By Region, the study provides market insights into US & Europe. Europe accounted for ~ 65.3% Industrial Services market in 2022. Europe is likely to be the largest contributor to the Industrial Services market. This includes the Germany, UK, France, Italy, Spain, Denmark, Sweden, Norway, Poland, Austria, Switzerland and Rest of Europe. Europe has been at the forefront of adoption of advanced technologies, such as IoT, automation and Industry 4.0. This has led to increased demand for service related to implementing and maintain these technologies in industrial settings.
Increased collaboration across industries has created opportunities for service providers offering solutions that caters to multiple sectors, promoting efficiency and knowledge sharing. The aging infrastructure of some of the European industries has led to a focus on maintenance & optimization services, ensuring the reliability and longevity of existing assets.
Europe’s industrial production increased by 8% in 2021 as compared to 2020 and has continued its upward trend with an increase of 5% in 2022 compared to 2021. Highest growth rate was seen for manufacture of motor vehicles and pharmaceutical products. As per the European Auto Makers Affiliation (ACEA), in 2022, 10.9 million passenger vehicles were produced which was 8.3% more than as compared to 2021. The automotive industry contributed about 10 percent of Europe's exports in 2022. There are 42 car factories in Germany, 31 in France, 23 in Italy, and 17 in Spain.
These factories work continuously to achieve the desired production of vehicles hence they require operational improvement and maintenance services. Similarly, the pharmaceutical industry has also grown tremendously in the region. According to European Federation of Pharmaceutical Industries and Associations (EFPIA), value of production for the research-based European pharmaceutical has grown from 127.5 billion euro in year 2000 to 300 billion in 2021. Moreover, the growth of export increased from 90.9 billion Euros to 565 billion Euros over the same period.
The US industrial services market is growing due to various factors such as increasing complexity of industrial operations which mainly emphasis on cost reduction & operational efficiency, and increasing demand for maintenance and repair services which are driving the market growth. The increasing density of industrial operations often increases costs for both equipment maintenance and personnel management. Industrial service providers offer solutions by offering on-demand services, eliminating the need for businesses to invest in expensive equipment or maintain large in-house maintenance teams.
Industrial companies are constantly looking for ways to improve operational efficiency and reduce costs by outsourcing non-core business activities such as maintenance and repairs so that companies can focus on their core competencies while leveraging the expertise of service providers.
The industrial engineering and consulting services are also used in the country by various end user such as semiconductor and electronics, automotive, aerospace and metals & mining which helps in product development, updated manufacturing processes and machines, automation integration, and factory layouts. According to a recent report by Alliance for Automotive Innovation, auto production remains the country's largest manufacturing sector, with 20 automakers operating 55 light vehicle assembly plants across 15 states. The demand for industrial service is also due to increasing metals and mining activities in the country.
It is estimated that there are nearly 13,000 active mines in the US. These mines use equipment which work in harsh climatic conditions. As equipment ages, production efficiency and reliability can decline. However, proper maintenance and repairs can reduce the signs of aging to ensure that production goals are met without any downtime.
