The global maintenance repair and operations (MRO) market size was valued at USD 629.50 billion in 2021. It is projected to reach USD 779.28 billion by 2030, growing at a CAGR of 2.40% during the forecast period (2022-2030).
MRO refers to the machinery, implements, and tasks involved in a company's everyday operations. Maintenance of HVAC systems, building lighting, janitorial services, CNC equipment, drill presses, forklifts, jacks, personal protective equipment, powered and manual hand tools, mops, brooms, and furniture are all examples of MRO. The maintenance, repair, and operation (MRO) industry is primarily driven by increased concern over improving internal efficiency, growing digitization, and rising investment in maintenance operations. The demand for maintenance and repair is driven by economic and manufacturing expansion in established and developing economies.
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External supply chain efficiency criteria determine how successfully a company can meet the demands of the numerous parties interested in its operations. These entities could be clients, associates, suppliers, or vendors. The criterion also evaluates how effectively an organization can use its resources. Resources come in various forms, including people, cash, technology, and tangible goods. Additionally, the requirement for supply chain efficiency is increased by the necessity to ensure supply chain visibility, i.e., the company's capability to follow the components needed for the final product as it flows from the suppliers' hands to the player.
Smart manufacturing solutions that boost productivity fuel the demand pushing businesses to adopt MROs because they increase productivity and cut costs. For instance, Infor estimates that in the average organization, 30% of the stocked parts are never used, 50% of open work orders are awaiting parts, 25% of technicians' time is spent hunting for parts, 81% of order quantities are likely to be off, and 8% of SKU in old MRO systems are duplicates. As a result, businesses are anticipated to use outsourced MRO services to manage their daily operations better and take advantage of the considerable changes in the domains above.
The COVID-19 pandemic adversely impacted numerous nations throughout the world. Due to the declining demand, multiple supply chain interruptions, and operational issues, this is still detrimental to several businesses. According to a National Association of Manufacturers (NAM) research published in March 2020, more than 35% of manufacturers were experiencing supply chain interruptions due to the COVID-19 pandemic. These shortages of raw materials, commodities, and operational supplies are getting worse worldwide.
The study also discovered that 53% of manufacturers expected a change in operations, while 78% predicted a financial impact. Until the end of 2020, these improvements are anticipated to substantially impact their revenue and manufacturing capacity. In addition, since the global supply chain is increasingly disrupted, MRO companies are finding it challenging to maintain their SKUs (Stock Keeping Units). This factor became a significant obstacle to the market's maintenance, repair, and operations (MRO) expansion rate.
An open, networked system of supply activities in a manufacturing setup has replaced a linear, sequential supply chain as a result of Industry 4.0, a byproduct of the industrial revolution. The manufacturing sector is changing due to the industrial revolution, which has historically advanced from the First Industrial Revolution through Industrial Revolution 4.0. To enable digital factories and the growth of an ecosystem of connected plants and businesses, Industry 4.0 has been altering industries, moving them from outdated systems to smart components and smart machines. Industry 4.0 is a trend led by players in the manufacturing sector, where products and production equipment are properly networked for effective communication, enabling new production methods, value creation, and real-time optimization.
The Internet of Things (IoT) movement, the driving force behind Industry 4.0, connects multiple technology platforms and offers the capacity to communicate with manufacturing equipment anywhere in the globe from any place else. These capabilities have prompted the best-in-class manufacturing companies to build more factories. Due to rapid vendor technology adoption, these trends have been widespread among end-user businesses regardless of where they are located.
| Study Period | 2018-2030 | CAGR | 2.4% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 629.50 Billion |
| Forecast Year | 2030 | Forecast Year Market Size | USD 779.28 Billion |
| Largest Market | Europe | Fastest Growing Market | Asia-Pacific |
The global maintenance repair and operations (MRO) market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Europe is the most significant shareholder in the global maintenance repair and operations (MRO) market and is expected to grow at a CAGR of 2.05% during the forecast period. Increasing industrialization in the nation has made it an important market segment for MRO in both Europe and the rest of the world. The country's potential industries' embrace of cutting-edge technology has opened doors for the MRO market. The Mittelstand, or mid-size manufacturers, are the backbone of Germany's industrial foundation, and 90% of them do business with other businesses. The Mittelstand-Digital Initiative, which builds networks between stakeholders so that SMEs and entrepreneurs may learn from one another, was established by the German government to support this. This has aided in building SMEs' trust, acceptability, and buy-in for adopting Industry 4.0.
Asia-Pacific is expected to grow at a CAGR of 2.80%, generating USD 220.14 billion during the forecast period. Due to the expansion of automation, digitization, smart manufacturing, and industrialization, China is the world's largest market for MRO. The government has made significant investments, making the country's manufacturing sector one of the best in the world. The investment in MROs is assisting the nation's manufacturing businesses in achieving consistency in output and reducing the length of downtime in the production process because the cost of production downtime is high. For instance, Volkswagen aggressively uses MRO services for its manufacturing facilities in China. Thus, the MRO market is starting to take off significantly over the forecast period.
Latin American economies have been in decline recently. However, the manufacturing sector is one of the key pillars that support regional economies in overcoming these situations. Local industrial organizations are being primarily forced to invest in energy-efficient machinery and technology, such as smart motors, due to growing energy concerns and the endeavor to adopt the most cost-effective procedure. The region's growing automation trend led to upgrades to both new and existing installations of industrial equipment, raising demand for industrial MRO in the area. Many US industrial organizations are forced to invest in the area due to the ongoing trade war between the US and China.
The adoption of industrial robotics, automation, automated material handling, and automated warehousing is increasing in the United States, which is projected to impact the demand for MROs because in-house MROs lack competence in these domains. Predictive maintenance and automated ordering and order processing for necessary components and consumables in industries are anticipated to be made possible by implementing Industrial IoT. To meet the growing expectations of manufacturers for Industry 4.0 adoption, many MRO distributors are expanding their IoT solutions. For instance, Applied Industrial Technologies announced plans to work with the leading suppliers to supply smart goods and systems as part of an expansion of its innovative solutions portfolio for the Industrial Internet of Things (IIoT).
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The global maintenance repair and operations (MRO) market is segmented by MRO types.
Based on MRO types, the global market is bifurcated into industrial MRO, electrical MRO, facility MRO, and other MRO types.
The industrial MRO segment is the highest contributor to the market and is expected to grow at a CAGR of 2.00% during the forecast period. Abrasives, adhesives, sealants, tapes, lubricants, lab supplies, and test equipment are just a few examples of the products and materials included in the segment's scope for industrial MRO. A significant growth rate for material handling equipment is anticipated in the upcoming years due to the manufacturing sector's expansion and society's industrialization. In order to boost and ensure productivity, which leads to overall economic growth, the manufacturing sector has been implementing innovative material handling systems more frequently. For instance, 1.4 million units of material handling equipment were ordered globally in 2019, with 44% of those orders coming from Asia and 33% from Europe, according to World Industry Trucks Statistics (WITS).
The study's consideration of electrical MRO includes a variety of products and materials, including transformers, wire datacom, wire and cable, wiring devices, lightbulbs, light fixtures, switchgear devices, test instruments, and circuit protection equipment (such as breakers, fuses, overload protection, and protective relays). In the current market environment, developed economies, like the United States, continue to rely on their electric power industries to support their economic sectors by producing the energy necessary to drive businesses and enterprises involved in international trade. Manufacturing, construction, transport, water, emergency responders, and telecommunications, to name a few, are some of the crucial downstream dependencies of the nation's power system.
Facilities, including those in manufacturing, construction, healthcare, and the life sciences, present several issues to MRO managers regarding the facilities' efficient maintenance and management. Manufacturing facilities include production facilities for a variety of industries, including food, automotive, and aviation. A thorough building envelope maintenance program, which offers several significant advantages to organizations, is one of the maintenance and operations services provided by the building and construction sector. Building Envelope Services minimize building deterioration, lower ongoing maintenance costs, and enhance the aesthetic of a building.
Due to the rise in the use of technologies like Industry 4.0, digitization, and increased investments in maintenance operations, the need for MRO services in the manufacturing sector is rising globally. The industrial sector is seeing an increase in investments, boosting demand for MRO services. MRO services significantly lower operational costs through improved supply chain management and process efficiency. Additionally, established and developing nations continue to see maintenance and repair demand increases due to the overall economic and manufacturing expansion. MRO is now more crucial than ever for manufacturing facilities to focus on core competencies and competitive advantage.
