Industrial Distribution Market Size, Share, Growth, And Industry Analysis, By Type (Auto parts, Building products, Electrical, Electronics, HVAC and plumbing, General industrial, IT, Metals and Others), By Application (eCommerce and Offline), Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 July 2024

Industrial Distribution Market Report Overview

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The global industrial distribution market size was USD 7260410.0 million in 2021 and is expected to reach USD 11962089.07 million in 2031, at a CAGR of 5.12% during the forecast period. 

Industrial distribution broadly refers to the transportation of industrial goods from their point of origin (production) via the industrial supply chain (wholesale distribution) to other businesses and firms that consume those products. A sales firm called an industrial distributor often aids in the movement of these goods through the supply chain, offering both suppliers and corporate clients a useful service.

The improvement of electrical and electronic appliances is a focus of several government efforts as well as an increase in disposable money, which are both fostering market expansion. Also contributing to the sales of such systems are the expanding middle-class population and rising HVAC needs. A second element driving the market's expansion is the fact that the leading players are establishing factories in additional areas to serve the local populace.

COVID-19 Impact: Limited Movement of People due to Restrictions Impacted the Industry 

The industrial distribution sector has been severely impacted by the pandemic. The restaurant suppliers and medical distributors were hardest hit during the outbreak. Market conditions were significantly impacted by strict restrictions on people's freedom of movement and the lockdown. The market was impacted as all non-essential product production has ceased. The market was also significantly impacted by the limited movement.

The global COVID-19 pandemic has been unprecedented and staggering, with the industrial distribution market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Latest Trends

"Use of Centralized Management System will Improve Organization’s Productivity and Reduce Errors"

Distributors are focusing on creating an automated procedure that will improve the organization's productivity. This will aid in accelerating the process and lowering human error rates. Time can be saved by workflow automation. The cooperation between various distributors is another option for market expansion. All of the distribution channels will have a uniform experience due to the existence of a centralized administration system. Industrial distribution companies have made a significant transition from their previous management methods to a greater reliance on smart products. In the upcoming years, it's also anticipated that rising consumer demand for shipping transparency would present a growth potential. Using an order management system will be able to give multiple channels a platform to collaborate and communicate in real time. Additionally, it will aid in lowering errors.

Industrial Distribution Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Auto parts, Building products, Electrical, Electronics, HVAC and plumbing, General industrial, IT, Metals and Others

• By Application Analysis

Based on application, the market can be divided into eCommerce and Offline

Driving Factors

"Utilization of Internet of Things by the Distributors to Cater to the Customer Demands is Increasing their Business Earnings "

Consumers' purchasing habits have changed during the past few years. The market will be driven by an increase in the use of online shopping platforms to buy various goods. In order to better satisfy client requests, distributors are focusing on developing better inventory tracking technologies. The adoption of a variety of solutions has increased, which has aided retailers in enhancing customers' shopping experiences. By utilizing different internet search engines, these solutions might offer improved visibility. Industrial distributors are improving their web platforms in an effort to continue to attract customers in the face of a market that is becoming more and more competitive. These distributors' revenue has increased thanks to the use of the Internet of Things. The adoption of blockchain technology and the Internet of Things is predicted to increase business earnings for the companies.

"Creative Distribution Strategies Adopted by the Players will Expand the Market"

Customers are looking for speedier delivery and free or low-cost shipping due to a growth in the use of e-commerce. Many significant manufacturers are changing to their digital processes as a result of a rise in revenue from online sources. Market expansion will result from greater use of smart gadgets. Consumers are calling for openness in shipping procedures. Customers are looking for customer care that is available 24 hours a day, 7 days a week on these websites to assist in tracking their products. This industry is making investments in order to offer technical improvements in order to satisfy consumer demand. The market will expand thanks to creative distribution strategies.

Restraining Factors

"Increase in Market Competitors and Availability of Delivery Alternatives will Hamper the Market Expansion of the Existing Firms"

The industrial distribution market growth of the previously existing firms will be hampered by increased competition and the introduction of new market participants. Another impediment is the spread of political turmoil across states worldwide. There will be fierce competition on the market as a result of the availability of many delivery alternatives and affordable prices offered by various market participants. Due to competitors' use of technology, monopolies are becoming more prevalent in the distribution industry. The supply chain was severely impacted during the pandemic, and manufacturing procedures slowed down as well.

Industrial Distribution Market Regional Insights

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"North America to Dominate the Market due to Increase Spending on Transportation Investments in the Region"

The industrial distribution industry has been controlled by the North American continent. In the upcoming years, this region is anticipated to hold a strong position. Due to increased spending on transportation investments as well as supply chain logistics, distribution is expanding in this area. There is no strain on the wholesalers as a result of the current political instability. These factors are aiding the North American industrial distribution market share to grow during the forecast period.

Key Industry Players

"Key Players are Focusing on Partnerships and Investments to Increase their Market Shares"

Due to the abundance of local businesses, the industrial distribution industry is only slightly fragmented. Several market participants are pursuing tactics including expenditures, partnerships, mergers, and acquisitions to increase their market shares. Companies are also investing in enhancing their product offers. The maintenance of competitive prices is another area of concern. These companies have concentrated on increasing their market presence through strategic alliances and investments aimed to complement market trends.

List of Market Players Profiled

• Ferguson (Wolseley) (U.K.)
• WPG Holdings (Taiwan)
• Avnet (U.S.)
• Fastenal (U.S.)
• CDW (U.S.)
• CECport (China)
• ERIKS (U.K.)
• Arrow Electronics (U.S.)
• GPC (U.S.)
• EWIE (U.S.)
• Veritiv (U.S.)

Report Coverage

This report covers the industrial distribution market. The CAGR expected to be in during the forecast period, and also the USD value in 2021 and what it is expected to be in 2027. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.