Report Overview

Europe MRO Distribution Market - Industry Trends & Forecast Report 2027

Europe MRO distribution market was worth USD 195.3 billion in 2020 and is further projected to reach USD 218.8 billion by the year 2027, growing at a CAGR of 1.7% during the forecast period. Due to the growing industrialization and sharp rise in demand for maintenance and repair services in manufacturing and production, the global market is gaining significant traction. Moreover, technological advancements and the use of software for efficient management are creating huge growth opportunities for the Europe MRO distribution market.

Source: BlueWeave Consulting

Europe MRO Distribution Market- Overview

MRO is an abbreviation that stands for maintenance, repair, and operations in manufacturing and production. It refers to the tools or equipment used in a company's everyday operations. It does not comprise direct materials, products, or services used throughout production, but rather acts as a bond that binds everything together. Most companies choose to outsource MRO distribution because it improves the efficiency and quality of their operations while also lowering overall costs.

Europe MRO Distribution Market Forecast and Trends

Growth Drivers

Flourishing Manufacturing Industry

The flourishing manufacturing industry will proliferate the demand for machinery and equipment in the initial stages as well as supply chain in the later stages of production and procurement. This is estimated to become a major driving factor for the Europe MRO distribution market. For instance, Germany is already well-known for its automobile industry, with the presence of leading companies like Porsche, BMW, Volkswagen, Mercedes-Benz, etc. Therefore, with the growing automobile production, the demand for MRO services is expected to grow at a high rate during the forecast period.

Digitization inthe MRO Business

Despite the slow pace of technological development in the MRO market, there is still plenty of room and opportunity for growth. Despite the high labor intensity of MRO services, advanced technologies are increasingly being implemented for the detection of damaged parts and the optimization of repair processes. The use of robots in the MRO distribution industry is also on the rise since they are expected to support tasks that pose a safety risk for humans.

Restraints

High Labor Material Cost Management

The MRO distribution channel in Europe is heavily dependent on the labor workforce. Additionally, as a result of economic inflation, the cost of labor has been rising rapidly as well. Consequently, this factor may prove to be a constraint for the European MRO distribution market. The MRO distribution market needs skilled and educated maintenance technicians.According to minimum wage laws in several countries, organizations are required to pay their staff in accordance with the number of employees they employ. It is estimated that the lowest wage in this industry is USD 70 in Europe, and this rate is only set to increase over time.

Impact of COVID-19 on Europe MRO Distribution Market

As a result of COVID-19, the European MRO distribution market has suffered catastrophic losses. Germany, Italy, and Russia were the most severely affected countries in Europe due to COVID-19.Therefore, the governments of these countries have to impose a lockdown to curb the spread of the virus. The result of this was that the manufacturing and production activities were completely disrupted except for the essential goods. As a result, the demand for MRO services declined and the market was negatively affected. The market was also affected by the restrictions on travel and import/export activities.

Europe MRO Distribution Market - By Product

Based on products, the Europe MRO distribution market is segmented into bearings & power transmission, pipes, valves, & fittings, electrical items, packaging supplies, and machine consumables. Among these, the machine consumables segment held the largest market share. It includes fluids, rotators, shafts, wires, machine oil, general machine spare parts, etc. The depreciation of the machinery directly influences the efficiency and the output of the industry. Therefore, they require regular replacements and repairs of body parts.

Europe MRO Distribution Market - By Maintenance Type

Based on maintenance types, the Europe MRO distribution market is segmented into preventive/scheduled maintenance and corrective maintenance. The preventive/scheduled maintenance segment accounts for the largest market share. This type of maintenance is generally performed on heavy machinery used during the manufacturing and production processes. Preventive/scheduled maintenance prevents the chances of sudden failures which can obstruct smooth operations. That is why the demand for preventive/scheduled maintenance is very prominent among original equipment manufacturers (OEM).

Europe MRO Distribution Market –Country Insights

Geographically, the Europe MRO distribution market is segmented into Germany, France, Russia, Italy, Netherlands, Switzerland, and the rest of Europe. Among these countries, Germany dominates the market. With a variety of manufacturing companies including automotive, metal, chemical, electrical equipment, and pharmaceuticals, Germany is one of the world's leading industrial countries. Italy also covers a substantial share in the market because of the worldwide demand for Italian specialty foods like pasta and bakery products. This country is also emerging as a leading pharmaceutical and chemical industry, which is expected to fuel the MRO distribution in the forecast period.

Competitive Landscape

The leading market players in the Europe MRO distribution market are Premier Farnell, Wurth Group, Sonepar, Transfer MultisortElektronik Sp. z.o.o., Weidmüller Interface GmbH & Co. KG, Lapp Group, Lindberg & Lund AS, VALEO SERVICE U.K. LIMITED, Mento AS, Cromwell Group (Holdings) Limited, Ascendum, Neumo-Egmo Spain SL, McTechnics, Elmbridge Supplies Company Ltd., and other prominent players.

The industry players invest significantly into adopting new technologies for better streamlining of various stages of the value chain. They also adopt competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., to expand the scope of their services as well as their market share.

Recent Developments

• In August 2021, Optimas Solutions, a global industrial distributor and service provider, announced the launch of the Heavy-Duty Truck and Bus Service Program to meet the in-demand maintenance, repair, and operations (MRO), PPE, and standard parts for bus and truck service centers.
• In July 2021, Top cast Aviation Supplies, an aircraft parts distribution, and MRO services company, announced the expansion of its distribution agreement with Conidia Bioscience. After this agreement, Topcast has become an approved distributor in commercial aviation and supporting MRO organizations.

Scope of the Report

By Product

• Bearings & Power Transmission
• Pipes, Valves, & Fittings
• Electrical Items
• Packaging Supplies
• Machine Consumables

By Sourcing/Service

• Internal MRO
• External MRO

By Maintenance Type

• Preventive/Scheduled maintenance
• Corrective maintenance

By Distribution Channel

• Direct
• Indirect

By Application

• Food, beverage & tobacco
• Textile, apparel & footwear
• Wood & paper
• Mining and oil & gas
• Basic metals & metal products
• Rubber, plastic, and non-metallic products
• Chemicals
• Pharmaceuticals
• Electronics
• Machinery and equipment
• Electrical equipment
• Transport equipment
• Manufacturing
• Others

By Countries

• Germany
• France
• Russia
• Italy
• Netherlands
• Switzerland
• Rest of the Europe

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Flourishing Manufacturing Industry
         2. Digitization in The MRO Business
      2. Market Restraints
         1. High Labor Material Cost Management
      3. Market Challenges
         1. Negative Influence of the COVID-19 Pandemic
      4. Market Opportunity
         1. Emerging E-Commerce Industry
         2. The Growing Use of MRO Services in Machinery and Equipment
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Europe MRO Distribution Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Product
         1. Bearings & Power Transmission
         2. Pipes, Valves, & Fittings
         3. Electrical Items
         4. Packaging Supplies
         5. Machine Consumables
      2. By Sourcing/Service
         1. Internal MRO
         2. External MRO
      3. By Maintenance Type
         1. Preventive/Scheduled maintenance
         2. Corrective maintenance
      4. By Distribution Channel
         1. Direct
         2. Indirect
      5. By Application
         1. Food, beverage & tobacco
         2. Textile, apparel & footwear
         3. Wood & paper
         4. Mining and oil & gas
         5. Basic metals & metal products
         6. Rubber, plastic, and non-metallic products
         7. Chemicals
         8. Pharmaceuticals
         9. Electronics
         10. Machinery and equipment
         11. Electrical equipment
         12. Transport equipment
         13. Manufacturing
         14. Others
      6. By Country
         1. Germany
         2. France
         3. Russia
         4. Italy
         5. Netherlands
         6. Switzerland
         7. Rest of the Europe
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Europe MRO Distribution Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Premier Farnell
   2. Wurth Group
   3. Sonepar
   4. Transfer MultisortElektronik Sp. z.o.o.
   5. Weidmüller Interface GmbH & Co. KG
   6. Lapp Group
   7. Lindberg & Lund AS
   8. VALEO SERVICE U.K. LIMITED
   9. Mento AS
   10. Cromwell Group (Holdings) Limited
   11. Ascendum
   12. Neumo-Egmo Spain SL
   13. MCTechnics
   14. Elmbridge Supplies Company Ltd.
   15. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Europe MRO Distribution Market Segmentation

Figure 2: Europe MRO Distribution Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Europe MRO Distribution Market Size, By Value (USD Billion), 2017-2027

Figure 5: Europe MRO Distribution Market Share (%), By Product, By Value, 2017-2027

Figure 6: Europe MRO Distribution Market Share (%), By Sourcing/Service, By Value, 2017-2027

Figure 7: Europe MRO Distribution Market Share (%), By Maintenance Type, By Value, 2017-2027

Figure 8: Europe MRO Distribution Market Share (%), By Distribution Channel, By Value, 2017-2027

Figure 9: Europe MRO Distribution Market Share (%), By Application, By Value, 2017-2027

Figure 10: Europe MRO Distribution Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: Europe MRO Distribution Design Size, By Product, By Value, 2017-2027

Table 2: Europe MRO Distribution Design Size, By Sourcing/Service, By Value (USD Billion), 2017-2027

Table 3: Europe MRO Distribution Design Size, By Maintenance Type, By Value (USD Billion), 2017-2027

Table 4: Europe MRO Distribution Design Size, By Distribution Channel, By Value (USD Billion), 2017-2027

Table 5: Europe MRO Distribution Design Size, By Application, By Value (USD Billion), 2017-2027

Table 6: Europe MRO Distribution Design Size, By Region, By Value (USD Billion), 2017-2027

Table 7: Johnson & Johnson Financial Analysis

Table 8: Johnson & Johnson Business Overview

Table 9: F. Hoffmann-La Roche Ltd.Financial Analysis

Table 10: F. Hoffmann-La Roche Ltd.Business Overview

Table 11: Pfizer Inc.Financial Analysis

Table 12: Pfizer Inc. Business Overview

Table 13: Novartis AGFinancial Analysis

Table 14: Novartis AG Business Overview

Table 15: Merck & Co. Inc. Financial Analysis

Table 16: Merck & Co. Inc.Business Overview

Table 17: Bristol-Myers Squibb Company Financial Analysis

Table 18: Bristol-Myers Squibb Company Business Overview

Table 19: AstraZeneca PLC Financial Analysis

Table 20: AstraZeneca PLC Business Overview

Table 21: Astellas Pharma Inc. Financial Analysis

Table 22: Astellas Pharma Inc. Business Overview

Table 23: AbbVie Inc.Financial Analysis

Table 24: AbbVie Inc.Business Overview

Table 25: Amgen Financial Analysis

Table 26: Amgen Business Overview

Table 27: Takeda Oncology Drugs Ltd. Financial Analysis

Table 28: Takeda Oncology Drugs Ltd.Financial Analysis

Table 29: GlaxoSmithKline Financial Analysis

Table 30: GlaxoSmithKline Business Overview

Table 31: Sanofi Financial Analysis

Table 32: Sanofi Business Overview

Table 33: Celgene Corporation Financial Analysis

Table 34: Celgene Corporation Business Overview