Europe MRO Distribution Market Share, Major Drivers And Trends Report 2030

Europe MRO Distribution Market Growth & Trends

The Europe MRO distribution market size is expected to reach USD 259.16 billion by 2030, registering a CAGR of 2.8%, according to a new report by Grand View Research, Inc. The rise in scheduled maintenance and increasing investments in repair operations are expected to ascend the market growth over the forecast period.

Europe MRO Distribution Market Segmentation

Grand View Research has segmented the Europe MRO distribution market on the basis of product, sourcing/service type, maintenance type, application, distribution channel and country:

Based on the Product Insights, the market is segmented into Bearings & Power Transmission, Pipes, Valves & Fittings, Electrical Items, Packaging Supplies, Machine Consumables.

• The machine consumables segment led the market in 2021 and accounted for a revenue share of more than 30%. Worn-out machine parts and exceeding the machine capacity are the factors for replacement and repair of machine consumables over time. These consumables include wires, machine oils, fluids, rotators, shafts, general machine spare parts, cutting devices, and fasteners among others. Rising demand for durable and sophisticated bearings is anticipated to drive this product segment over the forecast period. The demand for bearingsin the automotive and machinery manufacturing industries can be attributed to their efficiency in carrying high loads and the requirement of low maintenance.
• Cast iron, stainless steel, copper, special alloys, carbon steel, and thermoplastics are the major raw materials used for producing pipes, valves, and fittings. As these products are used for supplying highly intensive oils and gases, MRO operations are carried out at regular intervals and thus are influencing the distribution of pipes, valves, and fittings. Lights, wires, and cables need periodic replacement and maintenance owing to their short lifespan as compared to other electrical items. Moreover, appliances, sockets, and switchgear require maintenance at frequent intervals. MRO operations about this product segment also focus on electric circuits installed in building structures as the circuits are prominently responsible for the inflow and stability of the electric current to machinery and equipment.

Based on the Sourcing/Service Type Insights, the market is segmented into Internal MRO and External MRO.

• The external MRO distribution operations segment led the market in 2021 and accounted for a revenue share of more than 71%. A majority of the companies are focusing on reducing the efforts of their internal departments about MRO operations. Instead, the task of these operations is assigned to external service providers with a skilled workforce. External MRO service providers in Europe are focusing on providing precise solutions for advanced technology machinery. Benefits, such as maintenance at regular intervals, technical know-how about the machinery, and knowledge about the repair & maintenance of complex equipment, are the factors contributing to the rising popularity of external MRO service providers.
• Internal MRO operations are carried out within the manufacturing facilities to ensure a smooth flow of operations. MRO services are majorly used to avoid interruptions caused by unexpected issues that occur during production. The management carries out these operations for immediate repair and maintenance in case of machine breakdown due to some fault. Lower cost of operations and excellent inventory control are some of the benefits associated with internal MRO management. The dedicated department in the company for MRO-related operations is responsible for product supply to the manufacturing facilities. This can reduce the turnaround time to fix an issue in the operational units.

Based on the Maintenance Type Insights, the market is segmented into Preventive/Scheduled Maintenance and Corrective Maintenance.

• The preventive/scheduled maintenance operation segment accounted for the largest revenue share of over 58%. This type of maintenance is performed on particular machinery to reduce the chances of its failure. Protecting the machinery or equipment from unexpected breakdowns and ensuring a smooth flow of operations are factors boosting the need for scheduled maintenance among companies. Preventive maintenance is planned by companies to establish consistent practice cycles for performance improvement and to enhance the safety of the equipment. Furthermore, planned maintenance helps decrease downtime and reduce the number of repairs for a particular machine. The increased life expectancy of the machine, better conservation of assets, and reduced overtime cost are several other factors for the popularity of preventive/scheduled maintenance.
• Corrective maintenance is carried out at production facilities to resolve a breakdown and/or faults that have occurred in operations. These maintenance activities are majorly carried out when an issue is sensed in the conditional monitoring when there is a potential fault in routine inspection, and in case of equipment breakdown. The two types of corrective maintenance activities include planned and unplanned corrective maintenance. MRO service providers are engaged in offering corrective maintenance services to the production facilities by conducting a regular check on the machinery and tools. In addition, routine inspection is carried out in the units to monitor the efficiency of the working components in the machinery.

Based on the Distribution Channel Insights, the market is segmented into Direct and Indirect.

• The direct distribution channel segment led the market in 2021 and accounted for a revenue share of more than 70%. The segment is projected to grow at a steady CAGR from 2022 to 2030. Lower cost and bulk delivery of the components used in MRO operations are anticipated to further drive the direct supply segment over the coming years. Direct distribution involves the manufacturers of MRO components supplying the products directly to the OEMs by eliminating the channel members. Thus, the procurement cost is less for the production companies as well as MRO service providers. However, inventory management is a crucial task as the prices associated with the products witness fluctuations in the context of raw materials.
• Indirect distribution of MRO components involves multiple entities, such as manufacturers, wholesalers, distributors, retailers, and end-users or OEMs. Multiple levels of distributors and wholesalers are present in the supply chain, thus impacting the pricing structure of the MRO components used in various operations. Authorized dealers are involved in the distribution of all types of products offered by a particular company, which, in turn, aids them in providing personalized services to consumers with detailed information on each product. In Europe, MRO service providers prefer the procurement of required components from authorized distributors that ensure product quality and timely delivery.

Based on the Application Insights, the market is segmented into Food, Beverage & Tobacco, Textile, Apparel & Footwear, Wood & Paper, Mining, Oil & Gas, Basic Metals & Metal Products, Rubber, Plastic & Non-metallic Products, Chemicals, Pharmaceuticals, Electronics, Machinery & Equipment, Electrical Equipment, Transport Equipment, Manufacturing, Others.

• The machinery & equipment manufacturing application segment led the market in 2021 and accounted for the second-highest revenue share of more than 12.5%. The manufacturing of machinery and equipment is one of the most competitive and largest manufacturing segments in Europe. The presence of a large machinery manufacturing segment generates huge demand for maintenance & repair equipment and periodic services. Europe is among the leading machinery manufacturing regions globally. From the point of foreign investors, domestic demand itself offers excellent growth opportunities. The overseas industry players can be a part of this industry and become an important part of its value chain with various strengths in a varied range of verticals.
• The electrical and electronic manufacturing sector in Europe is undergoing several changes and adopting new technologies in manufacturing facilities. The rising need for advanced technology equipment in household and commercial applications has compelled manufacturers to make necessary adoptions in the production processes. This has positively influenced the market for MRO operations. The pharmaceutical industry in Europe is anticipated to grow over the forecast period on account of government initiatives for new treatment facilities for circulatory system diseases, neoplasms, and respiratory diseases. The related MRO services are anticipated to increase in the coming years as pharmaceutical companies are focusing on efficient maintenance of equipment and machinery in the facilities.

Europe MRO Distribution Regional Outlook

• Czech Republic
• Hungary
• Slovakia
• Austria
• Finland
• France
• Germany
• Italy
• Belgium
• The Netherlands
• Poland
• Sweden
• Denmark
• Switzerland

Key Companies Profile & Market Share Insights

Prominent participants in the market focus on the investments to develop new technologies for product manufacturing and strengthen various stages in the value chain to enhance businesses across several application industries

Some of the prominent players operating in the Europe MRO distribution market include,

• Cromwell Group (Holdings) Ltd.
• Graco Inc.
• WABCO
• Mento AS
• Valeo Service U.K. Ltd.
• Ascendum
• Bodo Möller Chemie GmbH
• Lindberg & Lund AS
• MCtechnics
• Neumo-Egmo Spain SL
• Gazechim Composites Norden AB
• Plastorgomma Srl
• Norwegian Oilfield Supply AS
• Kron CIS GmbH
• Elmbridge Supplies Company Ltd.
• Mates Italiana SRL
• ABIC Kemi AB, Ferguson plc
• RS Components
• Transfer Multisort Elektronik Sp. z.o.o.
• Premier Farnell, Sonepar
• Wurth Group
• Lapp Group
• Weidmüller Interface GmbH & Co. KG
• Pepperl+Fuchs AG
• ebm-papst Group
• WAGO Kontakttechnik GmbH & Co. KG
• Rittal GmbH & Co. KG
• Phoenix Contact
• Schneider Electric
• Panasonic Industry Europe GmbH
• Festo AG & Co. KG
• ABB Group
• Rohde & Schwarz
• Fluke Corporation
• Testo SE & Co. KGaA
• BENNING Elektrotechnik und Elektronik GmbH & Co. KG
• Wera Werkzeuge GmbH
• RUBIX
• Descours & Cabaud
• Eriks Group

Order a free sample PDF of the Europe MRO Distribution Market Intelligence Study, published by Grand View Research.