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Global Maintenance, Repair, and Operations (MRO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Global Maintenance, Repair, and Operations (MRO) Market is segmented by MRO Type (Industrial, Electrical, Facility), and Geography.

Market Snapshot

Maintenance Repair Operations Mro Market Overview
Study Period: 2019- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 2.19 %
Maintenance Repair Operations Mro Market Major Players

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Market Overview

The global maintenance, repair, and operations (MRO) market (henceforth referred to as the market studied) was valued at USD 616.01 Billion in 2020, and it is projected to be worth USD 701.30 Billion by 2026, registering a CAGR of 2.19% during the period of 2021-2026 (hereafter, referred to as the forecast period). Further, the outbreak of COVID-19 has severely affected various countries across the world. This is continuing to have a negative impact on various industries, as demands are shrinking along with several disruptions to supply chain and operational challenges. MRO vendors are struggling to maintain their SKUs with the growing disruptions in the global supply chain.

  • The growing concern for increasing internal efficiency, growing digitization, and increasing investment in maintenance operations are some of the major factors driving the maintenance, repair, and operation (MRO) market.
  • As MRO helps in reducing operational expenditure substantially through process efficiency and optimized supply chain management, an increasing number of end-user companies are investing in the market studied. Furthermore, the overall economic and manufacturing growth continues to drive maintenance and repair demand in developed and developing economies.
  • Also, due to increasing demand, many market players are expanding their presence and capacity to cater to a large customer base and encasing the opportunity. For instance, in 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.
  • 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.
  • However, the lack of MRO capacity, training capabilities, and skilled workforce, especially in developing countries, maybe a restraining factor for the market growth.
  • By 2020, 40-50% of all business analytics software is estimated to incorporate prescriptive capabilities. This is further helping in reducing the overall cost.
  • As the market studied is witnessing a significantly increasing demand, many of the market players are expanding their presence and capacity to cater to a large customer base and encasing the opportunity.

Scope of the Report

Maintenance, repair, operations (MRO) items are products and materials purchased by companies that are not directly employed in their manufacturing process. These products are mostly used to keep business operations running. The maintenance, repair, and operations (MRO) include spare parts, equipment, and consumables, used by a company to manufacture end products. MRO includes spare parts, equipment, such as pumps and valves, consumables, like cleaning supplies, plant upkeep supplies, such as lubricants, and activities completed to restore or maintain the functioning of the required equipment.

MRO Type
Industrial MRO
Market Overview and Scope of Industrial MRO
Industrial MRO by End-user Industry
Vendor Profiles of Key Distributors
Wurth Group GmbH
Airgas Inc. (Air Liquide SA)
Applied Industrial Technologies Inc.
Kaman Industrial Technologies Corporation
Rubix Limited (IPH-Brammer Group)
Motion Industries Inc. (Genuine Parts Company)
ARCO limited
Brammer Buck & Hickman ​(RUBIX)
Cromwell Group Holdings Ltd
Hayley Group Limited
RS Components
List of Distributors in Industrial MRO
Electrical MRO
Market Overview and Scope of Electrical MRO
Electrical MRO by End-user Industry
Vendor Profiles of Key Distributors
WESCO International Inc.
Sonepar SA
Rexel Holdings USA (Rexel SA)
Graybar Electric Co.
Consolidated Electrical Distributors Inc.
Eriks NV
List of Distributors in Electrical MRO
Facility MRO
Market Overview and Scope of Facility MRO
Facility MRO by End-user Industry
Vendor Profiles of Key Distributors
Ferguson PLC
W.W. Grainger Inc.
The Fastenal Company
MSC Industrial Direct Co. Inc.
Lawson Products Inc.
The Home Depot Inc. (Interline Brands Inc.​)
List of Distributors in Electrical MRO
Other MRO Types
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia Pacific
India
China
Japan
Rest of Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

Manufacturing Sector Under Industrial MRO to Occupy Significant Market Share

  • The adoption of industrial MRO equipment in the manufacturing industry has been impacted due to various driving factors, including the increasing demand to reduce cost, increasing market maturity, cyclical fluctuations in new equipment sales, and the rising need to enhance product quality. With enterprises in the manufacturing sector continuously seeking to achieve large profit margins, they have been looking to maximize return on net assets (RONA).
  • In practice, the downtime involved in the manufacturing process is quite expensive. Enterprises in the manufacturing industry have been looking to invest in MROs to help them achieve consistency in manufacturing and reduce the length of downtime in the manufacturing process.
  • Furthermore, manufacturers have been looking to optimize their processes to reduce their overall energy consumption in adherence to government regulations. In the process, manufacturers have been conducting lifecycle assessments of their products and deploying the required MRO equipment to practice lean manufacturing.​
  • Manufacturing activities have witnessed exponential growth, owing to the governments’ initiatives in several regions to introduce various programs, initiatives, and policies that encourage manufacturing activity.
  • For instance, in March 2020, the National Institute of Standards and Technology (NIST), a Department of Commerce in the United States, opened a funding opportunity for high-impact projects that support the nation’s response to the COVID-19 pandemic. The funding is expected to be awarded to eligible public-private partnerships with private and academic sector manufacturing organizations on research, development, and manufacturing processes.
  • In March 2020, ERIKS, a technical component and service provider, had invested in multiple solution developments to expand its 3D printing capacity for OEM and MRO end users. In The Netherlands, ERIKS has deployed a significant range of Ultimaker 3D printing systems to allow customers to collaborate with ERIKS specialists for MRO solutions.
  • Furthermore, the discrete manufacturing industry is expected to witness one of the largest digital transformation spendings in 2019. It is expected to slow down during 2020 and the first half of 2021 due to the influence of Covid-19. However, process manufacturing is expected to gain traction due to the increase in demand for their offerings in the market. This will create more opportunities for industrial MRO in manufacturing.
Maintenance Repair Operations Mro Market Key Trends

Asia Pacific Expected to Register the Highest Growth

  • The Asia Pacific region is slowly witnessing an increase in the adoption of professional services. It is considered to be a major manufacturing hub for spare parts that are supplied to different countries. For instance, India is one of the fastest-growing markets for MRO in the APAC region, owing to the significant growth in manufacturing, industrialization, automation, and digitization.
  • China is the largest market for MRO, owing to the growth of automation, digitalization, smart manufacturing, and industrialization. The manufacturing sector in the country is at the forefront across the world due to significant investment by the government in the sector. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China's share of global vehicle production was 28.02% in 2019.
  • The country is significantly investing in Industry 4.0 to take the next leap in manufacturing. According to Accenture, China's IoT investments will add up to USD 196 billion to cumulative GDP in manufacturing industries alone over the next 15 years. According to the GSMA, China will account for a third (4.1 billion) of the world's Industry IoT (IIoT) connections by 2025. Therefore, such investments in the manufacturing sector are expected to fuel the growth of the MRO market in the country.
  • Moreover, in June 2020, Grainger announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC (to a purchaser owned by the Grainger China management team and Sinovation Ventures, a China-based venture capital firm. This divestiture will better enable Grainger to focus on its key businesses and geographies. To support this portfolio, the company will maintain its Global Sourcing operations based in China. Grainger's Global Sourcing provides the company with private label products in categories that include safety, cleaning, electrical, motors, and tools.
  • India is one of the fastest-growing markets for MRO in the APAC region, owing to the significant growth in manufacturing, industrialization, automation, and digitization. According to the Department for Promotion of Industry and Internal Trade (India), the annual growth in the manufacturing industry in 2019 accounted for 3.9%, from 2.8% in 2016. With the increasing growth in the manufacturing sector, the requirement for maintenance is growing to keep equipment and process running smoothly, thereby driving the growth of the MRO market in the country.
  • The Government of India is planning to make the country a hub for MRO of aircraft to boost the country's current aviation sector so that the maintenance cost of the aircraft will come down, with a ripple effect on the prices of the airfare. In December 2019, France-based Safran Group was considering a USD 150-million investment in a new aircraft MRO unit in India to cater to its airline customers.
  • Japan is one of the prominent industrial automation hubs in the Asia pacific region, owing to significant progress in robotics and its application. According to IFR, the unit shipment of industrial robots in Japan will account for 64 thousand units in 2021, from 38.59 thousand units in 2016. Thus, the growth in industrial automation is driving the MRO market in the country.
  • In Japan, the Industrial IoT is being implemented across a wide gamut of industries, from utilities and energy management to manufacturing and worker safety, leveraging on the advancements in new computing and network technologies.
  • In June 2020, Hitachi Ltd and Microsoft Corp. on Thursday announced a multi-year strategic alliance to accelerate the digital transformation of the manufacturing and logistics industries across Southeast Asia, North America, and Japan. The two companies will work together to meet the growing demand for predictive maintenance and process automation in remote areas.
  • Moreover, the country is witnessing MRO-related activities in the oil and gas industries. For instance, in June 2020, Maruzen PetroChemicals awarded the multi-million-dollar, four-year contract to Ethos. The contract covers new gas turbine parts, component repair, maintenance, and field services for a Frame 6B gas turbine at the facility.
Maintenance Repair Operations Mro Market Growth Rate

Competitive Landscape

  • The Asia Pacific region is slowly witnessing an increase in the adoption of professional services. It is considered to be a major manufacturing hub for spare parts that are supplied to different countries. For instance, India is one of the fastest-growing markets for MRO in the APAC region, owing to the significant growth in manufacturing, industrialization, automation, and digitization.
  • China is the largest market for MRO, owing to the growth of automation, digitalization, smart manufacturing, and industrialization. The manufacturing sector in the country is at the forefront across the world due to significant investment by the government in the sector. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China's share of global vehicle production was 28.02% in 2019.
  • The country is significantly investing in Industry 4.0 to take the next leap in manufacturing. According to Accenture, China's IoT investments will add up to USD 196 billion to cumulative GDP in manufacturing industries alone over the next 15 years. According to the GSMA, China will account for a third (4.1 billion) of the world's Industry IoT (IIoT) connections by 2025. Therefore, such investments in the manufacturing sector are expected to fuel the growth of the MRO market in the country.
  • Moreover, in June 2020, Grainger announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC (to a purchaser owned by the Grainger China management team and Sinovation Ventures, a China-based venture capital firm. This divestiture will better enable Grainger to focus on its key businesses and geographies. To support this portfolio, the company will maintain its Global Sourcing operations based in China. Grainger's Global Sourcing provides the company with private label products in categories that include safety, cleaning, electrical, motors, and tools.
  • India is one of the fastest-growing markets for MRO in the APAC region, owing to the significant growth in manufacturing, industrialization, automation, and digitization. According to the Department for Promotion of Industry and Internal Trade (India), the annual growth in the manufacturing industry in 2019 accounted for 3.9%, from 2.8% in 2016. With the increasing growth in the manufacturing sector, the requirement for maintenance is growing to keep equipment and process running smoothly, thereby driving the growth of the MRO market in the country.
  • The Government of India is planning to make the country a hub for MRO of aircraft to boost the country's current aviation sector so that the maintenance cost of the aircraft will come down, with a ripple effect on the prices of the airfare. In December 2019, France-based Safran Group was considering a USD 150-million investment in a new aircraft MRO unit in India to cater to its airline customers.
  • Japan is one of the prominent industrial automation hubs in the Asia Pacific region, owing to significant progress in robotics and its application. According to IFR, the unit shipment of industrial robots in Japan will account for 64 thousand units in 2021, from 38.59 thousand units in 2016. Thus, the growth in industrial automation is driving the MRO market in the country.
  • In Japan, the Industrial IoT is being implemented across a wide gamut of industries, from utilities and energy management to manufacturing and worker safety, leveraging on the advancements in new computing and network technologies.
  • In June 2020, Hitachi Ltd and Microsoft Corp. on Thursday announced a multi-year strategic alliance to accelerate the digital transformation of the manufacturing and logistics industries across Southeast Asia, North America, and Japan. The two companies will work together to meet the growing demand for predictive maintenance and process automation in remote areas.
  • Moreover, the country is witnessing MRO-related activities in the oil and gas industries. For instance, in June 2020, Maruzen PetroChemicals awarded the multi-million-dollar, four-year contract to Ethos. The contract covers new gas turbine parts, component repair, maintenance, and field services for a Frame 6B gas turbine at the facility.The global maintenance repair and operations market is moderately fragmented owing to the presence of several MRO solution providers globally. The MRO market comprises several global and regional players, vying for attention in a fairly contested market space. The vendors are viewing collaboration, mergers, and innovation as a strategic path towards gaining maximum market share. They invest in R&D to utilize it towards product improvisation and the introduction of new products and expand their reach globally.
  • January 2021 - Wruth Group announced its plans to open the Innovation Center at the headquarters in Künzelsau is planned to open in 2022. The total amount invested comes to about EUR 70 million. Laboratories and workshops are being built on an area of 15,000 square meters.
  • January 2021 - Würth Electrical Wholesale strengthened its position in Poland by acquiring Kaczmarek Elektric SA. The transaction will consist of two principal elements: WürthElectrical Wholesale Group Polska SA (W.EG Polska) will take on all shares of Kaczmarek Electric SA.
  • Januray 2021- Rubix UK acquired Knowlton & Newman Ltd, a provider of electro-mechanical repair services to industries across the south of England. Also, Rubix Poland has acquired PePe sp. z o. o., a supplier of specialist flow products in Poland.
  • Januray 2021- Motion Industries Inc. held a ceremony at the site of its planned shop facility in Irondale, Alabama. The address is 2721 5th Avenue South. When completed, the USD 11.2 million 104,000 square-foot building will house Motion's area fluid power shop, hose and rubber shop, and engineering department.

Recent Developments

  • April 2021 - RS Components (RS) chose Orange Business Services as its single end-to-end managed services provider to carry out a major transformation of RS’s entire global infrastructure, digitize its sales processes and move its contact center activities to the cloud. These projects are a central part of RS’s digital transformation, which is designed to reduce costs, modernize its network capabilities and bring onboard new technologies.
  • January 2021 - Applied Industrial Technologies acquired Gibson Engineering Company Inc., a provider of automation products, services, and engineered solutions focused on machine vision, motion control, mobile and collaborative robotic solutions, intelligent sensors, and other related equipment.
  • January 2021- Motion Industries Inc. announced to operate under the brand name “Motion.” The rebranding to Motion will be augmented by the dominant use of the “Mi” logo.
  • February 2021- Hayley Group unveiled a dedicated Bearing Solutions team to enhance their offering as the bearing distributor within the country. The team represents a Hayley Group’s technical bearing specialists and several bearing advocates based throughout an extensive branch network. Many of the Bearing Solutions team members have decades of experience working with bearings that are expected to boost their portfolio in the near future.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Efficiency in Supply Chain

      2. 5.1.2 Increasing Focus on Industry 4.0, Leading to More Manufacturing Facilities

    2. 5.2 Market Restraints

      1. 5.2.1 Spread of COVID-19 to Affect the Supply Chain

  6. 6. MARKET SEGMENTATION

    1. 6.1 MRO Type

      1. 6.1.1 Industrial MRO

        1. 6.1.1.1 Market Overview and Scope of Industrial MRO

        2. 6.1.1.2 Industrial MRO by End-user Industry

        3. 6.1.1.3 Vendor Profiles of Key Distributors

          1. 6.1.1.3.1 Wurth Group GmbH

          2. 6.1.1.3.2 Airgas Inc. (Air Liquide SA)

          3. 6.1.1.3.3 Applied Industrial Technologies Inc.

          4. 6.1.1.3.4 Kaman Industrial Technologies Corporation

          5. 6.1.1.3.5 Rubix Limited (IPH-Brammer Group)

          6. 6.1.1.3.6 Motion Industries Inc. (Genuine Parts Company)

          7. 6.1.1.3.7 ARCO limited

          8. 6.1.1.3.8 Brammer Buck & Hickman ​(RUBIX)

          9. 6.1.1.3.9 Cromwell Group Holdings Ltd

          10. 6.1.1.3.10 Hayley Group Limited

          11. 6.1.1.3.11 RS Components

          12. 6.1.1.3.12 List of Distributors in Industrial MRO

      2. 6.1.2 Electrical MRO

        1. 6.1.2.1 Market Overview and Scope of Electrical MRO

        2. 6.1.2.2 Electrical MRO by End-user Industry

        3. 6.1.2.3 Vendor Profiles of Key Distributors

          1. 6.1.2.3.1 WESCO International Inc.

          2. 6.1.2.3.2 Sonepar SA

          3. 6.1.2.3.3 Rexel Holdings USA (Rexel SA)

          4. 6.1.2.3.4 Graybar Electric Co.

          5. 6.1.2.3.5 Consolidated Electrical Distributors Inc.

          6. 6.1.2.3.6 Eriks NV

          7. 6.1.2.3.7 List of Distributors in Electrical MRO

      3. 6.1.3 Facility MRO

        1. 6.1.3.1 Market Overview and Scope of Facility MRO

        2. 6.1.3.2 Facility MRO by End-user Industry

        3. 6.1.3.3 Vendor Profiles of Key Distributors

          1. 6.1.3.3.1 Ferguson PLC

          2. 6.1.3.3.2 W.W. Grainger Inc.

          3. 6.1.3.3.3 The Fastenal Company

          4. 6.1.3.3.4 MSC Industrial Direct Co. Inc.

          5. 6.1.3.3.5 Lawson Products Inc.

          6. 6.1.3.3.6 The Home Depot Inc. (Interline Brands Inc.​)

          7. 6.1.3.3.7 List of Distributors in Electrical MRO

      4. 6.1.4 Other MRO Types

    2. 6.2 Geography

      1. 6.2.1 North America

        1. 6.2.1.1 United States

        2. 6.2.1.2 Canada

      2. 6.2.2 Europe

        1. 6.2.2.1 Germany

        2. 6.2.2.2 United Kingdom

        3. 6.2.2.3 France

        4. 6.2.2.4 Rest of Europe

      3. 6.2.3 Asia Pacific

        1. 6.2.3.1 India

        2. 6.2.3.2 China

        3. 6.2.3.3 Japan

        4. 6.2.3.4 Rest of Asia Pacific

      4. 6.2.4 Latin America

      5. 6.2.5 Middle East and Africa

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDs

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Frequently Asked Questions

The Global Maintenance, Repair, and Operations (MRO) Market market is studied from 2019 - 2026.

The Global Maintenance, Repair, and Operations (MRO) Market is growing at a CAGR of 2.19% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Airgas, Inc. (Air Liquide S.A.), WESCO International, Inc., Sonepar SA, W.W. Grainger, Inc., Interline Brands, Inc. are the major companies operating in Global Maintenance, Repair, and Operations (MRO) Market.

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