MRO (maintenance, repair, and operations) services are about providing products and services that are essential for the smooth function of manufacturing plants and operational facilities. Typically provided by original equipment manufacturers (OEMs), MRO can be further divided into product-based and service-based facilities. Though a highly competitive and fragmented market, the global MRO services market has been witnessing consistent growth in the past few decades. In 2015, the market stood at $621 billion, and, according to the analysts at Technavio, is poised to grow at a CAGR of around 5% by 2020.
As technology is becoming an integral part of the MRO market, the quality of its services and operations has improved drastically. This growth can also be attributed to the increase in manufacturing activities in the APAC (Asia-Pacific) region. Through a careful analysis of the global MRO services market, it is clear that there multiple factors that account for their high demand.
Some of the key drivers of the MRO services market as identified Technavio include the following:
Demand for reduced production downtime
The downtime involved in the production process can be quite costly. Most manufacturers want to fix this issue by focusing on solutions that help them reduce the downtime involved in production. Investment in MROs helps manufacturing companies achieve consistency in production, minimize operational costs, and reduce the length of downtime in the production process. One excellent example is how large companies like Volkswagen are using MRO services for their manufacturing units in China.
Increase in manufacturing activity
Manufacturing activity has increased throughout the globe, more so in emerging economies in the APAC region. The governments in this region are establishing several programs and policies that encourage manufacturing activity. This along with the decline in the price of crude oil, as well as steady economic growth in the region has led to increased demand for MRO services.
Demand for predictive maintenance
Whether it is the chemical industry, the automotive industry, or pharmaceutical companies – all industries are aggressively seeking predictive maintenance services. In fact, by 2020, the demand for predictive maintenance is expected to grow by 27%. The fact that MRO firms provide predictive maintenance is another reason why companies have invested heavily in MRO services.
Technological advancement
As previously mentioned, the synergy of technology with MRO services has brought positive change to the manufacturing sector. Technologies such as e-procurement and 3D printing not only provide better results but also enable cost savings. These technologies also help companies achieve transparency in the supply chain and inventory management. All of these facilities are covered by MRO services, which explains why they are so desirable.
Want a more in-depth understanding of the MRO services market?
View the 2016 Global Maintenance, Repair and Operations Services Market Report
