LONDON, June 9, 2016 /PRNewswire/ -- Gamma radiography is severely challenged to hold on to its share in the non-destructive testing (NDT) market as the sustained depression in oil prices curtails investment from the oil industry. Since oil and gas represents more than 50 percent of the global demand for gamma NDT radioactive sources, the price decline of over 65 percent for oil within the last year has hit market growth significantly. Before the dramatic decline in oil prices, this market was forecast to grow by over 4 percent, but the current outlook is tepid, almost bleak, for most regions.
New analysis from Frost & Sullivan, Strategic Analysis of the Global Gamma Non-destructive Testing (NDT) Radioactive Sources Market (http://frost.ly/fo), finds that the market volume was at 19,622 sources in 2015 and estimates this to reach 20,813 by 2020. The study covers Iridium-192, Selenium-75 and Cobalt-60 sources.
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"Research shows that below $50-a-barrel, drilling activity declines by over 30 percent, directly impacting budget allocations in the oil and gas industry. For the first time since 1986, there is a double dip in capital expenditure budgets with reductions for 2015 and 2016," noted Frost & Sullivan Measurement and Instrumentation Principal Lead Nikhil Jain. "While this will reduce demand for gamma NDT radioactive sources, the continuing need for radioactive sources that can generate electromagnetic radiation without electricity will sustain the market."
Gamma radiography will still be in demand for applications in remote locations, where there is little or minimal access to electricity. While competing x-ray generators require electricity to produce radiation, radioactive sources can produce up to 1,000 kilovolts without electricity.
Among gamma radiation sources, Selenium-75 is expected to provide growth opportunities in the long term due to a softer gamma ray spectrum than Iridium-192. This trend has been more pronounced in Europe due to stringent safety regulations. As such, Iridium-192 and Cobalt-60 will be phased out within the next 15 years.
"In terms of unit shipment, the impact of migration to Selenium-75 sources may not be very prominent," added Jain. "But Selenium-75 sources are priced at almost 1.5 to 2 times that of Iridium-192 sources, presenting the potential for robust revenues."
Strategic Analysis of the Global Gamma Non-destructive Testing (NDT) Radioactive Sources Market is part of the Test and Measurement (http://frost.ly/fp) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the Global Non-destructive Test Equipment Market, Analysis of the Industrial Digital X-ray Inspection Systems Market, Industrial X-ray Film Market, Analysis of the Global NDT Training Services Market, Analysis of the Emerging and Non-traditional Non-destructive Testing Equipment Market, Analysis of Global NDT Software Market, and Strategic Analysis of the North American Oil and Gas NDT Inspection Services Market, among others. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Strategic Analysis of the Global Gamma Nondestructive Testing (NDT) Radioactive Sources Market
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SOURCE Frost & Sullivan