According to MRFR, the Global Aircraft Engine MRO Market is slated to witness substantial growth over the review period. Air transport in developing countries is growing, thus increasing demand for MRO service providers of aircraft engines.
Relative to other sectors, the aviation industry is the most affected by the coronavirus (COVID-19) outbreak. This is due to the containment policies against the COVID-19 pandemic that lead to the closing of the international passenger airline's entire service. On the other hand, freight aviation was not hit too much, only in comparison to the slowdown in global industrial growth. In the post-COVID world, how long the markets will take to recover is still unclear. The coronavirus pandemic created a deep meta-uncertainty for the global economy and its effects could reshape the potential usefulness of our pre-COVID economic systems.
Growing Air Travel to Drive Market Growth
In recent years, several new MRO support centres have been opened up in those countries. This raises the presence in the MRO aircraft engine market of regional firms (Tier-II or Tier-III suppliers). The frequency of cargo aircraft has been increased by increasing foreign trade between countries. Therefore, in order to ensure optimal efficiency and safe air travel, it is necessary to execute timely inspections or repairs of aeroplanes. The demand is powered by multiple factors, such as next-generation engine production and rapid fleet growth. The aircraft engine MRO industry's growth is also motivated by increased constraints on global flight regulations and the need for adequate maintenance of engines & engine components.
Growing Implementation of Aircraft Modifications to Create Growth Opportunities
Other additional factors projected to fuel sales growth in the target market are rapid growth in the aerospace industry and increasing demand for next-generation engines. The manufacturing of efficient and affordable engines for new fleets is the priority of many engine manufactures. One of the key developments in this sector is the rise of refurbished and used parts in engine and non-engine maintenance. Demand for used aircraft parts is expected to rise over the next decade, fueled by growth in the retirement of older aircraft around the world. In addition, straight government restrictions on aircraft and the need for routine servicing of engine components and engines is another factor driving the development of the global aircraft engine MRO industry.
Environmental Regulations to Impede Market Growth
Aircraft operators' long-term contracts (military, industrial and general aviation) with MRO suppliers will serve as a deterrent to the growth of new industry players. To some degree, the growing environmental threats associated with aircraft engine MRO services are likely to curtail global demand growth. In addition, the absence of trained specialists is another aspect that is expected to impede the MRO global aircraft engine market.
By Engine Type
During the review period, the turbine engine segment of the market is projected to report the highest CAGR. The demand for turboprop and turboshaft aircraft, as well as the ageing turboprop fleet, is driving market growth over the projected period. In cooperation with local industries, engine suppliers are creating joint partnerships to assist governments with fleet repair services.
By Aircraft Type
Narrow-body aircraft have a dominant market share and are predicted to continue to fly over the entire timeframe projected. In order to allow cost savings resulting in fuel efficiency, airline operators are upgrading their aircraft models, thereby increasing the fleet of narrow-body aircraft. In the expected timeframe, wide-body aircraft are predicted to be the quickest CAGR, leading to a major transformation in turbofan engine production over the last few years. Owing to their complexity and heavy maintenance, widebody aircraft face a high proportion of MRO costs.
The global aircraft engine MRO market was led by the commercial air transport segment. The commercial aviation sector companies undertake significant initiatives to maintain their aircraft fleet owing to the demand for fuel efficiency and passenger and aircraft safety.
Asia-Pacific to Generate the Highest Demand
During the forecast period, Asia-Pacific is projected to show the highest demand for aircraft engine MRO. Demand growth is largely due to increased airline traffic, which is driving growth in the region's aircraft movements. Aircraft operators are making preparations in the area to increase their MRO network. In addition, the rising military budget of developing countries is boosting the development of aircraft life extension plans, which will in turn create demand for MRO in the coming years.
U.S. Dominates The North American Market
For the worldwide MRO market for aircraft engines, North America was the leading field in 2016. A number of major aircraft manufacturers (such as Boeing) and suppliers of MRO engine services are active in the region, achieving a high market share in the region.
Strong R&D spending to drive the demand in Europe
In the coming years, air traffic growth is expected to fuel Europe's regional growth. Germany maintained a greater market value during the analysis period. Other influences, such as growing international trade and the need for new aircraft, are expected to drive regional growth. A significant factor affecting the growth of the European industry is the reliance on advanced technologies for repair practises and OEMs.
Growing advances in technology to promote the MEA market
The Middle East & Africa] aircraft engine MRO market will see healthy growth of approximately 6 percent during the forecast span. Along with older aircraft technologies, the growing number of ageing aircraft fleets provides a favourable outlook for the overall industry. In addition, increasing tourism and the availability of technologically advanced and next-generation widebody aircraft are boosting industry revenues in the region.
Market Players are Focusing on Mergers and Acquisitions to Improve Business Standing
The growth of business vendors depends on the requirements of the market, government funding, and the progress of the industry. Vendors should also concentrate on the global extension and enhancement of facilities. They concentrate mainly on the introduction of lightweight fabrics, electrical technology and durable structures. While the competition is dominated by international players, regional and foreign players with limited market shares are also present. Via acquisitions during the forecast period, foreign players can enhance their presence worldwide. Improving the global economic situation is also projected to drive demand growth, which makes it a perfect time to introduce new MRO offerings and boost global market share.
January 2020: TAT Technologies Ltd., a global supplier of commercial and military aerospace and ground defence equipment and services, has announced that its wholly-owned subsidiaries, TAT Piedmont Aviation and Honeywell International, have entered into a 10-year deal for the exclusive worldwide Auxiliary Power Unit (APU) rental of GTCP331-500 OEM-approved engines.
December 2020: Honeywell has named ST Engineering to provide all Asia-Pacific operators with component MRO and warranty maintenance facilities for its modules mounted on CFM International Leap engines.
December 2020: MTU and Lufthansa Technik joined forces to build EME Aero, an overhaul shop for Pratt & Whitney PW1000G engines near the Rzeszow, they targeted a modular architecture with optimal process and material flows that would prevent any recurrence of errors from the past.
By Engine Type
Frequently Asked Questions (FAQ) :
The global aircraft engine MRO market is touted to record a substantial market valuation by 2023.
The global aircraft engine MRO market is projected to register a moderate CAGR in the forecast period.
The massive demand for aircraft engine MRO driven by the development of next-generation engines and rapid fleet expansion is the market's primary growth inducer.
The turbine engine segment is expected to observe substantial demand over the review period.
The civil aviation aircraft segment is expected to secure the highest CAGR.
The APAC segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global aircraft engine MRO market are Delta TechOps (US), Lufthansa Technik AG (Germany), Air France Industries KLM Engineering & Maintenance (France), among others.