The maintenance repair operations industry is expected to grow at a CAGR of 2.13% during the forecast period (2019 - 2025).

  • The growing digitization and need for business to be highly efficient are some of the major factors driving the maintenance, repair, and operation (MRO) market.
  • Most of the major market players are mainly focusing on their supply chain infrastructure, broad in-stock product offerings, and deep customer relationships to hold a strong position in the market.
  • Most of the MRO markets, especially in the developed regions, are highly fragmented. The evolution of e-commerce has increased the availably of spare and reduced the lead times for the spare parts significantly. One such e-Commerce company, Zoro, has had a significant impact on the North American market. The company reported USD 625 million in revenue in 2019.
  • Furthermore, the development of smart factories may bring advancement in the MRO sector. For instance, the growth of predictive maintenance, such as the use of sensors and IoT, which allows manufacturing components to be replaced before visible defects appear, is also expected to transform the global MRO industry.
  • The spread of COVID - 19 has severely impacted the market growth. Due to the shutdown of factories caused by fear of infection, the supply chain was negatively affected, which resulted in the difficulty of parts procurement by vendors.



Key Market Trends

Manufacturing Sector Under Industrial MRO to Occupy Significant Market Share

  • The pressure to reduce cost and product quality have been the major driving factor for the adoption of industrial MRO services in the manufacturing industry in this region. With manufacturers continuously seeking large profit margins, they aim to maximize return on net assets (RONA).
  • The downtime involved in the production process is quite expensive. Investment in MROs is helping manufacturing industries achieve consistency in production and reduce the length of downtime in the production process. For instance, Volkswagen is actively using MRO services for its manufacturing units in China.?
  • Manufacturers are optimizing their facilities and production processes to reduce their overall energy consumption due to government regulations. This is being done by manufacturers conducting lifecycle assessments of their products and deploying the required MRO service, to practice lean manufacturing.?
  • Manufacturing activities have witnessed exponential growth over the globe, especially in the APAC region. This is because the governments are introducing several programs and policies that encourage manufacturing activity.



Asia-Pacific Expected to Register the Highest Growth

  • Asia - Pacific region is slowly seeing an increase in the adoption of professional services and is considered to be a major manufacturing hub for spare parts which are supplied to different countries.
  • Moreover, rising standardization of equipment and services in critical manufacturing operations is likely to boost the market growth. The development of advanced manufacturing techniques in the region due to high investment in R&D activities is estimated to fuel market growth.
  • Moreover, due to the recent COVID 19 pandemic, the major companies are planning to move their operations outside China to neighboring countries like India and Taiwan. This is expected to drive the growth of the market in the region.



Competitive Landscape

The global maintenance repair and operations market is moderately fragmented owing to the presence of several MRO solution providers globally. The vendors are viewing collaboration and innovation as a path towards gaining maximum market share. They are investing in R&D to utilize it towards product improvisation and the introduction of new products and expanding their reach globally.

  • January 2020 - Emerson Bearing Boston, a bearing company catering to the OEM and MRO markets globally, established a pump industry division dedicated to a fast-growing customer base, particularly in the oil and gas market.
  • January 2020 - WESCO International Inc., a provider of electrical, industrial, and communications MRO and OEM products, acquired Anixter International to create an electrical and data communications distribution and supply chain services company.
  • December 2019 - France-based Sonepar opened a new distribution center with an investment of about EUR 1.1 million, which is expected to support the operations of two group companies in Brazil, namely, Dimensional Centelha and Nortel. ?



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