Nondestructive Testing



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A BCC Research Report MFG016F Use this report to: Understand nondestructive testing (NDT) technology, its products, applications, and key end-user markets Learn why NDT continues to play a leading role in a number of industries and is projected to rebound from recent economic setbacks Identify new market opportunities for NDT equipment as core NDT technologies and applications evolve in important ways and new industries become significant consumers of this technology Evaluate new developments, and technological and business issues that will impact the NDT industry over a 5-year forecast period. T: 866-285-7215, 1-781-489-7301 F: 781-489-7308 sales@bccresearch.com www.bccresearch.com

The total U.S. market for nondestructive testing (NDT) technologies is valued at nearly $2.5 billion in 2010. This market is forecast at more than $2.3 billion in 2015, representing a compound annual growth rate (CAGR) of -0.9% between 2010 and 2015. Introduction testing (NDT) is exactly what its name implies: testing without destroying. More specifically, a nondestructive test is the examination of an object or material in any manner that will not impair its future usefulness. It also is referred to as nondestructive evaluation (NDE) and nondestructive inspection (NDI). In this report, these terms will be used interchangeably. NDT is performed to evaluate the internal and/or external condition of materials, components, and/or structures. It allows an assessment of an item or items for desired characteristics or qualities without damaging or interfering with their continued usefulness. NDT technologies are used in industry to help ensure the integrity and reliability of products being provided to end users. The NDT process can range anywhere from a simple visual inspection to an intricate ultrasonic characterization of microstructures at ambient temperature to a radiography examination of parts during a manufacturing operation. There are eight major methods that are currently at the core of NDT. They are Acoustic Emission (AE), Eddy Current, Infrared and Thermal Imaging, Liquid Penetrant, Magnetic Particle, Radiography, Ultrasonics, Visual, Optical and Photonic. In recent years, a relatively large number of mergers, consolidations, and joint ventures have taken place in the NDT industry. One reason for the consolidations has been a decline in the defense business. As these revenues fell, fewer NDT firms were able to survive in this arena, leading to stronger companies acquiring weaker ones. BCC Research report -MFG016F provides the information about the new industries that only recently have begun to use NDT techniques and are becoming significant consumers of this technology. This revised report identifies recent industry movements and trends, and describes the present state of the NDT industry and the direction in which it is headed. The report is useful to the all the people involved in this industry. The information for the report has been collected through both primary as well as the secondary research methodologies. Like from interviews with manufacturers, universities, and government laboratories, as well as from reviews of secondary sources such as company literature, conference proceedings, and related government data. $ Millions 1,200 1,000 SUMMARY FIGURE U.S. SALES OF NDT SYSTEMS BY END-USER MARKET, 2009-2015 ($ MILLIONS) 800 600 400 200 0 2009 2010 2015 Transportation security Power generation Source: BCC Research LEGEND ($ MILLIONS) Market Sectors 2009 2010 2015 Transportation security 614.0 1,088.6 562.0 414.2 422.4 590.8 268.9 264.5 315.8 Power generation 260.1 276.0 378.0 403.2 409.4 501.9 Total 1,960.4 2,460.9 2,348.5

Scope of Study testing techniques play a crucial role in the manufacturing sector. Preliminary data for 2010 indicate that the U.S. manufacturing sector is recovering. BCC estimates the 2010 market for manufacturing NDT equipment at about $422 million, or 2% more than in 2009. By 2015, the market will exceed $590 million, a 6.9% compound annual growth rate (CAGR) since 2010. The scope of this report is broad and includes: An overview of nondestructive testing (NDT) equipment, including a general overview and definitions Analysis of market trends, including data from 2009, estimates for 2010, and projections of compound annual growth rates (CAGRs) through 2015 Profiles of the major companies actively engaged in the development and manufacture of NDT equipment Discussion of recent and historical patent activity in order to provide the most up-to-date details on technology trends. Table of Contents Chapter One: Introduction Study Goal and Objectives Reasons for Doing The Study Contribution of The Study and for Whom Scope and format Methodology and Information Sources Analysts Credentials Related BCC Publications BCC Online Services Disclaimer Chapter Two: Summary Summary Table U.S. Market for Equipment, Through 2015 Summary Figure U.S. Sales of NDT Systems By Enduser Market, 2009-2015 Chapter Three: Overview Definitions Methods Acoustic Emission (Ae) Eddy Current Infrared and Thermal Imaging Liquid Penetrant Magnetic Particle Radiography Ultrasonics Visual, Optical and Photonic Industry Market Share Table 1 U.S. Acoustic Emission Equipment Market Table 2 U.S. Eddy Current Equipment Market Shares, 2009 (%) Table 3 U.S. Infrared/Thermal Imaging Equipment Market Table 4 U.S. Liquid Penetrant Equipment Market Table 5 U.S. Magnetic Particle Equipment Market Table 6 U.S. X-ray Inspection Market Table 7 U.S. Ultrasonic Equipment Market Shares, 2009 (%) Table 8 U.S. Visual/Optical/Photonic NDT Equipment Market 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. Chapter Four: Technology Overview Acoustic Emission Natural Gas Vehicles Technology Developments and Trends Table 9 Acoustic Emission, November 2006 August 2010 Acoustic Emission Sales Table 10 U.S. Acoustic Emission Sales By End-user Market, Through 2015

Table of Contents, continued The U.S. aerospace industry purchased about $269 million worth of NDT equipment and supplies in 2009, a figure that is projected to decline to $265 million in 2010. By 2015, this sector is expected to be worth nearly $316 million, reflecting a compound annual growth rate (CAGR) of 3.6%. Figure 1 U.S. Acoustic Emission Sales By End-user Market, 2009 2015 Eddy Current Hvac Marine and Industrial Increased Automation Microprocessor Technology Signal Interpretation Remote Field Superconducting Quantum Interference Device (Squid) Hybrid Systems Array Technology Recent Research Photoinductive Imaging (Pi) Pulsed Eddy Current Table 11 Eddy Current Issued Since November 2006 Eddy Current Sales Table 12 U.S. Eddy Current Sales By End-user Market, Through 2015 Figure 2 U.S. Eddy Current Sales By End-user Market, 2009-2015 Infrared and Thermal Electrical and Electronics Focal Plane Arrays (Fpas) Cooling Technology Pulse Echo Thermal Wave Imaging Lock-in Thermography Photothermal Camera Scanning Thermography Ultrasonic Infrared Imaging Table 13 Infrared and Thermal Imaging Issued Since November 2006 Infrared and Thermal Sales Table 14 U.S. Infrared and Thermal Imaging Sales By End-user Market, Through 2015 Figure 3 U.S. Infrared and Thermal Imaging Sales By End-user Market, 2010-2015 Liquid Penetrant Environment and Health Issues Automation Table 15 Liquid Penetrant Technology Issued Since November 2006 Liquid Penetrant Sales Table 16 U.S. Liquid Penetrant Sales By End-user Market, Through 2015 Figure 4 U.S. Liquid Penetrant Sales By End-user Market, 2010-2015 Magnetic Particle Table 17 Magnetic Particle Inspection, 2000-2003 Magnetic Particle Sales Table 18 U.S. Magnetic Particle Sales By End-user Market, Through 2015 Figure 5 U.S. Magnetic Particle Sales By End-user Market, 2010-2015 Radiographic and X-ray Radiography X-ray Diffractometry Electrical and Electronics Security Industrial Equipment Reverse Geometry X-ray (Rgx) Imaging X-ray Movie Camera Microfocus X-ray Microscopy X-ray Diffraction X-ray Fluorescence Neutron Radiography Terahertz Radiation Z Backscatter Radiation Table 19 Radiographic and X-ray System, 2000-2006 Radiography and X-ray Markets Table 20 U.S. Radiographic and X-ray Sales By End-user Market, Through 2015 Figure 6 U.S. Radiographic and X-ray Sales By End-user Market, 2009-2015 Ultrasonic Automation and Computerization Phased-array Technique Resonant Ultrasound Spectroscopy Laser Ultrasound Noncontact Ultrasound Synthetic Aperture Ultrasound Table 21 Ultrasonic, 2000-2006 Ultrasonic Equipment Sales Table 22 U.S. Ultrasonic Sales By End-user Market, Through 2015

Table of Contents, continued Figure 7 U.S. Ultrasonic Sales By End-user Market, 2009-2015 Visual, Optical and Photonic D Sight Edge of Light Miniaturization and Automation Holography Shearography Deep-uv Laser Inspection Optical Coherence Tomography Table 23 Visual and Optical Inspection, 2000-2006 Visual and Optical Inspection Sales Table 24 U.S. Visual and Optical NDT Sales By Enduser Markets, Through 2015 Figure 8 U.S. Visual and Optical NDT Sales By Enduser Markets, 2009-2015 NDT Methods Identification Leak Vibration Analyses 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 Figure 9 U.S. Sales of NDT Systems By End-user Market, 2009-2015 Table 26 U.S. NDT Sales To The Sector By Technology, Through 2015 Figure 10 U.S. NDT Sales To The Sector By Technology, 2009-2015 Table 27 U.S. NDT Sales To The Chemical and Petrochemical Sector By Technology, Through 2015 Figure 11 U.S. NDT Sales To The Chemical and Petrochemical Sector By Technology Type, 2009-2015 Table 28 U.S. NDT Sales To The Sector, By Technology,through 2015 Figure 12 U.S. NDT Sales To The Sector By Technology, 2009-2015 Production Table 29 U.S. NDT Sales To The Sector By Technology, Through 2015 Figure 13 U.S. NDT Sales To The Sector By Technology, 2009-2015 Table 30 U.S. NDT Sales To The Sector By Technology, Through 2015 Figure 14 U.S. NDT Sales To The Sector By Technology, 2009-2015 Transportation Security Table 31 U.S. NDT Sales To The Transportation Security Sector By Technology, Through 2015 Applications Table 32 U.S. NDT Sales To Sectors By Technology, Through 2015 Figure 15 U.S. NDT Sales To Sectors By Technology, 2009-2015 Composites Infrastructure Storage Tanks Transportation Combined Markets According To Technology Table 33 U.S. Sales of NDT Systems, Through 2015 NDT Technology Figure 16 U.S. Sales of NDT Systems, 2000-2015 Appendix: U.S. Based Companies Participating in The NDT Market Table 34 U.S. Based Companies Participating in The NDT Market 160 pages 34 tables Related Reports Microscopy: The Global Market ID: IAS017C Published: 07/09 Industrial Sensor Technologies and Markets ID: IAS006C Published: 11/04 Materials Characterization Instruments ID: IAS015A Published: 06/04 About BCC Research BCC Research is a leading publisher of high-quality, technology market research reports and technical publications. BCC Research reports provide quantified measurements of the market and all major industry segments, as well as in-depth analysis of key market drivers and trends. BCC Subscriptions Access hundreds of published reports and automatically receive newly published research with a BCC Report Subscription. We can tailor a complete package of material that meets your needs and budget. BCC Custom Research Improve your strategic planning efforts with a BCC custom research study. We will work with you to determine what information is needed and deliver specific qualitative and quantitative analysis that supports your business objectives. Call 866-285-7215 or 1-781-489-7301 (Intl), or e- mail sales@bccresearch.com for more information about any of BCC Research s products and services.