Government safety compliance helped offset slow demand from construction sites.
Los Angeles, CA (PRWEB) November 15, 2013
From manufacturing plants and construction sites to nuclear power plants, oil refineries and shipyards, nondestructive testing (NDT) is used for numerous applications across a wide range of industries. NDT services are used to detect flaws, cracks, variations and minute changes in structures and surface finish without damaging the products being tested. Rapidly changing technology and the increasing complexity of products and processes that need testing have boosted demand for industry services. Also, strict government regulation relating to health, safety and the protection of the environment continues to drive industry revenue growth.
In the five years to 2013, despite the economic recession and its impact on the general economy, industry revenue grew an estimated 5.0% per year on average to $966.8 million. According to IBISWorld Industry Analyst Jeremy Edwards, “Although there was less new construction and many projects were stalled over the five-year period, the need for compliance with government safety regulations helped mitigate industry revenue declines relating to construction site inspections.” However, the industry was not completely immune to the recession and revenue declined 3.4% in 2009. The recession caused some industrial plants in the Non-Destructive Testing Services industry to close and forced others to postpone or reduce maintenance expenditures. Nonetheless, industry revenue rebounded in 2010 and has continued to grow since. Demand from oil and gas extraction companies has assisted this strong growth. IBISWorld estimates revenue will increase 7.0% in 2013, driven by rising industrial activity that will require NDT services.
“The industry's rapid expansion will continue in the five years to 2018,” says Edwards. Continuing technological innovation will make NDT services more cost effective and efficient for end users, thus boosting demand for industry services. Greater demand will, in turn, lure more entrants into the industry. The industry will also continue to consolidate as large firms seek to expand their geographic reach and enter niche markets by acquiring smaller firms.
The four largest companies in the industry offer a variety of non-destructive testing (NDT) services with certified personnel that regulators and corporations can rely on. Because such downstream clients have increasingly been looking for one-stop shops for NDT services, industry market share concentration is rising. Larger players are expanding by hiring more certified personnel or acquiring smaller firms, through which they are able to expand their products and services to new markets and work with a larger number of industries.
Furthermore, the largest firms in the industry are most likely to win the most lucrative contracts because of relationships with large industries. This includes providing testing services for oil and gas, industrial, aerospace and defense. Over the next five years, the largest industry firms are expected to increase their market share through further acquisitions and organic growth.
For more information, visit IBISWorld’s Non-Destructive Testing Services in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry includes companies that primarily perform nondestructive tests and inspections on industrial assets. It excludes medical tests, as well as nondestructive testing equipment manufacturing.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.