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The North America MRO distribution market size is projected to reach USD 188.5 billion by 2030, expanding at a CAGR of 2.5% from 2022 to 2030. One of the major driving factors to the market includes the expansion of product penetration in the manufacturing industry to standardize various equipment and critical services. The growing demand for several end-use industries is also expected to positively influence the market growth.
MRO distribution is among the critical components required to remove downtime in the industry, resulting in initiation of several preventative and scheduled maintenance processes by the industries. Owing to the prevalence of various leading companies around the region, the U.S. is home to one of the world’s largest MRO sectors. A wide range of initiatives adopted by the producers and manufacturers to achieve peak efficiency is projected to drive the North America maintenance, repair and overhaul (MRO) distribution market in the forthcoming years.
The slow growth of North America MRO distribution market is the result of lack of focus and the absence of substantial investments for MRO processes, as the distribution chain was traditionally considered an indirect component for industrial operations. However, the COVID-19 pandemic has pushed the market towards growing awareness for supply chain crisis management in the manufacturing industry.
Owing to positive control on the distribution market, the manufacturers play a vital role in the value chain, monitoring the product pricing, based on customer-by-customer rather than distributor-by-distributor. The key companies compete on the basis of competitive pricing, distribution networks, and delivery efficiency. The MRO activities help in reduction of overall costs while enhancing the productivity of industrial operations which is predicted to directly influence the overall market growth.
Product demand is majorly dependent upon the end-use industries’ growth and is projected to grow moderately. The major competitive factors include efficiency, quality, and price which determine the choice of suppliers for MRO. The highlighted market strategies, majorly in the U.S. include mergers, acquisitions, collaborations, and joint ventures that empower the business in terms of production volumes to meet the desired demand. Speedy and timely delivery along with maintenance service serves as a key factor in gaining clients’ confidence. Additionally, product replacement policies and discounts in bulk orders constitute ass good market opportunities for end-use companies. Price is also one of the prime deciding factors for small and medium-scale businesses in the choice of suppliers.
Research Support Specialist, USA