Maintenance Services
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Maintenance Services Regional Market Outlook

• The repair and maintenance service market is forecast to grow at a CAGR of 3–4% to $187 Bn by 2023.
• The total global mining equipment service market was valued at $169 Bn in 2019 and it was expected to reach $173 bn in 2020.
• The equipment service market is highly fragmented. However, for mining equipment, the original equipment manufacturers (OEM) and their authorized dealers constitute the majority of the maintenance market revenue.
• North America, Australia, Chile and South Africa are the major regions for mining activities and dominate the mining maintenance service market.

Global Maintenance Service Market Maturity 

• The repair and maintenance market is fragmented as the service portfolio of equipment service providers is not diversified, covering all range of equipment categories.
• The industrial services market is not much affected by the slowdown in the mining industry and the falling commodity prices. To improve the equipment life and performance by reducing the downtime, mining companies have to keep the maintenance activities on.

Global Market Overview for Mining Equipment

• The global mining equipment market was worth $72.2 Bn in 2016 and is expected to grow at a CAGR of 7–8% over the next five years.
• Asia Pacific (APAC) held the largest market share for the global mining equipment demand in 2015, and will maintain its hegemony over the forecast period.
• The mining equipment industry is extremely consolidated with the top four suppliers grabbing almost 80% of the market value, thus limiting the bargaining power of the buyers.
• Surface mining equipment accounted for ~35 % of the global mining equipment market in 2016. The demand for underground mining equipment is expected to increase compared to surface equipment due to depleting ore grades in surface mines.
• The market for drills and breakers is expected to grow faster due to their varied applicability and increase in demand from developing regions.

 Global Market Overview for Equipment Maintenance Services

• The global maintenance services market was estimated to be around $800 Bn in 2016 and was expected to continue to grow at a CAGR of ~3–4 % until 2018.
• Demand for the machinery maintenance and heavy equipment repair services industry is steadily recovering from severe losses since the 2008-09 global economic recession.
• The equipment repair and maintenance service industry is extremely fragmented and competitive, catering to various industries with vast end-user segments and suppliers. Hence, it provides opportunities to lower costs in every market where a business operates.
• The countries contributing to major demand are Australia, China, India, Chile, Brazil, Ghana, Nigeria, and other African countries, increasing mining activities in these regions to support market demand.
• The aftermarket demand for mining equipment declined in North America and Europe with the after-effects of the global recession, while Asia witnessed a steady increase in aftermarket demand.
• OEMs have a major hold on the service market for the mining sector, followed by the OEM authorized service providers and third-party vendors.
• The spur in the growth of industrial services is also contributed by an increase in focus on core competency by the clients and the requirement of technical expertise for these services.
• Service providers are expected to be involved in more mergers and acquisitions (M&A) to increase their geographical presence and further vertical integration in their operations.

Global Maintenance Services Market: Drivers and Constraints 

Drivers 

High Demand from Food & Beverages Industry  

Demand for processed food products is reaching new heights in the emerging regions owing to the rising population and increasing food consumption across the globe. However, besides increasing costs, the food & beverages sector encounters other hurdles such as global supply chain management, regulatory compliance, constant process enhancement, and product quality. Players in the industrial service market help end-use industries overcome these challenges using PLC, SCADA, MES, and DCS systems to improve efficiency, minimize downtime, save resources, and maintain adherence to the regulatory norms.

Predictive Maintenance Services

As per the IT services market analysis, industrial service vendors are locking horns with each other to gain the upper hand. To maintain their market competitiveness, they are frequently upgrading their industrial service portfolio. A tailored service portfolio helps the service providers to become more customer-centered and versatile in the maintenance market. 

In predictive maintenance services, the systems and equipment are under continuous supervision to oversee their condition and deliver solutions in the case of a breakdown. With the rapid emergence of the Internet of Things (IoT), the demand for predictive maintenance services is likely to surge over the years ahead.

Constraints 

Varying Regulatory Compliances across Continents

Governments are the major stakeholders in deciding the regulations in any country. They devise these regulations in line with the regional ecological conditions. These regulations differ with the countries and sectors. Local regulatory compliances might create obstacles for service providers looking to establish their business footprint in the region. 

These hurdles can include mandatory certifications, import and export duties, and industry-centric mandates, and investment norms. As such, varying regulatory compliance is a key challenge for the players in the industrial services market.

Market Overview

• Though the mining maintenance services market is fragmented, with a diverse set of vendors providing different services, specific technical knowledge and industry expertise increases supplier’s bargaining power.
• A customized long-term global IT maintenance services program will maximize system uptime, optimize asset management and guarantee equipment life. It is important to select an appropriate maintenance plan according to the process and installation to realize better budget control.
• Predictive maintenance contract allows a reduction in lost production, reduces downtime, reduces the cost of research equipment maintenance service & inventory, extends the life of mining equipment, and improves product quality.
• Labor constitutes the maximum cost to mining maintenance services. Out of total cost, labor cost comprises 60–65%, approximately 15–20% of the cost goes in taxes and overheads to the employer. 

Why You Should Buy This Report

• The report gives information about the industrial maintenance services market size, market maturity, trends, overview of the mining maintenance services market, to name a few.
• It lists out the major drivers and constraints and gives Porter's five force analysis of the global IT maintenance market.
• It provides supply trends and insights and does the SWOT analysis of major players such as Caterpillar, Sandvik, and Atlas Copco.
• The report gives the cost structure breakdown, price trends, and drivers analysis.
• It further lists out the best industry practices, engagement models, and KPIs.