Aircraft MRO Market is expected to grow USD 95 Billion at a CAGR 5% by during the forecast period. Overhaul, inspection, repair, or modification of an aircraft or its components is referred to as aircraft MRO. Factors such as growing environmental awareness, rising demand for older planes, the introduction of new generation fleet in the aviation industry, rising disposable income, and increased airline passenger traffic have contributed in an increase in market value. Additionally, increased development initiatives for aircraft modernization are a crucial driver that is expected to accelerate market expansion.
Because the dynamics of the MRO market in commercial aviation are changing at a rapid pace, the industry's long-term viability necessitates the rapid deployment of solutions to address the dynamism. Furthermore, straight-line government rules on aircraft, as well as the requirement for frequent service of engine parts and engines, are supporting the growth of the global MRO aircraft business. Numerous engine production projects are predicted to gain popularity as a result of increased aircraft modernization, environmental concerns, and laws and legislation for the replacement of outdated fleets. Many engine manufacturers are focusing on producing powerful and affordable engines for new fleets.
The aviation sector is the most affected by the coronavirus (COVID-19) epidemic, relative to other sectors. This is attributed to the containment policies against the pandemic of COVID-19 that led to the closure of the entire service of the multinational passenger airline. In contrast, not that much was hit by freight aviation, just in reference to the downturn in global industrial development. How long the markets will take to rebound in the post-COVID world is still uncertain. The coronavirus pandemic gave the world economy a profound meta-uncertainty and its influence could reshape the future functionality of our pre-COVID economic structures.
Growing Air Travel to Drive Market Growth
Many new MRO support centres have recently been built in various countries. Increasing criteria for adequate servicing and refurbishment of aircraft to preserve their peak performance and to meet with stringent regulatory specifications would raise the market share of MRO commercial aircraft. The market size would be further expanded by developments in technology combined with the need to resolve wear and tear of products. In addition, rising foreign trade between countries has led to an increase in the frequency of cargo aircraft. In order to ensure optimal efficiency and safe air travel, it is also necessary to execute timely checks and repairs on aeroplanes. Different factors push the market, such as the increased focus of OEMs on aircraft MRO operation and the rapid growth of aircraft fleets. In addition, the increased need for adequate engine & component servicing is driving the development of the MRO market for aircrafts. The emergence of low-cost airlines and the high degree of professionalism displayed by ground and maintenance workers exploit the worldwide commercialization of the airline industry.
Growing Adoption of Aircraft Modifications to Create Growth Opportunities
Owing to an increase in aircraft modernization, environmental issues, and rules and legislation for the replacement of older fleets, numerous engine production projects are also expected to experience popularity. Many manufacturers of engines are focused on the production of powerful and inexpensive engines for new fleets. The growth of refurbished and used parts in engine and non-engine maintenance is one of the significant trends in this field. In the next decade, demand for used aircraft parts is projected to increase, fuelled by the growth in the retirement of older aircraft worldwide. In commercial aviation, the dynamics of the MRO market are evolving rapidly, so sustainability in the industry requires fast implementation of strategies to address the dynamism. In addition, straight-line government regulations on aircraft and the need for frequent servicing of engine parts and engines are another factor driving the development of the global MRO aircraft industry.
Environmental Regulations to Impede Market Growth
However, rising environmental threats associated with MRO aircraft services are projected to limit global demand growth to some degree. In addition, the shortage of qualified experts is another aspect projected to impede the global demand for MRO aircraft engines.
By MRO Type
Segmentation by MRO type comprises of engine, component, line maintenance, airframe, and modifications. The Airframe MRO segment held the second-largest demand in 2018 and is predicted to grow its shares during the projected period.
By Aircraft Type
Segmentation by aircraft class involves narrow-body, wide-body, and other segments. Narrow-body aircraft have a commanding market share and are projected to continue to operate throughout the forecast timeframe. Airline operators are updating their aircraft models to allow cost reductions that result in fuel efficiency, thus increasing the fleet of narrow-body aircraft. Wide-body aircraft are projected to be the fastest CAGR in the forecast timeframe, leading to a significant transformation in the production of turbofan engines over the last few years. Widebody aircraft experience a high proportion of MRO costs due to their complexity and high maintenance.
Segmentation by application comprises of commercial air transport, business and general aviation, and military aviation. Because of the demand for fuel efficiency and passenger and aircraft safety, commercial air transport firms pursue vital efforts to sustain their aircraft fleet.
Four main areas, including the Asia Pacific, North America, Europe, and the rest of the world, have been given a geographical description of the global economy.
U.S. Dominates the North American Market
North America was the leading region in 2016 for the worldwide MRO demand for aircraft engines. In the region, a range of major aircraft manufacturers (such as Boeing) and MRO engine service providers are present, achieving a high market share in the region.
High R&D Investments in Europe to Drive the market
Air traffic growth is projected to fuel Europe's regional growth in the coming years. Over the review era, Germany kept a higher market value. Regional development is projected to be powered by other factors, such as increasing foreign trade and the need for new aircraft. The focus on innovative technology for maintenance activities and OEMs is a major factor influencing the development of the European industry.
China to Drive APAC Market
In countries like China, India and others, the market is driven by various factors, such as increased air travel in the Asia-Pacific region. The factors driving unprecedented growth in the aircraft MRO market in APAC are economic growth, rising travellers, and increasing investment on aviation infrastructure around APAC. The growth of the aircraft engine MRO market is also motivated by increased limitations in global flight regulations and the need for careful maintenance of engines & engine components. Growing numbers of middle-class passengers, especially in APAC countries such as India, China and Singapore, are the key contributing factors to the growth of air travel, thereby increasing the demand for MRO aircraft services in the region. The development of aviation MRO services is funded by policymakers in the above-mentioned countries, as well as other developing economies, as it is a key policy to support the region's economic objectives by concentrating on enhancing the MRO activities of aircraft.
Growing Technological Advancements to Drive MEA market
During the projected period, the Middle East & Africa commercial aircraft MRO market will see healthy growth of about 6 percent. The rising number of ageing aircraft fleets, along with older aircraft technology, offers a favourable outlook for the overall industry. In addition, growing tourism is improving industry sales in the region along with the availability of technologically advanced and next-generation widebody aircraft.
Major Players to Focus on Mergers and Acquisitions
In order to maximise the revenue share of business companies, strategic long-term alliances and contracts are set to play a significant role. In addition, players are emerging from developed markets due to increased demand.
February 2022: Flydubai, a Dubai-based airline, acquired a multi-year arrangement with Boeing for spares provisioning and Quick Engine Change (QEC) kits to service its all-Boeing fleet. These new contracts will allow flydubai to support more efficient maintenance operations while also controlling inventory costs, providing attractive continued business potential for the aircraft interiors and MRO sector in the post-COVID recovery period.
February 2022: FL Technics was granted two extensions under the current Part 145 approval. The first expansion of capabilities is to provide line maintenance services for Boeing B787 aircraft, and the second is to provide borescope examinations of Pratt & Whitney PW1100G-JM series engines. Simultaneously, the FL Technics team will now rely on approved borescope inspection services for one of the most popular engines on the market, which is commonly mounted on the Airbus A320 aircraft family.
By MRO Type
By Aircraft Type
Frequently Asked Questions (FAQ) :
The market value by 2023 can be USD 95 billion, says MRFR.
The market size is presumed to expand at a pace of more than 5%.
APAC holds the highest share in the global market.
The key growth rendering factors in the worldwide market are increased focus of OEMs on aircraft MRO service and rapid aircraft fleet expansion. Also, the increased need for proper maintenance of engines & components is driving the growth of the aircraft MRO market.
The significant opportunities in the global market include outsourcing of the aircraft engine MRO to third-party vendors.
The primary MRO types considered in the report include Airframe, Line Maintenance, Engine, Modifications, Component, and more.