ID: MRFR/A&D/7131-CR | February 2021 | Region: Global | 143 pages
Global Digital MRO Market is expected to register a 12.04% CAGR during the forecast period.
Maintenance, repair, and overhaul (MRO) operations are going through a rapid transformation as service providers are increasingly adopting digital technologies. The use of digital technologies such as the Internet of Things (IoT), blockchain, artificial intelligence (AI), robotics, AR/VR, digital twins, and 3D printing to perform MRO operations are referred to as digital MRO. These technologies increase the efficiency of the operations and reduce the turn-around time.
The global digital MRO market is expected to register significant growth during the forecast period due to rising investments in connected aircraft and the increasing adoption of advanced technologies, such as big data, IoT, blockchain, and AI, by MRO providers. Furthermore, the high costs associated with the procurement of new aircraft are encouraging airlines to invest in digital MRO. However, the absence of common data standards and high costs of MRO software suites might hamper the market's growth.
Connected aircraft utilize real-time data to create live data records. This allows airlines to identify component or system issues and take necessary actions in terms of maintenance while the aircraft is in flight. Therefore, globally, aircraft operators are investing heavily in upgrading their existing fleet with advanced connected systems and solutions in the last few years. This is expected to drive the growth of the global digital MRO market during the forecast period.
Global Digital MRO Market Growth, 2019–2027
North America accounted for a 34.32% share of the digital MRO market in 2019, followed by Europe. Asia-Pacific accounted for the third-largest market share in 2019. Asia-Pacific is expected to be the fastest-growing market for digital MRO during the review period.
Global Digital MRO Market has been segmented based on Technology, Application, End-User, and Region.
By Technology, the global digital MRO market is categorized into predictive maintenance, AR/VR, 3D printing, blockchain, Internet of Things, artificial intelligence, big data analytics, robotics, and digital twin.
By Application, the global digital MRO market has been classified into the predictive analysis, inspection, performance monitoring, part replacement, and mobility & functionality.
Based on End User, the global digital MRO market has been segmented into airlines, MRO providers, and OEMs.
Global Digital MRO Market Segmentation
The blockchain segment is expected to grow at the highest CAGR during the forecast period: MRFR
Rising industry initiatives to bring blockchain technology into MRO from the manufacturing sector to the logistics sector are anticipated to grow this segment's size. The main reason for an increase in its adoption is a utility provided in record keeping, linking the entire supply chain, establishing trust in the used parts, and tracking every part in stock. The segment is projected to register a 13.74% CAGR during the forecast period. The blockchain segment accounted for the market share of 7.75% in 2019, with a market value of USD 62.59 million.
Digital MRO Market has been segmented, by region, into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
Global Digital MRO Market Share, By Region, 2019 (%)
North America accounted for the largest market share in 2019 and is expected to be the largest market for digital MROs during the forecast period. The regional market growth is primarily driven by the high demand for services from the players based in the US and Canada. It is projected that approximately 10,000 aircraft would be operational in the region by 2035, which is expected to create additional opportunities for the market players operating in the North America digital MRO market. Moreover, the rising revenues of airlines headquartered in the region are also projected to support the growth of the regional market. As per the International Air Transport Association (IATA), North American carriers were expected to generate USD 16.6 billion in net profits in 2019, compared to USD 14.7 billion in 2018. However, the ongoing COVID-19 pandemic is expected to hamper the growth of the regional market. According to IATA, due to travel restrictions and the global economic recession due to the COVID-19 pandemic, the air transport revenue in North America is expected to fall by USD 50 million in 2020. Hence, the digital MRO market in North America is expected to register a 12.93% CAGR during the forecast period.
The Players Profiled in the report on the Global Digital MRO Market are Boeing (US), IBM Corporation (US), HCL Technologies Limited (India), SAP SE (Germany), Ramco Systems Limited (India), Oracle Corporation (US), IFS AB (Sweden), TRAXXALL TECHNOLOGIES (Canada), Honeywell International Inc. (US), and General Electric (US).
Key Industry Developments
Key Questions Addressed by the Report
|Market Size||USD 1,698.23 Million (2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Application, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Boeing (US), IBM Corporation (US), HCL Technologies Limited (India), SAP SE (Germany), Ramco Systems Limited (India), Oracle Corporation (US), IFS AB (Sweden), TRAXXALL TECHNOLOGIES (Canada), Honeywell International Inc. (US), and General Electric (US).|
|Key Market Opportunities||Increasing Adoption of Advanced Technologies|
|Key Market Drivers||Rising Investments in Connected Aircraft.|
Frequently Asked Questions (FAQ) :
Global Digital MRO market is touted to record a substantial market valuation of USD 1,698.23 Million by 2027.
Global Digital MRO market is projected to register a moderate 12.40% CAGR in the forecast period.
The AR/VR segment is expected to observe substantial demand over the review period.
The predictive analysis segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global Digital MRO market are Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada), among others.