RALEIGH, North Carolina, Feb. 14, 2019 /PRNewswire/ -- The global market for MRO is expected to grow at a steady CAGR of 1.72 percent until 2020, according to Beroe Inc., a procurement intelligence firm. The scope of the MRO market lies in the shale gas processing equipment market, which includes compressors and pumps, heat exchangers, electrical machinery, and measuring and controlling devices.
APAC holds nearly 37 percent of the global MRO market and it is expected to sustain it until 2020. The fragmented MRO market in APAC and the MEA has presented a great opportunity for global integrators and distributors to penetrate the MRO market. Moreover, MRO sourcing in developed regions such as North America and Western Europe showcase increasing buyer maturity and willingness to partner with a supplier.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The key driver for the MRO market globally is e-procurement, which offers a substantial solution to both the buyer and the seller by decreasing the paperwork, transactions, and manpower. Whereas the volatility in oil prices serves as a challenge to MRO buyers in establishing long-term plans and delays their engagement with MRO suppliers.
In developed regions such as North America and Western Europe, new players with IT capability entering into the MRO market providing MRO solutions are proving to be a threat to new entrants. In the emerging markets such as Latin America, Asia, Middle East, and Africa region, the local players are more dominant as they understand the locality and language of the region.
- Maximizing the use of automation in material handling equipment and managing the MRO stock levels in stores can help save 15 - 20 percent of the wasted production time while also improving production.
- The major cost factors involving a global MRO model would be the material cost which contributes to about 55-65 percent of the total cost.
- With oil prices streamlining slowly but steadily, the overall MRO market is gaining some positive traction, which augurs well for all its categories in the near future.
- Most of the large MRO suppliers are well established industrial and electrical distributors/integrators who cater to a variety of other MRO segments with a large global footprint.
- Fortune 500 companies with large MRO spend (above $ 30-200 million per continent), standardize their operations at a regional/continental level.
- One upcoming MRO industry trend is the industrial vending machine, which is projected to reach at 80 thousand units at a revenue of $200 million by 2022.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
As manufacturers and their business practices evolve, the concept of MRO integrated supply is evolving into supply-chain-as-a-service or Enterprise MRO, which takes the needs of the entire organization into account and provides an end-to-end solution. Enterprise MRO can benefit asset-intensive manufacturers that are focused on driving productivity and efficiency through reliability.
The report also includes:
- Global MRO Market Maturity
- Global MRO Industry Trends
- Global MRO Drivers and Constraints
- Regional Market Outlook
- Industry Outlook: MRO Affecting Factors
- Porter's Five Forces Analysis: Developed Markets
- Porter's Five Forces Analysis: Emerging Markets
- Trending News in MRO(2017)
- Supply Market Outlook: Supply Trends and Insights
- Key Global MRO Suppliers
- Key Regional Suppliers: Service Portfolio
- Key Global Supplier Profile
- Supplier SWOT Analysis
Cost & Pricing Analysis:
- Cost Structure Analysis
- Cost Analysis and Expected Savings
- Cost Break up: Should Cost Model
- Pricing Analysis: Distributors' Margins by Product Category and Annual Spend
- Pricing Analysis: Price Forecast
Procurement Best Practices:
- Sourcing Models for MRO Services
- Sourcing Models: Comparative Analysis
- Sourcing Models: Pros and Cons
- Pricing Models: Comparative Analysis
- Engagement Model: Cross Industry Value Creation
- Engagement Model: Mining Industry
- Contract Management and Strategic Service Level Agreements
- KPIs for MRO Distributors and Integrator
Upcoming Technology & Innovation
- Internet of Things(IoT)
- 3D Printing
- Industrial Vending Machine
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc, please visit http://www.beroeinc.com
SOURCE Beroe Inc.