World Nondestructive Test Inspection Services Market

World Nondestructive Test Inspection Services Market
An Indestructible Future
N94C-30 June 2011
Disclaimer
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Table of Contents
Slide number Executive Summary

10
11 12 13 14 15
Definitions and Scope of research Growth Opportunities and Total Forecasts Key Market Drivers Summary Trends Key Market Participants
Total World NDT Inspection Services Market

17
18 21 22 29 38 40 41 43 46 47 48
Market Overview and Definitions Market Engineering Measurements Industry Challenges Market Drivers and Restraints Market Trends Technology Trends Revenue Forecasts Trends by End User Trends by Geography Competitive Environment Market Share Analysis
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Table of Contents (Contd)

Slides number North American NDT Inspection Services Market

49
50 51 53 55
Market Engineering Measurements Revenue Forecast Trends by End User Competitive Environment
European NDT Inspection Services Market

57
58 59 61 63
Asia Pacific NDT Inspection Services Market

65
66 67 69 71
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Table of Contents (Contd)

Slides number Rest-of-World NDT Inspection Services Market

73
74 75 77 79
Strategic Observations and Conclusion

Which Way is the NDT Inspection Services Market Headed?
81
82
About Frost & Sullivan
84
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List of Figures
Total NDT Inspection Services Market: Impact of Top Five Industry Challenges (World), 2011-2017 NDT Inspection Services Market: Certification Requirements for Level I and Level II (World), 2010 Total NDT Inspection Services Market: Market Drivers Ranked in Order of Impact (World), 2011-2017 Total NDT Inspection Services Market: Market Restraints Ranked in Order of Impact (World), 2011-2017 NDT Inspection Services Market: Significant Mergers and Acquisitions (World), 2010 Total NDT Inspection Services Market: Revenue Forecast (World), 2007-2017 Total NDT Inspection Services Market: Revenue Forecast by End User (World), 2007-2017 Total NDT Inspection Services Market: Competitive Structure (World), 2010 NDT Inspection Services Market: Revenue Forecast (North America), 2007-2017 NDT Inspection Services Market: Revenue Forecast by End User (North America), 2007-2017 NDT Inspection Services Market: Competitive Structure (North America), 2010 NDT Inspection Services Market: Revenue Forecast (Europe), 2007-2017 NDT Inspection Services Market: Revenue Forecast by End User (Europe), 2007-2017 NDT Inspection Services Market: Competitive Structure (Europe), 2010 NDT Inspection Services Market: Revenue Forecast (Asia Pacific), 2007-2017
23 26 30 35 38 41 44 47 51 53 55 59 61 63 67
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List of Figures (Contd)
NDT Inspection Services Market: Revenue Forecast by End User (Asia Pacific), 2007-2017 NDT Inspection Services Market: Competitive Structure (Asia Pacific), 2010 NDT Inspection Services Market: Revenue Forecast (ROW), 2007-2017 NDT Inspection Services Market: Revenue Forecast by End User (ROW), 2007-2017 NDT Inspection Services Market: Competitive Structure (ROW), 2010
69 71 75 77 79
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List of Charts
Total NDT Inspection Services Market: Revenue Forecast by Geographic Region (World), 2007-2017 Total NDT Inspection Services Market: Key Market Drivers (World), 2011-2017 Total NDT Inspection Services Market: Market Engineering Measurements (World), 2010 Total NDT Inspection Services Market: Industry Challenges (World), 2011-2017 Total NDT Inspection Services Market: Market Drivers and Restraints (World), 2011-2017 NDT Inspection Services Market: GDP Growth Rate in Major Economies (World), Q1 2008-Q1 2011 Total NDT Inspection Services Market: Revenue Forecast (World), 2007-2017 Total NDT Inspection Services Market: Percent of Revenues by End user (World), 2010 Total NDT Inspection Services Market: Percent of Revenues by Geographic Region (World), 2010 Total NDT Inspection Services Market: Company Market Share by Revenues (World), 2010 NDT Inspection Services Market: Market Engineering Measurements (North America), 2010 NDT Inspection Services Market: Revenue Forecast (North America), 2007-2017 NDT Inspection Services Market: Market Engineering Measurements (Europe), 2010 NDT Inspection Services Market: Revenue Forecast (Europe), 2007-2017 NDT Inspection Services Market: Market Engineering Measurements (Asia Pacific), 2010 NDT Inspection Services Market: Revenue Forecast (Asia Pacific), 2007-2017 NDT Inspection Services Market: Market Engineering Measurements (ROW), 2010 NDT Inspection Services Market: Revenue Forecast (ROW), 2007-2017 12 13 21 22 29 33 42 43 46 48 50 52 58 60 66 68 74 76
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Executive Summary
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Definitions and Scope of Research

Technology Segments
Ultrasonic Inspection Services Surface Inspection Services Electromagnetic Inspection Services Visual Inspection Services Radiography Services
End User Segments

Oil and Gas
NDT Inspection Services Market
Power Generation Petrochemical and Chemical Industries Manufacturing and Process Industries Others(aerospace, military, and defence, automotive, and transportation)
Geographic Segments North America

The United States and Canada
Europe
Countries in western and eastern Europe, including Russia
Asia Pacific
Countries on the western border of the Pacific ocean, including Indo-Chinese peninsula and the Pacific islands, and central Asia
Rest-of-World
Latin America (Brazil, Mexico, Argentina, and Central and South America), Caribbean Islands, the Middle East, and Africa
The scope of this research only includes the third-party NDT inspection service providers. It does not encompass the NDT inspection performed in-house by the industries.
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Growth Opportunities and Total Forecasts

Total NDT Inspection Services Market: Revenue Forecast by Geographic Region (World), 2007-2017
6,600.0
$5,590.4 Million CAGR: 9.0%
Revenues ($ Million)
5,600.0 4,600.0 3,600.0 2,600.0 1,600.0 600.0 2007 2008 2009 2010 2011 Europe 2012
$3,050.2 Million
2010
2013
2014
2015
2016
2017
2017
North America
Asia Pacif ic
Rest-of -World
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Analysis
The economic crisis of 2008-2009 had a significantly low impact on the world NDT inspection services market. The revenue growth rate decreased, but a negative dip in revenues was not witnessed. A key reason for this was an increase in the scrutiny of government regulations. The government compelled industries to perform inspections at specific intervals of time. The oil and gas segment witnessed the maximum scrutiny which drove the market forward, contributing over 50 percent of the revenues overall. The recovery from the economic downturn was remarkable with the market recording a better-than-expected growth rate in 2010. This was mainly due to an increase in NDT inspection demand from the Asian economies, driven by high economic growth. The power generation segment is likely to provide the maximum opportunity for growth in this market. With an increase in energy demand coupled with a drive toward healthier environment and drying up of non-renewable sources of energy, renewable energy sources such as wind, solar, and nuclear will witness a gradual increase in demand. A few companies have recognized this opportunity by introducing specialized NDT inspection services for the renewable power generation segment.
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Key Market Drivers Summary

Total NDT Inspection Services Market: Key Market Drivers (World), 2011-2017
Outsourcing of inspection increases demand for NDT inspection services Risk awareness and focus on prevention ignites demand for NDT inspection Emerging economies boost market revenues
Corrosion issues with aging infrastructure spurs demand for NDT inspection
Government safety regulations sustains demand for NDT inspection services
Source: Frost & Sullivan Analysis
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Trends
Asia Pacific is expected to play an important role in the growth and demand for NDT inspection services during the forecast period. In terms of revenue generation, this region accounted for approximately 16 percent of overall revenues in 2010 and is expected to grow further as demand from key end user industries, such as
Regional Trends
manufacturing, oil and gas, and power generation, continues to increase. North America continues to play an important role in terms of revenues for this market. The presence of established end users such as oil and gas, and process industries is pivotal to the demand in this region. It is expected to remain the biggest contributor to revenues in this market. The oil and gas industry remains the biggest end user for NDT inspection services market. The stringent government safety regulations for this industry creates high demand for inspection services.
The power generation industry is expected to drive the growth in this market for the forecast period. The shift to clean power generation with an increased emphasis on wind energy provides the NDT inspection market with the opportunity to grow. Industries such as automotive, aerospace, military, and defence are the least significant end users for NDT inspection service providers as they carry out most of their inspection in-house. There is a distinctive trend toward the use of phased array ultrasonics for weld inspection in the pipeline industry. Several companies are offering a combination of phased array and time of flight diffraction (TOFD) inspection techniques.
End User Trends
Technology Trends
In the radiography services segment, the transition from analog to digital X-ray inspection is a trend that is expected to continue. The ease-of-use, productivity, and overall annual cost advantages of implementing digital x-ray inspection systems outweighs the tried and tested benefits offered by the film-based X-ray inspection systems market.
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Key Market Participants

Acuren Group Inc TEAM Inc Bureau Veritas TWI Ltd TUV SUD GE measurement and control solutions Vibrant NDT Intron Plus Ltd. TEI Analytical Services Century Inspection, Inc Hi-Tech NDT Inspection Services (S) Pte Ltd Sonovation B.V. VOGT Ultrasonics GambH Applus RTD Techcorr USA, LLC
Intertek Group PLC NDT Services Ltd NDT Systems and Services AG MISTRAS Group Inc Russell NDE Systems Inc Dacon Inspection Services Co., Ltd. SGS SA Dekra Industrial AB NDTS India (P) Ltd. T.D.Williamson, Inc. Cutech Group Hi-Tech Testing Service, Inc R.Brooks Associates, Inc International Inspection, Inc. West Penn Testing Group Sievert India Pvt.Ltd
Trinidad Inspection Services Limited Coastal Inspection Services, Inc Bonded Inspections Inc. RNDT, Inc. Alloyweld Inspection Company, Inc. Magnachek, In. Silverwing (UK) Ltd. ABEN Technical Services Sinclair X-ray Inspection Services NDT EXPERT HMT Inc IRISNDT Westech Inspection, Inc. James Fisher Inspection and Measurement Services SENSE Engineering Services Ltd.
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Key Market Participants (Contd)

Focus NDT ANKO AS Diversified NDT Inspection Services Pty. Ltd Independent Integrity Inspection Limited Trinity NDT DJA Inspection Services, Inc. Construction Technical Services Arabia Ltd Centurion NDT Axiom NDT and Offshore Services Wavelength NDT Ltd Advanced Quality Group, Inc. Applied Inspection Ltd Baker Testing Services, Inc.
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Total World NDT Inspection Services Market
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Market Overview and Definitions

Introduction
Nondestructive testing (NDT) involves examination of an object without impacting its current or future usefulness. The ability of NDT to inspect an object without affecting its operating performance provides an excellent balance between quality control and cost effectiveness. The NDT equipment market is well researched with products and technologies well defined. As a result, often, the contribution of the inspection services industry and technicians gets overlooked. Although the advancement of NDT technologies provides an undeniable boost to the industry, the importance of actually implementing these technologies and analyzing data to provide actionable intelligence is of equal importance to the industrial world.
Source: Olympus NDT
The NDT inspection services market is very fragmented as there are no significant barriers to entry. Also, the initial investment required is considerably low. In 2010, the estimated number of active competitors in the world NDT inspection services market was over 1,000, with several companies set up regionally, catering to the needs of industries in their respective regions. According to the United States Energy Information Administration (EIA), total world marketed energy consumption contracted by approximately 1.0 percent in 2008 and by an estimated 2.0 percent in 2009. Many new projects, especially for pipeline construction, were postponed or cancelled due to a lack of capital. Despite these short-term restraints, growth drivers such as ageing infrastructure, safety, and compliance have offset the decline with the market showing slow but positive growth during the economic downturn. Frost & Sullivans research indicates that the total world market for NDT inspection services in 2010 was $3,050.2 million with a positive growth rate of 7.0 percent. This market is expected to be valued at $5,590.4 million by 2017.
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Market Overview and Definitions (Contd)

Definitions For the purpose of this study, the global nondestructive test (NDT) inspection services market has been segmented as:

Ultrasonic inspection services Surface inspection services Electromagnetic inspection services Visual inspection services Radiography services
Ultrasonic inspection Services - Ultrasonic nondestructive testing has been used for over 50 years for a wide range of end user applications ranging from evaluation of joints, weld inspection, and crack detection. For the purpose of this study, the scope of ultrasonic inspection methods encompasses ultrasonic testing and acoustic emission monitoring (AE). Surface Inspection Services - For the purpose of this study, the scope of surface inspection methods encompasses liquid penetrant inspection (LPI), dye penetrant inspection (DPI), and magnetic particle inspection (MPI). Electromagnetic Inspection Services For the purpose of this study, the scope of electromagnetic inspection comprises of eddy current testing (ECT), remote field testing (RFT), magnetic flux leakage (MFL), and alternating current field measurement (ACFM). Visual Inspection Services - Visual inspection is by far the most common and simplest NDT technique. For the purpose of this study, visual inspection is defined as the examination of surfaces using direct viewing or low magnification techniques. Radiography Services - It is a method of inspecting materials for hidden flaws by using the ability of short X-rays and gamma rays to penetrate various materials. For the purpose of this study, radiography inspection market includes X-ray, gamma ray, real-time radiography, digital radiography, computed radiography (CR), and computed tomography (CT) inspection services.
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Market Overview and Definitions (Contd)

This research service provides a global analysis of the NDT inspection services market. In addition, it also provides the total market as well as a breakdown of revenues by four major geographic segments, including:

North America The United States and Canada. Europe Countries in western and eastern Europe, including Russia. Asia Pacific Countries on the western border of the Pacific ocean, including those on the Indo-Chinese peninsula and the Pacific islands, and central Asia. Rest-of-World Latin America (Brazil, Mexico, Argentina, and Central and South America) and regions not mentioned above, particularly the Caribbean Islands, the Middle East, and Africa.
This research service also analyzes the total market and each of the segments from an end user perspective. The major end users of NDT inspection services include: Oil and Gas Includes refineries, both on-shore ad off-shore, and pipelines, both oil and gas. Power generation Energy, utilities, co-generation, renewable and non-renewable power plants. Petrochemical and Chemical Industries Includes ammonium plants, sodium, and other chemical plants. Manufacturing and Process Industries Includes pulp and paper, pharmaceutical, rubber, cement, foundries, and other manufacturing plants. Others Aerospace, military and defence, automotive, civil construction and transportation including railways and roadways. Frost & Sullivan has not analyzed and broken down the world NDT inspection services market by technologies because in any inspection procedure there is a combination of technologies used for inspection. As a result, the NDT inspection services providers generally provide all the NDT inspection service technologies.
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Market Engineering Measurements

Total NDT Inspection Services Market: Market Engineering Measurements (World), 2010
Measurement Name
Market age Revenues Potential revenues (maximum future market size) Base year market growth rate Compound annual growth rate Competitors (active market competitors in base year) Degree of competition Price Sensitivity Degree of technical change Customer Loyalty Market concentration (percent of base year market controlled by top four competitors)
Measurement
Growth Stage $3,050.2 million $5,590.4 million 7.0% 9.0% More than 1,000 High Low Low 4 34.3%
Trend
--Increasing Increasing Increasing Increasing Decreasing Stable Stable Increasing Stable Increasing
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Industry Challenges
Total NDT Inspection Services Market: Industry Challenges (World), 2011-2017
Need to improve quality of training Lack of certification for advanced NDT technologies
Lack of qualified technicians
Maintaining high quality of inspection
NDT Inspection Services Market
Constantly evolving customer needs
Industry Challenges
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Industry Challenges (Contd)
Total NDT Inspection Services Market: Industry Challenges (World), 2011-2017
Challenge
Maintaining high quality of inspection Lack of qualified technicians Need to improve quality of training Lack of certification for advanced NDT technologies
12 Years
High High High High Medium-High
34 Years
High Medium-High Medium-High Medium-High Medium-High
5-7 Years
Medium-High Medium-High Medium-High Medium-High High
Constantly evolving customer needs
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Maintaining High Quality of Inspection 1-2 Years High 3-4 Years High 5-7 Years Medium-High
In the NDT inspection services industry, there is a need to maintain high quality of inspection. Low-quality inspection could lead to accidents causing not only monetary but also human loss. While the primary job of a technician is to know how to operate the NDT equipment and acquire data, he also has to interpret that data and make an informed decision on the integrity of the asset being tested. This is a massive challenge in certain countries where a lack of government regulations limits enforcement of quality inspection. In addition, high price consciousness among end user industries result in NDT inspection being considered a mere formality. With the reducing quality in training and a lack of NDT technicians, many manufacturers of NDT equipment have dedicated their resources in trying to simplify the operational complexity of the instrument used for inspection and increase the speed of inspection. As a result, the technician has additional time to perform a thorough analysis of the data collected. Hence, the impact of this challenge is expected to reduce over long term.
BP Oil Spill Date: May 2010 Impact: The oil spill that flowed for three months impacted the ecology and wildlife significantly with BP suffering severe economic consequences. This disaster helped shape up stringent regulations on off-shore oil rigs and the government stepping in with increased scrutiny of these regulations. SF Pipeline Explosion Date: September 2010 Impact: The natural gas pipeline explosion in California was one of several such accidents that have raised questions on the safety of natural gas pipelines in North America. As a result of this accident, more than 150 homes were destroyed with the government coming down heavily on the culprits.
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Lack of Qualified Technicians 1-2 Years High 3-4 Years Medium-High 5-7 Years Medium-High
The lack of availability of skilled technicians is a key challenge for the NDT inspection service industry. PQNDT's 2006 salary survey found the average age for an NDT technician to be 41.5 years. The same survey done in 2010 reveals that the average age for an NDT technician is 45 years. Considering this trend, it is clear that the number of people taking up NDT inspection is very less. Stricter government regulations and increasing sophistication of NDT methods have led to an increase in demand for skilled inspectors. This demand for NDT technicians is outweighing the supply. Another important trend in the NDT inspection services industry is; a significant number of technicians pursuing visual inspection certifications as compared to other NDT techniques. The main reason for such a trend is the work experience and limited number of hours for training required for a visual inspection certification. For example, the minimum hours of work experience for Level II visual inspection certification is 140. In comparison the minimum hours of work experience for Level II ultrasonic inspection certification is 1600. A key impact of this trend is the shortage of technicians in other complex NDT techniques.
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Lack of Qualified Technicians 1-2 Years High 3-4 Years Medium-High 5-7 Years Medium-High
NDT Inspection Services Market: Certification Requirements for Level I and Level II (World), 2010
Required hours of NDT Training For those with high school diploma or equivalent 40 80 40 80 40 80 8 16 For those with at least two years of engineering or science study at a college or technical school 24 40 30 35 30 40 4 8
Examination Method Electromagnetic
Level I II I II I II I II
Minimum Hours of Work Experience in a Method 400 1600 400 1600 400 1600 70 140
Permitted Time Frame to Obtain Required Work Experience in a Method (Months) 1.5-9 4.5-27 1.5-9 4.5-27 1.5-9 4.5-27 0.5-3 1-6
Radiography
Ultrasonic
Visual
Source: ndt-ed.org/Frost & Sullivan Analysis
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Need to Improve Quality of Training 1-2 Years High 3-4 Years Medium-High 5-7 Years Medium-High
In the NDT industry, methods for inspection are complex and need well-trained technicians to operate the equipment and analyze data. Hence, training is of paramount importance. Over the years, this industry has witnessed a wave of new technologies such as phased array, time of flight diffraction (TOFD), and digital radiography develop. With this advancement in technology, many training institutes have not updated their training material and equipment to accommodate these new technologies. As a result, a technician even after spending 2 years at the college, undergoing training for NDT inspection, has to be retrained by the inspection service providers. This is a major challenge impacting the NDT inspection service providers as it requires huge investment on their part for retraining technicians. The impact of this challenge is expected to reduce over time with inspection service providers incorporating sister training institutes or carrying out training in-house.
Lack of Certification for Advanced NDT Technologies 1-2 Years High 3-4 Years Medium-High 5-7 Years Medium-High
A major drawback in the NDT industry is reluctance to embrace new technologies. The advanced technologies fall into the category of new technologies, despite the fact that some of these technologies such as phased array and digital radiography have been around for more than a decade. Even though these advanced technologies offer significant benefits, there has traditionally been low demand for them. Consequently, there has been a lack of well-defined standards and certification for these technologies. Although there has been a tremendous improvement on the standards side, with most advanced technologies covered under distinct standards, the certification has not witnessed any major improvement. This lack of certification for advanced technologies leads to suspicion from customers regarding the integrity of the technicians performing the inspection.
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Constantly Evolving Customer Needs 1-2 Years Medium-High 3-4 Years Medium-High 5-7 Years High
Around the world, there have been questions raised regarding the future of energy supplies. These questions arise especially due to the concerns surrounding impact of global warming. Global warming is caused by excessive greenhouse gas emission. The largest producers of these gases are thermal power plants. According to the EIA International Energy Outlook 2010, the world marketed energy consumption is likely to increase by 49.0 percent from 2007 to 2035. There needs to be a balance between addressing this demand for energy and trying to decrease the emission of greenhouse gases. As a result, there has been a major push towards power generation from renewable energy sources such as wind, solar, and hydroelectric. Wind energy has witnessed rapid development in Europe, especially in Germany, Spain, and Denmark. Wind energy poses a lot of difficulties toward NDT inspection as there is a lack of standardized methods for testing turbine blades and turbine towers. On the solar side, photovoltaics have huge potential to generate power in sunnier countries. NDT on PV materials is carried out on a micro-scale. With the advent of power generation from renewable sources of energy, technologies, methods and standards have also had to evolve, which poses a challenge for NDT inspection industry in trying to keep pace with ever-changing consumer needs.
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Market Drivers and Restraints

Total NDT Inspection Services Market: Market Drivers and Restraints (World), 2011-2017
High Government safety regulations sustains demand for NDT inspection services
Market Drivers
Corrosion issues with aging infrastructure spurs demand for NDT inspection
Emerging economies boost market revenues
Risk awareness and focus on prevention ignites demand for NDT inspection
Outsourcing of inspection increases demand for NDT inspection services
Low
Market Restraints
Low
High
Training technicians to advanced technologies impacts company revenues
Code compliance reduces profit margin

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Market Drivers
Total NDT Inspection Services Market: Market Drivers Ranked in Order of Impact (World), 2011-2017
Rank
1
Driver
Government safety regulations sustains demand for NDT inspection services Corrosion issues with aging infrastructure spurs demand for NDT inspection Emerging economies boost market revenues Risk awareness and focus on prevention ignites demand for NDT inspection Outsourcing of inspection increases demand for NDT inspection services
12 Years
High
34 Years
High MediumHigh Medium Medium
5-7 Years
Very High MediumHigh MediumHigh LowMedium Low
Medium Medium Medium LowMedium
3 4
Low
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Market Drivers (Contd)

Government Safety Regulations Sustains Demand for NDT Inspection Services 1-2 Years High 3-4 Years High 5-7 Years Very High
Compliance-driven inspection due to the strict government regulations is a key driver for the NDT inspection services industry. With accidents such as the British Petroleum (BP) oil spill in the Gulf of Mexico and the pipeline explosion in California coming under severe public and media scrutiny, there has been increased focus on inspection performed, especially in refineries, pipelines, and off shore oil rigs. The existing regulations have become stringent to cover a wide net of industries and there has been an increase in the amount of inspection that needs to be done irrespective of financial viability. These stringent regulations aided in strong performance for the world NDT inspection services market, despite the economic downturn. Although there was less new construction and few projects were stalled. the need for compliance with government safety regulations negated any factors inhibiting growth.
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Corrosion Issues with Aging Infrastructure Spurs Demand for NDT Inspection 1-2 Years Medium 3-4 Years Medium-High 5-7 Years Medium-High
The exorbitant cost and challenges involved in building new infrastructure has resulted in a desire to extend the useful life of existing infrastructure. This has resulted in aging of these existing assets, especially in North America. The average age for a refinery or a pipeline in the United States is more than 40 years, yet these assets are required to run at high capacities. The main predicament with ageing infrastructure is corrosion. These aging assets have to be inspected periodically to guard against corrosion and prevent catastrophic failures. The high level of maintenance required to preserve these assets and run them at full capacities has created immense demand for NDT inspection services. This demand is driving growth in the market and is expected to have a continued positive impact for the foreseeable future.
Damaged Infrastructure Due to Corrosion
Damaged Pipeline
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Damaged Pipeline
Collapsed Bridge
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Emerging Economies Boost Market Revenues 1-2 Years Medium 3-4 Years Medium 5-7 Years Medium-High
The rapid rate of infrastructure development in emerging economies such as India, China, and Brazil are driving the demand for NDT inspection. Although the knowledge and awareness of NDT inspection methods is low in these countries, industries are beginning to understand the importance for it. Large-scale infrastructure constructions in the power generation segment, especially wind energy and nuclear power, provide opportunities for NDT inspection service providers to expand.
NDT Inspection Services Market: GDP Growth Rate in Major Economies (World), Q1 2008-Q1 2011
Source: Trading Economics and Frost & Sullivan Analysis
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Risk Awareness and Focus on Prevention Ignites Demand for NDT Inspection 1-2 Years Medium 3-4 Years Medium 5-7 Years Low-Medium
In the present highly competitive world, shutting down operations even for a few minutes has high cost implications. The economic downturn during 2008 and 2009 also emphasized the importance of maintaining asset integrity. These steps helped end users to guard against severe impacts that malfunctioning assets would have on the already low profitability. In some of the more critical applications where failure of assets would result in not only monetary loss but also loss to the environment or people, prevention is of paramount importance. In addition, end users of NDT inspection services are rapidly realizing the importance of prevention as failures can incur severe financial penalties. This is a key driver for the market in geographic regions such as Asia Pacific, the Middle East, and Africa where traditionally a lack of awareness has inhibited demand. But with a drive towards safety from end users and an improved understanding of the importance of NDT, demand for NDT inspection services has increased.
Outsourcing of Inspection Increases Demand for NDT Inspection Services 1-2 Years Low-Medium 3-4 Years Low 5-7 Years Low
Traditionally, NDT inspection in industries such as oil and gas, power generation, and process industries were done inhouse. But with the increased sophistication of the methods for inspection, these end users are turning to NDT inspection service providers for all there inspection needs. In addition, the amount of training required for certain advanced techniques and increased scrutiny of inspection and safety aspects, have made it financially viable for these industries to get their inspection outsourced. This trend has resulted in an increase in the availability of work for NDT inspection service providers and has hence helped drive this market.
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Market Restraints
Total NDT Inspection Services Market: Market Restraints Ranked in Order of Impact (World), 2011-2017
Rank
1
Restraint
Training Technicians to Advanced Technologies Impacts Company Revenues Code Compliance Reduces Profit Margin
12 Years
High Medium-High
34 Years
High Medium-High
5-7 Years
Medium-High Medium
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Market Restraints (Contd)

Training Technicians to Advanced Technologies Impacts Company Revenues 1-2 Years High 3-4 Years High 5-7 Years Medium-High
The NDT technologies can be broadly classified as traditional and advanced. Traditional technologies are the ones that have been around for a long time such as ultrasonic, liquid penetrant, magnetic particle, and x-ray inspection. Advanced technologies, such as phased array ultrasonics, TOFD, and digital radiography, are those that have grown in prominence recently and are witnessing increased demand in the industry. The major point of difference between traditional and advanced technologies is that the traditional technologies only provide qualitative information, whereas advanced technologies provide qualitative and quantitative information. There is an increased level of sophistication in advanced NDT techniques. Hence, there is a need for specific training for technicians in advanced methods of inspection. traditional ones. By the time they gain this experience, the technicians are already employed by inspection companies and these companies need to take a decision on whether to train them on advanced inspection techniques. The impact of training technicians with advanced technologies is significant. Inspection companies need to have technicians billable for maximum amount of time. When they undergo training, they are not billable and hence these companies loose out on valuable revenues. This is a key factor that is slowing down the growth of NDT inspection service providers.
Technicians can only be trained in advanced technologies once they have a certain level of experience in some of the
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Market Restraints (Contd)

Code Compliance Reduces Profit Margin 1-2 Years Medium-High 3-4 Years Medium-High 5-7 Years Medium
In the NDT industry compliance with codes is necessary to ensure a certain standard for inspection. However, some of the codes are a hindrance to growth in this market. It so happens in many cases that a company needs to purchase calibration blocks in excess of $50,000 for one inspection job. As a result, there can be two major impacts, either there is a reduced quality of inspection if the inspection service providers decide not to calibrate the instruments or the company looses out on revenues due to decreased profit margins. This may not be a major restraining factor for bigger companies, but for some of the smaller companies, it definitely hampers the growth. To reduce the impact of this restraint, the organizations responsible for defining the codes and standards need to work closely with companies in the industry. That being said, code compliance will continue to significantly impact this market in the forecast period.
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Market Trends
Mergers and Acquisitions 1-2 Years High 3-4 Years Medium-High 5-7 Years High
Consolidation has been a key trend in the NDT industry, especially over the past few years. In the NDT inspection services market, there have been some important mergers and acquisitions. A major reason for this is the impact of economic downturn, which affected some of the smaller companies significantly. Companies struggled to survive in such a challenging and dampening economic conditions and, as a result were acquired by some of the bigger market participants. Globalization was another factor, which fuelled mergers and acquisitions activity in this market. Many companies recognize the importance of expanding geographically and acquiring middle-market companies in regions where they have minimal presence, giving them greater global reach. It is also used as an effective strategy to accelerate growth in such a fragmented market.
NDT Inspection Services Market: Significant Mergers and Acquisitions (World), 2010
Acquirer Acuren Applus RTD SGS TUV SUD

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Acquired* Extech, Bretech Inspection, Remote Access Technologies Valley Industrial X-ray & Inspection, Staveley Services, Quality Inspection Services, Technicio (2009), JanX (2008) Yan Tai Hua Jian Inspection Engineering Ltd, FTS (2007) Mechanical Integrity, Rail Sciences, NDT group (2008), Petrochem Inspection (2006)
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Market Trends (Contd)

Drive Towards Advanced Technologies 1-2 Years High 3-4 Years Medium-High 5-7 Years Medium-High
Traditionally, the NDT industry has been slow in accepting advanced technologies. Techniques such as phased array ultrasonics, TOFD, and digital radiography have been around for decades but have not witnessed huge acceptance. This is due to the fact that there is reluctance from end users in shifting from traditional methods which have been around for more than 100 years. The first industrial phased array system was introduced in the 1980s, but it has only been in the last few years that it has seen acceptance. There has been improved demand for these systems from end users as technology awareness has improved. Another factor that has aided this demand has been the increase in availability of equipment and training for advanced technologies.
Some Advanced NDT Technologies
Phased Array Ultrasonics

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TOFD
Digital Radiography
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Technology Trends
The NDT technologies can be broadly categorized as:1. Traditional NDT techniques 2. Advanced NDT techniques
Traditional NDT Techniques These are basic techniques that have been in use for a long time. The main techniques under traditional NDT are ultrasonic, visual, surface, and radiography. These services are generally offered by all the NDT inspection service providers as they form the base of any inspection. As these techniques are around for a large period of time, they have well-defined standards and training certification courses. Advanced NDT Techniques These are derived from traditional NDT techniques but are more complex in nature. They have been developed and improved quite recently and hence are not in demand heavily. As a result, all of these techniques are not offered by NDT inspection service providers. It depends on the availability of highly trained technicians and the demand from the customers. Some of the main techniques covered under this category are remote field testing, phased array ultrasonics, time of flight diffraction (TOFD), alternating current field measurement, guided wave ultrasonics, and magnetic flux leakage. These are some of the more popular advanced techniques. There are many niche technologies as well provided by specialized NDT inspection service providers. One such technology is process compensated resonance testing. This technique is offered by Vibrant NDT, mainly to the aerospace and automotive segments. Most end users of NDT inspection services use a combination of technologies to meet their inspection needs. The structure or the unit under test is assessed and then a technology or a combination of technologies is recommended inspection. for NDT
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Revenue Forecast
Total NDT Inspection Services Market: Revenue Forecast (World), 2007-2017
Revenue Revenue Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ($ Million) 2,568.5 2,738.4 2,850.7 3,050.2 3,283.7 3,555.4 3,856.9 4,208.2 4,609.8 5,067.4 5,590.4 Growth Rate (%) --6.6 4.1 7.0 7.7 8.3 8.5 9.1 9.5 9.9 10.3
The global economic downturn that hit in late 2008 impacted the revenue growth rate of this market. Capital expenditure cuts and review of inspection budgets adversely affected the growth of third-party NDT inspection service providers. In 2008, the market witnessed a bad ending to a possibly good year in terms of revenues. Frost & Sullivans analysis shows that the market grew by 6.6 percent in 2008. 2009 witnessed economic uncertainty affecting capital expenditure, and as a result, many new construction projects were postponed. This impacted the revenues to a certain extent but the operational expenditure was high due to compliance-driven inspection of refineries, pipelines etc despite financial constraints. This was one of the key reasons why the market did not decline in revenues but witnessed a slower revenue growth rate as compared to the previous year. Another key reason for significantly low impact of the economic downturn in 2009 was increased scrutiny of inspection by safety regulatory bodies due to high-profile infrastructure failures and accidents such as the British Petroleum (BP) oil spill, California pipeline explosion, and Mississippi river bridge collapse.
Compound Annual Growth Rate (2010-2017): 9.0%

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Revenue Forecast (Contd)

Total NDT Inspection Services Market: Revenue Forecast (World), 2007-2017
6,000.0 5,500.0 5,000.0 4,500.0 4,000.0 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 2007 2008 2009 2010 2011 2012 Year Revenue ($ Million) Revenue Growth Rate (%) 2013 2014 2015 2016 2017
14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Market experts and participants believe that this market is capable of bouncing back to pre-recession growth rates and this is reflected in Frost & Sullivans analysis and forecasting of revenues from 2011 to 2017. The market recovered significantly in 2010 and is expected to achieve a high growth in 2011 due to the restart of construction projects which were shelved during the economic downturn. The Japan nuclear crisis, in addition to driving short-term precautionary inspection in existing nuclear plants worldwide, will trigger widespread increase in safety regulations for nuclear power plants.
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Revenue Growth Rate (%)

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Revenue ($ Million)
Trends by End User

The oil and gas segment including refineries and oil pipelines contributed the highest revenues in 2010 with 53.0 percent globally. The majority of these revenues come from refineries, which perform compliance-based maintenance inspection. North America is the main contributor to revenues due to high government safety regulations stipulating inspection to be carried out periodically. The power generation industry in 2010 contributed 15.5 percent to the global NDT inspection services revenues. With an increase in the energy demand, there is an increase in the number of power plants worldwide. Hence, the demand for NDT inspection is expected to increase in this segment. This segment is expected to contribute 18.3 percent to revenues by 2017. The manufacturing and process industries segment is strong mainly in North America and Asia Pacific. This is due to the presence of the pulp and paper industry in North America and large manufacturing units in Asia Pacific. The others segment contributed 10.0 percent to the revenues in 2010. Some of the industries covered in this segment include aerospace, military, defence, and automotive. These end users generally perform NDT inspection in-house.
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Total NDT Inspection Services Market: Percent of Revenues by End User (World), 2010
Power Generation 15.5%
Petrochemical and Chemical Manuf acturing Industries and Process 12.3% Industries 9.2%
Oil and Gas 53.0%
Others 10.0%
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Trends by End User (Contd)

Total NDT Inspection Services Market: Revenue Forecast by End User (World), 2007-2017
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR (20102017)
Oil and Gas ($ Million) 1,370.1 1,465.4 1,524.1 1,617.7 1,741.6 1,883.1 2,038.5 2,221.1 2,426.4 2,660.1 2,929.6 8.9%
Power Generation ($ Million) 392.2 420.6 439.3 471.4 519.2 577.7 647.0 727.3 817.6 918.5 1035.0 11.9%
Petrochemical and Chemical Industries ($ Million) 317.6 339.8 351.6 375.0 400.4 429.7 461.6 495.5 536.7 588.0 642.7 8.0%
Manufacturing and Process Industries ($ Million) 235.0 243.2 252.8 279.4 297.8 317.5 339.4 367.4 400.4 436.5 480.3 8.0%
Others ($ Million) 253.6 269.4 282.9 306.7 324.7 347.4 370.4 396.9 428.7 464.3 503.0 7.3%
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In terms of revenue contribution, the oil and gas segment remains the highest and is expected to continue that way till 2017. In this segment, maintenance-driven inspection in refineries plays a pivotal role in driving revenues. The other segment, oil pipelines, contributes in a small but significant way. With the recent pipeline explosions in North America, the inspection in this sector is at an all-time high. The power generation industry is expected to witness the highest growth in the NDT inspection services market with CAGR of 11.7 percent. The catalyst for such high growth is the increased importance given to renewable energy. The nuclear industry is one of the key users of NDT inspection due to the importance of safety in hazardous surroundings. With more than 60 nuclear power plants under construction worldwide and many more in the pipeline, power generation is expected to drive this market in the future. Manufacturing and process industries are expected to witness slow growth with respect to NDT inspection. The main contributor in this segment, pulp and paper, has been on a steady decline over the past few years. This has impacted the investment in NDT inspection services. As a result, the demand for NDT inspection services has suffered and this trend is expected to continue over the forecast period. That being said, the manufacturing industry is likely to shed its sluggish growth exhibited over the last 2 years due to economic downturn and bounce back in a significant way. Hence, demand for NDT inspection in the manufacturing industry is expected to grow.
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Trends by Geography
Despite the economic setbacks in North America, this region contributed the highest revenues in 2010 with 40.8 percent overall. Oil and gas segment was the key driver in this region and is expected to be stable over the long term. A majority of demand for NDT inspection services in Europe was generated from the oil and gas segment, with power generation in second. The development of wind farms across western Europe, particularly in countries such as Spain and Germany is creating demand for NDT inspection services. The growth of NDT inspection services market is expected to be steady but fairly sluggish when compared with other regions. However, it is still expected to remain the second-largest contributor to revenues in this market. The Asia Pacific market, with robust development across all industries, is expected to exhibit the highest growth rates. Despite this, it is not expected to overtake the wellestablished regions in this market, such as North America and Europe, in terms of revenues. Latin America and the Middle East account for the majority of the 11.4 percent in the Rest-of-World segment. The demand for NDT inspection in the Middle East is mainly from refineries and oil pipelines. In Latin America, the demand is being driven by the metals and mining industries. A key country in Latin America providing significant demand and growth is Brazil.
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Total NDT Inspection Services Market: Percent of Revenues by Geographic Region (World), 2010
Rest-of World 11.4% Asia Pacif ic 16.5%
North America 40.8%
Europe 31.3%
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Competitive Environment
Total NDT Inspection Services Market: Competitive Structure (World), 2010
Number of Companies in the Market Competitive Factors Key End User Groups
More than 1,000 competitors Quality of service, reputation, execution, price Oil and Gas, power generation, chemical/petrochemical industries, and manufacturing and other process industries Applus RTD, Acuren Group Inc, TEAM Inc, MISTRAS Group Inc, SGS SA, TUV SUD, Intertek PLC, Bureau Veritas, Cutech Group, Russell NDE Systems Inc. 34.3% Vibrant NDT, TEI Analytical Services, NDT Services Ltd., TWI Ltd, Dekra Industrial AB, NDT EXPERT, NDTS India (P) Ltd, Direct Applus RTD acquired JANX (2008), Stavely Services Canada (2010), Quality Inspection Services (2010), Valley Industrial X-Ray & Inspection (2010), Acuren acquired Bretech Inspection (2010), Remote Access Technology (2010), Extech (2010) Bureau Veritas acquired Inspectorate (2010), Intertek acquired Aptech Engineering Services (2009), WISco (2009)
Major Market Participants
Market Share of Top 4 Competitors Other Notable Market Participants Distribution Structure
Notable Acquisitions and Mergers
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Market Share Analysis

The world NDT inspection services market is highly fragmented with a number of small companies offering a wide variety of inspection services to regional industries. In such a competitive environment, Applus RTD stands out with a market share of 13.4%. Although Applus RTD is headquartered in Europe, they are a truly global company with operations in all geographic regions. Majority of their revenues come from Europe but they have penetrated the North American and Asia Pacific markets with several key acquisitions. Acuren Group Inc occupies second place with 9.8 percent market share. This is highly impressive as they operate mainly in the North American region with a majority of its revenues coming from Canada and the United States. It caters to all end user segments with a vast majority of its revenues derived from the oil and gas segment. TEAM Inc is a publicly traded company that provides high quality NDT inspection services in North America and South America with emphasis on safety. The economic downturn significantly impacted the revenues of Team Inc in 2009. Still the company accounts for 5.9 percent market share in the base year, 2010, with an impressive recovery from the slump of 2009. The company is expected to grow steadily and increase its market share over the forecast period.
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Total NDT Inspection Services Market: Company Market Share by Revenues (World), 2010
Others 60.8%
SGS SA 4.9%
Mistras Group 5.2%
Team Industrial Services 5.9%
Acuren 9.8%
Applus RTD 13.4%
Note: Others include Bureau Veritas, TWI Ltd, TUV SUD, GE measurement and control solutions, Vibrant NDT, Russell NDE Systems Inc, Dacon Inspection Services Co., Ltd., Intron Plus Ltd., TEI Analytical Services, Century Inspection, Inc, Hi-Tech NDT Inspection Services (S) Pte Ltd, Sonovation B.V., VOGT Ultrasonics GambH, Techcorr USA, LLC, NDT Services Ltd, NDT Systems & Services AG, Dekra Industrial AB, NDTS India (P) Ltd., T.D.Williamson, Inc., Cutech Group, Hi-Tech Testing Service, Inc, R.Brooks Associates, Inc, International Inspection, Inc., West Penn Testing Group, Sievert India Pvt.Ltd, Trinidad Inspection Services Limited, Coastal Inspection Services, Inc, Bonded Inspections Inc., RNDT, Inc., Alloyweld Inspection Company, Inc., Magnachek, In., Silverwing (UK) Ltd., ABEN Technical Services, Sinclair X-ray Inspection Services, NDT EXPERT, HMT Inc, IRISNDT, Westech Inspection, Inc., James Fisher Inspection and Measurement Services, and SENSE Engineering Services Ltd. Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Analysis
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North American NDT Inspection Services Market
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NDT Inspection Services Market: Market Engineering Measurements (North America), 2010
Measurement Name
Market age Revenues Potential revenues (maximum future market size) Base year market growth rate Compound annual growth rate Competitors (active market competitors in base year) Degree of competition Price Sensitivity Degree of technical change Customer loyalty
Measurement
Growth Stage $1,247.2 million $2,275.8 million 7.8% 9.0% More than 400 High Low Low 7
Trend
--Increasing Increasing Increasing Increasing Decreasing Decreasing Stable Increasing Decreasing
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Revenue Forecast
NDT Inspection Services Market: Revenue Forecast (North America), 2007-2017
Revenue Revenue Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ($ Million) 1,034.3 1,104.3 1,156.7 1,247.2 1,347.4 1,459.5 1,583.3 1,725.3 1,886.9 2,068.3 2,275.8 Growth Rate (%) --6.8 4.7 7.8 8.0 8.3 8.5 9.0 9.4 9.6 10.0
The North American market for NDT inspection services is the backbone of the world market and accounted for 40.8 percent of revenues in 2010. This was mainly due to awareness of the importance of NDT inspection in this region. North America has been the biggest user of NDT inspection services over the past decade and is expected to continue to occupy that place for the foreseeable future. The economic downturn hit industries in the North American region heavily, but, its impact on market revenues were considerably low. The market did not witness a decline but the revenue growth rate took a hit, growing at a mere 4.7 percent in 2009. Despite the economic downturn, major end users such as oil and gas, and power generation were key growth drivers for NDT inspection services in 2009 and 2010. As a result of compliance requirements with government regulations, these industries were required to perform inspections at specific intervals of time. Frost & Sullivans analysis shows a steady increase in revenues in the North American NDT inspection services market with a CAGR of 9.0 percent. The recovery from the economic downturn has been robust and the market grew at 7.8 percent in 2010.

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NDT Inspection Services Market: Revenue Forecast (North America), 2007-2017
2,500.0 2,300.0 2,100.0 1,900.0 1,700.0 1,500.0 1,300.0 1,100.0 900.0 700.0 500.0 2007 2008 2009 2010 2011 2012 Year Revenue ($ Million) Revenue Growth Rate (%) 2013 2014 2015 2016 2017
14.0
10.0 8.0 6.0 4.0 2.0 0.0
Although the North American market for NDT inspection services has matured to a large extent, the influx of revenues is expected to remain high. The market is likely to reach a growth rate of 10.0 percent by 2017, with the oil and gas segment driving growth in this region.
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Revenue ($ Million)
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Trends by End User

NDT Inspection Services Market: Revenue Forecast by End User (North America), 2007-2017
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR (20102017)
Oil and Gas ($ Million) 582.3 622.8 652.4 695.9 751.8 812.9 878.7 954.1 1,037.8 1,131.4 1,240.3 8.6%
Others ($ Million) 87.9 92.8 97.1 106.0 113.3 122.7 133.0 141.4 152.8 163.3 175.2 7.4%
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The major end user for NDT inspection services in the North American market is oil and gas, which contributed 55.8 percent to revenues in 2010. One of the main reasons for oil and gas being a key end user is the number of government regulations, which stipulate heavy inspection in this segment. The oil and gas segment is expected to grow at a CAGR of 8.6 percent, which makes it a focal point of revenues. In the United States, even though a new refinery has not been constructed for over 30 years, the oil and gas segment is the largest contributor to revenues. Hence, a significant percentage of revenues in this segment is derived from maintenancebased inspection. With a CAGR of 12.7 percent, power generation is expected to become a prominent end user for NDT inspection services. The main reason for this is the development being witnessed in the renewable energy sector. A large number of wind farms, and nuclear power plants are being constructed in North America to meet the growing energy demand. This is expected to contribute significantly to the growth in power generation segment. The process industry in North America is noteworthy, with pulp and paper being one of the major segments. With a CAGR of 7.5 percent, growth in this segment is likely to be the slowest. A key reason for this is the maturity of the pulp and paper market in the United States.
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NDT Inspection Services Market: Competitive Structure (North America), 2010
More than 400 competitors Quality of service, reputation, execution, price Oil and Gas, power generation, chemical/petrochemical industries, and manufacturing and other process industries Acuren Group Inc, TEAM Inc, MISTRAS Group Inc, Applus RTD, Russell NDE Systems Inc, T.D.Williamson Inc, Techcorr USA, LLC. 51.3% Vibrant NDT, R.Brooks Associates, Inc, International Inspection, Inc., West Penn Testing Group, TUV SUD, TEI Analytical Services, Century Inspection, Inc Direct TUV SUD acquired Ptrochem Inspection Services (2006), Applus RTD acquired JANX (2008), Stavely Services Canada (2010), Quality Inspection Services (2010), Valley Industrial X-Ray & Inspection (2010), Acuren acquired Bretech Inspection (2010), Remote Access Technology (2010), Extech (2010)
Major Market Participants
Market Share of Top 3 Competitors
Other Notable Market Participants
Distribution Structure
Notable Acquisitions and Mergers
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Competitive Environment (Contd)
The North American NDT inspection services market is highly fragmented with more than 400 competitors active in the base year, 2010. A major reason for such high competition is the low barriers to entry in this market. This challenges the top market participants to constantly review their growth strategies for maintaining their position in the market. Despite the large number of competitors, ACUREN, Team Inc, and MISTRAS Group Inc have emerged as the top three competitors occupying 51.3 percent market share by revenues in 2010. Of these three market participants, ACUREN leads the way with 24.1 percent market share, followed by Team Inc with 14.4 percent and MISTRAS Group Inc with 12.8 percent market share in 2010. The economic downturn impacted these companies differently, TEAM Inc recorded a negative growth rate in FY 2010 with lower revenues. However, ACUREN and MISTRAS Group Inc recorded positive growth. Market share for the major participants is expected to increase over the short term. MISTRAS Group is expected to grow significantly with a continued focus on expansion through mergers and acquisitions. Over the last two years, the company has acquired more than 10 NDT inspection businesses in a bid to boost revenues and enhance its market position. TEAM Inc. endured a torrid time through the economic downturn and is expected to bounce back with improved results in FY 2011. The company is expected to continue growing as it revises growth strategies and targets newer markets. Some of the key competitive factors in this market are quality of service, reputation, execution, and price. In the North American NDT inspection services market, quality of service is most important and price is the least important factor. This is evident from the fact that ACUREN is the top market participant as it differentiates itself by providing highest quality inspection services.
TEAM Inc is also recognized as one of the more reputable NDT inspection services company providing high standards for quality and safety. Some of the other market participants in this market are Applus RTD, Russell NDE Systems, and TUV SUD Petrochem, T.D.Williamson, Inc.
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European NDT Inspection Services Market
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NDT Inspection Services Market: Market Engineering Measurements (Europe), 2010
Measurement Name
Measurement
Growth Stage $954.6 million $1,637.6 million 5.1% 8.0% More than 300 High Low Low 5
Trend
--Increasing Increasing Increasing Increasing Decreasing Stable Stable Increasing Stable
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Revenue Forecast
NDT Inspection Services Market: Revenue Forecast (Europe), 2007-2017
Revenue Revenue Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ($ Million) 835.6 887.7 908.3 954.6 1,017.3 1,091.9 1,173.5 1,268.8 1,376.5 1,498.8 1,637.6 Growth Rate (%) --6.2 2.3 5.1 6.6 7.3 7.5 8.1 8.5 8.9 9.3
The European market for NDT inspection services is the second largest, with a revenue contribution of 31.3 percent in 2010. The market in this region has grown steadily over the past decade, but its revenue contribution percentage is expected to decline by 2.0 percent during the forecast period. It is expected to contribute 29.3 percent overall by 2017. Europe was affected drastically by the economic downturn. Although the market did not decline, it witnessed a very modest growth rate of 2.3 percent in 2009. A key reason for this was the impact on the new construction projects in the power generation industry, which was expected to drive growth in this region. With the postponement of these projects and a decline in the number of turnarounds in the refineries, the market for NDT inspection services took a huge hit. The rebound from the economic downturn has not been immense with fears of a double dip recession arising from the sovereign debt crisis. According to the European Commission economic and financial affairs department, the GDP growth for Europe was less than 1 percent for 2010. This has impacted the revenues of this market and the growth rate was sluggish at 5.1 percent in 2010.

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NDT Inspection Services Market: Revenue Forecast (Europe), 2007-2017
1,800.0 1,600.0
14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 Year Revenue ($ Million) Revenue Growth Rate (%)
Revenue ($ Million)
1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 2013 2014 2015 2016 2017
When compared with other regions the CAGR for Europe is lowest at 8.0 percent. This is primarily due to the slow recovery from the global economic meltdown this region is expected to have. This slow recovery has been compounded by the sovereign debt crisis. The growth rate in this market is expected to reach industry levels by 2015.
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Trends by End User

NDT Inspection Services Market: Revenue Forecast by End User (Europe), 2007-2017
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR (20102017)
Oil and Gas ($ Million) 456.2 486.5 497.7 520.3 554.4 594.0 637.2 689.0 746.1 810.9 885.9 7.9%
Others ($ Million) 82.8 88.8 90.8 97.4 101.8 107.0 112.7 120.5 129.3 140.8 152.4 6.6%
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As seen in the North American NDT inspection services market, oil and gas contributed to more than 50 percent of the revenues for 2010 in the European market. It is one of the major sources of revenues for this market because of the number of refineries in Eastern Europe. With the number of refineries increasing each year, this end user segment is expected to remain strong over the forecast period. The power generation segment is the second-largest user of NDT inspection services with a share of 17.6 percent to the overall revenues in 2010. With the construction of wind farms, especially in Spain, Germany, and France, the demand for NDT inspection services from this segment is projected to increase. This is shown by the highest CAGR of 10.2 percent, outlining immense growth in this segment. The manufacturing and process industry segment contributes the least to overall revenues for this region. The percentage revenue contribution for 2010 is 4.8 percent, and this is expected to decrease further. One of the key reasons for this has been the continuing trend of shifting manufacturing plants to Asia Pacific and Latin America, where the labor is cheap. With the lowest CAGR of 6.3 percent, this shift has impacted the revenues in this segment and there is no significant change expected to this trend.
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NDT Inspection Services Market: Competitive Structure (Europe), 2010
Number of Companies in the Market Competitive Factors Key End User Groups Major Market Participants Market Share of Top 3 Competitors Other Notable Market Participants Distribution Structure Notable Acquisitions and Mergers
More than 300 competitors Quality of service, reputation, price, execution Oil and Gas, industries power generation, and chemical/petrochemical
Applus RTD , SGS SA, Intertek PLC, Bureau Veritas, NDT Systems & Services AG. 39.9% NDT Services Ltd., TWI Ltd, Dekra Industrial AB, TUV Rheinland Group, Silverwing (UK) Ltd., NDT EXPERT, Sonovation B.V., VOGT Ultrasonics GambH, Intron Plus Ltd., Focus NDT Direct Bureau Veritas acquired Inspectorate (2010), Moody Group acquired PetroSpect Inspection Services (2009), Pro-Inspect (2010), Intertek acquired Aptech Engineering Services (2009), WISco (2009)
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The European NDT inspection services market is categorized by high competition with more than 300 active market participants in the base year. As is the nature of the NDT inspection services industry, the barriers to entry are low enabling high degree of competition. The clear market leader in this region is Applus RTD. In spite of fierce competition, the company occupies 21.5 percent of the market in the European region. They have also made a number of key acquisitions in North America to compete with the top market participants and increase their market presence in in this region. SGS SA occupies the second place in this region with a 12.2 percent market share. SGS SA is mainly known for their training and certification in the NDT industry but are growing immensely in the NDT inspection services market through strategic mergers and acquisitions. Bureau Veritas and Intertek Group PLC are the other major market participants in this region. Intertek has recently announced the acquisition of the inspection division of Moody group in a deal worth $730 million and are expected to expand significantly in the medium term. The impact of the economic downturn on the NDT inspection services market in this region was considerable with many new construction projects being put on hold. In a market where majority of the revenues are derived from inspection of these construction projects, profit margins of the NDT inspection service providers suffered immensely. The recovery from the downturn has been gradual and uneven with the Eastern European countries leading the way.
This economic uncertainty has led a majority of the market participants to look for growth through other avenues, mainly mergers and acquisitions. In the past year alone, SGS SA has completed 13 acquisitions with a majority of them being in the NDT inspection services industry. Another company trying to expand significantly through mergers and acquisitions is Intertek Group PLC with 9 acquisitions in the NDT inspection services market.
Some of the other significant market participants in the European NDT inspection services market are NDT Services Ltd, NDT Systems & Services AG, TWI Ltd, Dekra Industrial AB, and TUV Rheinland Group.
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Asia Pacific NDT Inspection Services Market
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NDT Inspection Services Market: Market Engineering Measurements (Asia Pacific), 2010
Measurement Name
Measurement
Growth Stage $501.9 million $1029.3 million 8.2% 10.8% More than 200 High High Low 2
Trend
--Increasing Increasing Increasing Increasing Increasing Stable Stable Increasing Stable
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Revenue Forecast
NDT Inspection Services Market: Revenue Forecast (Asia Pacific), 2007-2017
Revenue Revenue Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ($ Million) 409.2 438.4 463.9 501.9 545.4 599.1 659.9 732.8 817.8 916.1 1,029.3 Growth Rate (%) --7.1 5.8 8.2 8.7 9.9 10.2 11.0 11.6 12.0 12.4
The Asia Pacific NDT inspection services market occupies 16.5 percent of total world NDT inspection services market. This percentage revenue share is expected to increase marginally by 1.9 percent by 2017. The major reason for this increase is the infrastructure growth in Asian countries. The economies of China, India, and Indonesia are expected to boost this market growth with a CAGR of 10.8 percent, highest among all geographies. A lack of strict government regulations has affected the effective implementation of NDT in this region, but with the Japan nuclear crisis, this trend is expected to change. Another factor acting as a barrier for the NDT inspection services market is the price consciousness in this region. This affects the profit margins for some of the established companies that employ technicians on a higher payroll. The economic downturn had a significantly low impact in this region with the market growth rate slowing down to 5.8 percent in 2009. Despite this, the rebound from the downturn has been steep with an above expectation growth rate of 8.2 percent witnessed in 2010. This is a key indicator of the growth potential for NDT inspection services in the Asia Pacific region.

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NDT Inspection Services Market: Revenue Forecast (Asia Pacific), 2007-2017
1,100.0 1,000.0 900.0
14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 Year Revenue ($ Million) Revenue Growth Rate (%) 2013 2014 2015 2016 2017
800.0 700.0 600.0 500.0 400.0 300.0 200.0
Frost & Sullivans analysis projects a growth rate of 12.4 percent by 2017 indicating huge potential in this market. The market is projected to grow steadily maintaining a stable growth rate over the forecast period. The key driver for this region will be increase in education for the need of NDT inspection.
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Revenue ($ Million)
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Trends by End User

NDT Inspection Services Market: Revenue Forecast by End User (Asia Pacific), 2007-2017
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR (20102017)
Others ($ Million) 46.2 49.5 54.4 59.2 63.2 68.3 71.9 77.6 84.2 92.5 100.9 7.9%
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Trends by End User
The biggest end user for NDT inspection services in Asia Pacific is oil and gas. It occupies 46.1 percent of the overall NDT inspection services market. This is not as high when compared with other regions, but a lack of government safety regulations has resulted in low inspection carried out in this segment. This trend is expected to change with the amount of inspection projected to increase in this segment. Hence, the market is likely to grow at a CAGR of 11.2 percent. Power generation is another interesting segment in this market with a projected CAGR of 14.2 percent. This establishes the Asia Pacific power generation NDT inspection services market to be the highest growth market. There has been a significant increase in the energy demand from this region over the past decade. The supply of energy to meet this demand has been sluggish and many countries have faced power crisis. The governments of various countries in this region have finally recognized this shortage, and the construction of both renewable energy and non-renewable energy power plants is expected to increase. Another end user segment expected to witness growth is manufacturing with the continued outsourcing of manufacturing activities to this region. High quality and safety standards set by these manufacturing industries leads to an increase in demand for NDT inspection services.
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NDT Inspection Services Market: Competitive Structure (Asia Pacific), 2010
More than 200 competitors Price, quality of service, execution, reputation Oil and Gas, power generation, manufacturing and other process industries, chemical/petrochemical industries SGS SA, Bureau Veritas, Russell NDE Systems Inc, Dacon Inspection Services Co., Ltd, Applus RTD, Cutech Group --NDTS India (P) Ltd, Sievert India Pvt.Ltd, and SENSE Engineering Services Ltd., Diversified NDT Inspection Services Pty. Ltd Direct SGS SA acquired Yan Tai HuaJian Inspection Engineering Co., Ltd (China).
Major Market Participants Market Share of Top 3 Competitors
Distribution Structure Notable Acquisitions and Mergers
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The Asia Pacific NDT inspection services market is very fragmented with no clear market leader and no participant holding greater than 5 percent market share by revenues in 2010. The NDT industry on the whole in Asia Pacific has not matured and there is huge potential to be realized. There is a lack of education of NDT and a lack of stringent government safety regulations which limits demand. This is expected to change with the governments of various countries recognizing importance of preventing catastrophic failures or accidents. With Asia Pacific expected to drive growth in the world market with the highest CAGR, many NDT inspection service providers are incorporating offices in this region or acquiring companies to enter this market. The large multinational companies face several barriers to entry in this market such as language, red tapism, and price consciousness of the end users. In countries such as China and India employing local technicians is imperative to successfully capturing the market. Very often these technicians need to be retrained with an emphasis on quality, to adhere to high quality standards set by NDT inspection service providers globally. The NDT inspection service providers in the Asia Pacific region are relatively small catering to the inspection needs of regional industries. With a lack of government safety regulations, the end users are not particular about reputation and quality but are looking for the most competitive price. Companies such as SGS SA, and Bureau Veritas have already entered this market by incorporating offices in this region. Another company trying to capitalize on growth in this region is Russell NDE Systems Inc. They have set up an office in India and signed a strategic alliance with Dacon Inspection Services Co., Ltd to expand their reach geographically.
The most important competitive factor in the Asia Pacific NDT inspection services market is price. A key reason for this is a relative lack of NDT education. NDT inspection is considered an unnecessary financial overhead which can be overlooked. Some of the market participants are Dacon Inspection services Co., Ltd., Bureau Veritas, SGS SA, NDTS India (P) Ltd, Russell NDE Systems Inc, Applus RTD, Sievert India Pvt.Ltd, and SENSE Engineering Services Ltd.
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Rest-of-World NDT Inspection Services Market
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NDT Inspection Services Market: Market Engineering Measurements (ROW), 2010
Measurement Name
Measurement
Growth Stage $346.5 million $647.7 million 7.7% 9.3% More than 150 High High Low 2
Trend
--Increasing Increasing Increasing Increasing Decreasing Stable Stable Increasing Increasing
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Revenue Forecast
NDT Inspection Services Market: Revenue Forecast (ROW), 2007-2017
Revenue Revenue Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ($ Million) 289.4 308.0 321.8 346.5 373.6 404.9 440.2 481.3 528.6 584.2 647.7 Growth Rate (%) --6.5 4.5 7.7 7.8 8.4 8.7 9.3 9.8 10.5 10.9
The revenue growth rate for the rest-of-world NDT inspection services market in 2010 was 7.7 percent. This growth is mainly driven by the inspection performed in the oil and gas and the manufacturing industries. The major regions contributing heavily to this market are the Middle East and South America. The impact of the economic downturn on this market was not as significant as expected. The growth rate declined to 4.5 percent in 2009 with economic crisis in the Middle East significantly impacting revenues. The real estate crisis in the Middle East coupled with the global economic meltdown meant that the extra ordinary rate at which new infrastructure and civil buildings were being constructed slowed down emphatically. This meant that the demand for NDT inspection services in civil construction went down leading to a huge void in the revenues. This void was partially filled by the impressive growth witnessed in the Brazilian economy, which had a relatively faster rebound from the global economic meltdown. A push from the manufacturing and the automotive industry in Brazil resulted in continued demand for NDT inspection services.

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NDT Inspection Services Market: Revenue Forecast (ROW), 2007-2017
700.0 600.0
12.0 10.0 8.0 6.0
500.0 400.0 300.0 200.0 100.0 0.0 2007 2008 2009 2010 2011 2012 Year Revenue ($ Million) Revenue Growth Rate (%) 2013 2014 2015 2016 2017
4.0 2.0 0.0
Frost & Sullivans analysis pegs the CAGR in the rest-of-world NDT inspection services market at 9.3 percent. This signifies a fairly constant and stable growth, with emerging economies in Africa and South America expected to push the market. The Middle East is currently undergoing its worst phase economically, but is expected to bounce back in the long term.
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Trends by End User

NDT Inspection Services Market: Revenue Forecast by End User (ROW), 2007-2017
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR (20102017)
Others ($ Million) 36.7 38.3 40.6 44.1 46.4 49.4 52.8 57.4 62.4 67.7 74.5 7.8%
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As with all the other geographic regions, oil and gas is the biggest end user for NDT inspection services in the rest-of-world geographic segment, accounting for 49.1 percent of revenues in 2010. A key reason for this is the growing number of oil refineries in the Middle East and Africa. With an abundance of oil reserves in these regions, the number of oil refineries is increasing. This, in turn, increases the demand for NDT inspection services. With a CAGR of 9.3 percent, oil and gas is projected to remain as the biggest and most important end user in this region. Power generation is also expected to witness immense growth in this region. With the demand for energy growing in developing economies of this region and a push toward a cleaner environment, there is a definite thrust toward renewable energy power plants. The key users of NDT inspection services in this segment are the nuclear and wind power plants. Over the past decade, there has been an increase in outsourcing of manufacturing capabilities from Europe to less developed countries, where the labor is cheaper. This trend has seen an increased presence of manufacturing industries in South America. This coupled with an increased tightening of government regulations will result in high growth. Hence, the CAGR for manufacturing and other process industries segment is expected to be 10.3 percent with the manufacturing industries expected to drive growth.
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NDT Inspection Services Market: Competitive Structure (ROW), 2010
More than 150 competitors Price, reputation, quality of service, execution Oil and Gas, power generation, manufacturing and other process industries, chemical/petrochemical industries TEAM Inc, MISTRAS Group Inc, Acuren Group Inc, SGS SA, Bureau Veritas, Applus RTD, Cutech Group --Cutech Group, Trinidad Inspection Services Limited, Crabtree
Major Market Participants Market Share of Top 3 Competitors
International LLC, GE Measurement and Control Solutions, Trinidad Inspection Services Limited, Silverwing Middle East LLC., and Construction Technical Services Arabia Ltd
Distribution Structure Notable Acquisitions and Mergers
Direct --Source: Frost & Sullivan Analysis
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Like the Asia Pacific market, the ROW NDT inspection services market is highly fragmented. Many large North Americanbased inspection service providers such as MISTRAS Group Inc and TEAM Inc have recognized the opportunities in South America and have incorporated offices in this region to expand operations. However, this is a very small number and the market mainly consists of small regional companies. The other major region in this market, the Middle East, is also highly fragmented consisting of small regional market participants. A major reason for this is the nature of the market as the Middle East-based industries prefer inspection being carried out by local companies and not multinational NDT inspection service providers. The Middle East is undergoing a severe economic crisis, and the civil unrest in Northern Africa and across the Middle East is also affecting industry growth. The economic uncertainty has put on hold many new construction projects, especially in Dubai. Although the civil unrest has stopped everyday activities in many countries, it does have a couple of benefits for the NDT inspection services market. Firstly, due to the civil unrest, oil prices have increased leading to extra budget allocations for NDT in the oil and gas segment. Secondly, majority of infrastructure has been destroyed during the unrest and the renovation of these structures are expected to drive demand. The competitive structure in Africa is very similar to the other regions in this market, in that it is highly fragmented. The two countries that could possibly drive growth in this market are South Africa and Nigeria. Nigeria is seen as a potential market with high GDP growth rates and rapid industrialization. Price is the most important competitive factor in this region. Most countries in this region are developing and are characterized by a lack of education on the need of NDT inspection. This has led to price consciousness nature of end users with low attention paid to quality and accuracy aspects of NDT inspection.
Some of the market participants in this region are MISTRAS Group Inc, Team Inc, Applus RTD, SGS SA, Crabtree International LLC, GE Measurement and Control Solutions, Trinidad Inspection Services Limited, Silverwing Middle East LLC., and Construction Technical Services Arabia Ltd.
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Strategic Observations and Conclusion
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Which Way is the NDT Inspection Services Market Headed?

Better Than Expected Recovery from the Economic Downturn
The world economy took a huge blow when the economic downturn hit in Q3 2008. Many industries such as aerospace and automotive were impacted massively. With dwindling demand, revenues for companies in these segments was significantly low. As a result, there was tremendous economic uncertainty. Industries were wary of making long-terms investments and capital expenditure came to a standstill. Despite such uncertainty, the world NDT inspection services market continues to show huge potential with a stable growth through the economic downturn. For a services industry, which is driven by consumer demand, this was especially noteworthy. Recovery from the downturn has been uneven across the globe with some regions growing significantly faster than others. However, the world NDT inspection services market has grown by 7.0 percent in 2010 with Asia Pacific leading the way in terms of growth percentage. An important observation to be made is that the rebound growth percentage is 7.0 percent. This is especially high considering the market only grew by 4.1 percent in 2009. A key reason for this is that the market was on the cusp of explosive growth with double-digit growth rates, just before the economic downturn hit. The economic downturn, however, checked this growth with many industries reviewing their inspection budgets and cutting down on unnecessary expenditure. However, with the world economy steadily recovering from the downturn, inspection has increased, especially in the oil and gas segment.
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Which Way is the NDT Inspection Services Market Headed? (Contd)

Impact of Japan Nuclear Crisis on Global NDT Inspection Services Market
The catastrophic nature of the crisis affecting Japan with the leak of harmful radiation in the Fukushima nuclear reactor has raised several doubts on the safety aspects of nuclear power plants. This raises important questions on the future of nuclear power generation. With the NDT inspection services market expected to grow significantly due to demand for nuclear power, a decrease in construction of new plants would have a profound impact. An immediate reaction to this disaster would point to increase in safety-driven NDT inspection in the nuclear power plants. With many countries, especially in Europe, shutting down operations in their respective nuclear power plants to review safety policies, there will be an increase in NDT inspection to a certain degree. But, there are long term affects as well that need to be accounted for. For instance, there would be heavy scrutiny during the planning stage for construction of a nuclear power plant which could lead to a decline in the number of new nuclear power plants. Germany has already announced the it would close down all its nuclear power plants by 2022. Switzerland has made a similar announcement, approving the phase-out of nuclear power by 2034. China has suspended approval to all new nuclear power plants in the country and commissioned a review of the safety in existing and under construction nuclear power plants. No doubt there would be a decrease in the number of nuclear power plants constructed over the coming years, nuclear energy is still expected to grow albeit at a slower rate. With the demand for power not expected to recede, development of alternatives to nuclear energy needs to be accelerated. This is expected to increment the growth in other power generation segments such as wind energy, hydroelectric energy, and solar energy.
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About Frost & Sullivan
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Who is Frost & Sullivan
The Growth Consulting Company
Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making and growth issues Over 1,700 Growth Consultants and Industry Analysts across 32 global locations Over 10,000 clients worldwide - emerging companies, the global 1000 and the investment community Developers of the Growth Excellence Matrix industry leading growth positioning tool for corporate executives Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360o perspective of technology, markets and growth opportunities Three core services: Growth Partnership Services, Growth Consulting and Career Best Practices
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What Makes Us Unique

Exclusively Focused on Growth Global thought leader exclusively focused on addressing client growth strategies and plans Team actively engaged in researching and developing of growth models that enable clients to achieve aggressive growth objectives. Industry Breadth Cover the broad spectrum of industries and technologies to provide clients with the ability to look outside the box and discover new and innovative ideas. Global Perspective 32 global offices ensure that clients receive a global coverage/perspective based on regional expertise. 360o Perspective Methodology Proprietary T.E.A.M. integrates all 6 critical research methodologies to significantly enhance the accuracy of decision making and lower the risk of implementing growth strategies. Growth Monitoring Continuously monitor changing technology, markets and economics and proactively address clients growth initiatives and position. Trusted Partner Working closely with client Growth Teams helping them generate new growth initiatives and leverage all of Frost & Sullivan assets to accelerate their growth.
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T.E.A.M. Methodology
Frost & Sullivans proprietary T.E.A.M. methodology, ensures that clients have complete 360 Degree Perspective from which to drive decision-making. Technical, Econometric, Application, and Market information ensures that clients have a comprehensive view of industries, markets and technology. Technical
Real-time intelligence on technology, including emerging technologies, new R&D breakthroughs, technology forecasting, impact analysis, groundbreaking research, and licensing opportunities. In-depth qualitative and quantitative research focused on timely and critical global, regional, and country specific trends, including the political, demographic, and socioeconomic landscapes. Insightful strategies, networking opportunities, and best practices that can be applied for enhanced market growth; interactions between the client, peers, and Frost & Sullivan representatives that result in added value and effectiveness. Global and regional market analysis, including drivers and restraints, market trends, regulatory changes, competitive insights, growth forecasts, industry challenges, strategic recommendations, and end user perspectives.
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Application
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Global Perspective
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World Nondestructive Test Inspection Services Market

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World Nondestructive Test Inspection Services Market

N94C-30 June 2011

Total World NDT Inspection Services Market

Table of Contents (Contd)

European NDT Inspection Services Market

Asia Pacific NDT Inspection Services Market

Table of Contents (Contd)

Strategic Observations and Conclusion

About Frost & Sullivan

List of Figures (Contd)

Definitions and Scope of Research

End User Segments

NDT Inspection Services Market

Geographic Segments North America

Growth Opportunities and Total Forecasts

$5,590.4 Million CAGR: 9.0%

Key Market Drivers Summary

Government safety regulations sustains demand for NDT inspection services

Source: Frost & Sullivan Analysis

End User Trends

Key Market Participants

Key Market Participants (Contd)

Total World NDT Inspection Services Market

Market Overview and Definitions

Source: Olympus NDT

Market Overview and Definitions (Contd)

Market Overview and Definitions (Contd)

Market Engineering Measurements

Lack of qualified technicians

Maintaining high quality of inspection

NDT Inspection Services Market

Constantly evolving customer needs

Industry Challenges (Contd)

Total NDT Inspection Services Market: Industry Challenges (World), 2011-2017

Constantly evolving customer needs

Source: Frost & Sullivan Analysis

Industry Challenges (Contd)

Industry Challenges (Contd)

Industry Challenges (Contd)

Examination Method Electromagnetic

Source: ndt-ed.org/Frost & Sullivan Analysis

Industry Challenges (Contd)

Industry Challenges (Contd)

Market Drivers and Restraints

Emerging economies boost market revenues

Outsourcing of inspection increases demand for NDT inspection services

Training technicians to advanced technologies impacts company revenues

Code compliance reduces profit margin

Medium Medium Medium LowMedium

Source: Frost & Sullivan Analysis

Market Drivers (Contd)

Market Drivers (Contd)

Market Drivers (Contd)

Source: Trading Economics and Frost & Sullivan Analysis

Market Drivers (Contd)

Source: Frost & Sullivan Analysis

Market Restraints (Contd)

Market Restraints (Contd)

Acquirer Acuren Applus RTD SGS TUV SUD

Source: Frost & Sullivan Analysis

Market Trends (Contd)

Phased Array Ultrasonics

Compound Annual Growth Rate (2010-2017): 9.0%

Revenue Forecast (Contd)