipment Market - Gaining Momentum with Evolving Technologies
Posted: 2013-4-25
By:
Nikhil Jain, Research Analyst, Frost & Sullivan, Test & Measurement Research Practice
The nondestructive testing (NDT) industry can be broadly classified into two
segments namely, equipment and services. Although there is a certain degree of
overlap in competition between these two segments with a few competitors
offering both equipment and services, the market dynamics differ across
equipment and services. This article will provide a brief overview of the NDT
equipment market by covering the trends impacting the market across different
technology and end-user industry segments.
The market for NDT equipment is highly mature and concentrated. The top two
competitors in the market, GE Measurement and Control Solutions and Olympus
NDT Inc, occupy approximately 50 percent of the market. The remaining 50
percent is shared by more than 150 companies. Only GE Measurement and
Control Solutions has product lines across various technologies such as
ultrasonic, radiography, magnetic and electromagnetic, visual, and penetrant
testing. Other participants offer equipment in one or two technology segments,
with ultrasonic and radiography segments having the most number of
participants.
Frost & Sullivan’s research estimated the global NDT equipment market at
$1,489.9 million in 2012, growing at a compounded annual growth rate (CAGR)
of 8.1 percent. Of this, ultrasonic testing contributed 31.1 percent to the market
revenue making it the largest technology segment in the market. Radiography
was the second largest at 30.3 percent and visual inspection was the third
largest segment, contributing 21.3 percent to the market revenue. In the next
five years, radiography is expected to overtake ultrasonic testing as the largest
technology segment in the NDT equipment market. This is an extremely
interesting trend, as the volume of ultrasonic test equipment is expected to be
significantly higher than radiography, but the average price for ultrasonic test
equipment is declining at a faster pace than radiography equipment. Therefore,
the revenue to be generated from the radiography segment is expected to be
higher than the ultrasonic segment. To put things into perspective, revenue wise,
radiography is expected to grow at a CAGR of 8.7 percent and ultrasonic test
equipment at a CAGR of 7.4 percent. From and end-user industry perspective,
power generation and oil and gas are the two largest segments contributing 21.8
and 20.9 percent, respectively, in 2012. Both these industries are expected to
grow at a CAGR of 7.5 percent.
Although the market is mature and is characterized by a slow rate of change of
technology, over the past decade there have been important advancements in
technology. Phased array ultrasonic has seen exponential growth with the
introduction of truly portable instrumentation. Digital radiography has witnessed
wide-scale adoption in the electronics, automotive, and aerospace industries.
Remote visual inspection (RVI) is witnessing incremental adoption, with many
aerospace industry codes mandating its use for inspection in certain
applications. Overall, there has been greater adoption of advanced NDT
technologies. Conventional NDT technologies are evolving steadily with
improvements in performance and functionality of the equipment.
The key growth driver for the NDT equipment market is the need to extend the
useful life of aging assets and running these assets at high capacities. The costs
and challenges involved in building new infrastructure have resulted in a desire
for end-user industries to extend the useful life of their existing infrastructure.
Thus, these existing assets have aged, especially in North America. The average
age for a refinery or power plant in the United States is more than 40 years, yet
these assets are required to run at high capacities. In the Middle East, existing
refineries have been increasing their capacity utilization due to the shortage of
refined oil in the market. This shortage has been created by the trade-related
sanctions imposed by the United States and the European Union on Iran. Running
these aged assets at higher capacities may result in failure if the assets are not
inspected periodically. The level of maintenance required to preserve these
assets and run them at high capacities has created an immense demand for NDT
inspection. This demand for inspection is driving the growth in the NDT
equipment market and is expected to have a continued positive impact for the
foreseeable future.
A global trend being witnessed in the NDT industry is the lack of skilled
technicians. As such, there is a constant supply of NDT technicians. However,
many of them are only certified and do not possess the necessary skills to
perform inspection at an acceptable level of quality. In addition, many training
institutes are not updated with the latest equipment and technicians are trained
on old equipment that have been phased out of the market. This is a major
hindrance to growth of NDT equipment manufacturers, as it limits the adoption
of newer, advanced technologies and products. Over the past year, NDT
equipment manufacturers have identified this trend and set-up their own
training centers or academies. Even though most NDT equipment manufacturers
provided NDT training earlier, it was offered only as an after-sales support
service. However, equipment manufacturers such as GE, Olympus NDT, and
Carestream NDT have opened up training centers that provide training
independent of purchase of the equipment.
In the recently published Frost & Sullivan study titled 'Analysis of Global
Nondestructive Test Equipment Market', detailed analysis on current and future
trends has been provided, in addition to a comprehensive view on the latest
market and technology trends, revenue projections, competitive landscape, and
growth opportunities in this market space.
Frost & Sullivan also conducts extensive research in the areas of nondestructive
testing, material testing, condition monitoring, and NVH testing among others.
For further information or any comments, suggestions or queries please contact
the author.
Nikhil Jain is a Research Analyst within Frost & Sullivan’s Test & Measurement
research group. For more information on Frost & Sullivan’s Test & Measurement
research or any questions on this article, you can contact Jeannette Garcia,
Corporate Communications at Jeannette.Garcia@frost.com or 210.477.8427.
segments namely, equipment and services. Although there is a certain degree of
overlap in competition between these two segments with a few competitors
offering both equipment and services, the market dynamics differ across
equipment and services. This article will provide a brief overview of the NDT
equipment market by covering the trends impacting the market across different
technology and end-user industry segments.
The market for NDT equipment is highly mature and concentrated. The top two
competitors in the market, GE Measurement and Control Solutions and Olympus
NDT Inc, occupy approximately 50 percent of the market. The remaining 50
percent is shared by more than 150 companies. Only GE Measurement and
Control Solutions has product lines across various technologies such as
ultrasonic, radiography, magnetic and electromagnetic, visual, and penetrant
testing. Other participants offer equipment in one or two technology segments,
with ultrasonic and radiography segments having the most number of
participants.
Frost & Sullivan’s research estimated the global NDT equipment market at
$1,489.9 million in 2012, growing at a compounded annual growth rate (CAGR)
of 8.1 percent. Of this, ultrasonic testing contributed 31.1 percent to the market
revenue making it the largest technology segment in the market. Radiography
was the second largest at 30.3 percent and visual inspection was the third
largest segment, contributing 21.3 percent to the market revenue. In the next
five years, radiography is expected to overtake ultrasonic testing as the largest
technology segment in the NDT equipment market. This is an extremely
interesting trend, as the volume of ultrasonic test equipment is expected to be
significantly higher than radiography, but the average price for ultrasonic test
equipment is declining at a faster pace than radiography equipment. Therefore,
the revenue to be generated from the radiography segment is expected to be
higher than the ultrasonic segment. To put things into perspective, revenue wise,
radiography is expected to grow at a CAGR of 8.7 percent and ultrasonic test
equipment at a CAGR of 7.4 percent. From and end-user industry perspective,
power generation and oil and gas are the two largest segments contributing 21.8
and 20.9 percent, respectively, in 2012. Both these industries are expected to
grow at a CAGR of 7.5 percent.
Although the market is mature and is characterized by a slow rate of change of
technology, over the past decade there have been important advancements in
technology. Phased array ultrasonic has seen exponential growth with the
introduction of truly portable instrumentation. Digital radiography has witnessed
wide-scale adoption in the electronics, automotive, and aerospace industries.
Remote visual inspection (RVI) is witnessing incremental adoption, with many
aerospace industry codes mandating its use for inspection in certain
applications. Overall, there has been greater adoption of advanced NDT
technologies. Conventional NDT technologies are evolving steadily with
improvements in performance and functionality of the equipment.
The key growth driver for the NDT equipment market is the need to extend the
useful life of aging assets and running these assets at high capacities. The costs
and challenges involved in building new infrastructure have resulted in a desire
for end-user industries to extend the useful life of their existing infrastructure.
Thus, these existing assets have aged, especially in North America. The average
age for a refinery or power plant in the United States is more than 40 years, yet
these assets are required to run at high capacities. In the Middle East, existing
refineries have been increasing their capacity utilization due to the shortage of
refined oil in the market. This shortage has been created by the trade-related
sanctions imposed by the United States and the European Union on Iran. Running
these aged assets at higher capacities may result in failure if the assets are not
inspected periodically. The level of maintenance required to preserve these
assets and run them at high capacities has created an immense demand for NDT
inspection. This demand for inspection is driving the growth in the NDT
equipment market and is expected to have a continued positive impact for the
foreseeable future.
A global trend being witnessed in the NDT industry is the lack of skilled
technicians. As such, there is a constant supply of NDT technicians. However,
many of them are only certified and do not possess the necessary skills to
perform inspection at an acceptable level of quality. In addition, many training
institutes are not updated with the latest equipment and technicians are trained
on old equipment that have been phased out of the market. This is a major
hindrance to growth of NDT equipment manufacturers, as it limits the adoption
of newer, advanced technologies and products. Over the past year, NDT
equipment manufacturers have identified this trend and set-up their own
training centers or academies. Even though most NDT equipment manufacturers
provided NDT training earlier, it was offered only as an after-sales support
service. However, equipment manufacturers such as GE, Olympus NDT, and
Carestream NDT have opened up training centers that provide training
independent of purchase of the equipment.
In the recently published Frost & Sullivan study titled 'Analysis of Global
Nondestructive Test Equipment Market', detailed analysis on current and future
trends has been provided, in addition to a comprehensive view on the latest
market and technology trends, revenue projections, competitive landscape, and
growth opportunities in this market space.
Frost & Sullivan also conducts extensive research in the areas of nondestructive
testing, material testing, condition monitoring, and NVH testing among others.
For further information or any comments, suggestions or queries please contact
the author.
Nikhil Jain is a Research Analyst within Frost & Sullivan’s Test & Measurement
research group. For more information on Frost & Sullivan’s Test & Measurement
research or any questions on this article, you can contact Jeannette Garcia,
Corporate Communications at Jeannette.Garcia@frost.com or 210.477.8427.
