Changing global dynamics and competitive forces fuel the rapid transformations in the MRO or maintenance, repairs, and operations industry. With competition intensifying every day, traditional business models can no longer sustain their positions.
Evolving businesses need innovative MRO landscapes, compelling leading players to come up with smart business models.
How to Analyse Global MRO Industry for Increased Business Efficiency?
The global MRO industry is currently undergoing a CAGR of 1.2%, which is expected to gain momentum by 2020 to reach $660 billion. This highly competitive industry has many significant distributors in North America and European regions.
Still, the market has growing concerns for technological advancements, increasing investments, and improving internal efficiencies. With comprehensive market data and reports, you can gain in-depth knowledge of the factors, drivers, and challenges affecting the industry.
Current Market Dynamics
Presently, the MRO market shows a lot of intensity and promise due to increasing needs for service improvements. Every end-user industry relies on this sector for their growth and customer support services.
Whether you have mining, pharmaceutical, automotive, technology, chemical, CPG, or food and beverage business, understanding the market dynamics helps make better plans for future expansions.
The MRO industry is looking for process efficiency and supply chain management to reduce operational expenses. The overall industry growth is driving the demands for maintenance and repairs, especially in developing economies.
The upcoming technologies are further transforming the industry through innovation and automation. The e-commerce growth in the past decade has also leveraged the opportunities for this sector.
Since the markets are fragmented, the leading players focus mainly on in-stock product offerings, supply chain optimisation, and better customer relationships for their stronghold in the sector.
KPIs that Matter in MRO Market Analysis
The demands for predictive and prescriptive maintenance are growing in every end-user sector, especially the aviation industry. It drives the MRO industry growth by adopting the latest technologies and implementing software-as-a-service (SaaS) for supply chain management.
Amid these dynamics, you need comprehensive market intelligence to understand various KPIs like:
- Introduction of innovative technologies to improve productivity and reduce expenses
- Calculating inventory turnover ratios
- Assessing the specified time for managing product delivery and e-procurement
- Service level agreements and improvements
When calculating KPIs for MRO market intelligence, you should choose reports that focus on market segments like 3D printing, artificial intelligence, robotics, internet of things, predictive maintenance, and big data analytics.
The MRO Market Trends
Market intelligence reports focused on current trends and forecasts can help shape the market demands over the coming years. It includes competitive analysis and an understanding of global dynamics. The MRO industry is adopting outsourcing and integrator models in developed regions to signal improved buyer willingness in creating lasting relationships.
Global distributors are penetrating new markets through mergers and acquisitions to expand their consumer bases. Customers, on the other hand, look for integrated solutions with real-time monitoring and on-time product deliveries. Many companies in the Asia-Pacific region are consolidating MRO activities through established distribution channels.
The region is developing as a central hub for manufacturing spare parts for other countries. For example, India is growing its MRO capabilities focusing on automation, digitisation, and industrialisation to capture the APAC region.
In the post-COVID scenarios, some categories like tools, power transmission, and fasteners will experience the greater impact of global trade wars and competition.
Predictive maintenance based on cutting-edge technology will become the prime focus of the manufacturing industry. Technology-based MRO systems will reduce costs and improve ROIs for the companies.
Leading Industry Drivers and Constraints
MRO markets have been impacted due to increased pressure for cost reduction, cyclical fluctuations in product sales, focus on product quality, and increasing customer maturity. The industry relies on mature markets like Western Europe and North America and upcoming markets like LATAM, Australia, and APAC. APAC alone dominates nearly 37% of the global MRO markets.
The high maturity regions like the UK, France, Germany, the US, Belgium, and the Netherlands are expected to grow further while competing with medium market maturity regions like India, China, Australia, Japan, Canada, South Africa, and Brazil.
The current challenges of the industry are downtimes, especially in the manufacturing processes. Hence, companies are looking to improve MROs for consistencies and enhanced efficiency. Government initiatives are also encouraging the industries and their responses to the development of this sector.
For all these statistics, data, and information, you need comprehensive market reports. In-depth analysis provided by these reports helps identify the significant factors affecting the growth. Find reports using analytical tools like Porter’s five forces and DRO analysis for concise and accurate intelligence.
Mostly, the reports cover market forecasts and insights from 2017 to 2027 for decade-wise analysis. You can also personalize the reports according to the specific region, segment, or period.