Industry Report: Emerging Growth Markets for NDT
The emerging markets for NDT inspection services are Brazil, China, India, and
South Africa. Surprisingly, of these markets, China is the smallest. This is due to
the trend in China wherein end-user industries prefer performing NDT
inspections in-house rather than outsourcing. Similar to the global NDT
inspection services market, these emerging growth markets are characterized by
a large number of competitors, although most participants are relatively small.
End-user industries such as oil and gas and power generation are the key
drivers. High oil and gas prices have ensured that the operators earn significant
revenue. This revenue has been duly invested back into developing the
infrastructure in the energy industry.
•The emerging growth markets for nondestructive test (NDT) inspection services
are estimated to generate $Xmillion in revenue in 2012.
•Oil and gas and power generation are the dominant end-user industries in the
emerging growth markets.
•Brazil's revenue contribution to the emerging markets ranks highest,
accounting for % of the total market in 2012.
•Contrary to common perception, the Chinese NDT inspection services market is
fairly small. It is the smallest of the X growth markets under study, but growth
prospects are high.
•The South African market has the highest growth potential with a booming
economy providing investment in new power generation infrastructure, which is
driving the NDT inspection services market.
•The competitive landscape consists mainly of local participants in Brazil, India,
China, and South Africa, with only a few major global companies able to enter
•There are approximately X companies battling in these competitive markets.
•It is expected that over the forecast period consolidations in the market will
result from mergers and acquisition.
1. Brazil is the largest emerging growth market for NDT inspection services.
2. Advanced NDT services are expected to drive revenues in the emerging growth
3. Oil and gas and power generation remain the dominant end-user industries in
the emerging markets.
4. Extremely nationalized competition within the market keeps major global
participants from gaining a foothold.
5. Quality of service is expected to be the key competitive differentiator over the
The emerging growth markets for NDT inspection services are Brazil, China,
India, and South Africa. China is the smallest. In China, end-user industries
prefer performing NDT inspections in-house, instead of outsourcing. Brazil is the
largest market and generated $X million in 2012. South Africa has the greatest
growth potential with a X% CAGR.
Similar to the global NDT inspection services market, the emerging growth
markets for NDT inspection services are characterized by a large number of
competitors, although most participants are relatively small. These participants,
often referred to as the mum and pop shops of the industry, compete in the
conventional NDT space. To put things in perspective, India possesses X– market
participants competing for a $X million market.
The key driver for the emerging markets in NDT inspection services is the
demand from end-user industries such as oil and gas and power generation.
High oil and gas prices ensured that these operators earned significant revenue
over the past X years. This revenue was invested back into developing the
infrastructure in the energy industry.
A common challenge witnessed in the global NDT inspection services market is a
lack of qualified technicians. However, this challenge is not witnessed in the
emerging markets. India is the NDT education hub and provides trained
technicians in country and to other regions like the Middle East. Similarly, in
China, SGS India Pvt Ltd (SGS) conducted a training program for approximately X
NDT technicians in various disciplines.
The emerging growth markets for NDT inspection services are experiencing high
growth amid a difficult economic environment and are expected to continue
growing over the next 5 years.
For this study, the emerging growth markets for NDT inspection services have
been segmented by end-user industry as follows:
Oil and Gas Upstream
Inspection of oil wells and rigs, both on- and offshore; and of drill pipes and drill
collars, referred to as tubular goods inspection.
Inspection of welds on the gathering lines, which connects the oil well to a
gathering station or tank battery.
Oil and Gas Midstream
Inspection of infrastructure such as tank batteries, compressor stations, and
pump stations; and of welds on the new construction pipelines connecting the
gathering stations to the refineries.
Assessment of erosion and corrosion on the maintenance of pipelines.
Oil and Gas Downstream
Inspection of refineries and petrochemical and of chemical plants driven by
Inspection of energy, utilities, co-generation, renewable, and non-renewable
Inspection of aerospace, automotive, transportation, shipbuilding, and
manufacturing industries; and of process industries such as pulp and paper and
Key Questions This Study Will Answer
Which are the emerging growth markets for NDT inspection services?
What are the key growth drivers and restraints for the emerging markets?
Who are the major participants in these markets, and what are their market
Which are the strategic growth end-user industries?
What are the biggest challenges that market participants need to overcome to
Table of Contents
Executive Summary 4
Market Overview 8
Emerging Growth Markets for NDT Inspection Services -
• External Challenges: Drivers and Restraints 15
• Forecasts and Trends 23
• Market Share and Competitive Analysis 34
Brazilian Breakdown 38
Indian Breakdown 51
Chinese Breakdown 64
South African Breakdown 75
The Last Word (Conclusions and Implications) 87