Latin America Non-Destructive Testing Equipment Market Outlook – 2027
The Latin America non-destructive testing equipment market size was valued at $144.3 million in 2019, and is projected to reach $268.8 million by 2027, growing at a CAGR of 8.4% from 2020 to 2027. Non-destructive testing (NDT) is the application of measurement techniques to identify defect and discontinuity in material, component, or structure.
The Latin America non-destructive testing equipment market is expected to witness considerable growth due to continuous evolution in robotics, automation, oil & gas, and electronics coupled with a growth in the need for quality-assured machines. Companies need to have quality accredit in accordance with standards such as ISO 9001 quality management system and other quality control assurance certifications. In addition, the number of companies using non-destructive inspection (NDI) to improve processes reduces waste, and limit liability has increased considerably, resulting in growth in the NDT market demand.
The key factor that drives the growth of the Latin America non-destructive testing equipment market includes the need to extend the longevity of the machines. The costs and challenges involved in building new infrastructure have encouraged end-user industries to extend the operational life of their existing infrastructure. In addition, refineries in the Latin America region are increasing their capacity utilization due to the deficiency of refined oil in the global market. The scarcity of refined oil is on account of trade-related sanctions imposed by the U.S. on Iran. Operating the machines at advanced capacities might result in breakdowns. Inspection and maintenance to safeguard these aging assets and run them at high capacities has created a huge demand for NDT equipment in the region.
Aging pipeline infrastructure requires various inspection and integrity equipment/services to ensure safety. Thus, the demand for inspection of aging assets drives the Latin America non-destructive testing equipment market growth. It is expected that the impact of this driver would remain high throughout the Latin America non-destructive testing equipment market forecast period.
The Latin America non-destructive testing equipment market growth is supplemented by the increase in stringent safety government regulations across different regions due to increase in incidences of infrastructural failures, rise in need for extending the life of obsolete infrastructure, maintenance optimization by various industries for efficient operations, and quality/safety assurance. However, high cost of equipment and lack of skilled technicians may impede the Latin America non-destructive testing equipment market share. Increase in usage of advanced materials is expected to provide lucrative Latin America non-destructive testing equipment market opportunity.
By Testing Method
Liquid Penetrant Testing segment would grow at a highest rate of 11.6% during 2020 - 2027
The Latin America non-destructive testing equipment market size is segmented on the basis of testing method, technique, industry vertical, and geography. Based on testing method, it is divided into ultrasonic testing, radiography testing, visual inspection testing, magnetic particle testing & electromagnetic testing, eddy-current testing, liquid penetrant testing, and others.
Volumetric Examination segment will dominate the market throughout the forecast period
Based on non-destructive examination (NDE) techniques, it is categorized into volumetric examination, surface examination, and others. It is classified on the basis of industry vertical into oil & gas, energy & power, aerospace & defense, automotive & transportation, infrastructure, and others. By country, the Latin America non-destructive testing equipment market is analyzed across Argentina, Brazil, Colombia, Mexico, Peru, Chile, and Trinidad & Tobago.
By Industry Vertical
Energy and Power segment will maintain the lead during the forecast period
The key players profiled in the Latin America non-destructive testing equipment industry include Olympus Corporation, Bosello High Technology, Mistras Group Inc., Baker Hughes Company, Fujifilm Corporation, FLIR System, A-Star Testing & Inspection (S) Pte Ltd., Ashtead Technology Inc., General Electric, Sonatest Ltd., Tech-End Industrial Services, Compoende Aeronautica, and SGS SA. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the Latin America non-destructive testing equipment industry.
Chile would exhibit the highest CAGR of 11.6% during 2020 - 2027
The ongoing spread of COVID-19 has become one of the biggest threats to the global economy and is causing widespread concerns and economic hardship for consumers, businesses, and communities across the globe. The “New Normal” that includes social distance and working from home has created challenges with daily activities, regular work, needs, and supplies, causing delayed initiatives and missed opportunities.
The COVID-19 pandemic is impacting the society and overall economy across the global. The impact of this outbreak is growing day-by-day as well as affecting the supply chain. It is creating uncertainty in the stock market, falling business confidence, massive slowing of supply chain, and increasing panic among the customer segments. The European countries under lockdowns have suffered a major loss of business and revenue due to shutdown of manufacturing units in the region. The operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease; thereby, leading to slowdown in the growth of the NDT equipment market in 2020.
The COVID-19 has been impacted severely on the global automotive and industrial sector as the production facility have stalled which in turn have the significant demand in the industries. The symptoms include a large-scale manufacturing interruption across Latin America, disruption in Chinese parts exports, which may hinder the Latin America non-destructive testing equipment market growth.
The emergence of COVID-19 has declined the growth rate of the Latin America non-destructive testing equipment market in 2020, and is estimated witness slow growth by the end of 2021. Implementation of partial or complete lockdown across various countries globally is the prime reason for this decline in the growth rate. As the industries were temporarily shut, it reduced the need of maintenance from various industries. However, the demand from power plants and oil & gas refineries remain to have unaltered effect of COVID-19 pandemic.
Top Impacting Factors
The notable factors positively affecting the Latin America NDT equipment market include increase in oil & gas and power generation projects, stringent safety government regulations, maintenance optimization by various industries to ensure safety and efficient performance of the machines, and rise in need for extending the life of obsolete infrastructure. However, lack of skilled and qualified professionals to handle the NDT equipment hampers the growth of the Latin America non-destructive testing equipment market. Furthermore, increasing use of advance NDT equipment by various industry verticals are expected to offer lucrative opportunities for the market growth in the coming years.
Increase in Oil & Gas and Power Generation Projects
The increased oil & gas and power generation projects, particularly in the nuclear energy sector in Latin America, drive the NDT equipment market significantly, as NDT inspection plays a vital role in the functioning of these two industries. Latin American oil production is dominated by Brazil, Mexico, and Venezuela. These countries are responsible for about 75% of the region's total output and are also giants on the international stage, ranking as the world's 10th, 11th, and 12th-biggest oil producers, respectively.
Lack of Skilled and Qualified Professionals
The lack of skilled technicians is the major restraint for the NDT equipment market. Most technicians required for the inspection process are only certified and do not possess the essential skills to perform inspection at satisfactory levels of quality. In addition, most training institutes are not updated with the latest equipment, and technicians are trained on outdated equipment that has been phased out of the market. This is a major hindrance to the growth of the NDT, since it restricts the adoption of advanced products and technologies.
Increase in Use of Advanced NDT Equipment
Advancement in technology acts as an opportunity in the NDT equipment market as it offers more reliable and accurate inspection data. Advanced technologies in this equipment include eddy-current array and phased array ultrasonic, which provide superior ways of presenting data and generate inspection reports of advanced value to consumers
Key Benefits For Stakeholders
- This study includes the analytical depiction of the Latin America non-destructive testing equipment market forecast along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information regarding the key drivers, restraints, and opportunities in the Latin America non-destructive testing equipment market analysis.
- The Latin America non-destructive testing equipment market trends are quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Latin America Non-Destructive Testing Equipment Market Report Highlights
By Testing Method
By Industry Vertical
Key Market Players
FLIR SYSTEMS, INC., BOSELLO HIGH TECHNOLOGY, TECH-END INDUSTRIAL SERVICES, FUJIFILM CORPORATION, COMPOENDE AERONÁUTICA, OLYMPUS CORPORATION, MISTRAS GROUP, INC., A-STAR TESTING & INSPECTION (S) PTE LTD., SGS SA., BAKER HUGHES COMPANY
The Latin America non-destructive testing equipment market is highly competitive, owing to strong presence of the existing vendors. NDT technology vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by the key vendors.
Latin America NDT equipment market is expected to witness a significant growth with increase in adoption from various industries to improve operations efficiency and government safety regulations across different geographical regions. Technological advancements have augmented the overall industrial development within a wide range of industries. Oil & gas, energy & power, and aerospace & defense are some of the leading sectors (commercial and government agencies), which use NDT techniques to ascertain the quality of end products, related material during manufacturing, and gain operations efficiency.
The energy & power and oil & gas sectors constituted the largest market share due to presence of huge shale oil & gas reserves in the region. In addition, increased energy & power operation, particularly in the nuclear energy sector also drives the NDT equipment market significantly as NDT inspection plays vital role in the functioning of the energy & power sector. Ultrasonic testing currently holds the largest market share; however, radiography testing is expected to surpass ultrasonic testing in the next five years, owing to the decline in average price of ultrasonic test equipment.
The Latin America non-destructive testing equipment market provides numerous growth opportunities to the market players such Olympus Corporation, Bosello High Technology, Mitras Group Inc., Baker Hughes Company, Fujifilm Corporation, FLIR System, and others in the region.