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

The Global Maintenance, Repair, and Operations (MRO) market 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 approximately 2.

New York, May 06, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Maintenance, Repair, and Operations (MRO) Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06030491/?utm_source=GNW
19% during the forecast period (2021-2026). The evolution of e-commerce is increasingly impacting MRO requirements. For instance, in July 2020, amidst Covid-19, Bulk MRO, announced that the company raised INR 25 crore funding. The company further reported that it is leveraging its B2B online commerce platform Moglix to sell industrial tools and equipment, including MRO, electrical, and lighting.

- The growing concern for increasing internal efficiency, growing digitization, and increasing investment in the 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. The evolution of Industry 4.0 is also upgrading the MRO sector.
- 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.
- Further accelerating the adoption of smart technologies in manufacturing environments and beyond, the companies are also developing mobile apps to ensure the overall management by enabling the real-time monitoring and full traceability of components and smart devices. For instance, in January 2020, France-based JPB Système launched SMART WASHER, a technology developed to enhance MRO by enabling touchless and wireless measurement of bolt axial load. The company claims that the solution will enhance safety by providing exact measurements, increasing efficiency, and decreasing cost.

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 and adherence to government regulations.
- 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 has 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 that work with private and academic sector manufacturing organizations on research, development, and manufacturing processes.
- Additionally, predictive maintenance is expected to be the primary focus for the manufacturing industry to adopt cutting-edge technology-based MRO solutions in their facilities, as this helps reduce downtimes, thus helping in reducing costs and increase the ROI of equipment throughout usage. In addition to this, predictive maintenance helps to improve the efficiency of the manufacturing facility.

Asia Pacific Expected to Register the Highest Growth

- The Asia Pacific region is slowly seeing 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.
- According to the Department for Promotion of Industry and Internal Trade (India), India’s 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.
- Additionally, 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 aircraft’s maintenance cost will come down, with a ripple effect on the prices of the airfare. In December 2019, France-based Safran Group considered a USD 150-million investment in a new aircraft MRO unit in India to cater to its airline customers.
- On the other hand, China is significantly investing in Industry 4.0 to take the next leap in manufacturing. According to Accenture, China’s IoT investments will increase 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.

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, 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.

- June 2020 - WESCO International Inc. merged with Anixter International Inc., creating a premier, industry-leading global B2B distribution and supply chain solutions company. Upon completion of the merger, Anixter became a wholly-owned subsidiary of WESCO International. Anixter’s shares ceased trading before the market open on June 22, 2020, and each share of Anixter common stock has been converted in the merger into the right to receive USD 72.82 in cash.

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