Market Trends of NDT Industry For Infrastructure Industry
Growing Investment in Construction Sector to Drive the Market's Growth
- The application of nondestructive testing in the construction industry is broad. NDT testing helps designers, contractors, construction engineers, and contractors verify the quality and integrity of built structures and various building materials and identify and quantify potential defects.
- Construction industry investments have grown significantly in the last few decades, especially across emerging countries. Increasing urbanization, industrialization, and various government initiatives to provide homes to economically weak people are among the primary factors driving investment in the construction industry.
- One of the key factors influencing the market is the ongoing investment by numerous governments in various infrastructure development projects. For instance, the Turkish government spent USD 325 billion on infrastructure projects in 2021, including investments in the country's transportation system and a rise in the need for earthmoving and road construction equipment.
- According to the Population Reference Bureau (PRB), in 2022, about 57 percent of people stayed in urban areas worldwide. In terms of region, North America has the highest (83) percentage of the population remaining in urban areas, followed by the Latin America and Caribean region (81 percent). Such trends drive the demand for new buildings and other supporting infrastructures, creating growth opportunities in the studied market.
- The need for construction and infrastructure development will also continue to rise in line with Saudi Arabia's Vision 2030 as the public and private sectors increase focus. Large-scale initiatives seek to expand employment opportunities, diversify the economy, and give lower-income groups housing options.
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Asia-Pacific to Hold a Significant Market Share
- The Asia-Pacific region's strong presence in the industrial sector and rapid advancements in infrastructure projects are anticipated to provide significant growth opportunities for nondestructive testing services. Specifically, China, Japan, South Korea, India, Singapore, and Australia are expected to create huge potential for the nondestructive demand for infrastructure industry solutions in the coming years.
- For instance, according to a 2022 survey report by Infrastructure Partnerships Australia, about 88% of the investors indicated they are 'highly likely to invest in the Australian infrastructure sector. According to 84 percent of the investors, Australia's track record for knowledge of market participants, infrastructure, and economic stability are among the most important factors making Australia an attractive investment destination.
- Similarly, India's increased emphasis on infrastructure development is drawing domestic and foreign players. In the nation, the private sector is growing to be a significant player in various infrastructure sectors, from power and airports to communications and roads.
- In addition, by 2022, India was anticipated to overtake China as the third-largest construction market worldwide. (as per IBEF). To ensure sustainable development in the area, the nation intends to invest USD 1.4 trillion in infrastructure projects through the National Infrastructure Pipeline (NIP) between 2019 and 2023.
- Additionally, the Indian government announced in February 2021 that it would spend INR 7.5 trillion (USD 102.49 billion) on oil and gas infrastructure over the next five years, which is anticipated to increase demand for NDT equipment. By 2023, USD 58 billion would be spent on oil and gas exploration and production; the remaining sum might be used to build the infrastructure needed to transport and distribute natural gas, including pipelines, import terminals, and city gas distribution networks, by 2024.
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