United States Maintenance, Repair, and Operations (MRO) Market - Growth, Trends, Forecasts (2020 - 2025)

United States Maintenance, Repair, and Operations (MRO) Market - Growth, Trends, Forecasts (2020 - 2025)

The maintenance, repair, and operations market in the United States was valued at USD 115.21 billion in 2019, and it is projected to be worth USD 128.28 billion by 2025, registering a CAGR of 2% during the forecast period (2020 - 2025). Growing concern for the increasing internal efficiency, growing digitization, and increasing investment in the maintenance operations are some of the major factors driving the maintenance, repair, and operation (MRO) market

  • As MRO has been helping in reducing operational expenditure substantially, through process efficiency and optimized supply chain management, an increasing number of end-user companies have been investing in the market studied. Furthermore, the overall economic and manufacturing growth continues to drive maintenance and repair demand in the developed, as well as developing economies. The evolution of Industry 4.0 has also been upgrading the MRO sector.
  • With such developments, MRO has been increasingly becoming important for enterprises to maintain their focus on core competencies and competitive advantage. According to a survey of Modern Material Handling customers, where the average money spent by respondents was just over USD 6 million per year, and MRO accounted for over 10% of all supply chain spent for nearly 14% of facilities.
  • Growing automation and adoption of automated equipment, logistics, production facilities, and many more have been further driving the demand for external expertise in handling MRO in the industrial facilities. A significant share of the in-house technician employed by the businesses operating in studied MRO fields are ill-equipped to maintain new and highly automated systems; this has been further augmenting the demand for MRO in the country.
  • More industries in the country have been increasingly adopting IIoT as part of their strategy, with predictive maintenance being the focus of the adoption. According to a study by PTC in 2019, IIoT use cases have been driving transformational outcomes and are becoming prevalent across industrial factories, oil refineries, automotive plants, and utility grids, among others. The Americas held the prominent share of the market studied.
  • The manufacturing industry in the country witnesses the effects of the pandemic. A study by the National Association of Manufacturers (NAM) of the United States in March 2020, found that nearly 78% of the manufacturers in the country anticipate financial impact and 53% anticipated a change in operations. Such developments are expected to significantly impact their manufacturing capabilities and revenues until the end of 2020.
Key Market Trends

Industrial MRO is Expected to Hold a Significant Market Share
  • The material handling equipment in the country is expected to witness high growth in the coming years, due to the growing manufacturing sector and the rise in industrialization. The manufacturing industry in the country has been increasingly adopting advanced material handling solutions for enhancing and ensuring productivity, resulting in overall economic development.
  • The companies have been employing two approaches to maintenance, namely, run until it breaks or implement a preventative maintenance program based on hours of operation. As a part of materials handling, predictive maintenance is being deployed where real-time operational data is monitored and analyzed to predict the likeliness of a part or component (E.g., conveyor motor) to fail.
  • The increasing number of fans, water pumps, blowers, industrial robots, and medical devices fitted with industrial motors are expected to drive the market studied, during the forecast period. Revenue growth for the market studied is being enabled by the long-term trends of end-user's willingness to invest in higher energy-efficient technologies to reduce their carbon footprint and operating cost and increase the electrification trend.
Facility MRO is Expected to Witness Significant Growth
  • Despite the decrease in sales and demand in the overall manufacturing sector, the food manufacturing sector is witnessing an upsurge with the ongoing COVID-19 pandemic. Evolving consumer demands have fuelled faster production requirements in the region. As food manufacturers attempt to meet that demand, standards, such as the FDA’s Current Good Manufacturing Practices (cGMP) regulations, have made food safety, product quality, and food processing plant maintenance into stringent efforts, which is further driving the studied market.
  • Also, the facilities MRO market is currently fragmented and is slowly transitioning to consolidation with increasing activity in mergers and acquisitions. For instance, in Apr 2019, Comfort Systems USA Inc. acquired Walker TX Holding Company LLC and its related subsidiaries. Initially, Walker was expected to contribute annualized revenue of approximately USD 325 million to USD 375 million and earnings before interest, taxes, depreciation, and amortization of USD 20 million to USD 25 million.
  • The current market scenario is further indicative of increasing demand and higher yields for Facility MRO service providers in the region, as several new entrants are gaining significant market shares with efficient route-to-market strategies in place.
Competitive Landscape

The United States Maintenance, Repair, and Operations (MRO) Market is highly competitive owing to the presence of multiple vendors in the market operating in the domestic and international markets. The market appears to be moderately concentrated with the major players adopting strategies such as mergers and acquisitions and expansions in order to expand their geographic reach and stay competitive in the market. Some of the major players in the market are Ferguson PLC, MSC Industrial Direct Co. Inc, WESCO International Inc.​ among others.
  • Jul 2020 - WESCO International Inc. announced the completion of its merger with Anixter International Inc., creating a premier, industry-leading global B2B distribution and supply chain solutions company. Upon completion of the merger, Anixter became a wholly owned subsidiary of WESCO International.
  • Aug 2019 - Applied Industrial Technologies announced that it signed a definitive agreement to acquire Olympus Controls Corp, an automation solutions provider, including design, assembly, integration, and distribution of motion control, machine vision, and robotic technologies
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1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Emphasis on Operational Efficiency and Aging of Manufacturing Equipment in the Country
4.2.2 Technological Advancements, such as the Emergence of Automated Solutions (Industrial Vending Machines)
4.3 Market Challenges
4.3.1 Commodification of MRO has led to Higher Competition, thereby, Affecting Industry Margins in Key Segments, such as Industrial
4.4 Industry Value Chain Analysis
4.5 Porters Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 PESTEL Analysis – US MRO Industry
4.7 Major technological advancements – Convergence of IoT, 3D Printing, and Machine Vision systems
4.8 Assessment of COVID-19 Impact on the MRO Industry
5 US MRO MARKET SEGMENTATION
5.1 Industrial MRO
5.1.1 Current Market Scenario
5.1.2 End-user Industry
5.1.2.1 Manufacturing
5.1.2.2 Construction
5.1.2.3 Other End-user Industries
5.1.3 Company Profiles
5.1.3.1 NOW Inc. (DistributionNOW)
5.1.3.2 Airgas Inc. (Air Liquide SA)
5.1.3.3 Ferguson PLC
5.1.3.4 Motion Industries Inc. (Genuine Parts Company)
5.1.3.5 HD Supply Holdings, Inc.
5.1.3.6 MRC Global Inc.
5.1.3.7 Fastenal Company
5.1.3.8 MSC Industrial Direct Co. Inc
5.1.3.9 Applied Industrial Technologies
5.1.4 Market Outlook
5.2 Electrical MRO
5.2.1 Current Market Scenario
5.2.2 End-user Industry
5.2.2.1 Manufacturing
5.2.2.2 Construction
5.2.2.3 Other End-user Industries
5.2.3 Company Profiles
5.2.3.1 WESCO International Inc.​
5.2.3.2 Sonepar SA​
5.2.3.3 Rexel Holdings USA (Rexel SA)​
5.2.3.4 Eastern Power Technologies Inc.​
5.2.3.5 Consolidated Electrical Distributors Inc.​
5.2.3.6 Elliot Electric Supply​
5.2.3.7 Border States Electric
5.2.4 Market Outlook
5.3 Facility MRO
5.3.1 Current Market Scenario
5.3.2 End-user Industry
5.3.2.1 Healthcare and Social Assistance
5.3.2.2 Manufacturing
5.3.2.3 Other End-user Industries
5.3.3 Company Profiles
5.3.3.1 Ferguson PLC
5.3.3.2 W.W. Grainger Inc.
5.3.3.3 Fastenal Company​
5.3.3.4 MSC Industrial Direct Co. Inc.​
5.3.3.5 Lawson Products Inc.​
5.3.3.6 The Home Depot, Inc. (Interline Brands Inc.​)
5.3.3.7 Builders Firstsource​
5.3.3.8 Bluelinx Holdings​
5.3.4 Market Outlook
6 INVESTMENT ANALYSIS

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