April 19, 2024

Business Bib

Business & Finance Blog

MRO Market Forecast and Business Opportunities In Present World

3 min read

MRO (maintenance, repair, and operations) consists of any and all activities that keep or returns any equipment to working condition. The concept of MRO is essential to all processes involving the use of machinery and equipment since any and every equipment has a risk of malfunction or breakdown. Since the industrial revolutions, there has been an exponential rise in the need for MRO activities as machinery is now involved in nearly all spheres of life.

Although the quality of equipment has improved greatly, reducing risks of breakdown, having a sturdy MRO backup is essential to avoid last minute issues. MRO activities include function checks of equipment, preventive servicing, repairing/replacing devices, and much more, in industrial, business, governmental and residential settings. Maintenance activities can be broadly classified as preventive maintenance, corrective maintenance, and predictive maintenance.

Market Forecast

According to the global MRO market forecast, the value of the market is expected to reach $660 billion by the end of 2020, growing at a CAGR of 1.72 percent. While North America and Western Europe are mature markets, fast maturing markets include APAC, LATAM, and Australia, with APAC accounting for nearly 37 percent of the global MRO market. Major end user industries for the MRO market include mining, chemicals, pharmaceuticals, CPG, automotive, oil and gas, food & beverage and technology.

Global suppliers and distributors are expanding into developing markets with a fragmented local supply through mergers and acquisitions, offering multi-location solutions in a globalizing world. E-procurement is also gaining popularity in India and China, with an increased purchase of high-volume and low-value spend driving the B2B platform. The market for preventive and predictive maintenance is expected to grow more than the market for corrective maintenance as clients opt for avoiding the risk of equipment malfunction altogether rather than waiting for issues to arise.

Business Opportunities in the MRO Market

There are plenty of business opportunities in the MRO market in the present world, including:

Outsourcing- The process of MRO outsourcing is gaining rapid popularity as clients are expressing a preference to outsource maintenance and repair activities rather than keeping an in-house team. Outsourcing provides clients with highly qualified personnel and solution plans that will minimize the downtime for any equipment. Outsourcing also enables a specific client to engage a supplier for multiple office locations to meet quality standards.

Personalized Services- At a time when there is considerable competition in the MRO market, personalization is a new trend that suppliers are taking up to provide their clients with value added services. Personalized services are designed specifically based on the condition and type of the equipment, and the desired applications so as to provide the best service.

Industry Specialization- Technological innovations have led to the development of advanced industry-specific equipment that requires specially trained personnel to manage the MRO, for example, for medical equipment, mining, aerospace, etc. Combined with the trend of outsourcing, there is plenty of demand and opportunities for MRO suppliers that are specialized in particular industries.

The maintenance, repair, and operations market is an important part of industrial, domestic, and government sectors, increasing the life of machines and equipment. Although the MRO market is matured in developing nations, there is immense potential in developing nations and in specialized services. As companies turn towards an outsourcing model, the business opportunities are set to rise further.