The market for MRO distribution is expected to grow at a CAGR of around 2.0% from 2020 to 2027 and expected to reach the market value of around US$ 758.1 Bn by 2027.
Maintenance, repair, and operating supply (MRO) refers to the maintenance, upkeep, and upgrade supplies that are needed by companies that manufacture or distribute products. These are the supplies utilized in the production process and are not the direct part of the end product themselves.
The rising concern for increasing internal efficiency, ongoing digitalization, and simultaneously increasing investment in the maintenance operations by the end-use companies are some of the factors driving the market growth. The benefit associated with MRO includes a reduction in operational expenditure, through process efficiency and optimized supply chain management which is another factor increasing demand among end-user companies. In turn, many market players are expanding their presence and capacity to cater to expanding customer base across the globe. The accelerating adoption of smart technologies in manufacturing environmental companies supporting the development of mobile apps to ensure overall management by enabling the real-time monitoring and full traceability of components and smart devices.
On the other side, mounting price pressure on the distributors is likely to hinder the growth to an extent over the forecast period from 2020 to 2027.
Segment Instance of Global MRO Distribution Market
Europe accounted for the maximum revenue share in 2019
In 2019, Europe led the market with maximum revenue share owing to the commercial availability of the MRO products and skilled workforce for services across the major economies of the region. The growing demand for maintenance, repair, and service operations in manufacturing and industrial activities across the major countries including Norway, Sweden, Germany, and Finland is creating a wide scope for the development of industrial and manufacturing activities in Europe. Some of the industry verticals in Europe have adopted integrated service concepts, particularly to improvise the quality of service and equipment that have major contribution or usage in critical operations. This concept has also helped the respective industries to reduce their cost of maintenance and repair.
Furthermore, the region is followed by North America in the revenue share (%), where the US dominated the regional market value. The various initiatives led by manufacturers to attain optimum efficiency as well as to eliminate the downtime are supporting the regional market value. Maintenance, repair & overhaul (MRO) distribution is considered as one of the critical components of the industry to strengthen a company’s business, in terms of production volumes, and meet the desired demand.
Asia Pacific is anticipated to exhibit fastest growth over the forecast period from 2020 to 2027
Asia Pacific is estimated to experience the fastest growth over the forecast period from 2020 to 2027 with a major revenue share (%). The major economies of the region including China, India, Singapore, and Japan are the major revenue and growth contributors. Significant growth is expected from the developing economies of the region due to improving manufacturing, industrialization, automation, and digitization sectors. The increasing growth in the manufacturing sector bolsters the requirement for maintenance in order to keep equipment and process running smoothly is another factor boosting the regional market value.
Key Market Players
The players profiled in the report include Cromwell Group (Holdings) Ltd, Graco BVBA, Pooley, Wabco Austria GmbH, Wolseley and Wurth Group, and others. The major players are continuously making efforts for the development of advance solutions to treat the end user more effectively particularly for cutting down their maintenance cost associated with the supply chain and repair.
Market By Order Type
Bearings & Power Transmission
Pipes, Valves & Fittings
Market By Application
Food, beverage & tobacco
Textile, apparel & footwear
Wood & paper
Mining, oil & gas
Basic metals & metal products
Rubber, plastic, and non-metallic products
The market for MRO distribution is expected to reach a market value of around US$ 758.1 Bn by 2027.
The MRO distribution market is expected to grow at a CAGR of around 2.0% from 2020 to 2027.
The rising concern for increasing internal efficiency, ongoing digitalization, increasing investment in the maintenance operations by the end use companies, benefit associated with the MRO, and expanding presence and capacity of major players to cater to expanding customer base are the some of the key drivers of the global MRO distribution market.
Cromwell Group (Holdings) Ltd, Graco BVBA, Pooley, Wabco Austria GmbH, Wolseley and Wurth Group, and others are some of the prominent players in the market
Europe held the highest market share in the MRO distribution market
Asia Pacific is expected to be the fastest growing market over the forecast period