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Growth Opportunities in NDT

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Frost & Sullivan analyst talks about growth opportunities in NDT.

Frost & Sullivan analyst talks about growth opportunities in NDT.

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  • 1. Looking for Growth Opportunities in NDT? Turn to BRIC Countries Vijay Mathew, Industry Analyst Test & Measurement December 16, 2010
  • 2. Today’s Presenters Vijay Mathew, Industry Analyst Frost & Sullivan 2
  • 3. Focus Points 1 Market Overview & Segmentation 2 Global NDT Market - A Bird’s Eye View 3 GDP Growth Rate Comparison 4 Revenue Analysis and Forecasts 5 Market Trend Analysis 6 End User Analysis 7 List of Major Industry Participants 3
  • 4. Market Overview & Segmentation Base Year : 2009 Total Nondestructive Test Forecast Period : 2009 – 2014 Equipment Market Geographic Focus : BRIC Countries Broken Down by Region – Brazil, Russia, India and China Market Revenue End User Product Forecasts Analysis AnalysisEnd User Analysis Includes Product Analysis Includes• Automotive • Ultrasonic inspection• Aerospace • Eddy current inspection• Oil & gas • Visual inspection• Power generation • Surface inspection• Foundry • Radiography inspection 4
  • 5. By 2014 BRIC Will Account 35.0 Percent of Global NDT EquipmentRevenues EuropeNorth America $416.2 million $351.3 million $400.0 million $339.1 million 2009 2014 CAGR: 3.6% 2009 2014 CAGR: 3.4% $472.6 million $298.6 million 2009 2014 CAGR : 9.5% BRIC 5
  • 6. Emerging Economies in 2030: N11, BRIC to be the Next Manufacturing Hubs with Fastest GDP Growths Regional comparison of GDP size (in $ billion) against YoY Growth Rate, 2009- 2030 GDP Growth, 2009-2030 CAGR (2009-2030): 6.6% BRIC 6.0 G-7 ‘N-11’s clout in global economy 2030 BRIC 5.0 is expected to increase, while US$31,952.0 bn BRIC N-11 BRIC will be a key dominator’ 2009 4.0 US$8,890.9 bn 3.0 Growth Rate (%) CAGR (2009-2030): 4.2% N-11 G-7 2030 2.0 2030 US$9,913.7 bn US$42,837.0 bn -(1.0) G-7 N-11 2009 2009 US$4,357.4 bn US$32,026.8 bn -(2.0) CAGR (2009-2030): 1.5% -(3.0) ~ Source: IMF, Bloomberg, Carnegie 3000 4000 5000 6000 7000 8000 9000 10000 25000 35000 40000 45000 Endowment for International Peace, Goldman Sachs, OECD, CIA World GDP in ($ billion) Factbook and Frost & Sullivan AnalysisG-7 includes: France, Germany, Italy, Japan, United Kingdom, United States, Canada; BRIC includes: Brazil, Russia, India and China; N-11 includes: Bangladesh, Egypt,Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, Vietnam 6
  • 7. Market Trend Analysis: NDT Equipment Market – Market Trends (BRIC), 2009-2014 Petrobras and Embraer – In 2009, approximately 79.0 percent of total electricity generated in BrazilBrazil Biggest drivers for NDT came from hydroelectric power plants. equipment market. Russia continues to remain a difficult market for Bureaucratic hurdles continue to remain aRussia western NDT equipment manufacturers to major obstacle for its market growth penetrate despite numerous opportunities. potential India, it is a price conscious India’s industrial and economic U.S-India Nuclear Deal is expected toIndia market with considerable growth has increased it’s reliance give rise to considerable opportunities emphasis being placed on on alternate sources of energy. to NDT equipment vendors value for money In November 2009, China China’s unprecedented economic growth has led to double-digitChina officially became the world’s expansion of its energy, infrastructure, manufacturing, construction largest auto market and transportation industries. 2009 2010 2011 2012 2013 2014 Ranks in terms of Vehicle Production (World), 2004-2009 Rank 2004 2006 2008 2009 1 USA JPN JPN CHN 2 JPN USA CHN JPN 3 GER CHN USA USA 4 CHN GER GER GER Source: Frost & Sullivan 7
  • 8. Revenue Analysis and Forecasts NDT Equipment Market: Forecasts by Region NDT Equipment Market: Percent of Revenues by (BRIC), 2009-2014 Region (BRIC), 2009-2014 500.0 472.6 2009 CAGR 7.0% 14.5% 400.0 45.2% CAGR 8.3% 22.6% Revenues ($Million) 298.6 300.0 CAGR 5.2% 17.6% China Russia India Brazil 200.0 2014 12.8% 100.0 CAGR 12.5% 21.3% 0.0 2009 Year 2014 51.6% China Russia India Brazil 14.3% China Russia India Brazil Source: Frost & SullivanAmong BRIC countries, China is expected to exhibit strongest growth with a compound annual growth rate (CAGR) of 12.5 percent.By 2014 it is expected that China will account for over 50.0 percent of overall revenues. 8
  • 9. Market Drivers and Restraints: Infrastructure Development Drives NDT Market in BRIC NDT Equipment Market: Market Drivers and IMPACT Restraints (BRIC), 2009-2014 1-2 Years 3-4Years 5 Years • Rapid rate of infrastructure development in BRIC countries High High HighMarket Drivers • Military spending to drive NDT equipment sales High High High • Transportation industry drives demand for High Medium Medium NDT equipment • Education end user segment creates opportunities Medium Medium Low • Current state of the global economy Medium Low LowMarket Restraints • Lack of end-user knowledge about Medium Medium Medium product differentiation • Bureaucratic delays and corruption restricts High Medium Medium growth potential • Price conscious nature of customers High High Medium 9
  • 10. End User Analysis NDT Equipment Market: End User Analysis (BRIC), 2009 The automotive industries of Brazil, Russia, India and China is excepted to contribute strongly to market revenues during the forecast period. Traditional a strong market, aerospace & defence will drive test equipment revenues with expanding military budgets and the rise of the civil aviation sector. Russia is the worlds largest producer of oil & gas, 90.0 an industry that drives demand for advanced NDT solutions 80.0 To sustain industrial growth, countries are turning to alternate sources of energy. Reliance on Revenues ($ Million) 70.0 nuclear, wind and hydroelectric energy is expected 60.0 to rise significantly by 2020. The others 50.0 segment which 40.0 includes transportation, 30.0 construction, 20.0 machinery, government and 10.0 educational/ research 0.0 Automotive Aerospace Oil & Gas Power Foundry Others institutions Genration Revenues by End- user in 2009 Source: Frost & Sullivan 10
  • 11. List of Major Industry Participants 11
  • 12. Next Steps Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 12
  • 13. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by taking our survey. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 13
  • 14. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 14
  • 15. For Additional InformationSarah Saatzer Vijay MathewCorporate Communications Industry AnalystMeasurement & Instrumentation Measurement & Instrumentation(210) 477-8427 91.44.39144890Sarah.saatzer@frost.com Vijay.mathew@frost.comKiran Unni Jessy CavazosResearch Manager Industry DirectorMeasurement & Instrumentation Measurement & Instrumentation(210) 247-2495 325.695.6332Kiran.unni@frost.com Jcavazos@frost.com 15