The industrial machinery remanufacturing market size is estimated to grow at a CAGR of 18.54% between 2023 and 2028
The market size is forecast to increase by USD 482.43 billion. The growth of the market depends on several factors such as the rising demand for increasing asset utilization in manufacturing industries, the growing demand for customization in industrial machinery, and the rising demand for optimization of costs at the same service level from various organizations.
Most end-users of industrial machinery are changing their existing machinery and equipment to enhance machinery efficiency, reduce operational costs, and integrate all operational functions. Selecting appropriate industrial machinery helps in boosting operational efficiency and lowering energy consumption. The growing demand for increasing asset utilization in manufacturing industries will fuel the growth of the market during the forecast period. Industrial machinery manufacturers are providing remanufacturing and maintenance services that use technologies such as plasma arc welding, and laser cladding in order to solve this problem.
Furthermore, the cost associated with the replacement of components may be quite high and represents a huge cost burden for the machine operator/owner. Such factors are expected to propel the global industrial machinery remanufacturing market during the forecast period.
The OEM segment in the global industrial machinery remanufacturing market is a crucial and evolving aspect. OEMs are enterprises that design, manufacture, and sell original machinery and equipment. This segment is unique in that it mostly involves the manufacturers themselves, who are mainly recognizing the value of remanufacturing. Many OEMs are adopting sustainable practices to decrease waste and undervalue their environmental footprint.
The OEM segment was valued at USD 112.16 billion in 2018. Furthermore, remanufacturing permits OEMs to deliver cost-effective solutions to customers, raising the affordability of their products and services. This can be particularly appealing in competitive markets. Besides, as regulatory pressures and environmental consciousness continue to increase, this segment is anticipated to deliver growth opportunities for both OEMs and remanufacturers in the market during the forecast period.
APAC is estimated to contribute 40% to the growth by 2027. Due to factors such as rapid industrialization and urbanization, APAC is the fastest-growing regional market in the global industrial machinery remanufacturing market. The leading countries in this region are China, Singapore, and India. APAC's rapid economic development, particularly in countries like China and India, has led to increased industrialization, creating a substantial market for remanufactured machinery. As industries expand, the demand for cost-effective, reliable machinery solutions grows.
Moreover, several industries such as food and beverages, automotive, and others in the region are increasingly focused on sustainability and cost-effectiveness. Therefore, remanufacturing is seen as a waste reduction strategy adopted by several industry sectors. Thus, the rising adoption of sustainability practices in the region will drive the growth of the regional market during the forecast period
Source: Technavio report: Industrial Machinery Remanufacturing Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Germany, UK - Size and Forecast 2024-2028
