One common thread in a survey of recent MRO industry reports is the trend toward industrial vending machines. The devices, which dispense industrial supplies, offer a host of benefits including automated supply management and inventory control, reduced labor costs and lower operational downtime.

An updated report by Grand View Research Inc. (GVR) estimates that the global market for the machines, valued at $2.07 billion in 2018, will see a compound annual growth rate (CAGR) of 8.9% from 2019 to 2025 and grow to $3.72 billion. That's a significant upgrade from a 2017 version of the report, which showed that the projection for 2025 was $1.43 billion.

One driver of this trend is worker safety regulations, which can be met by the efficient distribution of personal protective equipment (PPE) via the machines. GVR’s report highlights the PPE segment as expected to witness the highest growth over the next six years, with a CAGR of 9.7%.

Ged Farrell of Brammer Buck & Hickman, a leading MRO product distributor in the United Kingdom, elaborated on the value of industrial vending to PPE. “Only approved PPE is available on the shop floor, and employees can only access the correct equipment suitable for their role,” he explained.

Industrial vending machines are also increasingly being deployed in industries with high costs of downtime, such as aviation, manufacturing, and oil and gas. These segments rely upon the large-scale stocking and maintenance of MRO supplies, including tools and tool kits, sealants and coatings, spare parts and testing equipment. The machines’ ability to maintain a record of inventory usage offers insight into effective inventory management and serves as a deterrent against misuse and theft. Original equipment manufacturers (OEMs) are furthering this trend by developing IoT-enabled machines that allow remote data access and prevent unnecessary inventory replenishment expenses.

The GVR report also notes that the industrial vending market is highly competitive. Significant investment is required for infrastructure development; existing industry participants have packaged additional services such as consulting, maintenance and inventory supply. As a result, small-scale firms are collaborating with major companies to enter the industry.

Fastenal Company, which the report identifies as the dominant player in the North America region, recently reported a milestone achievement of 100,000-plus active devices at customer sites worldwide. The scales were tipped when one of the company’s first vending partners, Pierce Manufacturing, installed three new devices. Pierce’s Lorien Hegner added that vending has “truly changed the way we do business in the 21st century.”