Maintenance Services
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Maintenance Services Regional Market Outlook

• The total global mining equipment service market was valued at $142.5 billion in 2016
• The repair and maintenance service market is forecast to grow at a CAGR of 3 – 4 percent to $160 billion by 2019
• The equipment service market is highly fragmented, however, for mining equipment, the OEMs and its authorized dealers constitute TO the majority of the market share
• North America, Australia, Chile and South Africa are the major regions for mining activities and dominates the mining maintenance service market
• The major market drivers of the industrial maintenance services market size are labor cost, service outsourcing, technology advancement, and training and development.
• The impactful cost components of the maintenance market are Labor ~40–60 percent, Spare and consumable ~14–18 percent, Tools and tackles ~10–12 percent, Training and development ~5–7 percent, and Others 5–8 percent.
• Pricing models in the mining maintenance services market: Lump-sum or fixed pricing is the preferred model. Buyers are adopting performance linked pricing models, i.e., reward and penalty linked lump-sum pricing model.

Global Maintenance Service Market Maturity 

• The repair and maintenance market is fragmented, since service portfolio of equipment service providers are not diversified covering all range of equipment categories
• Maintenance services demand is not much affected by slowdown in mining industry and the falling commodity prices. To improve the equipment life and performance by reduced the down time, mining companies have to keep up the maintenance activities on

Global Market Overview for Mining Equipment

• The global mining equipment market was worth $72.2 billion in 2016, and it is expected to grow at a CAGR of 7–8 percent over the next five years
• APAC held the largest market share for the global mining equipment demand in 2015, and the demand from this region is expected to dominate in the forecast period
• The mining equipment industry is extremely consolidated with top four supplier catering to almost 80 percent of the market, thus limits the bargaining power of the buyer
• Surface mining equipment accounts for ~35 percent of the global mining equipment market in 2016. The demand for underground mining equipment is expected to increase compared to the surface equipment, due to the depleting ore grade in surface mines
• The market for drills and breakers is expected to grow at the fastest rate due to their varied applicability and increase in demand from developing regions

 Global Market Overview for Equipment Maintenance Services

• The global maintenance services market is estimated to be around $800 billion in 2016. It is expected to continue to grow at a CAGR of ~3 –  4 percent until 2018
• Demand for the machinery maintenance and heavy equipment repair services industry is steadily recovering from severe losses during the recession in last decade
• The equipment repair and maintenance service industry is extremely fragmented and competitive catering to a variety of 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 emerging market, such as Australia, China, India, Chile, Brazil, Ghana, Nigeria and other African continent due to increasing mining activities 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 steady increase in afterrket demand
• Service portfolio of equipment service providers are not diversified covering all range of equipment categories, mostly suppliers specialize in particular range of equipment
• For mining sector OEMs have the major hold on the service market followed by the OEM authorized service providers and the third party vendors•
• The spur in the growth of industrial services are also contributed by increase in focus on core competency by the clients and the requirement of technical expertise for these Services
• Service providers are expected to involved in more M&As to increase their geographical presence and further vertical integration in their operation

Market Overview

• Though mining maintenance services market is fragmented, with diverse set of vendors providing different services, specific technical knowledge and industry expertise increases supplier’s bargain power.
• A customized long term global IT maintenance services program would maximize system uptime, optimize asset management and guaranty 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 reduction in lost production, reduces downtime, reduces cost of research equipment maintenance service & inventory, extends the life of mining equipment and improves product quality.
• Labor constitute the maximum cost to mining maintenance services. Out of total cost, labor cost comprises of 60–65 percent, approximately 15–20 percent 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 research equipment maintenance service market, etc.
• It lists out the major drivers and constraints and gives the Porter’s five force analysis of the maintenance market
• It provides supply trends and insights and does the SWOT analysis of major players like Caterpillar, Sandvik, Atlas Copco, etc.
• The report gives the cost structure breakdown, price trend and drivers analysis, etc.
• It lists out the best industry practices, engagement models, KPIs, etc.