The North America Maintenance, Repair & Overhaul Distribution (MRO) Market- Growth, COVID-19 impact and Forecast (2021-2025)
The North America MRO distribution market is segmented by Product type (Power Transmission-hydraulics, Automation, Power Transmission-electrics, Power Tools, Power Transmission-pneumatics, Chemicals, Others); End-users (Chemicals, Transportation, Electrical And Electronics, Food, Beverage And Tobacco, Metal Processing And Foundry, Mining, Oil And Gas, Others) Region (U.S, Canada and Mexico)
Introduction
MRO helps in reducing operational expenditure substantially, through process efficiency and optimized supply chain management. The maintenance, repair, and operations (MRO) include spare parts, equipment, consumables, etc., used by a company to manufacture an end product.
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.
Factors like various initiatives by manufacturers to attain optimum efficiency, need to eliminate downtime, increasing product demand from other end-use industries are also likely to support the market growth. However, the lack of focus and investments in MRO processes in the past resulted in the slow growth of the industry.
Table of Contents
Market Overview
The North America maintenance, repair & overhaul (MRO) distribution market is expected to grow to $167.30 billion by 2025.
Growth momentum is expected to accelerate during the forecast period with 3.12% CAGR.
Increasing product penetration in the manufacturing industry on account of standardization of critical services and equipment is expected to drive the market growth.
U.S is dominating the market due to increased demand for MRO numerous OEMs present in the region
Key Trends
The emerging technologies, coupled with the need for enhanced competitiveness, are anticipated to propel the market demand in the coming years.
Various initiatives by manufacturers to attain optimum efficiency are expected to drive market growth over the forecast demand.
The increasing number of renovation and refurbishment projects in the U.S., Canada, and Mexico is anticipated to boost the demand for MRO services, thereby propelling the industry growth.
Key Market Players
Some of the key players in the market are Hillman Group, Wajax Industrial Components, SBP Holdings, R.S. Hughes, FCX Performance, DGI Supply.
Major companies compete on the basis of distribution networks, delivery efficiency, and competitive pricing. The market is highly fragmented and is characterized by the presence of a large number of players. The product demand is highly dependent on the growth of the end-use industries and is expected to grow moderately due to limited growth realized by the application industries.
Growth Drivers and Challenges
The growing concern for increasing internal efficiency is driving the demand.
High demand for digitization, and increasing investment in the maintenance operations is shaping the growth positively.
The lack of focus and investments in MRO processes in the past resulted in the slow growth of the industry.