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The non-destructive testing equipment?market was valued at USD 2569.53 million in 2019?and is expected to reach USD 4012.99 million by 2025, at a CAGR of 8.1% over the forecast period 2020?- 2025. The introduction of stringent government safety regulations across different regions, due to an increase in failure incidents and the need for extending the life of aged infrastructure, is compelling the industries to employ testing across their manufacturing cycles. The need for maintenance optimization for efficient operations and quality/safety assurance is further helping the adoption of NDT testing equipment. Moreover, factors, such as safety, increased service intervals, reducing tolerance to disruption, small emission targets, and innovative materials have further contributed to the rising demand for NDT techniques in the aerospace and defense sectors. However, the high cost of acquiring these systems and lack of skilled technicians may hinder market growth. Also, outsourcing of NDT operations to third-party vendors and the advent of service providers may cripple the sales of these devices.
- Among the technologies used in NDT testing equipment, the ultrasonic and radiography testing segments are witnessing high innovations, which are aimed at filling in gaps of existing market product offerings. Ultrasonic detectors, however, have significantly aided the demand for ultrasonic test equipment, with Olympus NDT and GE Measurement and Control Systems playing a crucial role in offering these advanced solutions. Within the ultrasonic testing segment, the market for phased array ultrasonic testing is witnessing a saturation, with guided-wave ultrasonic testing being dubbed as the next major fillip.
- Approximately 70-80% sales of NDT equipment manufacturers, like GE, Olympus, etc., cater to NDT service providers, such as Acuren, Applus RTD, among others, through a wide variety of distributors and local representatives, including Inspection Technologies Inc., Detek, etc. In the end users segment, the global recovery from the slump in crude oil prices has been among the promary factors that have significantly driven investments in the oil and gas vertical.
- Moreover, assets within the oil and gas industry are complex and have a limited life cycle. By employing Asset Integrity Management (AIM) programs, integrity services, and risk-based inspections, the life cycle of these assets can be significantly improved by increasing ROI. NDT systems here provide clarity enabling to identify, characterize and size flaws, enabling effective, safe, and production asset management. Though the market studied is expected to dwindle in short-term due to volatility, long-term projections create immense market potential for the end users.
Scope of the Report
Nondestructive testing (NDT) equipment is a tool that is used in the process of inspecting, testing, or evaluating materials, components or assemblies for discontinuities, or differences in characteristics without destroying the serviceability of the part or system. Aerospace, defense, oil and gas, power generation and automotive are leading sectors that use NDT techniques to ensure the quality of products.
Key Market Trends
Power & Energy Generation Industry to Witness Strong Growth
- The main scope of NDT applications in the energy and power industry is to help ensure the safety, integrity, and reliability of plant equipment, such as pressure vessels, boilers, heat exchangers, pipework, and pipelines. The inspection of concrete structures is a part of plant life assessment, as these materials often form an essential part of the construction of such plant equipment.
- The market studied is experiencing an increase in acceptance and applications in the power generation industry, due to the continuous evolution of traditional NDT techniques. These techniques, along with the increased assimilation with the technology, have made many NDT methods cost-efficient, allowing end users to cut down a part of the operations and maintenance costs.
- Utilization and adaptability of developing digital imaging technology have added to the cost-effectiveness of the advanced NDT methods. Capability of online inspection, continuous data collection, storage, advanced simulation of data in real-time and interpretation of the information has been made possible with new NDT techniques. These techniques are creating greater opportunities in this market.
- In the Middle East & Africa, power plants under construction, such as nuclear plants in the United Arab Emirates, coal-based plants in Africa, and replacement of older oil-based power plants by newer ones in Qatar and Saudi Arabia, are expected to drive the demand for the NDT equipment, during the forecast period.
- Further, various regulations make it mandatory for such power plants to undergo a life assessment procedure as a safety measure. Regular inspection is required to check for any damage in the equipment and take necessary countermeasures to control them. This situation is expected to create increased opportunity for NDT equipment in the nuclear power sector.
Asia- Pacific to Witness Fastest Growth Owing to Huge Investment in Infrastructure
- Currently, China is the world’s largest producer of electricity. The energy demand of the country is expected to increase, thereby provoking the growth of energy production. NDT application in the fossil fuel segment dominates the market but is slowly expected to shift toward the nuclear and renewable segments. China is the largest consumer and importer of oil and gas in the world, after the United States.
- The country’s rising demand for cleaner sources of energy is a major contributor to the weakening oil demand, in the country. China is also the world’s top market for electric vehicles. The Chinese government is said to be working on a plan to implement a ban on vehicles powered by fossil fuels, similar to France and the United Kingdom, which announced that they would ban the sale of vehicles powered by fossil fuels, by 2040.
- India has the fifth largest power generation capacity in the world. The country ranks third globally in terms of electricity production. In May 2018, India ranked 4th in the Asia Pacific region out of 25 nations on an index that measures their overall power. Electricity production in India reached 108.90 Billion Units (BU) in April 2019. This implies that the current demand for NDT is dominated by the fossil fuel sector, with nuclear energy-based NDT equipment slowly gaining momentum.
- With the Indian aviation sector witnessing a surge in consumption, supported by growing incomes and increasing affordability, the industrial consumption of the NDT equipment is expected to witness substantial growth, over the forecast period.
- Singapore accounts for more than 25% of the Asia-Pacific MRO (maintenance, repair, and overhaul) market, with more than 100 aerospace companies catering the demand for aviation-related services. Leading companies, such as Singapore Technologies and SIA Engineering Company carry, out the nose to tail MRO services, thereby contributing to large-scale adoption of NDT equipment, in this segment.
- Indonesia offers opportunities for NDT equipment in the fossil fuel segment, as it is the dominant contributor to electricity production in the country. NDT is suitable for the inspection of pressurized pipelines, boilers, and exhaust systems. There are more than 133 CPP and 7 GPP operational, in the country which is further bolstering the growth of the Indonesian segment, over the forecast period.
The Non-Destructive Testing (NDT) Equipment Market is competitive in nature and consists of several major players. With the increasing regulations, which makes it mandatory for different organizations to undergo a life assessment procedure as a safety measure coupled with the regular inspection required to check for any damage in the equipment is creating a market for NDT equipment. The end users demand is driven by safety and regulatory needs and the companies operating in the market are leveraging on strategic collaborative initiatives, to offer specialized solutions, to increase their market share and increase their profitability. The companies operating in the market are also into mergers and acquisitions of start-ups that help in improving the served market portfolio on Non-Destructive Testing (NDT) Equipment to strengthen their product capabilities.
- January 2019 - Nikon’s X-ray and CT inspection systems perform quality inspection of aircraft and vehicle parts, helping to ensure reliability. Nikon makes effective use of X-ray systems in the fields of manufacturing and R&D to contribute to a safer society. Nikon’s X-ray and CT systems provide a non-contact, non-destructive inspection solution to assure aircraft safety and manufacturing quality.
- January 2018 - Applus Services SA acquired Tunnel Safety Testing (TST), specialists in fire tests in tunnels, based in Asturias, Spain. With this acquisition, the company will be able to offer highly differentiated services, full-scale testing, laboratory testing, and product-certification services to manufacturers of fire-protection systems.
- January 2018 - SGS Group acquired Laboratoire De Contr?le Et D’analyse, a leading chemical and microbiological testing and consultancy, based in Belgium. The acquisition would enable SGS to expand its Good Manufacturing Practice (GMP) testing portfolio in Belgium, with a key focus on QC lab services.
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