MRO market for automation: Key market research findings
- Emergence of Industry 4.0
- Adoption of main automation contractor (MAC) concept
Technavio has released a new market research report on the global MRO market for automation solutions, which is expected to grow at a CAGR of close to 13% between 2016 and 2020. Growing need for continuous maintenance and repair work, and the necessity to achieve high operational efficiency of automation products has surged the demand for MRO service from service providers, third-party vendors, and original equipment manufacturers (OEMs). Process industry including power, oil and gas, chemical and petrochemicals, and pharmaceutical, dominates the global MRO market for automation solutions. APAC is expected to be the fastest-growing region in the global MRO market for automation solutions, where Japan, South Korea, India, and China are the major revenue contributors to the market. Much of this region’s growth comes from the growing need for OEMs to reduce the total cost of ownership and improve accuracy and productivity.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Shift towards Industry 4.0 have boosted the demand for MRO services for automation solutions. Industry 4.0 is developed based on digitization, automation, and electrification, and uses advanced sensors, computing power, data analytics, large storage capacity, and highly efficient network. This has led to the availability of cloud-based maintenance and service. Moreover, several nations are investing in new and advanced automation solutions, electrical and mechanical equipment, and digital technology, which will propel the need for MRO services for automation solutions in the coming years,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research
With augmented usage of the MAC concept, the end-users have a one-stop solution for the MRO service requirement of automation products. A MAC coordinates, installs, and maintains all automation and related solutions to make sure the complete automation life cycle is done without major bottlenecks. The MAC also coordinates with automation solution providers for procurement-related initiatives. Based on end-user enquiries, MAC makes a quick assessment, and generates a detailed analysis of the initial process requirements
The key vendors in the global MRO market for automation solutions include ABB, Honeywell International, Rockwell Automation, Siemens and W.W. Grainger. Intense competition prevails in this market in terms of product performance, portfolio and service offering, applications, knowledge of integrated systems, and quality of products. The number of international OEMs and distributors or third-party vendors is large in the market. Large international vendors have existing customer base, but with new entrants offering advanced product and services, customer retention has become a major concern for the market players.
A more detailed analysis is available in the Technavio report, Global MRO Market for Automation Solutions 2016-2020.
We can customize reports by other regions and specific segments upon request.
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