NDTMA 2016 Annual Conference

3DVisualiza+onToolfortheNDTMarketplace

Bruce A. Pellegrino Vice President - Marketing Sensor Networks, Inc. Boalsburg, PA

GoldenNuggetHotel,LasVegas,NVFebruary16-18,2016

NDTMA 2016 Annual Conference

GoldenNuggetHotel,LasVegas,NVFebruary16-18,2016

Today’sAgenda1.  NDTMarketRevisited2.  What&Why3D?3.  ModelingtheMarket4.  Conclusions

“Only the dead know NY City” Pete Hamill

A Drinking Life

“Only the dead know NDT” Bruce Pellegrino

An NDT life

GeHng calibrated: NDT Products and Services is a very fragmented, global, ~ $10 Billion / Year Market

§  CAGRof~6%§  Ex:FactoryIn-house§  Oil&Gasis65%ofServices§  NDTServices$≈LVGaming$Source: Frost & Sullivan – Various Reports

[CATEGORYNAME]$480

RT$525

[CATEGORYNAME]$225

[CATEGORYNAME]$195

PT$75

UT RT MT/ET VT PT

[CATEGORYNAME]$[VALUE]

[CATEGORYNAME]$[VALUE]

[CATEGORYNAME]$250

Products Services Training

“Products & Services: an implicit partnership”

Core NDT

Our NDT Solar System:

UT

Dozens of technologies

Addressing dozens of sub-segments

Result: Thousands and thousands of applicaWons

MT ET

RT

AE PT

FL

CT XR

IS

DR CR VT N

CondiWon Monitoring

NDT Technologies Metrology

Infrastructure

Materials Engineering

Security

Process Control

NDT’s Broader Universe

QA / QC

Asset Integrity

So Why 3 D ? Ourrealworldis3Dandwe“see”andthinkin3D!•  3DMovies•  3DScanners•  Stereo-photogrammetry•  Autonomousvehiclevisionsystem•  3DDesign&Prin+ng•  Facili+esMaintenancePlanning•  911dispatch•  3DComputedTomography•  3DUltrasound

So“whynot”3Dvisualiza+onofamarket?

Volumetric

Superficial

A voxel is a volumetric pixel and the unit of currency for any 3D rendering.

3D 101: What is a voxel ?

3 D MARKET Model Example

X-Axis=Region:NorthAmerica

Z-Axis=Segments:Oil&Gas

Y-Axis=MethodorTechnology:PAUT

OtherPossibleAxes=Buyingbehavior,Applica:ons,Time,etc.

• Unitofmeasure:Voxeldensityorintensity=Revenueorprofitability($$or%)

• Marketresolu+onisdeterminedbythenumberofvoxelsinourmodel.

•  5x5x5=125micro-markets

1 Voxel = 1 Micro-market e.g. UT , Nuclear Power, Europe

Always a quesWon of granularity

Onevoxelmodel1x1x1Houston,Refinery,FilmRT

8,000voxelmodel20x20x20$375k/voxel

125voxelmodel5x5x5$24M/voxel

RegionsG20 20Sub-segments TechnologiesUSA Upstream UTTGermany Midstream UTFChina Downstream PAUTJapan Subsea GWUTUK Chemical UTTMFrance Nuclear DRItaly Fossil CRKorea GasTurbine FilmRussia Hydro X-RayAustria Wind IsotopeCanada Aeroengine CTMexico Airframe CPRIndia MRO BorescopeIndonesia Military FiberscopeArgen+na AutoMfg VideoprobeBrazil Rail CCTVSaudiArabia Cas+ngs ECTS.Africa Tube RFECTTurkey Bar MagPar+cleEurozone Plate DyePenetrant

Regions Segments Technologies

N.A. O&G UT

S.A. Power RT

Euro Aero RVI

MEA Trans EM

Asia Metals MPT

A $3 Billion / year equipment market

Regional view

Technology view

Segment view TechnologyvsRegion

NA SA Euro MEA AsiaUT 260 25 265 60 260RT 290 25 260 65 290RVI 115 13 140 24 115ECT 110 20 110 29 110

SegmentvsTechnologyUT RT RVI ECT MPT

O&G 230 285 72 41 90PG 245 295 67 160 85Aero 250 190 175 85 85Auto 90 90 59 53 77Mfg. 55 70 34 40 77

SegmentvsRegionNA SA Euro MEA Asia

O&G 230 18 155 85 230PG 270 22 245 45 270Aero 225 25 275 35 225Auto 95 17 145 17 95Mfg. 80 18 80 18 80

Asia UT RT RVI ECT MPTO&G 75 100 20 10 25PG 75 100 20 50 25Aero 75 50 50 25 25Auto 20 20 15 15 25Mfg. 15 20 10 10 25

MEA UT RT RVI ECT MPTO&G 25 30 10 10 10PG 15 15 5 5 5Aero 10 10 5 5 5Auto 5 5 2 4 1Mfg. 5 5 2 5 1

Euro UT RT RVI ECT MPTO&G 50 50 20 10 25PG 75 75 20 50 25Aero 85 75 65 25 25Auto 40 40 25 15 25Mfg. 15 20 10 10 25

S.A. UT RT RVI ECT MPTO&G 5 5 2 1 5PG 5 5 2 5 5Aero 5 5 5 5 5Auto 5 5 2 4 1Mfg. 5 5 2 5 1

N.A. UT RT RVI ECT MPTO&G 75 100 20 10 25PG 75 100 20 50 25Aero 75 50 50 25 25Auto 20 20 15 15 25Mfg. 15 20 10 10 25

Poor Man’s 3D Model via Excel

Premium 3D Model

3D Images are courtesy of Volume Graphics, GmbH

Color Key: •  Red= > $5 MM •  Orange= 1 MM – 5 MM •  Yellow= 500k – 1 MM •  Green = 100 – 500k •  Blue = < 100k

NDTMA 2016 Annual Conference

GoldenNuggetHotel,LasVegas,NVFebruary16-18,2016

Conclusions1.  Itissome+mesusefultothinkofyourbusiness

asa3Dimageormodel.2.  Strategyisprimarilyaroundfocus.Modelingthe

markethelpstoprovideclarityandfocus.3.  Youdecidehowgranularyourdataneedsare.