Description
The Global Aircraft MRO Market size was USD 82.64 billion in 2022 and it is expected to grow to USD 122.40 billion in 2030 with a CAGR of 5.15 % in the 2023-2030 period.
Global Aircraft MRO Market: Overview
Rapid urbanization and the rising economic growth in emerging countries with increased business and tourism travel are expected to increase market growth. Various external factors, such as air traffic volumes, global fleet size, and aircraft utilization, are the factors expected to significantly impact the market. Also, the increased air travel by individuals for business and personal purposes is expected to create more aircraft production, thereby substantially impacting the market.
The rise in investments in aircraft (maintenance, repair, and overhaul) MRO software is also expected to create new business prospects. Aircraft MRO software consists of maintenance tracking, logbook tracking, flight time tracking, service bulletin management, maintenance scheduling, budget forecasting, electronic task card management, and work order management. For instance, in May 2021, India observed significant foreign direct investments in different sectors, including aircraft maintenance, repair, and overhaul industries. Therefore, investments and acquisitions are the factors expected to create lucrative opportunities for the market.
Global Aircraft MRO Market: Covid-19 Impact
COVID-19 has had a profound impact on the aviation industry as a whole, and the Aircraft MRO market has not been immune to its effects. The pandemic led to widespread travel restrictions, border closures, and a sharp decline in passenger demand, resulting in a significant reduction in air traffic and fleet utilization. With many airlines grounding or reducing the usage of their fleets during the pandemic, the demand for maintenance and repair services also decreased. This decline in demand affected MRO providers, leading to reduced revenues and financial challenges. The drop-in demand for MRO services and the overall financial strain on airlines resulted in cash flow constraints, making it difficult for them to spend on non-essential services such as heavy maintenance and upgrades. The pandemic disrupted supply chains globally, affecting the availability and delivery of critical MRO components and materials. This disruption further complicated MRO operations and led to delays in completing maintenance tasks.
Global Aircraft MRO Market: Growth Drivers
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Increasing Aircraft Fleet Size:
The global commercial aircraft fleet has been growing steadily due to rising passenger demand and the expansion of airlines’ networks. As the number of aircraft in operation increases, there is a corresponding need for maintenance and repair services, driving the demand for MRO activities.
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Aging Aircraft:
A significant portion of the world’s aircraft fleet is aging, especially in mature markets like North America and Europe. As aircraft age, they require more frequent maintenance and upgrades to ensure safety, reliability, and compliance with evolving regulations.
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Increasing Air Travel Demand:
The demand for air travel has historically been closely linked to economic growth and prosperity. As economies grow and disposable incomes rise, there is a higher demand for air travel, which, in turn, drives the need for MRO services.
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Fleet Modernization:
Airlines often seek to modernize their fleets to improve fuel efficiency, reduce maintenance costs, and enhance passenger experience. Fleet modernization initiatives, such as aircraft retirements, new aircraft acquisitions, and retrofit programs, drive MRO demand.
Global Aircraft MRO Market: Restraining Factors
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High Capital Investment:
Aircraft MRO is a capital-intensive industry, requiring substantial investments in specialized equipment, facilities, and highly skilled personnel. The high initial capital outlay can be a restraint for potential entrants and smaller MRO providers looking to expand their capabilities.
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Technological Obsolescence:
The rapid advancement of technology in the aviation industry can lead to the obsolescence of existing MRO facilities and equipment. MRO providers need to constantly upgrade their capabilities to stay competitive, which can be a significant financial burden.
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Shortage of Skilled Workforce:
The MRO industry faces challenges in recruiting and retaining skilled technicians, engineers, and mechanics. The aging workforce and the industry’s specialized nature make it challenging to fill positions with qualified personnel, leading to potential capacity constraints.
Global Aircraft MRO Market: Opportunity Factors
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Fleet Expansion and Modernization:
The continuous growth of the global aviation industry drives the need for fleet expansion and modernization. As airlines add new aircraft to their fleets and upgrade existing ones, there is an increased demand for MRO services to maintain and support these assets.
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Outsourcing Trend:
The outsourcing of maintenance services by airlines and operators remains a significant opportunity for MRO providers. Many carriers opt to outsource non-core MRO activities to specialized third-party providers, allowing them to focus on their core operations and achieve cost efficiencies.
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MRO Services for Emerging Markets:
The aviation industry is witnessing substantial growth in emerging markets, particularly in Asia, the Middle East, and Africa. As air travel demand increases in these regions, there is a corresponding need for MRO services to support the expanding aircraft fleets.
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Adoption of New Technologies:
Advancements in technology, such as predictive maintenance, data analytics, and additive manufacturing, offer opportunities to optimize MRO processes and reduce downtime. MRO providers that can adopt and leverage these technologies stand to gain a competitive advantage.
Global Aircraft MRO Market: Challenges
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Economic Uncertainty:
Global economic fluctuations and uncertainties can influence airline budgets and investment decisions, affecting MRO demand and profitability. Economic downturns can lead to reduced air travel, fleet deferrals, and delayed MRO spending.
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Technological Complexity:
Modern aircraft are equipped with advanced technologies, making maintenance more complex and specialized. MRO providers need to continually invest in training and equipment to keep up with these advancements, which can be challenging and costly.
Global Aircraft MRO Market: Segmentation
- Based on Service Types: On the basis of Service Types, the market is segmented into, Engine Overhaul, Airframe Maintenance, Line Maintenance, Modification, and Components. The engine overhaul segment is expected to grow with a leading market share in 2022. OEM involvement in engine maintenance activity is a significant factor that accounts for the growth in the aircraft MRO market.
- Based on Organization Type: On the basis of Organization Type, the market is segmented into, Airline/Operator MRO, Independent MRO, and Original Equipment Manufacturer (OEM) MRO. Independent MRO is expected to account for the largest share of the market in 2022. The ever-increasing market is further fueled as OEMs outsource their ancillary activities to MRO service providers and specialized ESPs.
- Based on Aircraft Type: On the basis of the Aircraft Type, the market is divided into, Narrow-body, Wide-body, Regional Jet, and Others. The narrow-body aircraft in the commercial aircraft MRO market is anticipated to generate the largest revenue in 2030. Narrow-body aircraft is a smaller type of aircraft used for short-distance cross-border flights and domestic flights. A narrow-body aircraft carries more than 295 passengers due to its small and short-distance journey.
- Based on Aircraft Generation: On the basis of Aircraft Generation, the market is segmented into, Old Generation, Mid Generation, and New Generation. The new-generation segment is expected to grow rapidly in terms of revenue share during the forecast period. The new-generation aircraft are more fuel-efficient aircraft and can be powered by sustainable fuel.
- Based on Region: On the basis of the region, the market is segmented into five key geographical regions namely – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Global Aircraft MRO Market: Regional Insights
The global Aircraft MRO market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Each region has its own market dynamics and demand drivers, which can influence the revenue contribution and growth opportunities in 3D Printing in the Healthcare market. Asia Pacific held the largest market share in 2022 and is expected to continue as the dominating region with the highest CAGR by 2030. Asia Pacific operates a third of the global aircraft fleet and this is expected to increase during the forecast period. Airlines in this market are able to increase the lifespan of their air fleets due to the advanced and widely available MRO options. MRO providers often target the Asia Pacific market as it offers them more clients, attractive investment opportunities, and cheaper labor. The North America aircraft MRO market dominates with the use of advanced technologies to meet sustainable goals. North America has the largest fleet of aircraft, so they generate a sizeable demand for the aircraft MRO. The market entrants from this region face significantly high barriers owing to regulation and compliance with high-level safety standards and laws. However, the ease of deployment of advanced technologies for the MROs makes it an attractive market.
Global Aircraft MRO Market: Competitive Analysis
AAR Corp., Airbus SE, Delta Airlines, Inc. (Delta TechOps), Hong Kong Aircraft Engineering Company Limited, KLM U.K. Engineering Limited, Lufthansa Technik, MTU Aero Engines AG, Raytheon Technologies Corporation, Singapore Technologies Engineering Ltd, TAP Maintenance & Engineering (TAP Air Portugal)
Global Aircraft MRO Market: Recent Developments
- May 2022, Jet Support Services, Inc. (JSSI), the industry’s top autonomous provider of maintenance support and organizational services, can now add software to its list of services. JSSI has announced the establishment of JSSI Maintenance Software, a new business unit that will bring the company’s increasing line of technology-enabled maintenance products together.
- May 2022, AFIRS Edge A320 Platform to Debut on Coral Jet: FLYHT Aerospace Solutions Ltd. and Coral Jet, a startup airline serving the Caribbean, the United States, and Canada, announced that Coral Jet has placed a first order to be the AFIRS EdgeTM’s launch customer. As originally stated on January 11, 2022, The Edge would be added to Coral Jet’s existing AFIRSTM satcom offerings.
