north american oil and gas nondestructive testing inspection services market loses pace due to oil...
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Research Research PREVIEWPREVIEW for for
Strategic Analysis of the North American Oil and Gas Strategic Analysis of the North American Oil and Gas NDT Inspection Services MarketNDT Inspection Services Market
North American Oil and Gas Nondestructive Testing Inspection Services Market Loses
Pace Due to Oil Price Slump
Key Highlights
Source: Frost & Sullivan analysis.
The North American oil and gas nondestructive testing (NDT) inspection services market is expected to come under pressure due to crude oil prices in the short-term, however the medium-to-long term future of this market is positive. Among the different segments, downstream NDT inspection services is expected to grow the fastest and provide growth opportunities.
The North American oil and gas nondestructive testing (NDT) inspection services market is expected to come under pressure due to crude oil prices in the short-term, however the medium-to-long term future of this market is positive. Among the different segments, downstream NDT inspection services is expected to grow the fastest and provide growth opportunities.
1
The impact of low crude oil prices is expected to be greater on the Canadian oil and gas NDT inspection services market than the United States (US) oil and gas NDT inspection services market, since the break-even point for oil sands production is higher than for shale oil.
The impact of low crude oil prices is expected to be greater on the Canadian oil and gas NDT inspection services market than the United States (US) oil and gas NDT inspection services market, since the break-even point for oil sands production is higher than for shale oil.
2
From a regional perspective, the Bakken Shale region in North Dakota and the Permian basin spread across Texas are the highest-growth markets. In Canada, Alberta is the “king” of the NDT inspection services market but British Columbia is expected to be a growth destination.
From a regional perspective, the Bakken Shale region in North Dakota and the Permian basin spread across Texas are the highest-growth markets. In Canada, Alberta is the “king” of the NDT inspection services market but British Columbia is expected to be a growth destination.
3
The largest participants in the North American oil and gas NDT inspection services market are ACUREN, MISTRAS Group Inc, Team Inc and Applus RTD.
The largest participants in the North American oil and gas NDT inspection services market are ACUREN, MISTRAS Group Inc, Team Inc and Applus RTD.4
Over the next 5-7 years, there are good growth opportunities in the oil and gas NDT inspection services market, however, participants need to balance their revenue streams between capital-expenditure (CAPEX)-driven and operational (OPEX)-expenditure-driven revenue.
Over the next 5-7 years, there are good growth opportunities in the oil and gas NDT inspection services market, however, participants need to balance their revenue streams between capital-expenditure (CAPEX)-driven and operational (OPEX)-expenditure-driven revenue.
5
Drivers and Restraints
Total Oil and Gas NDT Inspection Services Market: Key Market Drivers and Restraints, North America, 2015-2019
Training technicians limits growth potential for NDT inspection service providers
Lack of qualified technicians in Canada and the US limits growth potential for NDT inspection service providers
Low oil and gas prices are curtailing market revenue and growth
1-2 years 3-4 years 5th year
Increasing safety regulations for upstream and midstream infrastructure drives compliance-based inspection activity
Need for investment in the transmission pipelines to support the continued increase in oil and gas production will drive demand for NDT inspection
The need to run assets at higher capacities drives the demand for NDT inspection
Mar
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Dri
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Mar
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Res
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Impact: High Medium LowSource: Frost & Sullivan analysis.
The Full Analysis Features the Following Content
Section Slide Number
Executive Summary 6
Total North American NDT Inspection Services Market Overview
• Market Overview 9
• Market Definitions 11
• Key Questions this Study Will Answer 13
• Market Segmentation 14
• External Challenges: Drivers and Restraints 15
• Forecasts and Trends 24
• Market Engineering Measurements 25
• Forecast Assumptions 26
• Revenue Forecasts 28
• Revenue Forecasts by Vertical 30
• Revenue Forecasts by Region 31
The Full Analysis Features the Following Content (continued)
Section Slide Number
• Top Competitors 33
• Competitive Factors and Assessment 34
United States Oil and Gas NDT Inspection Services Market 35
• Shale Oil and Gas 37
• Forecasts and Trends 44
• Market Engineering Measurements 45
• Revenue Forecast 46
• Revenue Forecast Discussion 48
• Regional Hot Spots 49
• Revenue Forecasts by Vertical Market 50
• Revenue Forecast Discussion by Vertical Market—Upstream Oil and Gas 51
• Revenue Forecast Discussion by Vertical Market—Midstream Oil and Gas 53
• Revenue Forecast Discussion by Vertical Market—Downstream Oil and Gas 55
The Full Analysis Features the Following Content (continued)
Section Slide Number
• Market Share and Competitive Analysis 57
• Market Share 58
• Market Share Analysis 59
• Competitive Environment 61
Canadian Oil and Gas NDT Inspection Services Market 62
• Oil Sands 64
• Forecasts and Trends 68
• Market Engineering Measurements 69
• Revenue Forecast 70
• Revenue Forecast Discussion 72
• Revenue Forecasts by Vertical Market 73
• Revenue Forecast Discussion by Vertical Market—Upstream Oil and Gas 74
• Revenue Forecast Discussion by Vertical Market—Midstream Oil and Gas 76
The Full Analysis Features the Following Content (continued)
Section Slide Number
• Revenue Forecast Discussion by Vertical Market—Downstream Oil and Gas 78
• Market Share and Competitive Analysis 80
• Market Share 81
• Market Share Analysis 82
• Competitive Environment 83
The Last Word 84
Appendix 87
Key Questions the Analysis Answers
What is the current condition of the North American NDT inspection services market? How will oil price volatility affect the market?
What is the current condition of the North American NDT inspection services market? How will oil price volatility affect the market?
What are the market dynamics and impact on market revenue between CAPEX projects and OPEX projects?
What are the market dynamics and impact on market revenue between CAPEX projects and OPEX projects?
Who are the major participants in the US and Canada oil and gas NDT inspection services markets, and what are their market shares? Is the market ripe for mergers and acquisitions?
Who are the major participants in the US and Canada oil and gas NDT inspection services markets, and what are their market shares? Is the market ripe for mergers and acquisitions?
Which is the most important vertical market for NDT inspection services in North America among upstream, midstream and downstream?
Which is the most important vertical market for NDT inspection services in North America among upstream, midstream and downstream?
What are the biggest challenges that market participants need to overcome to achieve growth? What are the key trends that participants should be aware of?
What are the biggest challenges that market participants need to overcome to achieve growth? What are the key trends that participants should be aware of?
What has been the impact of the shale oil and gas revolution on the US NDT inspection services market and the oil sands revolution on the Canadian NDT inspection services market?
What has been the impact of the shale oil and gas revolution on the US NDT inspection services market and the oil sands revolution on the Canadian NDT inspection services market?
Source: Frost & Sullivan
Market Segmentation
9
NDT Inspection Services Market
Technology
Conventional NDT
Advanced NDT
End-user Vertical
Downstream Oil and Gas
Midstream Oil and Gas
Upstream Oil and Gas
Geography
Canada
United States of America
Total Oil and Gas NDT Inspection Services Market: Market Segmentation, North America, 2014
Source: Frost & Sullivan
Revenue Stream
OPEX
CAPEX
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Research Authors
Nikhil JainPrincipal LeadMeasurement
and Instrumentation
Peer Connect Bio@njain109
Vijay MathewProgram Manager
Measurement and
Instrumentation
Jessy CavazosIndustry Director
Measurement and
Instrumentation
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