Table of Contents
The Need for Intelligence and Better Analysis in NDT Software Drives the Market
This market insight provides an overview of the global non-destructive test (NDT) software market, which is closely correlated to the NDT equipment market. The service examines market drivers and restraints. It also contains an analysis of Porter's five forces, a revenue forecast, the market’s competitive structure, and percent revenue forecasts that are broken down by region and segment. Regions covered include North America, Europe, Asia-Pacific, and Rest of World. Segments include standard software and customized software. The base year is 2012, with a forecast period of 2013 to 2017.
•The global non-destructive test (NDT) software market generated revenue of $X million in 2012. The market is likely to grow at a compound annual growth rate (CAGR) ofX% from 2012 to 2017.
•Market participants are classified into X segments. The first segment covers NDT equipment manufacturers that sell software along with equipment, and the second segment covers the pure-play software companies that deliver customized solutions to end users.
•The global NDT software market will follow the growth patterns of the global NDT equipment market. Software packages sold along with NDT equipment are the fastest way to capture sizeable market opportunities and shares.
•The standard software sold with NDT equipment is dominated by leading NDT equipment manufacturers such as GE Measurement and Control Solutions, Olympus NDT, YXLON International GmbH , Sonatest PLC, Technology Design Ltd, Sonotron NDT, Carestream, Nikon Metrology, Fujifilm NDT, and Magnetic Analysis Corp.
•The top 9 market participants are multinational NDT equipment manufacturers that have strong positions in the total NDT market, including in software. Tier I companies have exhibited organic growth in the global NDT software market through sales of NDT equipment.
•Research indicates that the customized software segment is likely to become highly competitive because end users, such as those in aerospace and oil and gas (O&G), prefer using tailored software packages based on their manufacturing and quality inspection processes.
Rest of World
Porter’s 5 Forces Analysis
Threat of Substitute Services: None
The need to meet quality standards and increase efficiency in manufacturing and monitoring processes bolsters the need for software in the NDT market. Demand for sophisticated three-dimensional (3D), simulation-based solutions for the aerospace industry spearheads the NDT software market. NDT software providers have increased their research and development (R&D) to produce sophisticated software for end users. Such demand will continue to bring more business opportunities for NDT software providers. A wide presence of leading NDT equipment manufacturers is expected to dominate the market. Hence, the threat of substitute services does not exist.
Bargaining Power of Customers: Very Low
Software is delivered along with the equipment. Bifurcation of costs is not provided to clients and, as a result, the bargaining power of customers is extremely low.
Customized software solutions are provided by pure-play software companies. Such companies give away discounts to end users in order to grow their customer base and revenues. As a result, bargaining power is generally high in this segment. The customized software solutions segment generates 18% of the global NDT software market. As revenue generated from customized software solutions is extremely low, the customers of for these solutions are not likely to have a great impact on the NDT software market.
Threat of New Entrants: Low
There are a number of NDT software market participants, and barriers to entry are very low. Costs of developing a product are high, and a strong R&D team is required to create a product to compete with Tier I NDT equipment manufacturers that sell software packages with their equipment. In this scenario, a new entrant is likely to face huge challenges when competing against Tier I NDT providers. As a result, the threat of new entrants is estimated to be low.
Bargaining Power of Suppliers: Low
For standard software packages, splitting prices between software and equipment is not an option for end users. Therefore, high competition in the NDT equipment market controls the bargaining power of suppliers, which is low.
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