Global Aircraft MRO Market Report
Global Aircraft MRO Market by Service Type (Engine Overhaul, Airframe Maintenance, Line Maintenance, Modification, and Components), Organization Type (Airline/Operator MRO, Independent MRO, and Original Equipment Manufacturer (OEM) MRO), Aircraft Type (Narrow-body, Wide-body, Regional Jet, and Others), Aircraft Generation (Old Generation, New Generation, and Mid Generation), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Aircraft MRO Overview
The operations and actions required to maintain an aircraft's safety, airworthiness, and operational effectiveness over the course of its service life are referred to as aircraft MRO (Maintenance, Repair, and Overhaul). Modifications and improvements to aircraft systems, avionics, interiors, and structures are also included in MRO activities in order to improve performance, regulatory compliance, or operational effectiveness.
Global Aircraft MRO Market Analysis
The global aircraft MRO market size was $79.8 billion in 2022 and is predicted to grow with a CAGR of 5.4%, by generating a revenue of $134.2 billion by 2032.
COVID-19 Impact on Global Aircraft MRO Market
The need for routine maintenance, such as planned inspections and repairs, decreased due to fewer flights and parked aircrafts. As maintenance work decreased, it became harder for airlines and MRO suppliers to make money. During the pandemic, airlines were forced to make drastic budget cuts and cut back on spending on non-essential services, including MRO activities. In order to save money and concentrate on immediate cost-cutting initiatives, many airlines postponed or cancelled non-critical maintenance work.
Regular maintenance, checks, and repairs will be more necessary as air travel gradually resumes its pre-pandemic levels. Following periods of limited use and storage, airlines will need to make sure their aircraft are in operable condition, resulting in an increase in maintenance tasks.
Airline Fleet Size and Expansion to Drive the Market Growth
The need for MRO services is directly impacted by the size and expansion of aircraft fleets. The demand for maintenance, repairs, and overhauls rises when airlines grow their fleets or introduce new aircraft models. The introduction of new technology and fleet modernisation projects may potentially increase demand for MRO services. In order to uphold regulatory standards and comply with required inspections, repairs, and record-keeping, MRO services are in high demand.
To know more about global aircraft MRO market drivers, get in touch with our analysts here.
Cost Pressures to Restrain Market Growth
The market for aircraft MRO is significantly constrained by cost concerns. Airlines may experience financial difficulties and look for ways to lower costs, particularly during economic downturns or periods of decreased passenger demand. This may lead to less money being spent on MRO services, a delay in performing unnecessary maintenance, or a search for less expensive options. To simplify operations and boost profitability, airlines may consolidate or rationalise their fleet. Because of this, some airlines may downsize their fleet, retire older planes, or combine maintenance operations. MRO services may become less popular as a result, especially for particular aircraft types or models.
Increasing Air Traffic and Fleet Expansion to Drive Excellent Opportunities
The global fleet is expanding, which offers potential for the aircraft maintenance and repair sector. The need for MRO services to maintain the safety, airworthiness, and operational effectiveness of aircraft will increase as air traffic volume rises. By providing comprehensive maintenance solutions and capacity expansion, MRO companies may capitalise on this demand. The adoption of cutting-edge technology, such as remote monitoring, data analytics, and predictive maintenance, presents the aircraft MRO industry with great potential.
To know more about global aircraft MRO market opportunities, get in touch with our analysts here.
Global Aircraft MRO Market Share, by Service Type, 2022
The engine overhaul sub-segment accounted for the highest share in 2022. Due to their short operating lifetime, aircraft engines need regular maintenance and overhaul to maintain their airworthiness. To preserve engine efficiency and dependability, engine manufacturers specify suggested maintenance intervals and overhaul plans. The need for engine overhaul services is fueled by the importance of following these schedules for compliance and safety.
Global Aircraft MRO Market Share, by Organization Type, 2022
The airline/operator MRO sector accounted for the highest market size in 2022. The basic duty of airlines is to guarantee the airworthiness and safety of their fleet. Important motivators for airline/operator MRO include adherence to maintenance schedules and regulatory compliance. To keep its fleet airworthy and guarantee safe operations, airlines must conduct routine inspections, maintenance, and component replacements. Airlines view their fleet of aeroplanes as a significant asset. Effective MRO procedures and management can increase an aircraft's residual value, increase its longevity, and lessen the need to retire an aircraft early.
Global Aircraft MRO Market Share, by Aircraft Type, 2022
The narrow-body sector accounted for the highest market size in 2022. To accommodate rising passenger demand and replace ageing aeroplanes, airlines are continuously extending their fleets of narrow-body vehicles. Demand for MRO services rises when airlines deploy new narrow-body aircraft models. The demand for routine maintenance, inspections, repairs, and component replacements is driven by the expansion and replacement of narrow-body fleets. Fleets of narrow-body aircraft are ageing as a result of their widespread long-term use. These aircraft require more frequent upkeep, repairs, and component replacements as they get older.
Global Aircraft MRO Market Share, by Aircraft Generation, 2022
The new generation sector accounted for the highest market size in 2022. Modern aeroplanes feature cutting-edge materials, systems, and technologies that necessitate specialised knowledge and skill for maintenance. MRO suppliers must have the skills necessary to manage these aircraft's special characteristics, such as their use of composite materials, cutting-edge avionics, and digital systems. The demand for specialised MRO services is driven by the new generation of aircraft's technological sophistication.
Global Aircraft MRO Market Share, by Region, 2022
Asia-Pacific held the highest market size in 2022. There is a greater emphasis on safety and dependability as a result of the expanding aviation sector in the area. Airlines place a high priority on an aircraft's safety and airworthiness, which raises the need for MRO services to maintain and improve aircraft performance. The demand for MRO services specifically designed for regional aircraft is fueled in part by the expansion of regional airlines in the Asia Pacific area.
Competitive Scenario in the Global Aircraft MRO Market
Product development and geographic expansion are major strategies in the highly competitive global market. In order to encourage additional MRO investments, the Civil Aviation Ministry of India announced a new policy for Maintenance, Repair, and Overhaul (MRO) services in September 2021. This policy includes leasing land through open tenders and doing away with the royalty fees levied by the Airports Authority of India (AAI). Additionally, rather than the present short-term period of 3 to 5 years, land allocation for firms putting up MRO facilities will be for 30 years.
Some of the leading aircraft MRO market players are AAR Corp., Airbus SE, Delta Airlines, Inc., Singapore Technologies Engineering Ltd, Hong Kong Aircraft Engineering Company Limited, KLM U.K. Engineering Limited, Lufthansa Technik, TAP Maintenance & Engineering, MTU Aero Engines AG, Raytheon Technologies Corporation
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Service Type
Segmentation by Organization Type
Segmentation by Aircraft Type
Segmentation by Aircraft Generation
Key Companies Profiled
Q1. What is the size of the aircraft MRO market?
A. The size of the aircraft MRO market was over $79.8 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.4% during the forecast period.
Q2. Which are the major companies in the aircraft MRO market?
A. AAR Corp. and Airbus SE are some of the key players in the global aircraft MRO market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Product development and geographic expansion are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. AAR Corp. and Airbus SE are the companies investing more on R&D activities for developing new products and technologies.