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The industrial machinery remanufacturing market size is forecast to increase by USD 272.07 billion, at a CAGR of 12.28% between 2023 and 2028. The market size. The market growth analysis depends on several factors such as the rising demand for increasing asset utilization in manufacturing industries, the growing demand for customization in industrial machinery, and the rising demand for value chain optimization of costs at the same service level from various organizations. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
Due to factors such as rapid industrialization and urbanization, APAC dominated the market. Additionally, Bardons and Oliver Inc. offers industrial machinery remanufacturing services by providing formal machinery proposal outlining, refurnishing finished parts and suggested refurbishing options. They also offer cutoff machines, CNC lathes, and bar feeders. Also, Grand Rapids Machine Repair offers industrial machinery remanufacturing services which provide repairing injection molding machines, conveyor systems and many other forms of industrial equipment that minimize downtime and avoid catastrophic losses. They also offer press inspections and clutch conversions for automobiles.
Market Forecast 2023-2027
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Most end-users of industrial machinery are changing their existing machinery and equipment to enhance machinery efficiency, reduce operational costs, and integrate all operational functions. Besides, the efficiency of industrial machinery entirely relies on the impeller and head, as they help in enhancing the amount of water or fluids that the motor can move. Selecting appropriate industrial machinery helps in boosting operational efficiency and lowering energy consumption.
Furthermore, factors such as the operating speed of the industrial machinery should be viewed while selecting a pump. These factors help in estimating the operational functionality of pumps and selecting the most suitable model. If end-users can use pumps, they can save operating costs by enhancing the life of industrial machinery. Consequently, the growing demand for increasing asset utilization in manufacturing industries will fuel the growth of the market during the forecast period.
In end-user sectors, such as automobiles, aerospace, food, and beverage, where major wear and tear is possible, machinery is subjected to a harsh environment that may lead to corrosion and damage. Industrial machinery manufacturers are providing remanufacturing and maintenance services that use technologies such as plasma arc welding, and laser cladding to solve this problem.
Furthermore, the cost associated with the replacement of components may be quite high and represents a huge cost burden for the machine operator/owner. In such cases, the laser cladding of these components can significantly reduce the wear on the parts, thereby extending service life and considerably reducing the cost of operations and maintenance (O&M). Hence, such factors are expected to propel the market during the forecast period.
In the case of remanufacturing facilities, special equipment like machine tools, testing and diagnostics devices as well as tools for component refurbishment are needed. It may be financially difficult to set up such facilities. Remanufacturing also entails the training of qualified technicians and engineers to perform disassembly, evaluation, reconstruction, or replacement of heavy machinery. Costs may be incurred in preparing and retaining these skilled workers.
Furthermore, in the case of major investments in remanufacturing facilities, SMEs frequently do not have sufficient resources to carry them out. Less costly options such as outsourcing or the purchase of new equipment may be chosen by them. The capital constraints can limit the expansion of remanufacturing services to different regions, industries, or types of machinery, which will negatively impact the growth of the market in focus during the forecast period.
The aerospace segment will account for a major share of the market's growth during the forecast period.? The aerospace industry encompasses activities including design, development, and production of civil and military aircraft, aero engines, helicopters, and unmanned aerial vehicles and their associated systems, parts, and equipment. The remanufacturing process in the aerospace industry includes removing the unit from the aircraft to the workshop, disassembling, inspecting, repairing, replacing, reassembling the parts, and returning it to the aircraft after meeting strict Component Maintenance Manual (CMM) standards.
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The aerospace segment was valued at USD 72.09 billion in 2018. Factors such as budget constraints in aerospace spending, the need to maintain aging equipment and fleets, and the focus on sustainable and cost-effective aerospace solutions are driving the growth of this segment. Moreover, remanufacturing allows aerospace organizations to upgrade and extend the life of critical machinery, enhancing readiness while optimizing expenditure. Such factors will fuel the growth of the market in the aerospace segment during the forecast period.
Based on end-user, the market has been segmented into aftermarket and OEM. The aftermarket?segment will account for the largest share of this segment.?The aftermarket segment primarily involves the refurbishment and maintenance of machinery and components that are no longer under warranty. One of the primary drivers for the aftermarket segment is cost efficiency. Remanufacturing allows businesses to extend the lifespan of machinery and components, reducing the need to invest in entirely new equipment. This is particularly appealing for businesses looking to optimize their budgets. Additionally, as industries continue to prioritize these factors, the aftermarket segment of the market is expected to grow further during the forecast period.
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APAC is estimated to contribute 41% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Due to factors such as rapid industrialization and urbanization, APAC is the fastest-growing regional market in the market. The leading countries in this region are China, Singapore, and India. APAC's rapid economic development, particularly in countries like China and India, has led to increased industrialization, creating a substantial market for remanufactured machinery. As industries expand, the demand for cost-effective, reliable machinery solutions grows.
Moreover, several industries such as food and beverages, automotive, and others in the region are increasingly focused on sustainability and cost-effectiveness. Therefore, remanufacturing is seen as a waste reduction strategy adopted by several industry sectors. Thus, the rising adoption of sustainability practices in the region will drive the growth of the regional market during the forecast period
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Advanced Machine and Engineering Co., Akron Gear and Engineering, Andritz AG, Astro Machine Works Inc., Bourn and Koch Inc., Caterpillar Inc., CNH Industrial NV, Deere and Co., Elmas SRL, EMI Equipment Manufacturers International Inc., Innovative Machine Solutions, JTEKT Corp., L and H Industrial Inc., Lee Industrial Contracting, Machine Tool Research Inc., and Pamco Machine Works Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth, particularly in developing nations, driven by the demand for mining remanufacturing components. With a focus on enhancing performance, reliability, and quality while ensuring environmental sustainability and energy savings, the market offers advantages such as reduced total lifecycle cost of mining equipment and material conservation. The rise in the inclination towards remanufacturing components stems from the Low Cost of Mining Components and the demand for enhanced components to meet the evolving needs of end users across various end-use industries.
Moreover, this surge is further propelled by the growth of the mining remanufacturing components market and the demand for improving operational efficiency and reducing lead time. Market players are capitalizing on profitable opportunities through the renting of machinery and the recent development of electric mining equipment. Despite restraints such as trade regulations and changes in market regulations, strategic production analysis and the exploration of application niches continue to drive dominance in the industry.
Industrial Machinery Remanufacturing Market Scope |
|
Report Coverage |
Details |
Page number |
101 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.28% |
Market growth 2024-2028 |
USD 272.07 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.12 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advanced Machine and Engineering Co., Akron Gear and Engineering, Andritz AG, Astro Machine Works Inc., Bardons and Oliver Inc., Bourn and Koch Inc., Caterpillar Inc., CNH Industrial NV, Deere and Co., Elmas SRL, EMI Equipment Manufacturers International Inc., Exline Inc., Grand Rapids Machine Repair, Innovative Machine Solutions, JTEKT Corp., L and H Industrial Inc., Lee Industrial Contracting, Machine Tool Research Inc., and Pamco Machine Works Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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