Beyond BRIC: Exploring the Next Game

Changers for the NDT Industry

The new North American oil boom and the unending Middle Eastern oil
supply present significant growth opportunities

Nikhil Jain, Senior Research Analyst

Measurement and Instrumentation

2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Focus PointsKey Questions this Webinar will Answer

Which are the emerging NDT markets with greatest growth opportunities globally?

Which are the industries in these markets that offer greatest opportunity for growth?

What are the trends and challenges in these markets?

Which markets are ripe for acquisitions?

Market Snapshot
NDT Inspection Services Market

$ 11,700
million

$ 7,900

OPEX

CAPEX

(Operational Expenditure)

(Capital Expenditure)

million

Recurring Revenue for Service Providers

High risk high revenue market

Not impacted by economic downturn or

crisis

Dependent on the investment from end

user industries in new projects

Revenue growth relatively lower when

compared with CAPEX

Severely affected by an economic

uncertainty
Barriers to entry low with a new company
able to penetrate this segment relatively
easily

Barriers to entry high as there are rolling

contracts and growth opportunities limited

2013

Drivers

2018

Government Safety Regulations

Training Technicians

Corrosion Issues with Aging Infrastructure

Lack of Skilled Technicians

Need to Run Assets at Higher Capacities

European economic crisis and civil

unrest in MENA

Restraints
High Oil and Gas Prices
Source: Frost & Sullivan

Market OpportunityGrowth Regions

Beyond BRIC: Focus on high growth regions of Middle East Africa and North America. Asia
Pacific, especially South East Asia and Australia also offer growth opportunities

EU
North America

2013

2018

CAGR (2010-2020): 4.5%

2013

2018

Asia Pacific

Middle East &

Africa

CAGR (2013-2018): 8%

2013

2018

CAGR (2013-2018): 8.5%

Latin
America

2013

2018

CAGR (2013-2018): 13%

2013

2018

CAGR (2013-2018): 5.5%

Source: Frost & Sullivan

Market OpportunityGrowth Regions

Oil and Gas industry the biggest driver for NDT inspection services with emerging producers
such as Canada, Indonesia, and Australia offering growth opportunities

USA
Canada

United
Kingdom

USA
Iraq
Algeria Libya

Saudi
Arabia

UAE

Oman

Nigeria

Indonesia

Brazil

Australia

Base Year Revenue

Growth 15-20%
Base Year Revenue
Growth 10-15%

South
Africa

Source: Frost & Sullivan

Register for this Webcast

Live Webcast
Tuesday, April 22, 2014
11:00am EDT/4:00 pm BST
https://www.brighttalk.com/webcast/5568/107881

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For Additional Information

Jeannette Garcia
Corporate Communications
Measurement and Instrumentation
+1 (210) 477-8427
Jeannette.garcia@frost.com

Nikhil Jain
Senior Research Analyst
Measurement and Instrumentation
+91 (44) 6681 4013
NikhilJ@frost.com

Vijay Mathew
Program Manager
Measurement and Instrumentation
+91 (44) 6681 4014
Vijay.mathew@frost.com

Derek Seckinger
Director Strategic Accounts
Measurement and Instrumentation
+1 (210) 348-1000
Derek.seckinger@frost.com