The ultrasonic testing (UT) equipment market is expected to register a compound annual growth rate of 7.5% over the next five years according to Ultrasonic NDT Testing Equipment Market – Growth, Trends, Forecasts (2020-2025), published in October 2020 by Research and Markets. Developing countries continue to consume vast amounts of natural gas, while the demand is increasing in developed countries, as well. This increased demand is causing the expansion of pipelines and refineries resulting in a surge in the UT market.
Infrastructure and Safety Drive Growth
- The major drivers for the UT equipment market’s growth include increasing investments in infrastructure-related activities, government safety regulations, and the mandated use of NDT techniques for gaining clearances. One of the challenges faced by societies worldwide is creating and sustaining an adequate and safe infrastructure to meet the future population’s needs.
- Increasing safety regulations across various end-users and countries is expected to increase NDT technology demand. Several governmental agencies and regional bodies worldwide formulated stringent measures, primarily for assuring the safety of buildings. These measures have mandated the use of NDT and other evaluation techniques for conducting fitness checks. For example, regulations mandating worker safety due to the increasing instances of infrastructure failures, such as refinery blasts, leakages in nuclear reactors, and pipeline explosions in recent years, have prompted governments across the world to enact stringent safety regulations, thus, driving increased need for UT equipment.
- The Internet of Things (IoT) solutions are being increasingly adopted across industries to optimize operations and productivity, and to safeguard the environment. Intense competition has caused industries such as manufacturing, oil and gas, food and beverage, utilities, and many more to increase their investment in new technologies that leverage the capabilities of IoT, cloud, and Big Data analytics so they can enhance innovation and maximize return on assets.
- With the advent of Industry 4.0, trends such as Industrial IoT, smart manufacturing, smart factory, predictive manufacturing, industrial robots, and sensors have made IoT the backbone of these industries. It enables remote monitoring, continuous scanning capabilities from equipment on the factory floor, real-time analysis, and support of new capabilities such as predictive and continuous maintenance.
- The studied market is witnessing a decline in growth as end-user industries such as automotive, oil and gas, construction, and others have been impacted due to COVID-19 lockdowns and other social-distancing norms. According to the Ministry of Statistic and Program Institute India, the impact of COVID-19 on gross value added in the construction, manufacturing, and mining sector has accounted for reductions of –13.3%, –6.3%, and –14.7%, respectively. The decline in the growth of these industries has reduced the demand for NDT activities that impact market growth.
Railways Emerge as Significant Consumer for UT Equipment
- With increasing speeds, railways are facing more risk causing railway companies to look for newer solutions to monitor fatigue caused by wear and tear. UT equipment has been adopted to study the tracks and wheels for fatigue.
- Regular and sound diagnostics, coupled with the timely detection of rail defects at early stages, are key elements of the railway transport management system. NDT methods such as UT are gaining widespread prevalence in railway infrastructure for the detection of rail defects, such as transverse cracks, head checks, and other internal defects.
- With the expansion of the network, companies are looking for more cost-effective and real-time detection and analysis techniques. UT equipment will likely become a key component of railway testing and maintenance procedures. China and India have a combined railway network of more than 170 000 km and are the major regions for UT equipment demand in railway applications.
- In March 2020, the BhilaiSteel Plant in India ramped up its production facilities to meet the Indian Railways’ requirement for high-speed trains, metro trains, doubling and gauge conversion of railway tracks, as well as for track renewals and laying of new lines. The plant produced 11.65 lakh metric ton of rails in the financial year 2019-2020. The plant is equipped with online NDT equipment—UT and eddy current testing, among others—for inspection and testing of the produced rails.
United States Expected to Dominate the Market
- North America is expected to command a prominent share of the market demand owing to the increasing use of testing technology for predictive maintenance, growing adoption in the oil and gas sector, and growing safety regulations in various industries.
- The US government is planning to invest highly in the infrastructure sector. According to Bank of America, city infrastructure investment in the country is expected to record the highest in the transit industry, where industry players can target potential consumers.
- Many players in the market are launching new UT products in order to increase their market share through advanced and enhanced features.
- The US comprises the most significant market for defense equipment, aircraft systems, and services in the world. According to the General Aviation Manufacturers Association, the US manufacturers were responsible for 66.42% of worldwide shipments in 2019. UT is the most common subsurface technique, primarily used to detect defects in welds, fittings, joints, bolts, and adhesive bond quality.
The Competitive Landscape
- The UT equipment market is highly consolidated. It is dominated by a few major players such as Baker Hughes, GE Measurement and Control, Intertek Group PKC, Olympus Corporation, and Russell Fraser Sales Pty Ltd. These companies, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. They are leveraging strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, midsize to small companies are growing their market presence by securing new contracts and tapping new markets.
- October 2020—Testia (an Airbus company) and Joramco collaborated on launching a new version of the inspection tool, SmartUE1. It combines both UT and eddy current testing. In addition, six other modules are available to detect various types of indications such as delaminations, disbondings, fatigue cracks, and lack of cladding, as well as measuring thickness, coatings, and conductivity. It can also offer a remote assistance connection, linking the operator in the field with a remote expert for collaboration.
- August 2020—SONOTEC launched a contactless UT system, the SONOAIR R&D system. It is able to detect the most common discontinuities in test objects where the use of conventional liquid-coupled UT systems is not possible. Multilayer glass and carbon-fiber composites with foam or honeycomb cores can be inspected for delaminations, air inclusions, kissing bonds, or impact damages. Air-coupled UT of plastics, ceramics, concrete, wood, and other structures is also possible.
The full report is available on the Research and Markets website.
Great article to where the market is heading.