|NDT.net||July 2004, Vol. 9 No.07|
(See also Press Release)
Frost & Sullivan, a global Growth Consulting firm, has recently completed analysis on the World Nondestructive Test Equipment Markets, reveals that revenues in this market totaled $724.3 million in 2003 and are projected to reach $1.03 billion by 2010.
Consolidation Trend in Industry Portends ChallengesOne of the key trends witnessed in the World NDT equipment market over the past few years has been of industry-wide consolidation. Consolidation has posed a number of challenges for both consolidated companies as well as their competitors. For the consolidated companies, some of the major challenges include need to integrate operating styles, as well as managing stakeholder demands. Further consolidation typically results in larger sized organizations with the financial might to invest in new technologies and products, global reach to meet myriad customer requirements, as well as the ability to significantly influence product prices. The prospect of taking on significantly larger corporate entities poses a strong challenge for the comparatively smaller sized competitors.
Drive to Improve Quality, Asset Life and ThroughputQuality and throughput have become nearly given aspects among end-users of NDT equipment. ISO 9000 has no longer become a differentiator between end-user companies, it has become an essential for business success. While improving product quality has always been an important goal for manufacturers, it takes on greater significance in today's market conditions of increasing competition and the resultant ease of securing alternatives for customers. Further, with customers becoming increasingly price conscious and their growing expectations of residual life of their investments, it becomes imperative that manufacturers focus on the durability and longetivity of their products to customer. End-users are increasingly recognizing that NDT techniques are not only a means to ensure improved quality and safety, but also ensures optimization of costs at the source. This drive for enhancement of productivity and quality are expected to continue to propel growth for NDT equipment over the forecast period.
Rapid Pace of Industrial Growth in Emerging Markets Portends OpportunitiesThe rapid growth of economies in the Asia Pacific and East European countries over the past decade has resulted in incremental industrial activity in the region. Markets such as China, Korea, India and South east asian countries, as well as Russia, Hungary, Poland, Romania, Ukraine and other former CIS countries. In addition to increasingly professional management of manufacturing in the region, there has also been a growing focus on improving quality of produce to cater to both export as well as vast domestic market. With the well established engineering skills of manpower in the region, company's are willing to adopt advancement of NDT technologies, as they play a more significant role in the decision make process. With the continued growth of industrial activity in the aforementioned markets, growth in demand for NDT equipment is expected to be strong over the forecast period.
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