Non-destructive Testing Market (2024 - 2030)

Non-destructive Testing Market Summary

Furthermore, the increasing technological innovations pace have enable the development of advanced non-destructive testing processes with improved & precise safety & fault detection. Furthermore, increasing awareness amongst the manufacturers regarding the use of Non-destructive Testing (NDT) is expected to improve the penetration of NDT techniques in the coming years.

The utilization of NDT techniques in projects allows for quicker completion due to the detection of faults in complex areas and irregular surfaces. This reduction in the possibility of failures is expected to drive the demand for non-destructive testing in the coming years. Additionally, the ease of operating and efficiency in fault detection provided by ultrasonic equipment, compared to other NDT equipment, is a significant factor contributing to the increasing adoption of the ultrasonic test method. Moreover, advancements in ultrasonic technology anticipated within the next eight years are likely to further boost the adoption of this testing procedure due to its simplicity.

The market is projected to experience significant growth during the forecast period. This growth can be attributed to the increasing urbanization in developing countries like India and China, which involves extensive construction and manufacturing projects. The fast pace of such projects necessitates the implementation of testing processes to ensure the quality of work. This trend is expected to have a positive impact on the growth of non-destructive testing (NDT) in these countries, consequently enhancing its global market penetration.

Increasing oil and gas projects in the Middle East and North America are expected to deploy NDT techniques in order to complete the projects in prescribed timelines and with finesse, thus fueling the demand for NDT equipment over the regions. Besides, the advancements in non-destructive testing technology have led to the development of radiographic testing equipment such as industrial CT scanners, which precisely detect faults in machinery and components. However, the cost of the NDT equipment and the expertise required to perform the tests increases the complexity and difficulty of deploying the radiographic testing method.

The global COVID-19 pandemic has had detrimental and unexpected consequences for various industries worldwide, such as automotive, construction, airlines, and manufacturing, among others. To mitigate the spread of the novel coronavirus and its negative impacts, governments around the world implemented lockdowns as a precautionary measure. This led to disruptions in the global supply chain and a decline in industrial productivity, placing a strain on the global economy. Furthermore, the sudden outbreak of the virus also caused disruptions in companies' production and manufacturing capabilities.

Moreover, the influence of the pandemic on the non-destructive testing (NDT) market arises from the combined response of interconnected industries that utilize NDT for their operations. One such example is the defense industry, which has experienced a relatively mild impact compared to other sectors. This can be attributed to government budget allocations that safeguard the supply and demand ecosystem. While certain defense companies have been significantly affected by the financial shock, the impact is comparatively lesser than that observed in the aerospace sector.

Market Concentration & Characteristics

The non-destructive testing market growth stage is medium, and the pace of the market growth is accelerating. The market is fragmented, with the presence of numerous market players. The developments in the technologies related to NDT present numerous growth opportunities to NDT service providers and equipment manufacturers. The recent advancements in robotics have enabled the use of automated crawlers, robots, and drones to carry out NDT in cases where there is a lack of scope for human intervention. For instance, Eddyfi Technologies, a Canada-based company providing NDT solutions, provides high-performance NDT technologies, including sensors, robots, and software.

The target market is also characterized by a high number of product launches by the leading players. For instance, in January 2023, NDT Global, a Previan Technologies, Inc. business unit, announced the introduction of an ultrasonic testing phased array inspection platform, PROTON. The platform offers an advanced diagnosis of data for enhanced pipeline inspection, such as cracks in misaligned welds and dents.

Non-destructive testing agencies and regulatory bodies such as The American Society for Nondestructive Testing (ASNT), American Society for Testing and Materials (ASTM) International, and American Welding Society (AWS), among others, set specific codes, specifications, regulations, standards, and recommended practices, subject to the industry and country performing NDT.

The threat of substitutes in the non-destructive testing market can be considered low because NDT procedures are critical to the component or raw material testing process. Moreover, the benefits offered by NDT techniques in inspecting materials, systems, or components without permanently altering their structure are not provided by other testing/inspection methods.

Numerous sectors, including aerospace and defense, manufacturing, construction, and oil & gas, among others, use NDT solutions and services. For instance, in the automotive industry, NDT is used for inspecting automotive components after heat treating, forging, and machining, ensuring that they meet the required standards. Moreover, NDT can be used to check welds that hold components and body panels together, ensuring there are no defects that could reduce the vehicle's reliability and safety.

Offering Insights

The services segment dominated the market and accounted for the largest revenue share of over 75% in 2022 and is expected to remain dominant over the forecast period. The primary factor that drives end-users to outsource their NDT operations is the significant upfront cost associated with non-destructive equipment, combined with the technical complexities involved in their deployment and installation. Additionally, the shortage of skilled workforce proficient in non-destructive testing acts as another constraint, limiting the widespread adoption of NDT equipment worldwide. Furthermore, stringent government regulations pertaining to workplace safety further encourage end-users to outsource their NDT operations to third-party service providers.

The equipment segment is expected to experience steady growth throughout the forecast period. This growth can be attributed to technological advancements, which have resulted in the availability of state-of-the-art equipment variants. The availability of these advanced variants has broadened the range of applications for non-destructive testing (NDT) equipment, thereby generating additional demand. Moreover, the resurgence of the industrial sector, particularly in emerging economies such as India and China, is anticipated to stimulate new installations of NDT equipment in the coming years.

Test Methods Insights

The non-destructive testing methods include traditional NDT methods anddigital/advanced NDT methods. The traditional test method segment dominated the market and accounted for the largest revenue share of over 80% in 2022. The notable market growth is attributed to the increasing utilization of traditional non-destructive testing methods, including visual testing, magnetic particle testing, liquid penetrant testing, eddy current testing, ultrasonic testing, and radiographic testing. Among these methods, ultrasonic testing stands out as it dominates the market due to its portability, ease of use, and ability to provide precise results compared to other traditional NDT techniques. Consequently, the adoption of ultrasonic testing is experiencing significant growth and is expected to continue improving in the forthcoming years.

Within the digital/advanced NDT method segment, the phased array ultrasonic testing (PAUT) segment accounted for a significant share of 20.0% in 2023. This growth can be attributed to the increasing preference for PAUT over other digital NDT methods. The detailed visualization feature offered by the PAUT method enables the identification of defect size, depth, shape, and orientation. PAUT is considered an advanced version of ultrasonic testing as it employs multiple transducers and sets of ultrasonic testing (UT) probes comprised of numerous smaller elements.

Vertical Insights

The manufacturing vertical segment dominated the NDT market and accounted for the largest revenue share of more than 22% in 2022. The growth is attributed due to ever-increasing volume of manufacturing across the globe. The manufacturing vertical is expected to deploy numerous NDT processes thereby leading to an increase in demand for non-destructive testing services, globally. Moreover, non-destructive testing has been traditionally used extensively in oil and gas applications. Test methods such as ultrasonic and eddy current have been used to detect cracks in the pipes both underground and elevated. However, with increasing awareness, non-destructive testing techniques are being deployed in several other applications such as aerospace, defense, and automotive.

The oil & gas vertical is further sub segmented into Upstream, Midstream, & Downstream. The downstream activities in the oil & gas industry include refining petroleum products to produce end products, such as gasoline and kerosene. Refineries and petrochemical plants work with large volumes of oil flowing through tubing, pressure vessels, storage tanks, and pipes. Hence, downstream oil & gas companies particularly need to ensure the safety of the environment, workers, and the facility by ensuring the integrity of equipment and spot welding.

The power generation segment comprises numerous industries such as power grids and hydroelectric power plants. The segment is expected to witness healthy growth over the forecast period with a CAGR of more than 8.6%. Continuous increase in the power demand in developing nations is the major reason for the considerable adoption rate of NDT techniques in power generation as the use of NDT techniques guarantees faster production rates.

Regional Insights

North America emerged as the dominant segment in 2022 with a revenue share exceeding 36%. This is due to there is widespread acceptance of NDT techniques in various applications, the presence of a proficient workforce, and the presence of multiple non-destructive testing training institutes in the region. Moreover, the growth rate in the region is anticipated to be positively influenced by the utilization of shale oil for power generation in the United States and Canada. Additionally, the increasing emphasis on the application of non-destructive testing (NDT) to prevent unforeseen system failures is expected to drive the regional market.

In Asia Pacific, the market is expected to witness a CAGR of more than 9.3% over the forecast period. This growth is ascribed to an increase in manufacturing, construction, and power generation activities in the region. Despite the current shortage of skilled labor in the region, it is projected to decrease over time as awareness and adoption of non-destructive testing techniques increase in the upcoming years. Furthermore, Middle East, due to the significant presence of the oil and gas industry is expected to be a potential market for NDT techniques.

Key Companies & Market Share Insights

Some of the key players operating in the market include MISTRAS Group, Olympus Corporation, Bureau Veritas, and General Electric.

• General Electric has a diverse set of business units, including GE Power, GE Healthcare, GE Aviation, GE Digital, GE Transportation, GE Renewable Energy, GE Addictive, GE Lighting, GE Capital, GE Global Research, and Baker Hughes, a GE Company (BHGE). BHGE was formed by merging GE Oil & Gas with Baker Hughes Company in July 2017. In 2020, Baker Hughes Digital Solutions' Inspection Technologies division was rebranded as Waygate Technologies.

• MISTRAS Group is a provider of asset protection solutions for evaluating the structural reliability and integrity of critical industrial, public, and energy infrastructure. The company specializes in integrating products and technologies to deliver customized solutions ranging from complex to routine inspections. It offers destructive testing, non-destructive testing, predictive maintenance, and mechanical integrity services.

• Sonatest and Comet Group (YXLON International) are some of the emerging Non-destructive Testing (NDT) manufacturers.

• Sonatest is a provider of non-destructive testing equipment. The company caters to industries such as manufacturing, marine, oil & gas, power generation, chemical, and railways. The company has a research center in Québec City, Canada, and a production facility in Texas, U.S. Moreover, the company’s distributors and agents offer sales and service coverage worldwide.

• YXLON International offers Computed Tomography (CT) and X-ray systems for non-destructive testing and analysis. The company is part of Comet Holding AG, which was founded in 1948, and offers ebeam, radio frequency, and X-ray technology solutions worldwide. The company has a wide range of product portfolios, from modular CT & X-ray systems to fully automated, customized, and complex systems. It also offers training, remote diagnostics, and installation of X-ray & CT systems worldwide.

Recent Developments

• In February 2023, Sonatest announced a collaboration with Echobolt, a U.K.-based operations and maintenance service provider. As part of the collaboration, the company combines its advanced hardware solutions with Echobolt's innovative services to offer Phased Array Ultrasonic Technology (PAUT) to the wind industry. It provides a solution for the inspection of bolts in wind turbines.

• In February 2023, Waygate Technologies, a Baker Hughes business, announced a significant upgrade to its Krautkramer USM 100 ultrasonic testing device. The upgrade includes new features and improvements aimed at enhancing the device's performance and functionality. Krautkramer USM 100 is widely used in non-destructive testing applications across various industries, and the upgrade is intended to provide users with enhanced capabilities and efficiency.

• In May 2021, MISTRAS Group introduced advanced Automated Ultrasonic Testing (AUT) pipeline inspection solutions in the Netherlands. The solution provides enhanced efficiency and safety during inspections.

Non-destructive Testing Market