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The maintenance, repair, and overhaul (MRO) distribution market size is estimated to grow by USD 89.78 billion at a CAGR of 2.58% between 2022 and 2027. The growth of the market depends on several factors, including increasing penetration of Industry 4.0 globally, increased use of robots to ensure uninterrupted industrial operations, and service-life extension of military aircraft.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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
Our researchers studied the data with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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 services for liquefiers, refrigerators, and purifiers.
Applied Industrial Technologies Inc. - The key offerings of the company include 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 116.20 billion in 2017 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 34% to the growth by 2027. 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 the 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 forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis and growth opportunities from 2017 to 2027.
The Market is a vital sector serving manufacturing industries with a focus on outsourcing strategies and meeting customer needs. It encompasses smart technologies that enhance efficiency in smart factories, managing parts and equipment to minimize service delays. The market covers various aspects of the manufacturing process, including sourcing from critical suppliers and handling material handling equipment, abrasives, industrial motors, sealants and tapes, lubricants, lab supplies, test equipment, blowers, fans, industrial robots, and water pumps. It also caters to diverse sectors such as medical equipment, focusing on energy-efficient technology to reduce the carbon footprint. Additionally, the market provides for automotive spare parts and semiconductor chips essential for various industries, including data centers. The increasing trend of urbanization and emphasis on sustainable buildings and green facilities drive the demand for MRO products and services.
Industry Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.58% |
Market growth 2023-2027 |
USD 89.78 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.18 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
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, NOW Inc., Fastenal Co., Ferguson plc, Forge Industries Co., Genuine Parts Co., Gitanjali Industrial Mart Pvt.Ltd., Honeywell International Inc., MRC Global Inc., Nidec Corp., R.S. Hughes Co. Inc., Raytheon Technologies Corp., SHV Holdings, SUMINISTROS Y SERVICIOS INDUSTRIALES SERVITEC S.A., The Home Depot Inc., Wajax Corp., WESCO International Inc., and W.W. Grainger 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 forecast period |
Customization purview |
If our 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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