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The Maintenance Repair Operations for automation solutions market size is expected to grow by USD 54.08 billion, with a CAGR of 10.16% from 2022 to 2027. The manufacturing sector depends heavily on Maintenance, Repair, and Operations (MRO) to ensure continuous industrial operations, utilizing predictive maintenance analytics and industrial automation services. The market expansion is driven by the adoption of Industry 4.0 technologies, smart city initiatives, and the increasing use of inside sales strategies in developing countries. Despite these growth drivers, challenges like US-China trade tensions and a downturn in automotive smart manufacturing pose significant obstacles to sustained growth in the sector.
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The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments. Maintenance, Repair, and Overhaul (MRO) services play a crucial role in both commercial and military aircraft operations. MRO ensures the safety, reliability, and airworthiness of aircraft through scheduled inspections, repairs, and component replacements. These services encompass everything from routine maintenance to complex repairs, ensuring compliance with stringent aviation regulations. MRO activities are essential for extending aircraft maintenance lifespan, optimizing performance, and minimizing downtime, thereby, supporting operational efficiency and safety in aviation.
The process Industries is the Leading Segment to dominate the market. The MRO market forecast indicates significant growth, driven by the increasing adoption of automation in industries. MRO industry segmentation highlights the diverse applications and services within this field, emphasizing the importance of reliable maintenance and repair strategies for automated infrastructure. Worldwide use of renewable energy sources is also gradually changing the power business. Players in the power business have been pushing investments into renewable energy due to the growing need for green energy generation.
The process industries segment was the largest segment and was valued at USD 41.28 billion in 2017. The Process Industries comprise sectors such as oil and gas, water and wastewater, and energy and electricity, among others. The growing need for energy, constant investments in new power plants, and ongoing upgrades to current electrical infrastructures are all contributing factors to the positive growth the global power industry is predicted to have over the forecast period. There has been a spike in the need for energy due to factors including the growing urbanisation, the usage of technological appliances, and the increased demand for electricity globally.
APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to grow significantly during the forecast period. The growth of the regional market in focus will be driven by countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. The market growth will majorly be attributed to factors such as growing industrialization, increasing demand for industrial automation, and increasing investments in power, water and wastewater treatment, and food and beverage industries.
Moreover, government initiatives, improving standards of living, a strong industrial base, and increasing demand for automobiles manufactured in the region are some of the key factors that are driving the growth of the automotive industry in the region. The demand for both passenger and commercial vehicles has been increasing in the region. Favorable trade policies for the automotive industry are also benefitting the regional automotive industry, which is also driving the demand for automotive technologies. Another region that is showing steady improvement is the Maintenance, Repair, and Overhaul Distribution in the United States.
The Market is fragmented in nature. Some significant players include ABB Ltd., AMETEK Inc., Danaher Corp., Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Festo SE and Co.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
KG, General Electric Co., Hitachi Ltd., Honeywell International Inc., IMI Plc, Mitsubishi Electric Corp., MKS Instruments Inc., OMRON Corp., Phoenix Contact GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, SICK AG, Siemens AG, W.W. Grainger Inc., and Yokogawa Electric Corp.
The growth in the outsourcing of operations is the key factor driving the global maintenance, repair, and operations growth and trends. Globally, both process and discrete industries prefer adopting third-party service providers to meet all their service maintenance and operation-related needs. They prefer to approach such service providers mainly because of the costs incurred in employing an in-house workforce and the level of product knowledge and training required by the staff. Therefore, end-users prefer a single solution provider for maintaining and operating the complete automation solution implemented in their facilities. Owing to the needs of end-users, vendors package their service portfolio along with automation solutions. As companies package the service and solution portfolio this way, end-users can reach out to a single point of contact for all their maintenance, operational, and repair requirements. This also eliminated the need for end-users to have multiple legal and solution contracts for a single facility.
The growth in the outsourcing of operations is the key factor driving the global MRO market for automation solutions growth. Globally, both process and discrete industries prefer adopting third-party service providers to meet all their service maintenance and operation-related needs. They prefer to approach such service providers mainly because of the costs incurred in employing an in-house workforce and the level of product knowledge and training required by the staff. Therefore, end-users prefer a single solution provider for maintaining and operating the complete automation solution implemented in their facilities.
However, owing to the needs of end-users, vendors package their service portfolio along with automation solutions. As vendors package the service and solution portfolio this way, end-users can reach out to a single point of contact for all their maintenance, operational, and repair requirements. This also eliminated the need for end-users to have multiple legal and solution contracts for a single facility.
The use of analytics for predictive maintenance will fuel the global maintenance repair operations market for automation solutions market growth. Service providers are using analytics and statistical models in their maintenance tools to improve the decision-making process and reduce and identify errors at the earliest. Siemens, in partnership with SAP, is building a new open cloud platform for industrial end-users. The platform will use the technology of SAP's HANA Cloud Platform, which performs data analysis on an open platform. HANA has also been popular among end-users. With the HANA cloud platform, machines and systems record and analyze large volumes of data. Simulation or intelligent pattern recognition is used for the early identification of any errors before the system or product failure takes place. This provides an effective predictive maintenance tool for end-users.
Moreover, with the HANA cloud platform and market trends, end-users in one location will be able to monitor automation solutions used in multiple plants remotely. Some of the other advantages of HANA include the detection of process deviations, operation optimization, predictive modeling, production forecasting, and cost-benefit analysis. As more such solutions are expected to be developed during the forecast period, it will open doors to significant growth opportunities for vendors in the MRO for the automation solutions maintenance, repair, and operations market in focus during the forecast period.
The US-China trade war is a major challenge to the global maintenance, repair, and operations market for automation solutions market growth. The global semiconductor and electronics industry, along with some other industry verticals, is being significantly impacted by the ongoing trade war between the US and China. The US and China are two of the strongest economies in the world, and disruptions in businesses in these countries are being felt by many other countries worldwide.
Further, the imposition of steep tariffs on many goods and services has been making it difficult for business owners to operate in these countries. As electronic components, which are used in many automation solutions, have also been experiencing an increase in tariffs, their higher ASP has been increasing the final price of the offerings in which these components are used. Such factors are increasing the cost of not only the automation solutions but also of their MRO, which has been adversely affecting the vendors of the maintenance, repair, and operations market in focus.
The report includes the adoption lifecycle of the maintenance repair operations for the automation solutions 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 growth strategies.
The market for automation solutions is experiencing significant transformations driven by various factors. Vaccination drives are reshaping workforce dynamics, impacting skilled labor availability. Fragmented market conditions necessitate innovative approaches, such as green energy production and sustainable practices like Green MRO. E-commerce and IoT integration are streamlining supply chain operations, supported by big data analytics and advancements like 3D printing. Companies like Airgas, Wesco, and Rexel are leveraging smart technologies for efficient inventory management. However, challenges such as raw material shortages and shipping delays persist amid economic slowdowns. Industrial automation solutions encompass a wide range of products, including sensors, pumps, motors, sealants, and lubricants, ensuring safety standards and operational efficiency. Digitization initiatives by companies like GoExpedi are enabling smoother procurement processes. Technologies like industrial robots and energy-efficient equipment are reducing carbon footprints and operating expenses, addressing sustainability goals in urbanization and sustainable building projects. This market evolution underscores the importance of innovation and adaptability in meeting the diverse needs of manufacturing industries while fostering environmental responsibility.
Moreover, the market for automation solutions is witnessing a paradigm shift driven by various factors. Energy and power considerations are compelling industries to adopt green MRO practices such as maintenance, repair, and operations distribution, with companies like Air Works and Sonepar pioneering sustainable initiatives. However, ensuring seamless operations necessitates a skilled workforce adept at managing advanced technologies. Data management and security are paramount, especially amidst concerns over raw material shortages and economic slowdowns. Leading players like Applied Industrial Technologies are exploring outsourcing strategies to mitigate these challenges while embracing new technologies in MRO products. Industrial motors, Raw Material Shortage, Economic Slowdown tapes, lab supplies, test equipment, blowers, fans, water pumps, and medical equipment are crucial components in demand. Additionally, there's a growing focus on energy-efficient technology to reduce the carbon footprint across sectors like automotive spare parts, semiconductor chips, and data centers. This emphasis extends to sustainable buildings and green facilities, where MRO solutions play a pivotal role in environmental conservation efforts. Institutions like Senai are championing these sustainable practices. As the MRO market evolves, the integration of automation solutions becomes imperative for enhancing efficiency, productivity, and sustainability across diverse industries.
Market Scope |
|
Report Coverage |
Details |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.16% |
Market growth 2023-2027 |
USD 54.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.34 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, maintenance repair operations for automation solutions market industry report. |
Key companies profiled |
ABB Ltd., AMETEK Inc., Danaher Corp., Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Festo SE and Co. KG, General Electric Co., Hitachi Ltd., Honeywell International Inc., IMI Plc, Mitsubishi Electric Corp., MKS Instruments Inc., OMRON Corp., Phoenix Contact GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, SICK AG, Siemens AG, W.W. Grainger Inc., and Yokogawa Electric Corp. |
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, maintenance repair operations for automation solutions market share. |
Customization purview |
If our maintenance repair operations for automation solutions market analysis and 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 End-user
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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