Analysis of the Global Ultrasonic Non-Destructive Test Equipment Market

4,572 views
4,212 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
4,572
On SlideShare
0
From Embeds
0
Number of Embeds
1,048
Actions
Shares
0
Downloads
85
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Analysis of the Global Ultrasonic Non-Destructive Test Equipment Market

  1. 1. Analysis of the Global Ultrasonic Non-destructive Test Equipment Market Phased Array Ultrasonic Test Equipment Outpacing the Market NCA7-30 October 2013
  2. 2. Research Team Lead Analyst Research Director Nikhil Jain Vijay Mathew Senior Research Analyst Measurement and Instrumentation Program Manager Measurement and Instrumentation NikhilJ@frost.com Vijay.Mathew@frost.com Strategic Review Committee Leader For More Information: Sujan Sami Jeannette Garcia Industry Manager Measurement and Instrumentation Corporate Communications- North America Measurement and Instrumentation Jeannette.Garcia@frost.com Ssami@frost.com NCA7-30 +1.210.477.8427 2
  3. 3. Contents Section Slide Numbers Executive Summary 4 Market Overview 9 • Market Definitions 10 • Key Questions This Study Will Answer 13 • Market Segmentation 14 • Market Distribution Channels 16 Drivers and Restraints—Total Market 17 • Market Drivers 18 • Market Restraints 25 Forecast and Trends—Total Market 31 • Market Engineering Measurements 32 • Forecast Assumptions 34 • Unit Shipment and Revenue Forecast 35 • Unit Shipment and Revenue Forecast Discussion 36 • Percent Revenue Forecast by Region 37 NBE0-30 3
  4. 4. Contents Section Slide Numbers • Revenue Forecast by Region 38 • Global Hot Spots 39 • Revenue Forecast Discussion by Region 40 • Revenue Forecast by Vertical Market 41 • Revenue Forecast Discussion by Vertical Market 42 • Revenue Forecast by Distribution Channel 44 • Revenue Forecast Discussion by Distribution Channel 45 Market Share and Competitive Analysis 47 • Market Share 48 • Market Share Analysis 49 • Competitive Environment 52 • Top Competitors 53 • Product Highlights 54 • Competitive Factors and Assessment 56 NBE0-30 4
  5. 5. Contents Section Thickness Gauges Segment Breakdown Slide Numbers 57 • Thickness Gauges Segment Key Findings 58 • Market Engineering Measurements 59 • Unit Shipment and Revenue Forecast 60 • Unit Shipment and Revenue Forecast Discussion 61 • Pricing Trends and Forecast 63 • Pricing Trends and Forecast Discussion 64 • Revenue Forecast by Vertical Market 65 • Revenue Forecast Discussion by Vertical Market 66 • Competitive Environment 67 Digital Flaw Detectors Segment Breakdown 69 • Digital Flaw Detectors Segment Key Findings 70 • Market Engineering Measurements 71 • Unit Shipment and Revenue Forecast 72 • Unit Shipment and Revenue Forecast Discussion 73 NBE0-30 5
  6. 6. Contents Section Slide Numbers • Pricing Trends and Forecast 74 • Pricing Trends and Forecast Discussion 75 • Revenue Forecast by Vertical Market 76 • Revenue Forecast Discussion by Vertical Market 77 • Competitive Environment 78 Phased Array Flaw Detectors Segment Breakdown 80 • Phased Array Flaw Detectors Segment Key Findings 81 • Market Engineering Measurements 82 • Unit Shipment and Revenue Forecast 83 • Unit Shipment and Revenue Forecast Discussion 84 • Pricing Trends and Forecast 85 • Pricing Trends and Forecast Discussion 86 • Revenue Forecast by Vertical Market 87 • Revenue Forecast Discussion by Vertical Market 88 • Competitive Environment 89 NBE0-30 6
  7. 7. Contents Section Test Machines Segment Breakdown Slide Numbers 91 • Test Machines Segment Key Findings 92 • Market Engineering Measurements 93 • Unit Shipment and Revenue Forecast 94 • Unit Shipment and Revenue Forecast Discussion 95 • Pricing Trends and Forecast 96 • Pricing Trends and Forecast Discussion 97 • Revenue Forecast by Vertical Market 98 • Revenue Forecast Discussion by Vertical Market 99 • Competitive Environment 100 North American Breakdown 102 • Revenue Forecast 103 • Revenue Forecast Discussion 104 • Revenue Forecast by Vertical Market 105 • Revenue Forecast Discussion by Vertical Market 106 NBE0-30 7
  8. 8. Contents Section Slide Numbers European Breakdown 107 • Revenue Forecast 108 • Revenue Forecast Discussion 109 • Revenue Forecast by Vertical Market 110 • Revenue Forecast Discussion by Vertical Market 111 Asia-Pacific Breakdown 112 • Revenue Forecast 113 • Revenue Forecast Discussion 114 • Revenue Forecast by Vertical Market 115 • Revenue Forecast Discussion by Vertical Market 116 Rest of Worl Breakdown 117 • Revenue Forecast 118 • Revenue Forecast Discussion 119 • Revenue Forecast by Vertical Market 120 • Revenue Forecast Discussion by Vertical Market 121 NBE0-30 8
  9. 9. Contents Section Slide Numbers The Last Word—Three Big Predictions 122 Appendix 125 • Market Engineering Methodology 126 • Additional Sources of Information on Nondestructive Testing 127 • List of Companies in “Others” 128 • Learn More—Next Steps 129 NBE0-30 9
  10. 10. Executive Summary Return to contents NCA7-30 10
  11. 11. Key Findings • The highest revenue generated in the ultrasonic nondestructive test (NDT) equipment market is from the test machines segment, whereas the highest volume sales is in the thickness gauges segment. • Phased array flaw detectors represent the highest growing segment in the ultrasonic NDT equipment market, both in terms of revenue and volume. • The average price per unit in the phased array flaw detectors segment is decreasing at a rapid rate, with a 22% reduction in price forecasted from 2012 to 2017. • Within the phased array flaw detector segment, existing participants are introducing more new products than before, and new participants are entering this booming segment. • Oil and gas—followed by power generation and aerospace, military, and defense—is the highest revenue contributor to the ultrasonic NDT equipment market. • The market is growing the most in Rest of World (ROW), with growth occurring in the Middle East, Africa, and South America. • GE Measurement and Control Solutions and Olympus NDT are the leading market participants. Sonatest PLC is a distant third. • The highest number of participants exist in the test machines market segment, which is dominated by system integrators. Source: Frost & Sullivan NCA7-30 11
  12. 12. Market Engineering Measurements Total Ultrasonic NDT Equipment Market: Market Engineering Measurements, Global, 2012 Market Overview Market Stage Market Revenue $450.2 M Mature (2012) Base Year Market Growth Rate Compound Annual Growth Rate 5.4% 5.0% (CAGR, 2012–2017) Market Units/Volume 37,518 Average Price Per Unit $12,000 (2012) Market Size for Last Year of Study Period $585.7 M (2017) Customer Price Sensitivity 7.3 Degree of Technical Change 4.3 (scale:1 [low] to 10 [high]) Market Concentration 58.5% (scale:1 [low] to 10 [high]) (% of market share held by top 3 companies) For a tabular version, click here. Decreasing Stable Increasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan NCA7-30 12
  13. 13. Market Engineering Measurements (continued) Competitor Overview Total Addressable Market Number of Competitors Replacement Rate 6.8 years 50–75 (active market competitors in base year) Maximum Attachment Rate Attachment Rate 5 (average period of unit replacement) 30 (current number of units per user—base year) (maximum potential number of units per user—2012) Industry Advancement Average Product Development Time 2 years Decreasing Stable Average R&D Spend as a Percent of Market Revenue 6.5% Marketing Spend as a Percent of Market Revenue 2.5% Increasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan NCA7-30 13
  14. 14. CEO’s Perspective 1 In this market, year-over-year unit sales vary considerably, and the market is quite dependent on general economic conditions. 2 Equipment manufacturers are moving toward low-end phased array flaw detectors that provide basic functionalities. 3 Because of maturing technology, customers have placed extra emphasis on equipment features and software capabilities. 4 High growth regions include regions in ROW, such as the Middle East, Africa, and Latin America (especially Brazil). 5 A lack of skilled technicians, especially in the phased array ultrasonic testing segment, means that equipment must be easy to use. Source: Frost & Sullivan NCA7-30 14
  15. 15. Market Overview Return to contents NCA7-30 15
  16. 16. Market Definitions Scope Geographic coverage Study period Base year Global 2009–2017 2012 Forecast period 2013–2017 Monetary unit US Dollars $1.00 = €0.77 Conversion rate $1.00 = £0.66 • For the purpose of this study, the market is defined as the revenue generated by the ultrasonic NDT equipment manufacturers and the system integrators that sell integrated test machines globally. • The geographic scope is global and is segmented as follows: o North America—includes the United States and Canada o Europe: includes Belgium, France, Denmark, Scandinavia, Germany, Italy, Luxembourg, the Netherlands, Spain, Portugal, Greece, Turkey, Russia, the United Kingdom, Serbia, Slovakia, Croatia, Romania, Bulgaria, Estonia, Belarus, Hungary, Azerbaijan, the Czech Republic, Ireland, Switzerland, Poland, and Ukraine o Asia-Pacific—includes Greater China (China, Hong Kong, and Taiwan), Japan, South Korea, Pakistan, North Korea, India, ASEAN* countries (Singapore, Malaysia, Indonesia, The Philippines, Thailand, and Vietnam), Central Asian countries (Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Kyrgystan) Australia, and New Zealand o Rest of World—includes countries in Latin America (such as Brazil, Mexico, Argentina, and other countries in Central and South America as well as in the Caribbean), the Middle East, and Africa. Source: Frost & Sullivan NCA7-30 16
  17. 17. Market Definitions (continued) The different product segments included in this study are as follows: Thickness gauges—These are instruments that utilize conventional ultrasonic principles and can be operated in different modes such as pulse echo, multiple echo, or echo to echo. These modes define how the measurement is made. The thickness gauges can be further sub divided into precision gauges and corrosion gauges. Corrosion gauges are used to measure the remaining wall thickness in metal pipes, tanks, structural parts, and pressure vessels that are affected by internal corrosion. Precision gauges are more applicable in the aerospace and automotive industries, which require greater accuracy in measurements and the ability to measure thin metals. Digital flaw detectors—Also known as mono-channel flaw detectors, these are instruments that operate on conventional ultrasonic principles and typically possess 1 to 4 channels for measurement. Most digital flaw detectors are extremely portable, with the handheld variants being very popular. This segment includes highend benchtop variants, as well. Phased array flaw detectors—These work on the phased array ultrasonic principles and are typically combined with time-of-flight diffraction (TOFD) to provide a holistic ultrasonic testing instrument. Based on features, phased array ultrasonic flaw detectors can be sub-divided into low-end, mid-end, and high-end varieties. The low-end and mid-end detectors are portable instruments, whereas the high-end ones are benchtop instruments. Any portable or benchtop unit that possesses phased array ultrasonic capability is included in this segment. Test machines—These are systems sold mostly by system integrators for use in a manufacturing environment. These systems are typically integrated with the production lines that include mechanical frames. These can also be used offline as a fixed-test system. They are highly customized for specific applications and end-client needs. This segment includes revenue generated from mechanical systems, as well. Source: Frost & Sullivan NCA7-30 17
  18. 18. Market Definitions (continued) The end-user industries covered in this study are as follows: • Oil and Gas—includes refineries, on-shore and offshore oil and gas wells and rigs, on-shore and off-shore oil and gas pipelines, and chemical and petrochemical plants • Power generation—includes energy companies; utilities; and co-generation, renewable, and nonrenewable power plants. • Aerospace, military, and defense—includes commercial and private aviation and military- and defenserelated research labs • Automotive and transportation—includes the automotive and transportation industries, such as roadways and railways • Others—includes government and educational institutions; process industries; the mining industry; and companies involved with inspecting civil infrastructure, which includes such structures as buildings, bridges, and stadiums Revenue for all end-user industry segments includes equipment sold for both testing during the manufacturing of individual components—such as tubes, bars, pipes, plates, strips, vessels, billets, and castings—and the inservice inspection of these components. The scope of this study does not include guided wave ultrasonic testing, laser ultrasonic testing, corrosion monitoring that uses permanently installed ultrasonic sensors, ultrasonic transducers, and the probes that are sold individually as consumables and not with new equipment. Source: Frost & Sullivan NCA7-30 18
  19. 19. Key Questions This Study Will Answer Is the ultrasonic NDT equipment market growing, how long will it continue to grow, and at what rate? What are the strategic growth regions and the factors driving and restraining these markets? How is the competition in the market structured? What is the competitive environment for individual product segments? Which end-user industry segments will offer growth opportunities in the next 5 years? Are the products/services offered today meeting customer needs or is additional development needed? Which product segments offer the highest growth opportunities, both in terms of revenue and volume sales? Source: Frost & Sullivan NCA7-30 19
  20. 20. Market Segmentation Ultrasonic NDT Equipment Market: Market Segmentation, Global, 2012 Ultrasonic NDT Equipment Product segmentation End-user segmentation Geographical segmentation Thickness gauges Oil and gas North America Digital flaw detectors Power generation Europe Phased array flaw detectors Aerospace, military, defense Asia-Pacific Test machines Automotive and transportation ROW Others* *A list of “Other” verticals can be found here. Source: Frost & Sullivan NCA7-30 20
  21. 21. Market Segmentation (continued) Key Takeaway: Test machines are set to dominate through the forecast period. However, phased array flaw detectors are expected to grow rapidly. Total Ultrasonic NDT Equipment Market: Percent Sales Breakdown, Global, 2012 Thickness gauges, 11.8% Digital flaw detectors, 13.3% Test machines, 56.0% Phased array flaw detectors, 18.9% Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan NCA7-30 21
  22. 22. Global Hot Spots China Brazil Exploration and production in the pre-salt oil reserves are driving the ultrasonic NDT equipment market in Brazil. Also, Petrobras has announced a plan to invest $220 billion in developing oil and gas infrastructure in Brazil. This coupled with development in the power generation industry will drive the need for ultrasonic NDT equipment. China has been considered a closed market for global companies with many finding it difficult to sell in the country. However, a growing need to meet quality policies for exports, especially in the booming aerospace industry, has driven demand for ultrasonic NDT equipment from well-known global brands. Middle East Africa With many emerging markets in Asia-Pacific facing difficult economic conditions, Africa has emerged as a growing market for ultrasonic NDT equipment. New projects announced in countries such as South Africa, Nigeria, Algeria, Tunisia, and Libya are driving demand in this region. High oil and gas prices have enabled continued investment in upgrading and building newer infrastructure in the oil and gas industry. There have been a number of new projects announced in Saudi Arabia, the United Arab Emirates (UAE), Iraq, and Kuwait. These projects are expected to drive the ultrasonic NDT equipment market in the region. Source: Frost & Sullivan NCA7-30 22
  23. 23. For More Information: Jeannette Garcia Corporate Communications Measurement and Instrumentation +1 (210) 477-8427 jeannette.garcia@frost.com NCA7-30 23

×