Global Digital MRO Market Overview
Digital MRO Market Size was valued at USD 1023.1 Million in 2023. The Digital MRO market industry is projected to grow from USD 1146.8951 Million in 2024 to USD 2,856.2 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 12.08% during the forecast period (2024 - 2032). The Digital MRO Market is expected to grow significantly over the forecast period due to several factors. The growth of the Digital MRO Market is expected to be driven by key factors such as rising investments in connected aircraft and growth in outsourcing MRO services. However, factors such as inconsistency & replacement of traditional data connection and high cost of MRO software suites are expected to restrict market growth. On the other hand, the availability of aftermarket parts on e-commerce platforms is pose lucrative opportunities for the Global market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital MRO Market Opportunity
- Availability of aftermarket parts on E-commerce platforms
Distribution networks play a vital role in the availability of components at a location. Conventional distributional channels, including suppliers, dealers, and distributors, have several drawbacks, such as long turnaround time, improper management of parts and resources, and backlogs, which hamper the supplier-customer partnerships. The introduction of e-commerce platforms in distribution networks improves the overall efficiency of aftermarket parts providers. They enable suppliers to forecast the number of orders and accordingly manage resources and time. Moreover, in the case of unavailable parts, suppliers can make them available in less time from their inventories and other resources. For customers, these platforms are beneficial as they can easily select the required parts and place an order with reduced turnaround time and cost comparison. Thus, e-commerce platforms could play a significant role in the supply chain of digital MRO, which presents a lucrative opportunity for the players operating in the Digital MRO Market during the forecast period.
Digital MRO Market Technology Segment Insights:
Digital MRO Technology Insights
Based on Technology, the Digital MRO Market segmentation includes Predictive Analysis, AR/VR, 3d Printing, Blockchain, Internet Of Things (IoT), Artificial Intelligence, Data Analytics, Robotics and Digital Twin.
The Predictive Analysis segment held the majority share in 2022, contributing around ~25.6% to the market revenue. The aviation MRO industry is experiencing the shrinking of traditional IT. Many players move from custom legacy software to a modern, new generation of MRO applications, which help move to digital. The usage of big data helps in creating dashboards to analyze inventory and the need for maintenance. For instance, HCL (India) has created an application built on the SAP Cloud platform that supports the maintenance of engines by integrating IoT devices to address specific technical problems related to engine maintenance and repair operations. Its aircraft predictive analytics measures key parameters such as temperature, pressure, physical fan speed, and bypass ratio to predict the remaining usable life of an aircraft engine and therefore plan maintenance accordingly. The availability of offerings such as Skywise Health Monitoring by Airbus, Prognos by Air France Industries KLM Engineering & Maintenance and FlightSense and Ascentia by Collins Aerospace for predictive analysis is anticipated to drive the growth of this segment.
3D printing is one of the key technologies that help airlines customize spare parts used in maintenance and repair. The technology improves MRO operations by enabling low volume production of spare parts and enhancing customer experience through customized components. The lightweight of 3D printed components is one of the factors increasing its application. Another factor such as the availability of components and its transport from OEMs to airlines is increasing the number of key players opening up 3D printing facilities. For instance, in June 2022, Collins Aerospace inaugurated an additive manufacturing center at its MRO campus in Monroe, North Carolina, expanding its global maintenance capabilities with plans to add more 3D printers in the future. This facility complements the company's network of additive production sites in other locations and aims to enhance efficiency, reduce costs, and offer sustainable solutions for aerospace customers. Also, in November 2019, Etihad Aviation Group (Abu Dhabi, UAE) opened a new MRO 3D printing facility with European Union Aviation Safety Agency (EASA) approval to manufacture parts for the aircraft cabin. The segment is bound to grow during the forecast period, with a greater number of companies collaborating to produce 3D printed airline components.
Figure 1: Digital MRO Market, by Technology, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital MRO Market Vehicle Application Segment Insights:
Digital MRO Vehicle Application Insights
Based on Application, the Digital MRO Market segmentation includes Predictive Maintenance, Inspection, Performance Monitoring, Part Replacement and Mobility & Functionality. The Predictive Maintenance segment held the majority share in 2022 contributing around ~28.5% to the market revenue. Predictive maintenance is first to predict when a component failure might occur, and secondly, to prevent the occurrence of the failure by performing maintenance. The rising use of big data analytics tools to make maintenance processes more efficient and significantly reduce operating costs drives this segment's growth. Due to rising number of collaborative development activities and the increasing number of airlines expected to adopt predictive maintenance are anticipated to drive the growth of this segment in the global market.
Aviation MRO software provides maintenance tracking, inventory management, and flight operation functionalities to give a fully integrated flight department management option. MRO software providers provide core functionality such as inventory control, repair billing, and financials. The current trend is new web-based functions are designed to complement the core functionality. For instance, Tracware Limited (UK) provides Aerotrac v2.50, which has functionality designed to ensure accountability, traceability, and control.
For inspection, Aircraft companies and operators are pushing for faster troubleshooting, automated aircraft inspection to reduce downtime, better task planning, and optimized parts management. British companies EasyJet and Thomas Cook Airlines have experimented with an autonomous drone, developed by MRO Drone, to inspect a full narrow-body exterior in 30 minutes and a widebody in one hour. The availability of rental equipment from companies for MRO is advancing the growth of this segment. For example, Ashtead Technology Ltd (UK) provides equipment for mooring inspection and subsea inspection.
Digital MRO Market End User Segment Insights
Digital MRO End User Insights
Based on the End User, the Digital MRO Market segmentation includes Airlines, MRO Providers and OEMS. By End User, Airline segment hold the majority market share in 2022 contributing 44.5% of the market share. Maintenance, repair, and overhaul (MRO) in aviation is the repair, service, or inspection of an aircraft or aircraft component. It is essentially all of the maintenance activities that take place to ensure the safety and airworthiness of all aircraft by international standards. The International Air Transport Association forecasted in 2018 that the number of passengers transported by airlines would reach 8.2 billion in 2037, up from 7.8 billion in 2036. As per statistics from the International Civil Aviation Organization, the aviation industry has seen dramatic growth over the past 20 years, with the passenger numbers rising from 1.4 billion in 1998 to 3.9 billion in 2017. As of 2022, India had 141 operational airports and the number is expected to increase to 220 by 2024-25. Further, the sector operates a fleet of around 700 aircraft, which is expected to increase to around 1,000 in the coming years. The growing number of air passengers and an increasing number of airports are anticipated to grow this segment.
Digital MRO Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 34.7% in the Digital MRO market in 2022 and is expected to maintain its dominance during the forecast period. The North America is the largest market for Digital MRO. Owing to the increasing aircraft deliveries in the region. Several large and medium MROs and airlines are present in this region. Additionally, an increase in the MRO service providers and growing need for digital transformation of MROs are expected to drive the demand for digital MRO in North America. Furthermore, the regional market growth is driven by increasing aircraft from the players based in the US and Canada. It is expected that approximately 10,000 aircraft would be in service in the region by 2035, which is expected to create additional opportunities for the players operating in the North America digital MRO market. Furthermore, the US air passenger traffic is expected to increase by 484 million passengers and reach over 1 billion passengers over the next 20 years, which is estimated to drive the growth of the digital MRO market in the US. Moreover, the presence of established players, such as Boeing, IBM Corporation, Oracle Corporation, TRAXXALL, Honeywell International Inc, General Electric (GE), and CAPGEMINI, is driving the growth of the market in the US.
Figure 2: DIGITAL MRO MARKET SIZE BY REGION 2022&2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
North America is expected to be the largest market for digital MRO during the study period owing to the increasing aircraft deliveries in the region. Several large and medium MROs and airlines are present in this region. Additionally, an increase in the MRO service providers and growing need for digital transformation of MROs are expected to drive the demand for digital MRO in North America. Furthermore, the regional market growth is driven by increasing aircraft from the players based in the US and Canada. It is expected that approximately 10,000 aircraft would be in service in the region by 2035, which is expected to create additional opportunities for the players operating in the North America digital MRO market. Furthermore, the US air passenger traffic is expected to increase by 484 million passengers and reach over 1 billion passengers over the next 20 years, which is estimated to drive the growth of the digital MRO market in the US.
In Europe the increases in aircraft in the region created a huge demand for digital MRO. For instance, in 2017, there were approximately 5,000 aircraft in the region; the number is expected to reach over 8,000 fleets by 2035. According to the UK Civil Aviation Authority (CAA), UK airports handled 221.8 million roundtrip passengers in 2022. The availability of sophisticated technology is expected to attract investments in the market. Furthermore, according to the International Trade Administration, the French aerospace industry grew by 1.2% from 2017 to 2018 to reach USD 59.51 billion. Also, the French aerospace industry grew significantly in 2019, with reported sales revenue of $85.0 billion, which is a 13% increase over 2018. Additionally, the presence of prominent companies such as SAP SE (SAP) and IFS AB is also expected to drive the growth of the market in the region.
China is set to overtake the US and become the leading air passenger traffic market. Air passenger traffic in China is expected to reach 1.6 billion by 2037, from 610 million in 2018. According to IATA, by 2035, air passenger traffic in India would surpass the UK to be the third-highest in the world, with the addition of over 322 million passengers, reaching a total of 442 million. Additionally, the opening up of new international routes by airlines based in the country and modernization of airline services are set to positively impact the growth of the Asia-Pacific digital MRO market.
Digital MRO Key Market Players & Competitive Insights
With a strong presence across different verticals and geographies, the Digital MRO market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Digital MRO market is highly competitive, with many vendors offering similar products and services.
The major players in the market include Boeing Company, IBM Corporation, HCL Technologies Limited, SAP Se, Ramco Systems Limited, Oracle, IFS AB, Traxxall Technologies, General Electric Company, Honeywell International, Inc., Swiss Aviation software Ltd., Ansys, Inc., Winair, Microsoft Corporation, Capgemini, IBS Software, Lufthansa Group, Rusada, Raytheon Technologies, Dassault Systemes, Airbus SAS and Others. Raytheon Technologies' strategy centers around innovation, resilience, and collaboration across aerospace, defense, and technology domains. With a commitment to sustainable growth, the company leverages its robust financial performance, demonstrated by 2022's net sales of $67.1 billion and $9 billion investment in research and development. Raytheon Technologies capitalizes on its role in U.S. and allied defense, excelling in hypersonic and counter-hypersonic system development. Its involvement in initiatives to protect citizens, such as the Javelin weapon system and missile defense systems for Ukraine, underscores its commitment to security. The company's contribution to modernizing military jet engines, exemplified by Pratt & Whitney's F135 Engine Core Upgrade and advancements in hybrid-electric flight, showcases innovation at its core.
The Digital MRO Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Digital MRO market include
- Boeing Company
- IBM Corporation
- HCL Technologies Limited
- SAP Se
- Ramco Systems Limited
- Oracle
- IFS AB
- Traxxall Technologies
- General Electric Company
- Honeywell International, Inc.
- Swiss Aviationsoftware Ltd.
- Ansys, Inc.
- Winair
- Microsoft Corporation
- Capgemini
- IBS Software
- Lufthansa Group
- Rusada
- Raytheon Technologies
- Dassault Systèmes
- Airbus SAS
Digital MRO Industry Developments
- In June 2023, RTX's Collins Aerospace has signed a multi-year FlightSense flight-hour contract with Envoy Air, a subsidiary of American Airlines Group, to provide maintenance, repair, and overhaul services for Envoy's fleet of 128 Embraer E175 aircraft. The agreement covers various systems, including electric power, fire protection, and sensors. By tailoring the maintenance program to Envoy's operational needs, Collins aims to reduce repair time and costs, enhancing operational efficiency for the airline.
- In March 2023, Airbus has revealed more enhancements to its Skywise digital platform at the Skywise Symposium in Istanbul. The platform will now include new tools and capabilities that will allow airlines, MROs, part traders, and other users to quickly perform more complicated activities, integrate applications, simulate situations, and transfer data to their own MRO IT systems in real time.
Digital MRO Market Segmentation:
Digital MRO Technology Outlook
- Predictive Analysis
- AR/VR
- 3d Printing
- Blockchain
- Internet Of Things (IoT)
- Artificial Intelligence
- Data Analytics
- Robotics
- Digital Twin
Digital MRO Application Outlook
- Predictive Maintenance
- Inspection
- Performance Monitoring
- Part Replacement
- Mobility & Functionality
Digital MRO End User Outlook
- Airlines
- MRO Providers
- OEMS
Digital MRO Regional Outlook
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Turkey
- Rest of Middle East & Africa
- South America
- Brazil
Digital MRO Market Highlights:
