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The maintenance, repair, and overhaul distribution market size is estimated to grow by USD 72.7 billion at a CAGR of 2.06% between 2023 and 2028. The global industrial landscape is undergoing a significant transformation with the increasing penetration of Industry 4.0. This revolution is characterized by the integration of advanced technologies such as IoT, AI, and robotics into manufacturing processes. One of the key offerings of this technological shift is the increased use of robots to ensure uninterrupted industrial operations. Robots are being deployed in various industries to automate repetitive tasks, enhance productivity, and improve quality. Moreover, in the defense sector, there is a growing focus on service-life extension of military aircraft. Robotics and automation solutions are being utilized to maintain and repair these complex machines, reducing downtime and extending their operational life. This not only improves the efficiency of military operations but also reduces costs in the long run.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Market Customer Landscape
The Maintenance, Repair, and Overhaul (MRO) distribution market refers to the business of supplying parts, tools, and services to keep industrial infrastructure in good working order. Planned maintenance and preventative maintenance are crucial aspects of this market, allowing operators to address potential issues before they become major defects. Corrective maintenance, on the other hand, addresses unexpected problems. Structure engineers and maintenance managers are key players in this market, working to ensure the safety and efficiency of infrastructure. They rely on a range of tools and services, including metrology-grade 3D scanning tools from companies like Creaform. These tools enable high measurement rates, reporting, and user independence, making them essential for identifying and addressing defects. Parts are a significant component of the MRO distribution market, with varying part sizes, materials, finishes, and surfaces requiring different solutions. Industry standards and service letters from Original Equipment Manufacturers (OEMs) guide the selection of appropriate parts and service equipment catalogs. Safety issues are a primary concern in this market, with infrastructure downtime and potential hazards posing significant risks. Effective MRO strategies can help mitigate these risks, ensuring that infrastructure remains in optimal condition and continues to operate safely and efficiently.
Increasing penetration of Industry 4.0 globally is notably driving the market growth. With the help of the concept of Industry 4.0, industrial manufacturing facilities can increase productivity, safety, and profitability while also operating more efficiently. Industries all over the world are putting Industry 4.0 principles into practice to improve material flows and find errors early in a product's lifecycle. Industries like food and beverage, oil and gas, paper, and pharmaceuticals are starting to adopt Industry 4.0.
Process automation is also gaining ground in a number of industries because it requires less human interaction while ensuring greater productivity, effectiveness, dependability, and safety. Industry 4.0 is centered on automation solutions because they provide the ecosystem as a whole with the functionality it needs. The demand for MRO for automation solutions is rising as Industry 4.0 continues to permeate deeper into various industry verticals. This, in turn, will fuel the growth of the global maintenance, repair, and overhaul (MRO) distribution market during the forecast period.
An emerging trend in the Maintenance, Repair, and Overhaul Distribution Market is the increasing usage of smart equipment technology to track performance and maintenance. Prior to the invention and widespread adoption of sensors and smart devices, maintenance in the majority of industries happened on a regular schedule. Preventive maintenance was carried out in accordance with the manufacturer's instructions, and parts were repaired as and when needed. As a result, there were numerous inherent inefficiencies in this process. Parts were replaced more frequently than required due to preventive maintenance, reactive repairs resulting in excessive downtime, and inventory guesswork.
However, manufacturers are better able to assess equipment performance and maintenance requirements due to the growing availability and affordability of sensors and Internet of Things (IoT) technology. This significantly reduces or eliminates the cost inefficiencies of antiquated procedures. The MRO process has evolved to become more proactive and effective as a result of these data-driven solutions, which allow manufacturers to identify and plan for maintenance, repairs, and replacement even before obvious flaws appear or have an impact on operations. Therefore, the increasing technological advancements in MRO processes will drive the growth of the global maintenance, repair, and overhaul (MRO) distribution market during the forecast period.
Declining automotive production is a major challenge impeding the Maintenance, Repair, and Overhaul Distribution Market growth. Since 2018, the world's automotive production has been decreasing. Contrary to the global financial crisis of 2008–2009, when a lack of liquidity adversely affected vehicle sales and production globally, the current decline in automotive production is primarily driven by falling vehicle sales in many important automotive markets. The decline in automotive sales, which has forced automakers to reduce vehicle production, is also a result of the rise in the popularity of ride-hailing and ride-sharing services around the world.
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.
Air Liquide SA - The key offerings of the company include MRO services for liquefiers, refrigerators, and purifiers.
Applied Industrial Technologies Inc. - The key offerings of the company include MRO services for pneumatic products, process equipment, and safety products.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The chemicals segment will contribute a major share of the market, as MRO distribution plays an essential role in the chemical industry by supplying products and equipment that are necessary for the upkeep of production processes. The segment showed a gradual increase in market share with USD 118.20 billion in 2018 and continued to grow by 2021. Pumps, valves, hoses, gaskets, and other spare parts are examples of MRO products. These parts are needed to maintain and repair important machinery. Chemical plants operate smoothly, experience little downtime, and experience fewer accidents as a result of equipment failure due to effective MRO distribution.
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MRO products are crucial to the chemical industry to ensure safety and compliance. For instance, the Occupational Safety and Health Administration (OSHA) regulations in the US require the use of safety gear in chemical plants to protect workers from exposure to hazardous chemicals, such as gloves, protective clothing, and respirators. MRO distributors provide these safety products, ensuring that chemical plants follow safety regulations and give employees a safe place to work. Leak detection and repair is a crucial MRO distribution application in the chemical industry. A variety of piping and plumbing systems are used in chemical plants to distribute liquids and gases throughout the building. Because leaks in any of these systems will become dangerous and catastrophic, they must be regularly inspected and maintained. Ultrasonic leak detectors, specialty sealants, and adhesives, among other items, are supplied by MRO distributors to help with leak detection. Additionally, it is necessary for equipment maintenance and repair to increase equipment lifespan and lower operating costs. For instance, distributors provide the valves, pumps, and other components needed for the upkeep and repair of large machineries like pumps and agitators. Therefore, MRO distribution is an essential component of the chemical industry, as it ensures the safe and efficient operation of equipment and, at the same time, minimizes downtime and reduces operating costs. Thus, the above-mentioned benefits will boost the growth of the global maintenance, repair, and overhaul (MRO) distribution market through the chemicals segment during the forecast period.
All the procedures, tools, and materials required for maintaining industrial machinery and equipment and ensuring their effective operation are referred to as industrial MRO. It covers everything, from standard upkeep and repairs to replacing worn-out components and machinery. Manufacturing, production, and other industrial processes depend on industrial MRO to run smoothly. Several factors are driving up demand for industrial MRO. Manufacturing and industrial processes need more sophisticated and specialized machinery that requires regular upkeep and repairs as they become more automated. Additionally, many manufacturers experienced supply chain disruptions after the COVID-19 pandemic broke out in 2020 due to the lack of a reliable and effective MRO system in place to guarantee the continuity of their operations. Also, increased competition and pressure to reduce costs have made it essential for manufacturers and industries to maintain their equipment proactively and ensure efficient and safe production. Therefore, such factors will drive the growth of the global maintenance, repair, and overhaul (MRO) distribution market through the industrial segment during the forecast period.
North America is estimated to contribute 40 % to the growth by 2028. Technavio’s analysts have elaborately explained the regional market trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The market in North America is driven by factors like growing industrialization, escalating competition, and a growing emphasis on achieving operational efficiency among businesses. Key players like Wajax, DistributionNOW, Applied Industrial Technologies Inc., and Ferguson Enterprises have been able to broaden their product offerings and increase their market share due to the rise in the adoption of digital and analytical solutions, cutting-edge technology, and strategic M&A. Trends like a greater emphasis on sustainability, automation, and integrated supply chain solutions are being seen in the market. Predictive maintenance, cloud-based services, and e-commerce platforms are becoming increasingly popular, which has significantly influenced the growth prospects of the regional market.
The US is currently North America's biggest market for aircraft MRO. Particularly in the US, North America has a sizable fleet of aircraft. The region is home to highly developed nations like the US and Canada, which have fueled the expansion of aviation there. To gain a larger share of the global market, regional aircraft OEMs from North America, including Boeing Co. (Boeing), Embraer SA, and Bombardier Inc., compete with those from Europe and Asia. A lot of aircraft have been deployed in North America as a result of the region's high demand for them. Additionally, during the forecast period, market growth is anticipated to be fueled by the construction of new MRO facilities throughout the region. For example, Air Canada announced the opening of two Airframe Maintenance Centres of Excellence with AAR in Trois-Rivieres and Avianor in Mirabel in February 2020. A parallel requirement to invest in MRO services has emerged as a result of the sharp rise in the demand for strategic alliances on a global scale. Hence, these trends will help the maintenance, repair, and overhaul (MRO) distribution market in the region grow during the market forecast period.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The Maintenance, Repair, and Overhaul (MRO) distribution market encompasses the supply of parts, tools, and services required to keep industrial infrastructure in optimal condition. Planned maintenance and preventative maintenance are essential strategies to minimize downtime and reduce costs. Planned maintenance involves scheduling regular inspections and repairs, while preventative maintenance focuses on addressing potential issues before they cause significant damage. Structure engineers and maintenance managers are key stakeholders in the MRO distribution market. They rely on Original Equipment Manufacturers (OEMs) for parts and repair methods outlined in the manufacturer's manual. Advanced technologies, such as 3D scanners, are increasingly used for measuring and reporting defects, ensuring acceptance criteria are met. 3D scanning tools, like those offered by Creaform, provide metrology-grade accuracy and user independence. Factors such as measurement rate, reporting, and user-friendliness influence the choice of scanning equipment. Scanning volumes, part sizes, materials, finishes, and surfaces also play a role in determining the most suitable tools for various work environments. Safety issues are a major concern in the MRO distribution market. OEMs provide service equipment catalogs with plug-and-play devices and user-friendly interfaces to ensure safe and efficient maintenance. Consumables and Personal Protective Equipment (PPE) are also essential components of the MRO distribution market. Inventory management and economic order quantity are crucial aspects of the MRO distribution market. Effective inventory management ensures that the right parts are available when needed, minimizing downtime and reducing costs.
Market Scope |
|
Report Coverage |
Details |
Page number |
195 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.06% |
Market growth 2024-2028 |
USD 72.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.03 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Germany, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Applied Industrial Technologies Inc., Colam Entreprendre, Fastenal Co., Ferguson plc, Forge Industries Co., Genuine Parts Co., Gitanjali Industrial Mart Pvt.Ltd., Home Depot Inc., Honeywell International Inc., MRC Global Inc., Nidec Corp., NOW Inc., R.S. Hughes Co. Inc., RTX Corp., SHV Holdings N.V., SUMINISTROS Y SERVICIOS INDUSTRIALES SERVITEC S.A., W.W. Grainger Inc., Wajax Corp., and WESCO International Inc. |
Market dynamics |
Parent market analysis, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our Market forecasting 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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