Industrial Machinery Remanufacturing Market Size 2024-2028

The industrial machinery remanufacturing market size is forecast to increase by USD 482.4 billion, at a CAGR of 18.54% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and factors. Firstly, there is a rising demand for increasing asset utilization in manufacturing industries, leading to a higher adoption of repair and remanufacturing for industrial machinery. Secondly, the high initial capital investment in industrial machinery remanufacturing is being offset by the cost savings associated with extending the life cycle of existing equipment. Additionally, the environmental benefits of remanufacturing, including reduced waste and energy consumption, are becoming increasingly important to companies looking to improve their sustainability profiles. Despite these growth opportunities, challenges remain, including the need for standardized processes and quality control measures to ensure the reliability and consistency of remanufactured equipment. Overall, the industrial machinery remanufacturing market is poised for continued expansion, driven by these trends and the increasing recognition of the economic and environmental benefits of remanufacturing.

Market Forecasting and Size

Market  Forecast 2023-2027

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Market Dynamics

The market is vital for enhancing the longevity and efficiency of factory equipment across various sectors. In the agricultural sector, global positioning system and packaging machinery are increasingly integrated with remanufactured components to ensure optimal performance and sustainability. Production machinery and packaging systems benefit from remanufacturing, which includes upgrading lathe machines, hydraulic machines, and power driven machines. This process helps maintain skilled labor and skilled technicians by providing aftermarket service and ensuring that infrastructure remains robust and efficient. Remanufacturing also extends to woodworking machinery, paper machinery, and printing machinery and equipment, enhancing chemical processing machinery and food production machinery. This coordinated manner of upgrading semiconductor machinery and other industrial machinery supports a more sustainable and cost-effective approach to industrial operations, leveraging existing assets while minimizing the environmental impact.

Key Market Driver- Rising demand for increasing asset utilization in manufacturing industries

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. Besides, the efficiency of industrial machinery entirely relies on the impeller and head, as they help in enhancing the amount of water or fluids that the motor can move. Selecting appropriate industrial machinery helps in boosting operational efficiency and lowering energy consumption.

Furthermore, factors such as the operating speed of the industrial machinery should be viewed while selecting a pump. These factors help in estimating the operational functionality of pumps and selecting the most suitable model. If end-users can use pumps, they can save operating costs by enhancing the life of industrial machinery. Consequently, the growing demand for increasing asset utilization in manufacturing industries will fuel the growth of the market during the forecast period.

Significant Market Trends- Rising adoption of repair and remanufacture for industrial machinery

In end-user sectors, such as automobiles, aerospace, food, and beverage, where major wear and tear is possible, machinery is subjected to a harsh environment that may lead to corrosion and damage. Industrial machinery manufacturers are providing remanufacturing and maintenance services that use technologies such as plasma arc welding, and laser cladding 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. In such cases, the laser cladding of these components can significantly reduce the wear on the parts, thereby extending service life and considerably reducing the cost of operations and maintenance (O&M). Hence, such factors are expected to propel the market during the forecast period.

Major Market Challenge- High initial capital investment

In the case of remanufacturing facilities, special equipment like machine tools, testing and diagnostics devices as well as tools for component refurbishment are needed. It may be financially difficult to set up such facilities. Remanufacturing also entails the training of qualified technicians and engineers to perform disassembly, evaluation, reconstruction, or replacement of heavy machinery. Costs may be incurred in preparing and retaining these skilled workers.

Furthermore, in the case of major investments in remanufacturing facilities, SMEs frequently do not have sufficient resources to carry them out. Less costly options such as outsourcing or the purchase of new equipment may be chosen by them. The capital constraints can limit the expansion of remanufacturing services to different regions, industries, or types of machinery, which will negatively impact the growth of the market in focus during the forecast period.

Market Segmentation

By Application

The Automotive segment will account for a major share of the market's growth during the forecast period. The automotive parts industry is one of the world's largest markets for value-retention processes. This segment includes companies that process components for the production of light-duty cars and trucks and for medium and heavy commercial vehicles. Remanufactured parts perform the same functions as the original parts. It is reconstructed from existing parts (cores) using industrial processes standardized according to specific technical specifications. Remanufactured parts receive the same warranty as new parts, the parts are clearly identified as remanufactured parts, and the remanufacturer is identified.

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The Automotive segment was valued at USD 67.00 billion in 2018. The automotive industry is more concerned about pollution. With strict emission standards by government agencies and strict implementation of emission regulations by the automotive industry, businesses are completely shifting from traditional component manufacturing to environmentally friendly solutions. Remanufacturing is the process of reassembling or remanufacturing a new product from an old product using a variety of engineering processes or the process of modifying new parts to improve the shelf-life or performance. Compared with other industries, the automotive industry has a long tradition of remanufacturing.

By End-user

Based on end-user, the market has been segmented into aftermarket and OEM. The aftermarket segment will account for the largest share of this segment. The aftermarket segment primarily involves the refurbishment and maintenance of machinery and components that are no longer under warranty. One of the primary drivers for the aftermarket segment is cost efficiency. Remanufacturing allows businesses to extend the lifespan of machinery and components, reducing the need to invest in entirely new equipment. This is particularly appealing for businesses looking to optimize their budgets. Additionally, as industries continue to prioritize these factors, the aftermarket segment of the market is expected to grow further during the forecast period.

Regional Analysis

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APAC is estimated to contribute 40% to the growth by 2028.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Due to factors such as rapid industrialization and urbanization, APAC is the fastest-growing regional market in the 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 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Exline Inc.: The company offers industrial machinery remanufacturing services which repair and fabricate replacement parts for the gas compression, power generation, industrial manufacturing, and plastics and rubber compounding industries. 

We also have detailed analysis of the market's competitve landscape and offer information on 20 market companies, including:

ABB Ltd., Advanced Machine and Engineering Co., Akron Gear and Engineering, Andritz AG, Astro Machine Works Inc., Bourn and Koch Inc., Caterpillar Inc., CNH Industrial NV, Deere and Co., Elmas SRL, EMI Equipment Manufacturers International Inc., Innovative Machine Solutions, JTEKT Corp., L and H Industrial Inc., Lee Industrial Contracting, Machine Tool Research Inc., and Pamco Machine Works Inc. 

Technavio market growth analysis report forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application Outlook 
  • Aerospace
  • Automotive
  • Heavy duty and off road equipment
  • Electrical and electronic equipment
  • Others

• End-user Outlook 
  • Aftermarket
  • OEMs

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is evolving with the integration of Artificial Intelligence (AI) and the Internet of Things (IoT), driving efficiency across diverse sectors. In industries like food production, plastic and rubber working, and oil refineries, remanufactured machinery, including extrusion machines, plastic granulators, and conveyor systems plays a critical role in maintaining operational efficiency. Big data analytics and advanced sensors support automation by optimizing the conveying system and packaging system, while robotics and automation enhance the performance of robotic welders and vacuum forming machines. The use of 3D printing and 3D log scanning technology, along with wafer processing equipment and semiconductor assembly and packaging, underscores the rapid advances in technology. The PackSize company and other leaders in products as services contribute to this market by providing spare parts and high-grade lumber solutions, ensuring that factory equipment and manufacturing output are both efficient and sustainable.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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