The Europe MRO distribution market size was estimated at USD 202.88 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 2.8% from 2022 to 2030. Growing demand for repair, maintenance, and service operations in manufacturing and industrial activities majorly in Norway, Sweden, Germany, and Finland is expected to provide growth opportunities to the maintenance, repair, & overhaul (MRO) market. Commercial availability of the MRO products and skilled workforce for services has created a wide scope for the development of industrial and manufacturing activities in the region. This also has improved sales for the prominent players in European economies. Furthermore, ascending industrial output is expected to increase the MRO operations in Germany, Italy, France, and Russia.
Several industries in Europe have adopted integrated service concepts to improvise the quality of service and equipment that are used in critical operations. This concept also helps the industries to reduce the cost of repair and maintenance. This trend is anticipated to drive the market in Europe over the projected time. As maintenance and repair operations are an integral part of daily operational activities and the elevation of the MRO distribution industry in the region, especially post-recession period along with the advantages associated with the outsourcing of MRO processes, most industries in Europe prefer to be associated with distributors rather than managing these activities in-house. These factors are expected to drive the market in Europe over the forecast period.
The introduction of e-commerce platforms has significantly impacted the regional market. Distributors and the channel partners for the essential components of MRO have benefitted themselves through these platforms owing to a more optimized and smooth operational flow. This has directly influenced the business models for MRO service providers across Europe. Key players are focusing on achieving optimal operational costs, enhancing the quality, maximizing output, and acquisition of small players to sustain themselves in the competitive market. Along with the component distribution, major players are focusing on providing additional services for repair and maintenance. Also, these players are focusing on inventory management to smoothen the in-flow and out-flow of the components.
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 bearings in 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.
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.
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.
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.
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.
Germany dominated the market and accounted for more than 21.5% of the overall revenue share in 2021. Industries contributing to the economic growth of the country include automotive, metal, coal, machine tools, optics, textile, plastic goods, chemical, electrical equipment, ship, high precision equipment, and pharmaceutical. The food & beverage industry in Italy is anticipated to grow at a steady CAGR over the forecast period. Growing international demand for specialty food, such as pasta and bakery products, is likely to have a positive outlook. Increasing production of food products and packaged food is anticipated to support the market growth over the forecast period. The chemical industry in France produces organic & inorganic products, pharmaceuticals, fine chemicals, perfumes, and others.
The availability of hydroelectricity and the presence of coal mines in the country have attracted chemical companies to establish their plants in these locations. Moreover, the players engaged in the production of petrochemicals have established their units in areas close to Marseille in the south and Le Havre in Normandy. The automobile and machinery manufacturing industries in Finland mainly cater to the applications in military vehicles, trucks, buses, tractors, forest machines, and other motor production. Maintenance and repair operations-related to the motor machines are handled by the manufacturer or the third-party MRO service providers. Moreover, the country has at least eight shipyards that support MRO-related operations frequently.
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. These players also have adopted strategies including new product development, expansion of distribution channel, product portfolio expansion, and others. For instance, Valeo Services collaborated with Dana Inc. to develop 48V end-to-end systems for electric and hybrid vehicles. Some of the prominent players in the Europe MRO distribution market include:
Cromwell Group (Holdings) Ltd.
Valeo Service U.K. Ltd.
Bodo Möller Chemie GmbH
Lindberg & Lund AS
Neumo-Egmo Spain SL
Gazechim Composites Norden AB
Norwegian Oilfield Supply AS
Kron CIS GmbH
Elmbridge Supplies Company Ltd.
Mates Italiana SRL
ABIC Kemi AB, Ferguson plc
Transfer Multisort Elektronik Sp. z.o.o.
Premier Farnell, Sonepar
Weidmüller Interface GmbH & Co. KG
WAGO Kontakttechnik GmbH & Co. KG
Rittal GmbH & Co. KG
Panasonic Industry Europe GmbH
Festo AG & Co. KG
Rohde & Schwarz
Testo SE & Co. KGaA
BENNING Elektrotechnik und Elektronik GmbH & Co. KG
Wera Werkzeuge GmbH
Descours & Cabaud
In May 2023, Bodo Möller Chemie GmbH as a distributor specialist expanded its cooperative partnership with Benelux to focus on the distribution of products for electronic applications. The purpose is to strengthen its position in the MRO distribution market, especially for thermal interface materials
In March 2023, Panasonic Industry Europe GmbH introduced two mechanical pulse (MP) wrenches, EYFLF1 and EYFLF2. These will offer an ergonomic and efficient solution for technicians and professionals in the maintenance, repair, and operations (MRO) of fastening applications
In December 2022, Schneider Electric launched AltivarTM Soft Starter ATS480 for improving motor efficiency. This development signifies MRO distribution for providing maintenance and repair professionals to manage motors in industrial settings by improving energy and operations management
In December 2022, Lapp Group partnered with Wentronic to strengthen its online business through MRO distribution in eMobility products globally. This partnership made eMobility solutions accessible to wide range of customers through online sales channels
In June 2022, Phoenix Contact launched a sustainable product portfolio for reducing lead content to protect the environment and health while meeting the compliance standards. This development ensured maintenance and repair professionals to make contributions in sustainable practices in operations for the MRO distribution industry
In September 2021, Pepperl+Fuchs AG acquired Aava Mobile Oy to strengthen the communication, and mobile computing business units. This development resulted in positive implications on rugged mobile devices for their maintenance and repair, and operations (MRO)
In February 2021, Wurth Electrical Wholesale Group partnered with Kaczmarek Electric S.A for expanding its position in Poland by the distribution of electrical products for the purpose of maintenance, repair, and operation (MRO)
Market size value in 2022
USD 206.13 billion
Revenue forecast in 2030
USD 259.16 billion
CAGR of 2.8% from 2022 to 2030
Base year for estimation
2017 - 2020
2022 - 2030
Revenue in USD million/billion and CAGR from 2022 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, sourcing/service type, maintenance type, application, distribution channel, country
Germany; France; Italy; The Netherlands; Belgium; Switzerland; Sweden; Denmark; Poland; Austria; Finland; Czech Republic; Hungary; Slovakia
Key companies profiled
Cromwell Group (Holdings) Ltd.; Graco Inc.; WABCO; Mento AS; Bodo Möller Chemie GmbH; Lindberg & Lund AS; MCtechnics; Neumo-Egmo Spain SL; Gazechim Composites Norden AB; Plastorgomma Srl; 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
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This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the Europe MRO distribution market report on the basis of product, sourcing/service type, maintenance type, application, distribution channel, and country:
Product Outlook (Revenue, USD Million, 2017 - 2030)
Bearings & Power Transmission
Pipes, Valves & Fittings
Sourcing/Service Type Outlook (Revenue, USD Million, 2017 - 2030)
Maintenance Type Outlook (Revenue, USD Million, 2017 - 2030)
Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)
Application Outlook (Revenue, USD Million, 2017 - 2030)
Food, Beverage & Tobacco
Textile, Apparel & Footwear
Wood & Paper
Mining, Oil & Gas
Basic Metals & Metal Products
Rubber, Plastic & Non-metallic Products
Machinery & Equipment
Country Outlook (Revenue, USD Million, 2017 - 2030)
b. The Europe MRO distribution market size was estimated at USD 202.88 billion in 2021 and is expected to reach USD 206.13 billion in 2022.
b. The Europe MRO distribution market is expected to grow at a compounded annual growth rate of 2.8% from 2022 to 2030 to reach USD 259.16 billion in 2030.
b. Germany dominated the Europe MRO distribution market with a share of 21% in 2021. The development of various end-use sectors in the region, including manufacturing, construction, chemicals, and electronics, is expected to emerge as a major factor driving market growth.
b. Some key players operating in the Europe MRO distribution market include Graco, Inc.; WABCO; Kayden Corporation; Cromwell Group; and Bodo Moller Chemie GmbH.
b. Key factors driving the Europe MRO distribution market growth include the increasing manufacturing and industrialization rates in countries such as Finland, Norway, Germany, and Sweden are anticipated to drive the demand for Maintenance, Repair, Operations (MRO) services for equipment and products.
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The manufacturing sector has been worst hit with the current pandemic situation as manufacturers of non-essential goods have shut down their manufacturing facilities in complying with the government norms for lockdown. This has further lead to a domino effect on the MRO industry which has also suspended operations across all the major economies. We at GVR are trying to quantify the impact of this pandemic on the MRO market. Get your copy now to gain deeper insights on the same.