The MRO equipment and supplies market was valued at over USD 543 billion in 2016 and is expected to surpass USD 681 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on MRO equipment and supplies for the period 2017-2021. This industry analysis discusses the major drivers and key emerging trends that will influence the growth of the public relations services market during the projected period. Some of the top vendors listed in this industry analysis include Sonepar, Wolseley, Würth, W.W. Grainger, and WESCO International.
Regarding geographical analysis, the Americas is the largest shareholder in the global market, with a market share of around 32%. The high penetration of e-procurement models due to large supply base and high penetration of distributors will propel the market growth in this region.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing adoption of JIT inventory system among buyers will drive the growth of the MRO equipment and supplies market. The implementation of JIT inventory will help reduce the cost and complexities involved in the inventory management of MRO equipment. This system refers to maintaining a low inventory by ordering only when the demand arises rather than managing inventory. The various MRO end-users are adopting JIT inventory by ordering the supplies only when demand increases to reduce the costs associated with inventory management.”
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The current procurement market intelligence analysis examines some of the primary drivers and trends responsible for the growth of this market and its sub-segments.
Increase in need to reduce production downtime
Several manufacturing companies are investing in MROs to ensure consistency in production and avoid or minimize losses due to operational failure or equipment downtime. These systems are specifically designed to reduce the production and operational costs thus ensuring seamless manufacturing process and increasing profitability. For instance, large automobile companies, such as Volkswagen, are engaging with providers of MRO components such as V-line to ensure a consistent supply of its manufacturing units in Chengdu and Foshan in China.
Growth of manufacturing sector
The economic development in emerging countries like India and China are resulting in a significant increase in manufacturing activities. This growth is attributed to various factors such as low production cost for both labor and materials and trade policies that promote manufacturing. The immense growth in the industrial sector will lead to an increase in the demand for industrial MRO that facilitate uninterrupted operation of production facilities.
Growth of integrators that enable better inventory management
Organizations across the world are implementing MRO integrators that help optimize the procurement of the equipment through strategic sourcing and using technologies to integrate supply chain. The emergence of integrators will drive the growth of the industry by promoting optimized MRO equipment procurement measures that eliminate inventory duplication and obsolescence. It is also estimated by market analysts that these integrators will help reach 4% to 8% cost savings in the indirect spend on MRO supplies.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global MRO Equipment and Supplies Market – Procurement Market Intelligence Report 2017-2021.’
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