End users' focus on reliability, product efficiencies, and safety will boost growth opportunities, finds Frost & Sullivan's Industrial Automation & Process Control team
SANTA CLARA, California, Nov. 1, 2017 /PRNewswire/ -- The North American industrial service market is witnessing significant change. The emergence of digital transformation, explosion of connected devices, and evolution of service models are expected to create $178 million in new revenue opportunities by 2020. The increasing awareness of the benefits of utilizing maintenance, repair and overhaul (MRO) and advanced value-added services (VAS) such as conditional monitoring and remote monitoring services will provide further growth platforms for market participants.
Frost & Sullivan's research, North American Industrial Services Market, Forecast to 2023 (http://frost.ly/1wy), finds that the market will be worth an estimated $8,734.2 million by the end of 2023. The study analyzes key factors such as drivers like standardization of price and quality across manufacturers, restraints such as conservative mind-sets leading to slow technology adoption, challenges, major industry participants, and end-user segments impacting the growth of the industrial services market in North America.
"End users, distributors, and resellers may not possess the required skills and expertise to manage different brands of products in all facilities. This creates a vacuum which will boost demand for specialized service providers and pump manufacturers that can provide end users with VAS and customizable MRO packages on a contract basis," said Frost & Sullivan Industrial Automation & Process Control Research Analyst Shilpa Mathur Ramachandran.
Key findings stimulating growth in the North American industrial services market include:
- End users focusing on reliability, product efficiencies, and safety;
- High growth in key segments such as pumps and compressors due to large installed equipment base;
- High demand for spare parts and consumables in all end-user industries;
- MRO topping revenues for industrial services market with stable demand for regular services and maintenance;
- End-user preference for longer operational lifetimes of existing compressors, leading to growth of services market; and
- Surge in new projects, leading to increase in services such as installation, testing, and commissioning activities.
"Major dampeners of growth in the North American industrial services market include pricing pressures due to commodity applications that are lowering the demand for services and slower-than-expected investment pace that is inherently affecting demand for valves, both in terms of replacements and services," noted Ramachandran.
North American Industrial Services Market, Forecast to 2023 is part of Frost & Sullivan's Industrial Automation & Process Control Growth Partnership Service program. The scope of the study includes pump services used in oil and gas, chemicals and petrochemicals, power generation, water and wastewater treatment, food and beverage, and other industries such as pharmaceuticals, pulp and paper, and metals and mining. Services include maintenance, repair, and overhaul (MRO), installation and commissioning (I&C), value-added services (VAS), and decommissioning (Decom).
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North American Industrial Services Market, Forecast to 2023
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SOURCE Frost & Sullivan