Global Maintenance, Repair, and Operations (Mro) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Global Maintenance, Repair, and Operations (Mro) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global maintenance, repair, and operations (MRO) market was valued at USD 254.05 Billion in 2021, and it is projected to be worth USD 291.32 Billion by 2027, registering a CAGR of 2.25% between 2021 and 2027.

• The growing concern regarding the increasing internal efficiency, digitization, and investment in maintenance operations is one of the primary factors driving the growth of the MRO market (hereafter referred to as the market studied).
• As MRO helps in reducing operational expenditure substantially through optimized supply chain management and process efficiency, various end-user companies, such as Armtec, Amey, Planys Technologies, and Dematic, among others, are investing in the market studied. Further, the overall economic and manufacturing growth continues to drive the demand for maintenance and repair in developing and developed economies. The evolution of Industry 4.0 is also helping upgrade the MRO sector.
• The emerging technologies and the need for enhanced competitiveness have transformed the MRO industry by forcing market vendors to provide innovative offerings. For instance, in May 2022, Epicor announced an agreement with global analytics and business intelligence provider MicroStrategy Incorporated to deploy the new Epicor Predictive Maintenance Assistant solution via MicroStrategy's Hyper Intelligence technology. It will help users predict upcoming maintenance and repair events, including service providers and consumers.
• Due to COVID-19, the MRO industry faced a skilled labor shortage that has been exacerbated by the pandemic, though it predates the same. Manufacturing technology's increasing complexity has made repairs more challenging, and fewer technicians in the market studied can effectively solve maintenance issues. An aging workforce is not being replaced by younger technicians either. OEMs have begun reassessing their MRO supply chain and procurement strategies to account for material delays and a lack of skilled labor.
• With such developments, the demand for components, tools, consumables, equipment, and other products in 2020 from MRO distributors in the industry during March, April, and May was severely hit and observed a significant slump in demand. Although, in June 2020, many of these manufacturing sites have resumed their operations, the disruption caused in starting five months in 2020 could result in order delays and lead time across the MRO equipment supply chain 2020.

• The manufacturing industry worldwide is witnessing an increasing demand for MRO services due to the increasing adoption of technologies like Industry 4.0, digitization, and increasing investments in maintenance operations.
• The demand for MRO services in the manufacturing industry is increasing as it helps reduce operational expense and increase substantially through process efficiency and optimized supply chain management, an increasing number of investments in the manufacturing industry.
• The energy-efficient HVAC systems in the market are expected to rise. HVAC plays an essential part in manufacturing plants to ensure the premium quality of the product. It also offers ambient working conditions for its employees, thus boosting the overall productivity. Quality is the prime focus for all the customers.
• Furthermore, the overall manufacturing and economic growth continue to drive MRO in the developed, developing, and emerging economies. The evolution of Industry 4.0 and its adoption has also been a primary factor for the upgrade in the MRO sector.
• According to the Board of Governors of the Federal Reserve System, the Manufacturing output in United States gained 0.9 percent in March 2022; motor vehicles and parts output jumped 7.8 percent, while factory output elsewhere increased by 0.4 percent.

• The construction industry remains one of the important sectors in Australia. For instance, in 2022, Multiplex announced the completion of AMP Capital's 50-story office called the Quay Quarter Tower in Sydney. The building is equipped with shifting glass volumes stacked upon each other. During the construction process, a 45-year-old building that was initially 45,000 square meters was converted to 89,000 square meters. This indicates the requirement for MRO in the construction sector of Australia.
• Further, Australia has been experiencing a growing demand for manufacturing facility expansions. For instance, in October 2021, Softlron announced to open its manufacturing facility in Australia by the end of 2022. the facility is a component-level manufacturing facility that will build clean computer servers for customers who want to eliminate the unknown code in their data centers.
• Urbanization and the increasing need for sustainable buildings are expected to impact the growth in the Asia Pacific building construction market, despite the rising property prices. Green facilities, which include intelligent features to ensure energy efficiency, are expected to attract the highest interest.
• The major countries considered under this region are Singapore, Malaysia, Thailand, Vietnam, and The Philippines. The growing investment in the manufacturing industry, such as automotive spare parts, semiconductor chip industry, and data center industry, is expected to increase the demand for MRO vendors.
• 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), the manufacturing industry's annual production growth rate was about a negative 1.4% during the fiscal year 2020. This decrease is due to supply chain disruption and lockdown due to the COVID-19 pandemic. The 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 development of the MRO market in the country.

The MRO Market comprises several global and regional players vying for attention in a contested market space. Acquisitions, partnerships with industry participants, and new product/service rollouts have been key competitive strategies exhibited by vendors in the market. For instance, in October 2021, Relais Group PLC, the leading consolidator in the Nordic vehicle aftermarket, signed an agreement regarding the acquisition of Sydhamnens Trailer Service AB. The seller is Sydhamnens Trailer Service Holding AB (Fairford Holdings Private AB and Marinus Företagskapital i Bromma AB).

• May 2022 - Arnotts Group announced the construction of a food manufacturing facility in Avondale and expects to open the site in 2023. Thus, driving the demand for MRO in the country.
• April 2022 - a Japanese beverage company Frucor Suntory announced an investment of USD 400 million to build a beverage manufacturing facility in Queensland. According to the company, the project is expected to create 459 construction and installation jobs. Such investments in the country are driving the requirement for MROs.
• January 2022 - Nordam, a Singapore-based aerospace components manufacturing and repair specialist, and China Airlines established a joint venture to set up MRO in Taiwan. Taiwan's 44,000-square-foot, two-story facility includes a production floor, warehouse, clean room, and paint booths.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support