The ultrasonic NDT testing equipment market is expected to register a CAGR of 7.29% over the forecast period (2021-2026). Developing countries continue to consume vast amounts of natural gas, while the demand increases in developed countries. The increased demand is causing the expansion of pipelines and refineries, due to which there is a surge in the ultrasonic NDT testing market.
- The major drivers for the ultrasonic non-destructive testing (NDT) equipment market's growth include increasing investments in infrastructure-related activities, government safety regulations, and mandating NDT techniques to gain clearances. One of the challenges faced by societies worldwide is creating and sustaining an adequate and safe infrastructure to meet the future population's needs. Countries are looking to save money to improve transportation infrastructure since it is a major national priority.
- The increasing safety regulations across various end-users and countries will increase NDT technology demand and different evaluation techniques. Several governmental agencies and regional bodies worldwide formulated stringent measures to ensure buildings' safety. These measures have mandated NDT and other evaluation techniques for conducting fitness checks.
- For instance, stringent regulations mandating worker safety, due to the increasing instances of infrastructure failures, such as refinery blasts, leakages in nuclear reactors, and pipeline explosions, in recent years, have prompted governments across the world to enact stringent safety regulations, thus, driving increased adoption of ultrasonic NDT equipment.
- Moreover, IoT solutions are being increasingly adopted across industries for optimizing operations, productivity, and safeguarding the environment. Industries such as manufacturing, oil & gas, food & beverage, utilities, and many more, face intense competition; hence, they are increasingly investing in new technologies that leverage the capabilities of IoT, cloud, and Big Data analytics to enhance their ability to innovate maximize return on their assets.
- With the advent of Industry 4.0, trends like Industrial IoT (IIoT), smart manufacturing, smart factory, predictive manufacturing, industrial robots, sensors have made IoT the central backbone of these industries, enabling remote monitoring, continuously scanning capabilities from the equipment on the factory floor, real-time analysis, and supporting new capabilities, such as predictive and continuous maintenance.
- Currently, the studied market is witnessing a decline in growth, as end-user industries such as automotive, oil and gas, construction, among others, have been impacted due to lockdown and other social distancing norms. According to the Ministry of Statistic and Program Institute (MOSPI) India, the impact of COVID-19 on gross value-added in the construction, manufacturing, and mining sector has accounted for -13.3%,-6.3%, and -14.7%. Thus, the decline in the growth of these industries reduced the demand for NDT activities that impact market growth.
Key Market Trends
Railways are Emerging as a Significant Consumer for Ultrasonic NDT Testing Equipment
- With increasing speeds, railways are facing more risk, due to which, railway companies are looking for newer solutions to monitor fatigues caused by wear and tear. Ultrasonic NDT testing equipment has been adopted to study the tracks and wheels for fatigue.
- Regular and sound diagnostics, coupled with the timely detection of rail defects at early stages, are critical elements of the railway transport management system. NDT methods such as ultrasonic testing are gaining widespread prevalence in railway infrastructure to detect rail defects, such as transverse cracks, head checks, squats, and other internal defects.
- Moreover, with the expansion of the network, companies are looking for more cost-effective and real-time detection and analysis techniques. The ultrasonic NDT testing equipment is said to become a key component of railway testing and maintenance procedures. China and India have a combined railway network of more than 170,000 km and are the significant regions in demand for ultrasonic NDT testing equipment in railway applications.
- In March 2020, BhilaiSteel Plant (BSP) in India ramped up its production facilities to meet the Indian Railways’ requirement of running high-speed trains, metro trains, doubling and gauge conversion of railway tracks, as well as for track renewals and laying of new lines. The plant produced 11.65 lakh metric tons of rails in 2019-2020. The plant is equipped with online NDT (non-destructive testing) equipment, ultrasonic, and eddy-current testing, among other technologies, to inspect and test the produced rails.
United States Expected to Dominate the Market
- North America is expected to command a significant share of the market demand due to the increasing use of testing technology for predictive maintenance, growing oil & gas sector adoption, and growing safety regulations in the various industries in the region, primarily driven by the demand from the country.
- Moreover, the US government plans to invest highly in the infrastructure sector. For instance, according to Bank of America, city infrastructure investment in the country is expected to record the highest in the transit industry, where industry players can target potential consumers.
- The United States homes many vendors in MAGNAFLUX Corporation, GE Measurement & Control, Johnson & Allen, Baker Hughes Inc., Mistras Group, etc. Many vendors in the market are expanding their product portfolio and collaborating with other players to develop new advanced instruments or through acquisitions.
- For instance, in June 2020, Acuren Inspection Inc. has announced the acquisition of Suspendem, a leading provider of wind turbine maintenance and inspection services in North America. The acquisition combines Acuren’s substantial experience and capacity in rope access, NDT, and engineering with Suspendem’s specialized expertise in wind turbine services to provide a comprehensive solution to the wind industry.
- Apart from this, many players in the market are launching new ultrasonic non-destructive testing products to increase their market share through advanced and enhanced features. For instance, in 2019, Zetec Inc. introduced the NDT Sweeper Scanner, a highly versatile manual 2D encoded scanner for ultrasonic inspections in oil and gas, aerospace, and other applications.
- The United States comprises the most significant market for defense equipment, aircraft systems, and services globally. As per the General Aviation Manufacturers Association (GAMA), the US manufacturers were responsible for 66.42 % of worldwide shipments in 2019. Ultrasonic non-destructive testing is the most common sub-surface technique and uses high-frequency sound waves to locate defects within a component or material in aircraft. It is primarily used to detect welds, fittings, joints, bolts, and adhesive bond quality.
- Many players in the market are introducing instruments specifically for aerospace requirements due to growing investment in the sector in the past few years. For instance, in 2019, Zetec Inc. has introduced the FlexTrack automated X-Y scanner for non-destructive ultrasonic testing applications of materials and structures used predominantly in aerospace, both in production and maintenance environments.
The Ultrasonic NDT equipment market is highly consolidated due to higher initial investments. It is dominated by a few major players like Baker Hughes, GE Measurement and Control, Intertek Group PKC, Olympus Corporation, and Russell Fraser Sales Pty Ltd. These significant players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are growing their market presence by securing new contracts and tapping new markets.
- March 2021 - Intertek Group PLC announced the expansion of its Building and Construction business line to the Caribbean with the opening of Intertek-PSI in Tao Baja, Puerto Rico. From this facility, the company will provide geotechnical services, environmental consulting, and construction materials testing throughout the Caribbean, bringing services to the region that have previously only been available through offices on the US mainland and in Canada.
- May 2021 - Carl Zeiss announced a research partnership with two Brazil-based organizations aimed at advancing the use of metal additive manufacturing in the country’s oil and gas industry. Together with the research group SENAI and energy firm Petróleo Brasileiro, the company has started developing and validating new 3D printing methodologies for critical oil and gas components. The 3D printed parts will undergo mechanically wear and non-destructive testing to qualify them for end-use. These types of partnerships would potentially lead to more usage of ultrasonic NDT equipment for 3D printed components.
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1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 An Assessment of Impact of Covid-19 on the Market
5.1.1 Increased Safety Regulation
5.1.2 More Emphasis Toward Continuous Monitoring to Prevent Sudden Failure
5.1.3 Availability of Portable and Connected Devices for Real-Time Data
5.2 Market Restraints
5.2.1 Lack of Skilled Labor Required to Implement and Carry Out Inspection Service
6.1.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
6.1.4 Latin America
188.8.131.52 Rest of Latin America
6.1.5 Middle East and Africa
184.108.40.206 United Arab Emirates
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of Middle East and Africa
7.1.1 Baker Hughes
7.1.2 Mistras Group
7.1.3 Intertek Group Pkc
7.1.4 Olympus Corporation
7.1.5 Russell Fraser Sales Pty Ltd
7.1.6 Advanced Ndt Ltd
7.1.7 Johnson and Allen Ltd
7.1.8 Rosen Group
7.1.9 Okondt Group
7.1.10 Bureau Veritas Sa
7.1.11 Applus Services Sa
A selection of companies mentioned in this report includes:
- Baker Hughes
- MISTRAS Group
- Intertek Group PKC
- Olympus Corporation
- Russell Fraser Sales Pty Ltd
- Advanced NDT Ltd
- Johnson and Allen Ltd
- ROSEN Group
- OkoNDT group
- Bureau Veritas SA
- Applus Services SA