TABLE 8 U.S. VISUAL/OPTICAL/PHOTONIC NDT EQUIPMENT MARKET SHARES, 2009 (%) COMPANY PROFILES Acoustic Emission Consulting, Inc...

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1 CHAPTER ONE: INTRODUCTION... 1 STUDY GOAL AND OBJECTIVES... 1 REASONS FOR DOING THE STUDY... 1 CONTRIBUTION OF THE STUDY AND FOR WHOM... 2 SCOPE AND FORMAT... 2 METHODOLOGY AND INFORMATION SOURCES... 3 ANALYSTS CREDENTIALS... 3 RELATED BCC PUBLICATIONS... 3 BCC ONLINE SERVICES... 4 DISCLAIMER... 4 CHAPTER TWO: SUMMARY... 5 SUMMARY TABLE U.S. MARKET FOR NONDESTRUCTIVE TESTING EQUIPMENT, THROUGH 2015 ($ MILLIONS)... 5 SUMMARY FIGURE U.S. SALES OF NDT SYSTEMS BY END-USER MARKET, ($ MILLIONS)... 6 CHAPTER THREE: OVERVIEW... 7 DEFINITIONS... 7 METHODS... 7 ACOUSTIC EMISSION (AE)... 7 EDDY CURRENT... 7 INFRARED AND THERMAL IMAGING... 8 LIQUID PENETRANT... 8 MAGNETIC PARTICLE... 8 RADIOGRAPHY... 8 ULTRASONICS... 8 VISUAL, OPTICAL AND PHOTONIC TESTING... 9 HISTORY... 9 HISTORY (CONTINUED) INDUSTRY MARKET SHARE TABLE 1 U.S. ACOUSTIC EMISSION EQUIPMENT MARKET SHARES, 2009 (%) TABLE 2 U.S. EDDY CURRENT EQUIPMENT MARKET SHARES, 2009 (%) TABLE 3 U.S. INFRARED/THERMAL IMAGING EQUIPMENT MARKET SHARES, 2009 (%) TABLE 4 U.S. LIQUID PENETRANT EQUIPMENT MARKET SHARES, 2009 (%) TABLE 5 U.S. MAGNETIC PARTICLE EQUIPMENT MARKET SHARES, 2009 (%) TABLE 6 U.S. X-RAY INSPECTION MARKET SHARES, 2009 (%) TABLE 7 U.S. ULTRASONIC EQUIPMENT MARKET SHARES, 2009 (%)... 15

2 TABLE 8 U.S. VISUAL/OPTICAL/PHOTONIC NDT EQUIPMENT MARKET SHARES, 2009 (%) COMPANY PROFILES Acoustic Emission Consulting, Inc AMDATA NDE Technology LLC American Science & Engineering Analogic Corp Ardrox, Inc Bio-Imaging Research, Inc Bruker AXS Chemetall Americas COMET Technologies USA, Inc Eastman Kodak Electrophysics Faxitron X-Ray Corp FLIR Systems, Inc Fluke Corporation Foerster Instruments, Inc Fuji NDT Systems GE Inspection Technologies Instrument Technology, Inc KLA-Tencor Corp L-3 Communications Security & Detection Systems Magnaflux Corp Magnetic Analysis Corp Mikron Infrared, Inc Morpho Detection NDT Systems, Inc Olympus America, Inc Oxford Instruments Measurement Systems, LLC PANalytical, Inc Photon Dynamics, Inc Physical Acoustics Corp PPT Vision, Inc QSA Global Inc QUALITY NETWORK, INC Rapiscan Systems Science Applications International Corp. (SAIC) Sonix, Inc TesTex, Inc Thermo Fisher Scientific Inc Varian Medical Systems YXLON International GmbH Zetec, Inc

3 CHAPTER FOUR: TECHNOLOGY OVERVIEW ACOUSTIC EMISSION ACOUSTIC EMISSION (CONTINUED) HISTORY TYPICAL APPLICATIONS Chemical and Petrochemical Natural Gas Vehicles Power Generation Aerospace Other TECHNOLOGY DEVELOPMENTS AND TRENDS Technology Developments and Trends (Continued) PATENTS TABLE 9 ACOUSTIC EMISSION PATENTS, NOVEMBER 2006 AUGUST ACOUSTIC EMISSION SALES TABLE 10 U.S. ACOUSTIC EMISSION SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 1 U.S. ACOUSTIC EMISSION SALES BY END-USER MARKET, ($ MILLIONS) EDDY CURRENT TESTING HISTORY TYPICAL APPLICATIONS Aerospace Automotive Chemical and Petrochemical HVAC Marine and Industrial Metals Power Generation TECHNOLOGY TRENDS AND DEVELOPMENTS Increased Automation Microprocessor Technology Signal Interpretation Remote Field Testing Superconducting Quantum Interference Device (SQUID) Hybrid Systems Array Technology Recent Research Photoinductive Imaging (PI) Pulsed Eddy Current PATENTS... 58

4 TABLE 11 EDDY CURRENT PATENTS ISSUED SINCE NOVEMBER TABLE 11 (CONTINUED) TABLE 11 (CONTINUED) TABLE 11 (CONTINUED) EDDY CURRENT SALES TABLE 12 U.S. EDDY CURRENT SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 2 U.S. EDDY CURRENT SALES BY END-USER MARKET, ($ MILLIONS) INFRARED AND THERMAL TESTING INFRARED AND THERMAL TESTING (CONTINUED) HISTORY TYPICAL APPLICATIONS Aerospace Chemical and Petrochemical Electrical and Electronics Manufacturing Other TECHNOLOGY TRENDS AND DEVELOPMENTS Focal Plane Arrays (FPAs) Cooling Technology Pulse Echo Thermal Wave Imaging Lock-in Thermography Photothermal Camera Scanning Thermography Ultrasonic Infrared Imaging Other PATENTS TABLE 13 INFRARED AND THERMAL IMAGING PATENTS ISSUED SINCE NOVEMBER INFRARED AND THERMAL TESTING SALES TABLE 14 U.S. INFRARED AND THERMAL IMAGING SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 3 U.S. INFRARED AND THERMAL IMAGING SALES BY END-USER MARKET, ($ MILLIONS) LIQUID PENETRANT TESTING HISTORY TYPICAL APPLICATIONS Aerospace Automotive Metals Other TECHNOLOGY TRENDS AND DEVELOPMENTS... 77

5 Environment and Health Issues Automation PATENTS TABLE 15 LIQUID PENETRANT TECHNOLOGY PATENTS ISSUED SINCE NOVEMBER LIQUID PENETRANT TESTING SALES TABLE 16 U.S. LIQUID PENETRANT SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 4 U.S. LIQUID PENETRANT SALES BY END-USER MARKET, ($ MILLIONS) MAGNETIC PARTICLE TESTING HISTORY TYPICAL APPLICATIONS Aerospace Automotive Chemical and Petrochemical Metals TECHNOLOGY TRENDS AND DEVELOPMENTS PATENTS TABLE 17 MAGNETIC PARTICLE INSPECTION PATENTS, MAGNETIC PARTICLE TESTING SALES TABLE 18 U.S. MAGNETIC PARTICLE SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 5 U.S. MAGNETIC PARTICLE SALES BY END-USER MARKET, ($ MILLIONS) RADIOGRAPHIC AND OTHER X-RAY TESTING RADIOGRAPHY X-RAY DIFFRACTOMETRY HISTORY History (Continued) History (Continued) TYPICAL APPLICATIONS Aerospace Electrical and Electronics Metals Power Generation Security Industrial Equipment Other TECHNOLOGY TRENDS AND DEVELOPMENTS Reverse Geometry X-Ray (RGX) Imaging X-Ray Movie Camera Microfocus X-Ray Microscopy X-Ray Diffraction... 94

6 X-Ray Fluorescence Neutron Radiography Terahertz Radiation Z Backscatter Radiation Other PATENTS TABLE 19 RADIOGRAPHIC AND OTHER X-RAY SYSTEM PATENTS, TABLE 19 (CONTINUED) RADIOGRAPHY AND OTHER X-RAY TESTING MARKETS TABLE 20 U.S. RADIOGRAPHIC AND OTHER X-RAY TESTING SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 6 U.S. RADIOGRAPHIC AND OTHER X-RAY TESTING SALES BY END-USER MARKET, ($ MILLIONS) ULTRASONIC TESTING HISTORY TYPICAL APPLICATIONS Aerospace Chemical and Petrochemical Power Generation Metals Other TECHNOLOGY TRENDS AND DEVELOPMENTS Automation and Computerization Phased-Array Technique Resonant Ultrasound Spectroscopy Laser Ultrasound Noncontact Ultrasound Synthetic Aperture Ultrasound PATENTS TABLE 21 ULTRASONIC PATENTS, ULTRASONIC EQUIPMENT SALES TABLE 22 U.S. ULTRASONIC SALES BY END-USER MARKET, THROUGH 2015 ($ MILLIONS) FIGURE 7 U.S. ULTRASONIC SALES BY END-USER MARKET, ($ MILLIONS) VISUAL, OPTICAL AND PHOTONIC TESTING HISTORY TYPICAL APPLICATIONS Aerospace Automotive Chemical and Petrochemical Manufacturing Metals

7 Power Generation Other TECHNOLOGY TRENDS AND DEVELOPMENTS D Sight Edge of Light Miniaturization and Automation Holography Holography (Continued) Shearography Shearography (Continued) Deep-UV Laser Inspection Optical Coherence Tomography PATENTS TABLE 23 VISUAL AND OPTICAL INSPECTION PATENTS, TABLE 23 (CONTINUED) VISUAL AND OPTICAL INSPECTION SALES TABLE 24 U.S. VISUAL AND OPTICAL NDT SALES BY END-USER MARKETS, THROUGH 2015 ($ MILLIONS) FIGURE 8 U.S. VISUAL AND OPTICAL NDT SALES BY END-USER MARKETS, ($ MILLIONS) OTHER NDT METHODS IDENTIFICATION TESTING LEAK TESTING VIBRATION ANALYSES OTHER TECHNIQUES Electrochemical Noise Electrochemical Fatigue Capacitive Coupling Voltage Contrast Imaging Permanent Magnetic Field Perturbation CHAPTER FIVE: MARKETS SUMMARY TABLE 25 U.S. SALES OF NDT SYSTEMS BY END-USER MARKETS, THROUGH 2015 ($ MILLIONS) FIGURE 9 U.S. SALES OF NDT SYSTEMS BY END-USER MARKET, ($ MILLIONS) AEROSPACE TABLE 26 U.S. NDT SALES TO THE AEROSPACE SECTOR BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) FIGURE 10 U.S. NDT SALES TO THE AEROSPACE SECTOR BY TECHNOLOGY, ($ MILLIONS) Aerospace (Continued) CHEMICAL AND PETROCHEMICAL

8 TABLE 27 U.S. NDT SALES TO THE CHEMICAL AND PETROCHEMICAL SECTOR BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) FIGURE 11 U.S. NDT SALES TO THE CHEMICAL AND PETROCHEMICAL SECTOR BY TECHNOLOGY TYPE, ($ MILLIONS) MANUFACTURING TABLE 28 U.S. NDT SALES TO THE MANUFACTURING SECTOR, BY TECHNOLOGY,THROUGH 2015 ($ MILLIONS) FIGURE 12 U.S. NDT SALES TO THE MANUFACTURING SECTOR BY TECHNOLOGY, ($ MILLIONS) Manufacturing (Continued) Manufacturing (Continued) METALS PRODUCTION TABLE 29 U.S. NDT SALES TO THE METALS SECTOR BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) FIGURE 13 U.S. NDT SALES TO THE METALS SECTOR BY TECHNOLOGY, ($ MILLIONS) POWER GENERATION TABLE 30 U.S. NDT SALES TO THE POWER GENERATION SECTOR BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) FIGURE 14 U.S. NDT SALES TO THE POWER GENERATION SECTOR BY TECHNOLOGY, ($ MILLIONS) TRANSPORTATION SECURITY TABLE 31 U.S. NDT SALES TO THE TRANSPORTATION SECURITY SECTOR BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) OTHER APPLICATIONS TABLE 32 U.S. NDT SALES TO OTHER SECTORS BY TECHNOLOGY, THROUGH 2015 ($ MILLIONS) FIGURE 15 U.S. NDT SALES TO OTHER SECTORS BY TECHNOLOGY, ($ MILLIONS) Composites Infrastructure Storage Tanks Transportation COMBINED MARKETS ACCORDING TO TECHNOLOGY TABLE 33 U.S. SALES OF NDT SYSTEMS, THROUGH 2015 ($ MILLIONS) NDT TECHNOLOGY FIGURE 16 U.S. SALES OF NDT SYSTEMS, ($ MILLIONS) APPENDIX: U.S. BASED COMPANIES PARTICIPATING IN THE NDT MARKET TABLE 34 U.S. BASED COMPANIES PARTICIPATING IN THE NDT MARKET

9 TABLE 34 (CONTINUED) TABLE 34 (CONTINUED) TABLE 34 (CONTINUED) TABLE 34 (CONTINUED) TABLE 34 (CONTINUED) TABLE 34 (CONTINUED) TABLE 34 (CONTINUED)

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