The North America Maintenance, Repair & Overhaul Distribution Market size is expected to reach USD 178.85 billion by 2028 registering a CAGR of 2.9%, according to a new report by Grand View Research, Inc. Increasing product penetration in the manufacturing industry on account of standardization of critical services and equipment is expected to drive the market growth. Moreover, increasing product demand from other end-use industries is also likely to support market growth. The periodic maintenance, repair, and overhaul (MRO) activities help reduce overall costs and enhance the productivity of the industrial operations, which is expected to drive their demand.
The MRO distribution or supply chain was traditionally considered an indirect component of the industrial operations. The lack of focus and investments in MRO processes in the past resulted in the slow growth of the industry. However, the recent global pandemic has contributed to raising awareness regarding crisis management of the supply chain in the manufacturing industry, which is expected to benefit the market growth. The value chain of this market includes manufacturers, specialists, generalists, partnerships, integrated supply, and retailers. Manufacturers play a major role across the value chain, by possessing definitive control over the market as they monitor the product pricing. They usually command pricing on a customer-by-customer basis rather than on a distributor-by-distributor basis.
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North America MRO Distribution Market Report Highlights
- Power transmission-pneumatics are expected to witness the fastest growth from 2021 to 2028 on account of the rising utilization of automated transmission in manufacturing facilities
- The food, beverage, & tobacco end-use industry accounted for a revenue share of 13.24% in 2020 owing to the increased focus of key companies on improvements in machine capabilities for enhanced food production
- Minnesota and Missouri were the major contributors to the region’s overall product demand owing to increased investments in the manufacturing and transportation sectors
- The manufacturing sector in Canada is anticipated to witness the fastest growth as the majority of the manufacturers are planning to invest in new equipment and machinery to gain a competitive advantage
- Moreover, manufacturers are trying to expand their customer reach through e-commerce platforms to access a wide range of categories, with significant expertise in the industry