Non-destructive testing services market to exceed US$4.5 billion by 2025
21/10/2019
The global non-destructive testing (NDT) services market is set to grow from its current market value of more than US$3 bn (approximately £2.4 bn) to over US$4.5 bn (approximately £3.6 bn) by 2025, according to a new research report by Global Market Insights Inc.Due to the high costs associated with repair and maintenance and the limited construction of new infrastructure, the existing infrastructure is experiencing high usage, leading to increased stress and deterioration. These dynamic costs are encouraging infrastructure owners to focus on repairs and maintenance and upgrade more quickly. For instance, the rising demand for refined petroleum products coupled with high plant utilisation rates will drive refineries to upgrade their facilities to enable efficient operations and increase the production capacity. In order to sustain the high utilisation rates, companies are adopting NDT services to ensure the safety and integrity of assets.
The owners and operators of infrastructure assets have to face a number of stringent government regulations and safety requirements. Failure to comply with these guidelines and standards can result in significant financial liabilities, increased scrutiny by the regulatory bodies, tarnished corporate brand value and higher insurance premiums. The increasing number of industrial accidents, including explosions and fires, over the last decade has caused significant damage to the reputation of many companies. As a result, the infrastructure owners and operators are using NDT services to help them comply with the safety regulations.
The visual inspection segment accounted for over 20% of the NDT service market revenue in 2018, as the technique is easy to implement and usually eliminates the need for any further types of testing. These methods have proven to be inexpensive alternatives to volumetric and surface inspection methodologies. Some of the industry verticals that use visual testing methodology include structural steel, automotive, petrochemical, aerospace and power generation. The lack of skilled inspectors and the inadequate training infrastructure have restricted its acceptance in various sectors.
The radiography market is expected to attain a growth rate of over 5% during the forecast timespan. The rise in the number of infrastructural developments and the introduction of stringent regulations for the maintenance of various forms of critical infrastructure have created myriad opportunities for the growth of the radiographic NDT service market. The technology is used in the automotive and aerospace manufacturing industries to manufacture high-tolerance components while reducing wastage. The time-consuming nature and high implementation cost of the technology, the lack of trained professionals and the risks associated with the radiation exposure are restricting its adoption in certain industry verticals.
The aerospace NDT service market is expected to register a growth rate of over 6% during the forecast time period. NDT services provide effective and economical solutions for high-volume and low-cost production of various aerospace components. They are used for monitoring and testing safety-critical components without affecting their structural integrity. The services provide a highly effective way to detect minuscule imperfections or damage in components or materials throughout their operational lifecycle. They are able to detect geometrical irregularities such as material thickness, bond line and welding defects, delamination, porosity, foreign objects, cracks and corrosion.
The Europe region held an industry share of over 30% in the NDT service market in 2018 due to the presence of several players in the region, including Intertek, SGS and Bureau Veritas. These players are conducting various collaborative efforts to expand their geographical reach across various high-potential markets. The European Union, along with local government, has introduced various stringent guidelines mandating the use of NDT services to ensure employee and product safety. The region’s aerospace industry is currently in the growth phase, with the clearance of a huge backlog of existing aircraft orders. Aircraft giants, such as Boeing and Airbus, have a record backlog of over 12,000 new aircraft to be manufactured by 2025, generating numerous growth opportunities for the NDT service industry in the region.
The major players in the NDT service market are adopting inorganic growth strategies to increase their market share and gain an edge over their competitors. They are integrating the services offered by regional players to enhance their product portfolios and solidify their positions in the market. They are concentrating on enhancing their presence across several end-markets in key regions such as South America, Asia-Pacific and the USA. For instance, in January 2019, ALS acquired MARSS International, a South America-based NDT service provider, to strengthen its distribution network. This acquisition provided ALS with access to crucial port locations of strategic importance to enhance its service to customers across various end-markets.
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