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The North America maintenance, repair, and overhaul distribution market size is forecast to increase by USD 26.9 billion, at a CAGR of 2.09% between 2023 and 2028. The market’s growth is influenced by several key factors, such as the increasing adoption of Industry 4.0 technologies. As industries embrace advanced digital solutions such as IoT, AI, and big data analytics, there is a growing demand for products that facilitate these innovations. Additionally, the penetration of products in the manufacturing sector is rising due to the standardization of critical services and equipment. This standardization streamlines operations and enhances efficiency, leading to higher demand for integrated solutions. Furthermore, the increased use of robots in industrial settings is a crucial factor. Robots are being deployed more widely to ensure continuous, efficient operations, reduce downtime, and improve precision. Together, the growing penetration of Industry 4.0, the standardization in manufacturing, and the rise of robotics are driving significant expansion in the market, reflecting the industry's shift towards more advanced and automated solutions. Our market growth analysis report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
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The chemicals segment is estimated to witness significant growth during the forecast period. They play a crucial role in the chemical industry by supplying products and equipment that are required for the upkeep of production processes. Some of the main MRO products are items such as pumps, valves, hoses, gaskets, and other spare parts that are required to maintain and repair important equipment.
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The chemicals segment was the largest segment and was valued at USD 43.70 billion in 2018. An ideal efficient MRO system ensures that chemical plants operate smoothly, minimize downtime, and reduce the risk of accidents due to equipment failure. Hence, there is a high demand for this segment which will significantly contribute to the market growth. Most chemical industries are heavily dependent on these MRO systems. For example, in the US, the Occupational Safety and Health Administration (OSHA) regulations mandate the use of safety equipment, such as gloves, protective clothing, and respirators, in chemical plants to protect workers from exposure to hazardous chemicals. MRO distributors supply these safety products, thus ensuring that chemical plants comply with the safety regulations and provide a safe working environment for employees. Hence, such factors are expected to drive the growth of the segment which in turn will drive the growth in North America.
The market plays a crucial role across various sectors, including aviation, aerospace, and military vehicles. This market encompasses industrial equipment, consumables, and maintenance supplies, ensuring that large manufacturing equipment and mass transit vehicles remain operational. Supply-chain materials are essential for global maintenance, supporting electric power generation and energy production. In the marine vessel sector, MRO services cover navigation, propulsion, and seaworthiness systems. The communications and fire control systems industries also rely heavily on MRO for system reliability and performance. Crude oil and refineries benefit from efficient MRO distribution to maintain operational efficiency and safety. The integration of advanced MRO practices into land vehicles and weapons systems underscores the market's adaptability and critical importance in supporting global maintenance efforts and ensuring the longevity of complex systems.
This can be referred to as a concept that allows industrial manufacturing units to achieve higher efficiency, greater safety, predictive maintenance of machinery, and increased profitability. There is a growing implementation of Industrial 4.0. across several industries to optimize material flows and detect errors at the initial stages of the lifecycle of a product.
Hence, automation is an essential component of Industrial 4.0 which offer the desired functionality to the whole ecosystem, such as less human intervention, and ensures higher throughput, efficiency, reliability, and safety. Thus, it will positively impact the market growth. Hence, as the adoption of Industrial 4.0 increases, there will be a corresponding increase in demand for MRO for automation solutions which, in turn, will drive the growth of the market during the forecast period.
There has been an increasing frequency of maintenance protocols across industries due to the advent and widespread usage of sensors and smart devices, in most industries. Several preventive maintenance practices are executed by manufacturer guidelines whereas inventory management is aimed at keeping adequate components on hand to meet maintenance demands.
As a result, there are inherent inefficiencies in these processes. However, manufacturers are better equipped to assess equipment performance and maintenance needs with the increasing adoption of sensors and Internet of Things (IoT) technology, thereby, reducing or eliminating the cost inefficiencies of outdated procedures substantially. Thus, it will positively impact the market. Hence, such applications are expected to drive the market during the forecast period.
Due to separate MRO requirements for manufacturers, distributors, and shipping businesses, it is difficult to manage MRO across the entire supply chain. Hence, weak or missing MRO processes can pose a significant threat to market growth. Some of these weak or missing MRO processes include kitting, gray Inventory, and preservative measures.
Thus, it will negatively impact the market growth Therefore, such weak or missing MRO processes and other challenges in the MRO value chain, including limited integration in the value chain, are expected to hinder the growth of the 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 key companies, including:
A.R. Thomson Group, AWC Inc., BDI, Bisco Industries, BSC Industries Inc., Capitol Bearing and Hydraulics, Distribution Solutions Group Inc., DOALL SAWS, ERIKS N.V., Genuine Parts Co., Gregg Distributors LP, Hillman Solutions Corp., Hisco Inc., Kimball Midwest, R.S. Hughes Co. Inc., Singer Industrial, SunSource, W.W. Grainger Inc., and Wajax Corp.
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 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.
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The market is integral to infrastructure maintenance and repairs, involving tools and consumables critical for effective operations. Procurement officers, supplier relationship managers, and inventory managers play pivotal roles in ensuring inventory optimization and materials distribution. CMMS (Computerized Maintenance Management Systems) are crucial for information management, aiding in scheduled maintenance and retrocommissioning of assets like gas and steam turbines, wind turbines, and industrial plant. This market supports marine vessel, plumbing, electrical devices, and HVAC system, ensuring systems remain operational through rebuild or overhaul processes. Compliance officer ensure adherence to regulations while supply chain consulting helps streamline procurement and replenishment control in industrial plant. The focus on reporting and inventory optimization enhances efficiency, minimizing downtime, and maximizing asset longevity.
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Market Scope |
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Report Coverage |
Details |
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Page number |
150 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.09% |
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Market growth 2024-2028 |
USD 26.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.07 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A.R. Thomson Group, Applied Industrial Technologies Inc., AWC Inc., BDI, Bisco Industries, BSC Industries Inc., Capitol Bearing and Hydraulics, Distribution Solutions Group Inc., DOALL SAWS, ERIKS N.V., Genuine Parts Co., Gregg Distributors LP, Hillman Solutions Corp., Hisco Inc., Kimball Midwest, R.S. Hughes Co. Inc., Singer Industrial, SunSource, W.W. Grainger Inc., and Wajax Corp. |
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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 |
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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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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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