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Industry Insights, Market Size, CAGR, High-Level Analysis: Europe Maintenance, Repair and Operations Distribution MarketThe Europe MRO distribution market size was estimated at USD 208.7 billion in 2019 and is projected to register a CAGR of 2.1% over the forecast period. Increasing manufacturing and industrialization rates in countries such as Finland, Norway, Germany, and Sweden is anticipated to drive the demand for Maintenance, Repair, Operations (MRO) services for equipment and products. A large number of industries in Europe have adopted integrated maintenance, repair, and operations service concepts in order to standardize the quality of equipment and services in various critical operations and to reduce overall costs. This trend is expected to drive the Europe Maintenance, Repair, Operations distribution market over the forecast period. MRO distribution companies are focusing on R&D, advancements in equipment, and process automation. In addition, the development of various end-use sectors in the region, including manufacturing, construction, chemicals, and electronics, is expected to emerge as a major factor driving the Maintenance, Repair and Operations distribution market growth, especially in Germany. Composite materials are extensively used in several sectors on account of its high tensile strength with improved corrosion resistance, especially for lightweight applications. Advancements in composites and repairs and introduction of robotic solutions are anticipated to improve MRO capability, thereby driving the Europe MRO distribution market growth. Components used in operations vary based on size, shape, and dimension. Moreover, some components are fragile and hence need dedicated transportation. Increasing cost of logistics is a challenge for suppliers as it directly affects the cost of MRO operations. This is anticipated to limit the market growth for MRO distribution. Maintaining aging assets and improving asset performance is a crucial task that companies are required to manage. Production facilities operating in the region opt for regular maintenance to reduce downtimes and minimize the risk of injuries, which is expected to drive the Europe market for MRO distribution.
Product Insights of Europe Maintenance, Repair and Operations Distribution MarketThe pipes, valves, and fittings segment is projected to witness the highest growth rate over the forecast period and reach USD 45.8 billion by 2027 on account of the rising demand for these products from end-use industries such as oil and gas, petroleum, and chemical. The demand is further supported by the extensive interior heating infrastructure prevalent in the region. Electrical items accounted for a significant share in 2019 owing to high per-capita ownership of electrical products in the region. These components require regular maintenance as they are used for longer durations and are hence required to be replaced more frequently. MRO distribution operations involve the complete replacement of expendable machine components such as wires, machine oils, fluids, rotators, shafts, general machine spare parts, cutting devices, and fasteners to ensure the smooth functioning of the machinery. Rise in adoption of MRO operations in the European manufacturing industry is expected to propel the market growth. Technological advancements in bearing systems have led to the introduction of smart bearings that are capable of self-detection of failures and faults. Higher adoption of smart bearings in the manufacturing industry is anticipated to drive the demand for the distribution of maintenance, repair, and overhaul operations for equipment owing to the ease of fault detection. Sourcing/Service
Type Insights of Europe Maintenance, Repair and Operations Distribution MarketExternal MRO distribution operations are expected to witness significant growth in Europe over the forecast period and is estimated to reach USD 177.9 billion by 2027. Increasing contracts to third-party service providers is projected to promote sales revenues, thereby driving the demand for MRO services. Growing demand for maintenance at regular intervals, coupled with increasing awareness regarding the repair and maintenance of complex equipment, is expected to contribute to the rising popularity of external MRO distribution. In addition, increasing focus of companies toward reducing efforts of their internal departments is anticipated to promote the segment growth. Lower cost of operations and excellent inventory control are some of the benefits associated with internal MRO management. The dedicated department in the company for MRO-related operations helps reduce the turnaround time to fix issues in operational units. The aforementioned factors are anticipated to drive the internal MRO distribution segment. However, the demand for internal MRO distribution is declining as manufacturers are increasingly focusing on contracting with external third-party MRO service providers. This helps manufacturers minimize costs related to inventory management, which is projected to boost the demand for external MRO distribution operations.
Type Insights of Europe Maintenance, Repair and Operations Distribution MarketFactors such as the need for protecting machinery or equipment from unexpected breakdowns and ensuring a smooth flow of operations are expected to drive the need for scheduled maintenance. Moreover, scheduled maintenance is preferred by production facilities to avoid unplanned maintenance activities, improve equipment life, and reduce operational costs. MRO service providers are focusing on enhancing services provided to production companies by offering system and equipment tours, review of required permits and engineering documents, evaluation of inspection frequency, current condition of the equipment, and level of maintenance required. The aforementioned factors are projected to fuel the demand for preventive/scheduled maintenance. Corrective maintenance was valued at USD 86.2 billion in 2019 and is projected to register a CAGR of 1.8% from 2020 to 2027. Corrective maintenance activities cost more than preventive maintenance and the costs incurred depend on the nature of breakdown and the equipment used in the task. Hence, the corrective maintenance segment is expected to register a lower growth rate over the forecast period. Benefits offered by MRO activities include reduced emergency maintenance, extension of asset lifespan, and resolution of problems before delays in production line result in the need for corrective maintenance.
Distribution Channel InsightsThe direct distribution channel in the Europe market for MRO distribution was valued at USD 144.3 billion in 2019 and is projected to register a CAGR of 2.3% from 2020 to 2027. Factors such as lower cost and bulk delivery of components used in MRO operations are anticipated to drive the direct distribution channel segment over the forecast period. Distributors operating in the market are aiming to offer just-in-time delivery and MRO-related services. In addition, optimized operational time and fast recovery of faulty equipment are some other benefits of the direct distribution of MRO components. However, rising internal workload and increase in fulfillment cost are likely to pose a threat to the segment growth. Indirect distribution of MRO components involves multiples entities such as manufacturers, wholesalers, distributors, retailers, and end users or OEMs. Multiple levels of distributors and wholesalers are present in the supply chain, thus impacting the pricing structure of MRO components used in various operations. Distributors play a major role in the indirect distribution channel as they are the sole point-of-contact between the manufacturers and customers/end users. However, the significance of distributors is decreasing as new entrants in the market prefer a direct supply of products. This is projected to limit the growth of the indirect distribution segment over the forecast period.
Application Insights of Europe Maintenance, Repair and Operations Distribution MarketMachinery and equipment dominated the market in 2019, and this trend is projected to continue through the forecast period. Growing demand for MRO parts required for the maintenance of manufacturing facilities from a diverse range of industry verticals including construction, automotive, and metalworking is anticipated to drive the market growth. Increasing foreign investments and domestic demand for machinery and equipment in Europe is projected to drive the segment growth. Demand for maintenance and repair of equipment and the need for periodic services would further drive the growth of the machinery and equipment segment. The demand for distribution of MRO components for basic metals and metal products is expected to register lucrative growth owing to the rapidly developing manufacturing sector in Europe. Metal processing and foundry operations in the region are significant contributors to automotive, aerospace, and industrial machinery manufacturing operations. Moreover, government reforms aimed at developing these manufacturing industries are projected to drive the segment growth.
Country InsightsGermany accounted for a significant market share of 21.7% in 2019. Increasing number of companies engaged in the production and assembly of automotive parts is anticipated to drive the demand for maintenance, repair, and overhaul services in the country. In 2018, the German chemical industry started a reform to upscale the production and export of chemicals and related products. More than 2,000 companies participated in the reform and expect a year-on-year growth of 1.6% till 2050. This is expected to drive the demand for MRO services in chemical facilities, subsequently driving the market growth in Germany. The aerospace market in France is anticipated to grow at a higher rate over the forecast period on account of the rising number of aircraft exports to the overseas markets. This is projected to drive the France market for MRO operations. Moreover, MRO-related operations for domestic and civil aircrafts in the country are likely to fuel the market growth. The food and beverage market in the country hold a major share in the manufacturing industry. Growing trends for packaged food products have compelled manufacturers to restructure their facilities, which, in turn, is anticipated to drive the demand for MRO services over the forecast period.
Europe MRO Distribution Market Share InsightsMarket players such as Graco, Inc.; WABCO; Kayden Corporation; Cromwell Group; and Bodo Moller Chemie GmbH focus on the research and development of new technologies for product manufacturing and integration across various stages of the value chain to gain a competitive edge in the market. Key players also adopt strategies such as product portfolio expansion, product development, and distribution network expansion. For instance, SBP Holdings acquired Texas-based Matex Wire Rope through its wholly-owned subsidiary Bishop Lifting Products to strengthen its position in Texas and Louisiana.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Europe Maintenance, Repair and Operations Distribution Market Research ReportThis report forecasts revenue growth at regional and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the Europe MRO distribution market report on the basis of product, sourcing/service type, maintenance type, application,distribution channel and country:
Product Outlook (Revenue, USD Million, 2019 - 2030)
- Bearings & Power Transmission
- Pipes, Valves & Fittings
- Electrical Items
- Packaging Supplies
- Machine Consumables
Sourcing/Service Type Outlook (Revenue, USD Million, 2019 - 2030)
- Internal MRO
- External MRO
Maintenance Type Outlook (Revenue, USD Million, 2019 - 2030)
- Preventive/Scheduled Maintenance
- Corrective Maintenance
Distribution Channel Outlook (Revenue, USD Million, 2019 - 2030)
Application Outlook (Revenue, USD Million, 2019 - 2030)
- Food, Beverage & Tobacco
- Textile, Apparel & Footwear
- Wood & Paper
- Mining, Oil & Gas
- Basic Metals & Metal Products
Rubber, Plastic and Non-metallic Products
Machinery and Equipment
- Electrical Equipment
- Transport Equipment
Table of Contents Chapter 1. Methodology and Scope 1.1. Research methodology 1.2. Research scope & assumptions 1.3. Information Procurement 1.3.1. Purchased Database 1.3.2. GVR’s Internal Database 1.3.3. Secondary Sources 1.3.4. Third Party Perspective 1.3.5. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1.5. Market Formulation and Data Vis | read more...