Ultrasonic testing is a type of non-destructive testing equipment. An ultrasonic test is conducted to investigate any damage or defects in a product or material. The inspection reveals flaws in the manufacturing process of various sectors such as aerospace & defense, automobile, and wind energy. The major application of ultrasonic testing is in the inspection wall thickness measurement gap, detection of invisible cracks, and identifying discontinuities in metals. The global ultrasonic NDT equipment market is characterized by the presence of several global, regional, and local vendors that manufacture non-destructive equipment for ultrasonic testing to meet the changing customer demands in aerospace, automotive, and manufacturing industries. The ultrasonic NDT equipment market is largely dominated by a few players including Olympus Corporation, GE Inspection, NDT Systems, and Sonatest Ltd, competing to gain considerable market share. Strong competition, rapid advances in ultrasonic and video testing technology, and frequent changes in government policies are key factors that determine the market growth. The vendors compete based on cost, product quality, reliability, and services. It is crucial for the vendors to provide cost-efficient and high-quality products to sustain in an intensely competitive market.
Wantstats includes following key players for ultrasonic NDT equipment market research study: GE Inspection Technologies LP, Olympus Corporation, Sonatest NDE Ltd, Eddyfi NDT Inc, Danatronics Corporation, James Instruments Inc, NDT Systems Inc, PaR Systems LLC, Qualitest International Inc, Sonotron NDT Ltd, Sonotec GmbH, and PCE Holdings GmbH. The competitive benchmarking analysis is derived by considering various factors such as financial position, segmental R&D investment, product innovations, corporate strength, product portfolio, strategy analysis, and key innovations in the market, among other factors.
GE Inspection Technologies is one of the leading players in the ultrasonic NDT equipment market. The company designs and manufactures ultrasonic NDT equipment products such as flaw detectors, thickness gauges, transducers, installed sensors, and testing machines. The company is well diversified both in terms of business operations and end markets that it serves. The company has its operations in various countries across the globe such as the US and Canada among others.
Olympus Corporation is leading the ultrasonic NDT equipment market. The company manufactures and sells precision machinery and instruments worldwide. The company's R&D expenditure accounted for 10.1% of the net sales in 2018. The company's significant R&D capabilities allowed it to develop various new products in the recent times. The company has its operations across various countries such as Korea, India, China, Japan, and the US among others.
Another major manufacturer, Sonatest is headquartered in Milton Keynes, UK, and manufactures ultrasonic nondestructive testing instruments. The company provides flaw detectors, phased arrays, thickness gauges, coating gauges, transducers among others for oil & gas and petroleum markets.
Other companies are also providing a wide range of solutions related to the ultrasonic NDT equipment market, thereby contributing to generating high market value for the same.
Threat of New Entrants
New players can enter the global ultrasonic NDT market in a number of ways—companies that manufacture components for ultrasonic NDT equipment have a greater advantage to enter the market as they are directly associated with the manufacturing of the final product. Technology providers can also act as the new entrants in the market. Apart from these, mergers and acquisitions and product diversification by other companies could also lead to the entry of new players in the market. However, inaccurate detection of discontinuities can lead to system failure and downtime, thereby increasing operational costs; thus, the development of ultrasonic NDT equipment requires technical expertise which is available only to the current players. Also, the initial capital investment is high, which increases the barriers to enter the market. Hence, from the viewpoint of end-to-end manufacturers, the threat of new entrants is estimated to be moderate. Bargaining Power of Suppliers
The bargaining power of suppliers in the ultrasonic NDT equipment market is considered to be high. Suppliers in this market include the manufacturers of various electronic components that are integrated to develop ultrasonic NDT equipment. The ultrasonic NDT equipment manufacturers either manufacture these components in-house or procure them from other companies. Moreover, the costs incurred in the procurement of these components across vendors is slightly differentiated which negatively impacts the bargaining power of suppliers. Also, the high technical expertise required for the manufacturing of these equipment limits the number of component suppliers in the market. Thus, the existing players dominate the market as they already own a strong supply chain. Considering all the aforesaid facts, the suppliers’ power from the viewpoint of manufacturers is projected to be moderate during the forecast period. Threat of Substitutes
The threat of substitutes in the global ultrasonic NDT equipment market is expected to be low during the forecast period. Over the years, ultrasonic testing has become a better alternative for radiography testing as this method tends to efficiently detect planar and volumetric flaws when compared with radiography testing. Moreover, ultrasonic testing neither emits radiation nor generates any chemical or waste material, unlike radiography testing. It has also been accepted as a replacement for radiography by major organizations such as the American Society of Mechanical Engineers (ASME) and the American Petroleum Institute (API). Hence, the ultrasonic non-destructive testing is not expected to be replaced by any other testing method in the near future. Bargaining Power of Buyers
The buyers of ultrasonic NDT equipment comprise numerous small- and medium-scale manufacturers as well as large manufacturers from a number of industry verticals including automotive, power & utilities, oil & gas, aerospace & defense, infrastructure, manufacturing, marine & maritime, mining & metals, food & beverages, and plastic & paper. The buyers have multiple options to choose between the manufacturers of ultrasonic NDT equipment. These buyers primarily focus on the brand and the technology integrated in the testing equipment. Apart from these, the technically upgraded product also acts as a major factor affecting the buying decision. Due to the aforesaid reasons, the buyers’ power to bargain is expected to be high. Intensity of Rivalry
The rivalry between the existing players in the global ultrasonic NDT equipment market is projected to be high. The market is expected to register significant growth during the forecast period along with intense competition among the existing players in the market. The market players are focused on continuously providing start-of-the-art equipment to their customers. This has encouraged them to invest more in research and development to innovate and upgrade their existing product line of ultrasonic NDT equipment. Moreover, these manufacturers are developing policies to penetrate in different geographies by partnering with local and regional vendors of ultrasonic NDT equipment.
