Market Trends of Europe Maintenance, Repair, and Operations (MRO) Industry
This section covers the major market trends shaping the Europe Maintenance, Repair, & Operations (MRO) Market according to our research experts:
Industrial MRO is Expected to Witness Significant Growth
- With the advancement in the region's material handling sector, the players focus on the adoption of inorganic strategies to stay competitive in the market. For instance, in the recent past, AMH Material Handling announced its new strategic partnership with Geek+ as an official United Kingdom distributor. As automation, material handling, and maintenance specialists, AMH will offer service and maintenance support to most UK customers. Still, it will also supply Geek+ products as part of its warehouse facility solutions.
- Manufacturing of electrical and electronic products is changing significantly in Europe, and factories are using new technology. Manufacturers have been forced to make the necessary adjustments to the production processes due to the growing demand for high-tech equipment in residential and commercial applications. This has had a favorable impact on the MRO operations business. Government initiatives for new treatment facilities for circulatory system disorders, neoplasms, and respiratory diseases are expected to cause the pharmaceutical industry in Europe to expand throughout the projected period. The need for relevant MRO services is expected to rise in the upcoming years as pharmaceutical companies prioritize effective facility equipment and machinery maintenance.
- Technology enabler companies operating in the region are adopting innovative solutions to leverage the smooth integration of several solutions with inventory management for the facility MRO segment.
- In October 2022, The considerable expansion of its European MRO (maintenance, repair, and overhaul) facility in Dundalk, Co. Louth, Ireland, was announced by Panasonic Avionics Corporation (Panasonic Avionics). PTS anticipates introducing 1,500-2,000 units each month at its Dundalk site. In addition to serving as its European distribution hub, it will perform repairs on Boeing CSS equipment, X series, and Next IFE systems.
- France's industry and related services are worth less than 20% of GVA. In addition to being a relatively smaller player in its economy compared to other European counterparts, the French industrial sector has been experiencing a continuous decline in capacity utilization for the past two years, according to data released by the Bank of France. This highlights the ideal situation that exists in this market for the introduction of automation solutions.
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Germany is Expected to Witness Significant Growth
- With the rising industrial sector in the country, it has become a significant segment of the MRO market across Europe and the globe. The adoption of cutting-edge technologies across the country's potential sectors has created opportunities for the MRO market. The backbone of Germany's industrial base is the Mittelstand, mid-size manufacturers, where 90% operate in business-to-business markets. To encourage this, the government of Germany has created the Mittelstand-Digital Initiative, in part in recognition, which creates networks between stakeholders through which SMEs and entrepreneurs can learn from each other. This has helped develop trust, acceptance, and buy-ins among SMEs for Industry 4.0 adoption.
- AI is the only technology where German manufacturing needs to catch up compared to other regions like the United States and Asia. In the recent past, the German government pledged to spend Euro 3 billion on research and development in artificial intelligence by 2025. This is expected to add to the already advanced digitization process in German Manufacturing.
- Players operating in the country focus on various organic and inorganic growth strategies to stay competitive in the market. For instance, in October last year, In partnership with longtime partner MTU Aero Engines, Pratt & Whitney (P&WC), a business subsidiary of Pratt & Whitney, announced a second maintenance, repair, and overhaul (MRO) facility for the PW800 engine will open in Germany in 2024.
- Further, the German federal statistics bureau stated that the domestic manufacturing industry employs more than 8 million people. However, Bitkom and TUV-Verband found that less than two-thirds of these companies are offering workforce training courses on digitalization.
- This is about to change as Bosch, in collaboration with the Stuttgart Region Chamber of Industry and Commerce (IHK), and other sciences and industry partners have developed a certification course on digitization called Fachkraft fur Industrie 4.0 (IHK), or Industry 4.0 specialist.
- Players operating in the country are focusing on developing efficient building envelopes, further creating market growth opportunities. For instance, in July last year, To service the new German P-8A Poseidon fleet, Boeing, ESG Elektroniksystem- und Logistik-GmbH, and Lufthansa Technik inked a tripartite agreement. With the new deal, the P-8A sustainment program in Germany will be carried out by a team made up of Boeing, ESG, and Lufthansa Technik. This collaboration reflects a dedication to providing local customers with German industry primes.
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