North America MRO Distribution Market Growth, Strategy And Forecast, 2022 - 2030

The North America MRO distribution market size is expected to reach USD 188.5 Billion by 2030, registering a CAGR of 2.5%, according to a new report by Grand View Research, Inc. increasing product penetration in the manufacturing industry on account of standardization of critical services and equipment is expected to drive the market growth. Moreover, increasing product demand from other end-use industries is also likely to support market growth. The periodic maintenance, repair, and overhaul (MRO) activities help reduce overall costs and enhance the productivity of the industrial operations, which is expected to drive their demand.

The MRO distribution or supply chain was traditionally considered an indirect component of industrial operations. The lack of focus and investments in MRO processes in the past resulted in the slow growth of the industry. However, the recent global pandemic has contributed to raising awareness regarding crisis management of the supply chain in the manufacturing industry, which is expected to benefit the market growth. The value chain of this market includes manufacturers, specialists, generalists, partnerships, integrated supply, and retailers. Manufacturers play a major role across the value chain, by possessing definitive control over the market as they monitor the product pricing. They usually command pricing on a customer-by-customer basis rather than on a distributor-by-distributor basis.

North America MRO Distribution Market Segmentation

Grand View Research has segmented the North America maintenance, repair & overhaul distribution market on the basis of product, end use, and region:

Based on the Product Insights, the market is segmented into Abrasives, Chemicals, Cutting Tools, Fasteners, Hand Tools, Pipes, Valves & Fitting, Power Tools, Power Transmission - Hydraulics, Power Transmission - Pneumatics, Power Transmission - Electrics, Rubber Products, Seal, Welding Equipment & Gases, Automation and Others.

• The hydraulic power transmission led the market for MRO distribution and accounted for more than a 12.0% share of the overall revenue in 2021. The hydraulic systems are installed in heavy machinery to ease the lifting and contracting operations.
• MRO operations related to the hydraulic systems are costly as compared to the other components used in the overall MRO services owing to the expensive mechanism. The repair and maintenance of the machinery in facilities across several industries are anticipated to positively affect the market for fastener replacement.
• The electric power transmission segment is expected to witness a significant CAGR of 3.4% in the market for MRO distribution over the forecast period on account of the extensive use of electric components in manufacturing mechanisms to ease the transmission operations.
• The rubber products used in maintenance, repair, and overhaul activity include rubber hoses, O-rings, rubber pads, and other products. These products are utilized widely in sealing applications, where they are used in the conjunction of two or more components.

Based on the End-Use Insights, the market is segmented into Food, Beverage, & Tobacco, Textile, Wood & Paper, Mining, Oil, & Gas, Metal Processing & Foundry, Rubber, Plastic & Non-Metallic, Chemicals, Pharmaceuticals, Electrical & Electronics, Transportation, Construction and Others.

• The chemical manufacturing end-use segment led the market for MRO distribution in 2021 and accounted for a revenue share of more than 18.0%.
• The textile industry is expected to generate the least of demands for MRO products from the distributors as compared to the other end-use industries. Less complicated machinery and instrument used in the manufacturing process have limited the component replacement activities for the industry.
• This has influenced the market for MRO distribution. Rising shale gas operations in the region are further expected to build several facilities across the region, thereby, supporting the component distribution.
• The increase in domestic onshore oil and gas production and shale gas transportation are expected to propel the demand for MRO activities in the facilities.

North America MRO Distribution Regional Outlook

North America

        U.S.

o   New England

o   Mid-Atlantic

o   East North Central

o   West North Central

o   South Atlantic

o   East South Central

o   West South Central

o   West Region

        Canada

Key Companies Profile & Market Share Insights

Major companies compete on the basis of distribution networks, delivery efficiency, and competitive pricing. The market is highly fragmented and is characterized by the presence of a large number of players. The product demand is highly dependent on the growth of the end-use industries and is expected to grow moderately due to the limited growth realized by the application industries. Quality, price, and efficiency in delivery are the major competitive factors that are expected to decide the choice of supplier for MRO.

Some prominent players in the Global North America MRO Distribution market include:

• Hillman Group, Inc.
• Wajax Industrial Components
• FCX Performance
• SBP Holdings
• R.S. Hughes Co., Inc.
• DGI Supply
• Lawson Products, Inc.
• AWC
• Hisco, Inc.
• Kimball Midwest
• Bisco Industries
• Kaydon Corporation
• BDI

Order a free sample PDF of the in North America MRO Distribution Market Intelligence Study, published by Grand View Research.