Europe Maintenance, Repair, and Overhaul (MRO) Distribution Market Report

Europe Maintenance, Repair, and Overhaul (MRO) Distribution Market Analysis By Product, By Sourcing/Servicing (Internal, External), By Maintenance Type, By End-use, And Segment Forecasts, 2018 - 2025

  • Published Date: Aug, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-886-2
  • Format: Electronic (PDF)
  • Historical Data: 2009 - 2015
  • Number of Pages: 153

Industry Insights

The Europe Maintenance, Repair, & Overhaul (MRO) distribution market was valued at USD 89.0 billion in 2016. To improve or standardize the quality of equipment and services in various critical operations and to reduce costs; most of the industries in Europe have adopted integrated maintenance, repair, and operation service concepts. The trend has been witnessed substantially in the regional market post-recession period and hence is expected to drive the MRO industry over the forecast period.

Europe MRO distribution market by end-use, 2009 - 2025 (USD Million)

Europe MRO distribution market

Post the recession period, the MRO outsourcing services sector in the region has increased significantly as majority of the companies sought to cut costs on inventory and specialized workforce. Large multinational distributors in the region are focusing on meeting various customer needs in an attempt to provide quality services at affordable prices. On the flip side, the pressure to meet demand on equipment manufacturers along with emphasis on reducing cost has amplified the attractiveness of distributors and lowered the barriers to advanced and new concepts in integrated services.

Pressure on the manufactures to reduce cost and maintaining product quality has substantially increased the attractiveness of MRO services and lowered the barriers for the stand-alone distributors in the region. The growth of these distributors has come through the adoption of either decentralized or centralized business model. Few multinational merchants have adopted the centralized model to attain growth through compressive integration of process and various control mechanism.

However, most of the distributors including small and medium-sized players have adopted the decentralized model. The main aim of this model is to take over its competitors in the industry or to enter into strategic agreements and position themselves as local subsidiaries. These subsidiaries later operate independently as long as the revenue targets are met.

The decentralized model displayed certain disadvantages during the global recession in 2008-09. The locally operating subsidiaries performed well till the industrial output was strong in the region. But they faced difficulty in cost-reduction initiatives and enterprise wide liquidity improvement efforts as soon as the industrial output fell down owing to financial crisis.

This resulted in the lack of integrated processes and control mechanism between the subsidiaries and parent companies, which further acted as a blockade for belt-tightening. The decentralized model displayed limited growth at that point of time mainly for the large market players. This did not prove to be profitable in the long run as the multinationals were expecting unified equipment and service delivery for a wide range of industries, especially the manufacturing sector.

Hence, this type of delivery process requires proper integrated accounts & delivery processes within the entire organizational group and not just among the subsidiaries. As a solution to overcome the disadvantages of this model, the suppliers in the region started integrating multiple similar operations to improve control mechanisms and process alignment between subsidiaries & parent companies. Several integral firms modernized their account management processes to fulfill customer needs and the trend is expected to continue over the forecast period.

The evolution of e-commerce platforms in the recent past, has helped industry players to accomplish higher efficiency and offer them easier access to target markets is the most imperative trend currently in the Europe MRO distribution industry. Hence, distribution via e-commerce platforms is expected to bring significant penetration and growth for the industry players to almost every end-use industry.

Distributors in this region still have to overcome some common barriers to increase their profitability. These barriers include excessive reliance on major suppliers, incapability of distributors to fulfill OEM warranties and specifications, resistance to shifting suppliers, and the fear of risk in internal maintenance departments. Hence, these factors are expected to restrain the industry growth in the next five years.

Product Insights

Machine consumables were the most distributed product category in the industry. High priority of manufacturing companies to get the damaged parts replaced and repaired at the earliest to reduce production loss has remained a key factor responsible for segment penetration. This is further backed-up by the stringent government norms for regular check-ups and maintenance of industrial equipment to avoid fatal hazards has steered the market. 

Pipes, Valves & Fittings is projected to be the fastest growing product segment growing with a CAGR of around 2.5% from 2017 to 2025.

Sourcing/Service Insights

External MRO segment was the largest sourcing segment. As maintenance and repair operations are an integral part of daily operational activities and the elevation of the market in the region, especially post-recession period along with the advantages associated with the outsourcing processes, most industries in Europe prefer to be associated with distributors rather than managing these activities in-house. 

Europe MRO distribution market revenue by product, 2016 (%)

Europe MRO distribution market

Maintenance Type & End-use Insights

The preventive and scheduled segment is projected to be the dominant maintenance type by the end of the forecast period. Equipment breakdown causes loss of time and money and to increase profitability along with focus on improving return on investment companies cannot afford to face any breakdown circumstances. String regulatory framework for every industrial sector in Europe is yet another factor anticipated to drive growth of this segment.

Manufacturing segment is expected to be the largest application segment in Europe in 2016. The manufacturers in the region are continually seeking large profit margins which has increased their focus on return on investment. In place of procuring new machinery, manufacturers in the region prefer repairing and rebuilding their existing equipment even for new programs and capacity expansions.

Industrial machinery & equipment segment is estimated to witness above average growth rates over the forecast year on account of growing concerns over machinery break-down which leads to extensive productivity loss. Companies in the region adopt a moderate inventory in advance of the scheduled maintenance so as to avoid lag-time and resume production as soon as possible.

Regional Insights

Germany was the leading market in Europe maintenance, repair, & overhaul supplies and services industry which is projected to account for a share of over 2.4% in 2025. Germany has the largest population in the region with the highest GDP and highest purchasing power. The presence of large number of industries in the country is the main factor for development of MRO distribution industry in the country. 

Poland is expected to emerge as one of the fastest growing consumer markets in the region which is projected to grow at a CAGR of around 5% from 2017 to 2025.

Competitive Insights

Europe MRO supplies industry is an attractive market with presence of wide range of players including multinationals such as Pooley, Inc, Wolseley and Wurth Group and local companies including CROMWELL GROUP (HOLDINGS) LIMITED, Graco BVBA, and Wabco Austria GmbH dominated the regional market. The MRO distributors are still trying to cope-up with the threat of commoditization and pricing pressure, the latter having intensified with increased cost element transparency coming from advanced purchasing practices and global competition.

Report Scope 



Base year for estimation


Actual estimates/Historical data

2009 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope


Country scope

Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Poland, Spain, Sweden, Switzerland, UK

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments covered in the report

This report forecasts revenue growth at country levels and provides an analysis on the industry trends in each of the sub-segments from 2009 to 2025. For the purpose of this report, Grand View Research has segmented the Europe MRO distribution market on the basis of product, application and region:

  • Product Outlook (Revenue, USD Million, 2009 - 2025)

    • Bearings & Power Transmission

    • Pipes, Valves & Fittings

    • Electrical Items

    • Packaging Supplies

    • Machine Consumables

  • Sourcing/Service Outlook (Revenue, USD Million, 2009 - 2025)

    • Internal MRO

    • External MRO

  • Maintenance Type Outlook (Revenue, USD Million, 2009 - 2025)

    • Preventive/Scheduled maintenance

    • Corrective maintenance

  • End-use Outlook (Revenue, USD Million, 2009 - 2025)

    • Food, beverage & tobacco

    • Textile, apparel & footwear

    • Wood & paper

    • Mining, oil & gas

    • Basic metals & metal products

    • Rubber, plastic and non-metallic products

    • Chemicals

    • Pharmaceuticals

    • Electronics

    • Machinery and equipment

    • Electrical equipment

    • Transport equipment

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Million, 2009 - 2025)

    • Austria

    • Belgium

    • Denmark

    • Finland

    • France

    • Germany

    • Italy

    • Netherlands

    • Norway

    • Poland

    • Spain

    • Sweden

    • Switzerland

    • UK

Key questions answered by the report
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