Aircraft MRO Market Overview and Analysis:
The Aircraft MRO Market is currently valued at USD 76.8 billion in the year 2022 and is expected to register a CAGR of 5.2% over the forecast period. Aircraft MRO refers to overhaul, inspection, repair, or modification of an aircraft or its components.
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The market is segmented into airframe, engine, component, and line maintenance. The cabin interior modifications and repairs have been considered with the component segment.
Rapid urbanization and the rising economic growth in emerging countries with increased business and tourism travel are expected to increase the 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.
Aircraft MRO Market Latest Trends:
The use of data-driven technologies is poised to move to the forefront of optimization plans for the future, supported by the onset of 5G technology and increased adoption. Moreover, the widespread use of advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), and big data analytics. These technologies will streamline various processes, including baggage handling, security checks, and flight operations.
Segmentation:
The Global Aircraft Maintenance Repair and Overhaul (MRO) Market is segmented
By MRO Type
- Airframe
- Engine
- Component
- Line
Geography
- North America
- Europe,
- Asia-Pacific
- Latin America,
- Middle-East
- Africa
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Drivers:
Rapid Urbanization and the Rising Economic Growth in Emerging Countries
The latest data published by the United Nations in 2023, reported that more than half the world’s population (56.2 percent) live in cities. This trend toward greater urbanization can be seen in all regions of the world but is most pronounced in Latin America and the Caribbean, where more than 80 percent of the population now live in urban areas. Urbanization looks set to continue to follow this upward curve, with the United Nations predicting that 68 percent of the global population will live in urban areas by 2050. Moreover, the rising incomes, the expansion of low-cost carriers, and technological improvements are growing the demand for aviation, thereby driving the growth of the studied market.
Increased Business and Tourism Travels
Business travel has always been an integral part of the corporate world. It provides opportunities to meet clients face-to-face, attend conferences and networking events, and explore new markets. The travel and tourism sector comprises a wide range of products and services, including leisure and business travel, accommodation, food and drink services, and more. As per the latest data published by NCBI reported that business and travel tourism has reportedly increased by 44% in the past decade which has increased the growth of aviation travel by 24%, thereby driving the growth of the studied market over the forecast period.
Restraints:
High Cost of Aviation
The high cost of aviation travel may make it difficult for people living in developing and middle-class countries to access it and thus the growth of the studied market may slow down over the forecast period.
COVID-19 Impact on Aircraft MRO Market
The COVID-19 pandemic impacted the growth of various other markets globally and has impacted the growth of the aircraft MRO market. This resulted in a full-scale crisis, with the imposition of travel restrictions and suspension of flights in a global effort to contain the spread of the virus. Due to decreased passenger traffic and limited aircraft movements, the market for maintenance, repair, and overhaul was affected significantly in 2020. Nevertheless, as travel restrictions decrease in 2021 and aircraft movements gradually increase, the demand for aircraft maintenance is expected to witness positive growth in the coming years and the market is expected to gain traction over the forecast period.
Segmental Analysis:
The Engine MRO Segment is Likely to Dominate the Market During the Forecast Period
Engine MRO includes field maintenance and depot maintenance checks. Depot-level maintenance entails material maintenance, major repair, overhaul, or complete rebuilding of engines, parts, end items, assemblies, and subassemblies. It also includes the manufacturing of parts, technical assistance, and testing.
The recent developments in the engine MRO segment are expected to drive the growth of the studied segment over the forecast period. For instance, in December 2021, the low-cost airline of Saudi Arabia, flynas, finalized a multi-year Rate Per Flight Hour (RPFH) agreement with CFM International for the LEAP-1A engines powering the airline’s fleet of 80 Airbus A320neo aircraft. The RPFH agreement is a part of CFM’s portfolio of flexible aftermarket support offerings. Throughout the term of the agreement, CFM will guarantee maintenance costs for the airline’s 160 LEAP-1A engines on per per-engine flight hour basis. Such developments are anticipated to drive the engine MRO segment of the market during the forecast period.
Asia-Pacific Region is Expected to Witness Significant Growth Over the Forecast Period
The commercial aviation industry in the Asia-Pacific region is expected to grow rapidly as the Asia-Pacific region currently operates 1/3rd of the global commercial aircraft fleet, and the fleet in the region is expected to reach over 13,000 aircraft by 2031, with China’s airline fleet accounting for over 45% of the region’s total.
Furthermore, according to industry experts, with the extension of lease contracts of airlines, the average age of the aircraft fleet in the Asia-Pacific region increased to 18 to 24 years. Thus, such instances are driving the growth of the studied market over the forecast period.
Moreover, in 2020, Pratt & Whitney expanded its global Pratt & Whitney GTF engine maintenance network with two new MRO providers in China. Aircraft Maintenance and Engineering Corporation (Ameco) (a joint venture of Air China Limited and Lufthansa Airlines) and MTU Maintenance Zhuhai Co. Ltd (a joint venture of MTU Aero Engines and China Southern Airline Company Limited) became new facilities as part of the GTF MRO network to provide engine maintenance for PW1100G-JM engines for the Airbus A320neo family of aircraft. Moreover, low-cost labor markets, such as Vietnam and Thailand, are becoming increasingly attractive to OEMs and MROs for setting up new facilities to cater to the growing demand across the region. Such developments are expected to drive the growth of the market in focus in the region.
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Competitive Landscape:
The market for commercial aircraft MRO is highly fragmented, with many players with different MRO capabilities offering services both globally and regionally. Currently, the positive market outlook of the MRO market led to new players entering the market and existing players expanding their presence in new geographical locations. Some of the market players working in this market segment are:
- AAR Corp Delta TechOps (Delta Air Lines Inc.)
- GE Aviation
- Hong Kong Aircraft Engineering Co. Ltd
- Lufthansa Technik AG
- Raytheon Technologies Corporation SIA
- Engineering Company Ltd
- TAP Maintenance & Engineering
- Singapore Technologies Engineering Ltd
- MTU Aero Engines AG
- Rolls-Royce Holding PLC
Recent Developments:
1) In December 2021, the ultra-low-cost carrier Frontier Airlines selected Lufthansa Technik to repair and overhaul 21 CFM56-5B engines and to supply Mobile Engine Services. In the next five years, Lufthansa Technik will perform overhauls and surgical repairs on engines that fly under Frontier's fleet of 112 Airbus A320 family aircraft. Lufthansa Technik will overhaul the engines in Hamburg, Germany, whereas surgical repairs can be done locally at Lufthansa Technik's facility in Tulsa, Oklahoma. In
2) December 2021, Korean Air demonstrated aircraft inspection technology using drone swarms. The company developed the technology for aircraft fuselage inspection using four drones. The company also developed an operations program that will program the four drones to capture photos of pre-planned areas.
Frequently Asked Questions (FAQ) :
Q1. What is the current Aircraft MRO Market size?
The Aircraft MRO Market is currently valued at USD 76.8 billion.
Q2. What is the Growth Rate of the Aircraft MRO Market?
Aircraft MRO Market is expected to register a CAGR of 5.2% over the forecast period.
Q3. What are the Growth Drivers of the Aircraft MRO Market?
Rapid Urbanization and the Rising Economic Growth in Emerging Countries are the Growth Drivers of the Aircraft MRO Market.
Q4. Which region has the largest share of the Aircraft MRO Market? What are the largest region's market size and growth rate?
Asia-Pacific region has the largest share of the market. For detailed insights on the largest region's market size and growth rate request a sample here
Study Assumptions and Market Definition
Scope of the Study
RESEARCH METHODOLOGY
EXECUTIVE SUMMARY
MARKET DYNAMICS
Market Overview
Market Drivers
Rapid Urbanization and the Rising Economic Growth in Emerging Countries
Increased Business and Tourism Travels
Market Restraints
High Cost of Aircraft
Porter's Five Force Analysis
Threat of New Entrants
Bargaining Power of Buyers/Consumers
Bargaining Power of Suppliers
Threat of Substitute Products
Intensity of Competitive Rivalry
MARKET SEGMENTATION (Market Size by Value - USD million)
By MRO Type
Airflame
Engine
Component
Line
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
COMPETITIVE LANDSCAPE
Company Profiles
AAR Corp
Delta TechOps (Delta Air Lines Inc.)
GE Aviation
Hong Kong Aircraft Engineering Co. Ltd
Lufthansa Technik AG
Raytheon Technologies Corporation
SIA Engineering Company Ltd
TAP Maintenance & Engineering
Singapore Technologies Engineering Ltd
MTU Aero Engines AG
Rolls-Royce Holding PLC
MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
