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The MRO for automation solutions market size is expected to grow by USD 54.08 billion, at a CAGR of 10.16% from 2023 to 2028. The manufacturing industry relies significantly on maintenance, repair, and operations (MRO) to maintain uninterrupted industrial processes. This reliance is met through the implementation of predictive maintenance analytics and industrial automation services. The market for MRO solutions in automation is poised for expansion due to several factors, including the adoption of Industry 4.0, the emergence of smart city initiatives and smart manufacturing, and the growing trend of inside sales strategies in developing countries. However, the market faces notable challenges, such as the US-China trade tensions, the downturn in the automotive sector, and the increasing prevalence of smart manufacturing. These hurdles may impede the sustained growth of the MRO market for automation solutions.
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The MRO for automation solutions market research 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 process industries segment is the leading segment that dominates the market. The market is experiencing substantial expansion, fueled by the rising implementation of automation across various industries. The maintenance, repair, and operations (MRO) sector showcases the extensive range of applications and offerings within this domain, underscoring the significance of effective maintenance and repair solutions for automated systems. Furthermore, the global shift toward renewable energy is reshaping the power industry landscape. Major players in the power sector have been investing in renewable energy technologies to meet the escalating demand for sustainable energy generation.
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The process industries segment was the largest segment and was valued at USD 41.71 billion in 2018. The process industries encompass sectors like oil and gas, water and wastewater management, and energy and electricity. The global power industry is anticipated to experience significant growth during the forecast period due to several driving factors. These include the increasing energy demand brought about by urbanization, the widespread use of technological appliances, and the global electricity demand surge. The power sector's expansion is further fueled by continuous investments in new power plants and upgrades to existing electrical infrastructure.
APAC is estimated to contribute 55% to the growth of the maintenance repair operations for automation solutions market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The APAC market is poised for substantial expansion during the forecast period. Key contributors to this growth include China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. Factors fueling this expansion include rising industrialization, escalating demand for automation services in industries, and substantial investments in power generation, water and wastewater treatment, and food and beverage sectors. Furthermore, government initiatives, enhanced standards of living, a solid industrial foundation, and burgeoning demand for automobiles manufactured in the region are significant catalysts propelling the growth of the automotive industry. Both passenger and commercial vehicles have seen increasing demand in the region. Additionally, favorable trade policies for the automotive sector are bolstering the regional automotive industry, leading to heightened demand for automotive technologies. Another market exhibiting consistent progress is the MRO distribution sector in North America.
The outsourcing of maintenance repair operations (MRO) for automation solutions is a significant factor fueling the expansion of the global market. In industries both process and discrete, there is a trend towards engaging external service providers for handling all service-related needs. This preference is primarily due to the high costs associated with maintaining an in-house workforce and the extensive product knowledge and training necessary for staff. Consequently, end-users seek a single provider for managing and operating the entire automation solution installed in their facilities. companies respond to this demand by integrating MRO services into their offerings. In the aviation sector, MRO services are indispensable for commercial and military aircraft, ensuring safety, reliability, and airworthiness through routine inspections, repairs, and component replacements. These services encompass everything from basic maintenance to intricate repairs, all while adhering to stringent aviation regulations.
MRO activities are vital for extending aircraft lifespan, optimizing performance, and minimizing downtime, thereby enhancing operational efficiency and safety in aviation. However, industries relying on raw materials for manufacturing motors, tapes, lab supplies, and test equipment are currently grappling with supply chain disruptions caused by material shortages and economic downturns. Similarly, sectors dependent on blowers, fans, water pumps, and medical devices face challenges due to these supply chain disruptions. By bundling services and solutions in this manner, end-users can access a single point of contact for all their maintenance, operational, and repair requirements, eliminating the need for multiple contracts for a single facility.
The outsourcing of maintenance and operations is a significant factor fueling the expansion of the market for automation solution maintenance. Internationally, both process and discrete industries opt for third-party service providers to address their entire service, maintenance, and operational needs. The primary motivation for this choice stems from the substantial expenses associated with maintaining an in-house workforce and the extensive product knowledge and training required of employees. Consequently, clients seek a solitary solution provider to manage and operate the entire automation solution installed in their facilities.
In response to the demands of clients, companies bundle their service offerings with automation solutions. By presenting their service and solution portfolios in this manner, clients can access a single point of contact for all their maintenance, operational, and repair requests. This arrangement also eliminates the necessity for clients to manage multiple legal and solution contracts for a single facility.
Predictive maintenance through analytics is set to propel the expansion of the global market for Maintenance, Repair, and Operations (MRO) solutions in automation. Service providers are integrating analytics and statistical models into their maintenance tools to enhance the decision-making process and pinpoint errors at their onset. Siemens, in collaboration with SAP, is launching a new open cloud platform for industrial clients. This platform will leverage SAP's HANA cloud technology, which performs data analysis on an open platform. The HANA cloud platform has gained traction among end-users due to its capabilities. By utilizing the HANA cloud platform, machines and systems can record and analyze extensive data volumes. Simulation or intelligent pattern recognition is employed to identify potential errors before system or product failure occurs, thereby offering an efficient predictive maintenance solution for end-users.
Additionally, with the HANA cloud platform, end-users can monitor automation solutions deployed across multiple plants from a single location. Some of the benefits of HANA include the identification of process deviations, optimization of operations, predictive modeling, production forecasting, and cost-benefit analysis. As more such solutions are anticipated to emerge during the forecast period, it will create substantial growth opportunities for providers and fuel the growth of the MRO market for automation solutions.
The US-China trade war poses a significant obstacle to the expansion of the maintenance, repair, and operations (MRO) market for automation solutions. The global semiconductor and electronics industry, as well as certain other sectors, are experiencing substantial repercussions from the ongoing trade dispute between the United States and China. These two powerful economies have a far-reaching impact on businesses worldwide, and the disruptions in their industries are causing ripples across the global market.
The implementation of substantial tariffs on various goods and services has made it challenging for businesses to operate in both countries. The electronic components, which are essential components of many automation solutions, have also been subjected to increased tariffs. Consequently, the higher average selling prices (ASPs) of these components have resulted in a rise in the final price of automation offerings that utilize them. These factors have significantly increased the cost of not only the automation solutions but also their MRO, leading to a negative impact on the growth of the MRO market for automation solutions.
The maintenance repair operations for automation solutions market forecasting 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 MRO for automation solutions market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The maintenance repair operations for automation solutions market is fragmented in nature. Some significant players include 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:
ABB Ltd.: The company offers MRO for automation solutions such as ABB Ability System, Freelance Distributed Control System, and ABB Ability Symphony Plus.
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 automation solutions market for MRO is undergoing substantial transformations due to several influential factors. The ongoing vaccination drives are altering workforce dynamics, affecting the availability of skilled labor. In response to these fragmented market conditions, innovative strategies such as green energy production and sustainable practices like green MRO are gaining traction. E-commerce and IoT integration are revolutionizing supply chain operations, facilitated by big data analytics and advancements like 3D printing. Companies are adopting smart technologies for efficient inventory management. However, challenges such as raw material shortages and shipping delays continue to persist amidst economic downturns. Industrial automation solutions encompass a broad spectrum of products, including sensors, pumps, motors, sealants, and lubricants, ensuring safety standards and operational efficiency. Leading companies are implementing digitization initiatives to streamline procurement processes. Technologies like industrial robotics and energy-efficient equipment are reducing carbon footprints and operating expenses, aligning with sustainability goals in urbanization and green building projects.
Amidst these changes, energy and power considerations are driving industries to adopt green MRO practices. Major companies are pioneering sustainable initiatives, but ensuring seamless operations requires a skilled workforce adept at managing advanced technologies. Data management and security are crucial, particularly amidst concerns over raw material shortages and economic slowdowns. Leading players are exploring outsourcing strategies to mitigate these challenges while embracing new technologies in MRO distribution. Moreover, there is a focus on energy-efficient technology to minimize carbon footprints across various sectors, including automotive spare parts, semiconductor chips, and data centers. This emphasis extends to sustainable buildings and green facilities, where these solutions play a pivotal role in environmental conservation efforts. Institutions are championing these sustainable practices. As the market evolves, the integration of automation solutions becomes essential for enhancing efficiency, productivity, and sustainability across diverse industries.
The maintenance repair operations segment of the automation solutions market is seeing steady growth despite challenges such as raw material shortages, shipping delays, and economic downturns. The MRO automation market is facing challenges due to the raw material shortage and the ongoing economic slowdown, which are impacting supply chains and production schedules. Despite these obstacles, demand for MRO products remains strong as companies prioritize maintaining operational efficiency and minimizing downtime. The shift towards renewable energy in the power sector and energy and utilities industries is driving increased demand for MRO items, including pumps and sensors. To manage supply chain issues and comply with strict safety regulations, companies are adopting outsourcing strategies. Incorporating IoT into MRO processes enhances data management and security, while focusing on optimizing inventory and addressing the skilled labor shortage. However, the market's fragmented nature requires businesses to invest in advanced technologies to remain competitive and meet the changing demands of industrial processes during global vaccination efforts.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.38% |
Market growth 2024-2028 |
USD 53.28 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.65 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., 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, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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