Aircraft Engine MRO Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Report Covers Global Aviation Engine MRO Companies & Manufacturers. The Market is segmented by Engine Type (Turbine Engine (Turboprop, Turbofan, Turboshaft) and Piston Engine), Application (Commercial Aviation, Military Aviation, and General Aviation), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).

Aircraft Engine MRO Market Size

Aircraft Engine MRO Market Summary
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Study Period 2018 - 2028
Market Size (2023) USD 37.75 Billion
Market Size (2028) USD 51.41 Billion
CAGR (2023 - 2028) 6.37 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Aircraft Engine MRO Market Analysis

The Aircraft Engine MRO Market size is expected to grow from USD 37.75 billion in 2023 to USD 51.41 billion by 2028, at a CAGR of 6.37% during the forecast period (2023-2028).

The impact of the COVID-19 pandemic on the aircraft engine MRO market has been significant. As a result of a large number of stored aircraft and lower utilization, the aircraft engine MRO demand significantly dropped in 2020. However, in 2021, aviation began to witness a gradual recovery, leading to increased passenger traffic and aircraft movements. This has led to an increase in demand for aircraft maintenance, repair, and overhaul activities.

The rapid fleet expansion plans of the airlines and military forces are anticipated to boost further the aircraft engine MRO market growth during the forecast period.

The aging military aircraft fleet in some countries may generate significant demand, as some have plans to extend the service life of these aging aircraft due to a lack of defense funding.

The introduction of newer generation engines in new aircraft is anticipated to increase the aircraft engine further MRO demand. The new engines will have more expensive material requirements than the older aircraft.

The introduction of advanced technologies that will digitize and automate maintenance activities to increase overall maintenance process efficiency, reduce the overall turnaround time, and improve safety by the engine MRO players is anticipated to boost the market's growth in the coming years.

Aircraft Engine MRO Market Trends

This section covers the major market trends shaping the Aircraft Engine MRO Market according to our research experts:

The Commercial Aviation Segment Dominates the Market in Terms of Market Share

The commercial aviation segment currently has the highest market share, and it is expected to continue its dominance during the forecast period. This is majorly due to the large fleet of commercial aviation compared to military aviation and the high cost of engine maintenance cost compared to general aviation. In recent years, several new contracts have been signed for the maintenance of aircraft engines between airlines and MRO service providers. For instance, in November 2021, SR Technics signed a Memorandum of Understanding (MoU) with Vietjet Air to provide MRO services for CFM56-5B engines onboard Vietjet's Airbus A320 and Airbus A321 aircraft fleet. The agreement was signed worth USD 150 million. Under the contract, the company is expected to provide engine maintenance, component requirements, repair, technical, and training services. It will set up a new Aviation training center as a joint venture between Vietjet and SR Technics.

Similarly, MRO service providers are expanding their presence in various countries to cater to the growing demand for commercial engine MRO services. In this regard, in September 2021, S7 Technics announced its plan to open a new engine maintenance facility at Sheremetyevo airport (Moscow) to overhaul CFM56-5B and -7B engines and Honeywell 131-9A/9B auxiliary power units (APU). The maintenance capacity of the new shop is expected to reach up to 100 APUs and up to 42 engines per year.

Multiple such service provider partnerships with commercial carriers are extending long into the forecast period for continued service of aircraft engines to be airworthy and safe for flight. Due to these partnerships, the commercial segment of the market is expected to lead the market with the highest market share during the forecast period.

Aircraft Engine MRO Market_Engine Type

Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period

Asia-Pacific has experienced significant growth in the total aircraft fleet over the past decade, which has increased the demand for engine MRO services and is expected to lead the market during the forecast period. This has resulted in several MRO service providers from the United States and Europe establishing their maintenance facilities in this region. Furthermore, several airlines have partnered with engine MRO service providers to reduce overseas maintenance costs to develop in-house capabilities. For instance,

Air China, in September 2022, announced that they are entering a Joint Venture (JV) maintenance, repair, and overhaul (MRO) facility in China. The new facility, Beijing Aero Engine Services Company Limited, will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aero engines. Air China and Rolls-Royce each hold 50% of the shares in the joint venture with a contract, accounting for about 2.61 billion yuan (about USD 378.2 million).

Manufacturer investments in the region are also driving high revenues and, consequently, market growth in the region. Safran - a large international aircraft engine manufacturer, in February 2022 announced the opening of a new MRO facility in Suzhou, China. The facility is being set up and is expected to be operational by the end of 2022. The company-owned 5,200 sq meter repair station helps it in strategic commitments, linking it to the company's MRO facilities across the Middle-Eastern and Indian facilities, making the company an optimal choice for MRO services for major airlines globally.

In July 2022, Safran also announced that it would invest up to USD 200 Million to set up its biggest MRO facility in Hyderabad, India. The facility would be capable of handling up to 300 engine shop visits annually, especially catering to the CFM56, Leap 1A, and Leap 1B engines that dominate the Indian market. This large facility is also expected to be used as an MRO facility for Safran's Asian engine customers. Due to several such investments, government incentivization, and the potential increase in passenger influx, the market is expected to witness significant growth rates in the Asian-Pacific region during the forecast period.

aircraft engine MRO market geography

Aircraft Engine MRO Industry Overview

The prominent players in the aircraft engine MRO market are Lufthansa Technik, Rolls-Royce Holding PLC, Raytheon Technologies Corporation, General Electric Company, and Safran SA. The major engine MRO providers are entering into long-term partnerships or forming joint ventures to grow their engine MRO customers. For instance, in June 2022, ST Engineering announced that their Commercial Aerospace business had signed a five-year agreement with Safran Aircraft Engines, a global-leading aerospace engine manufacturer, for ST Engineering to provide engine maintenance (shop visit) offload for the CFM56-5B and -7B engines. This multi-year agreement may allow ST Engineering and Safran Aircraft Engines to meet the forecasted rise of engine MRO activities as air travel gradually recovers from the pandemic. Despite being an immense advantage for the players within the market in terms of economic stability, the long-term contracts of the established players with the armed forces and commercial airlines may act as a barrier for new players to enter the market.

Aircraft Engine MRO Market Leaders

  1. Lufthansa Technik

  2. Rolls-Royce Holding PLC

  3. General Electric Company

  4. Safran SA

  5. Raytheon Technologies Corporation

*Disclaimer: Major Players sorted in no particular order

Aircraft Engine MRO CL.PNG

Aircraft Engine MRO Market News

In September 2022, Rolls Royce Holding Plc announced that they had entered into a fifty-fifty Joint venture with Air China to provide maintenance, repair, and overhaul at a new facility in Beijing, China. The new facility, BAESL (Beijing Aero Engine Services Company Limited), will provide MRO support on the Rolls-Royce Trent 700, Trent XWB-84, and Trent 1000 aero engines.

In July 2022, Delta TechOps, a division of airlines engaged in providing MRO services, announced they had signed a CFM Branded Service Agreement (CBSA) to support LEAP-1B engines. Under the terms of the CBSA, Delta could become part of CFM's maintenance, repair, and overhaul (MRO) network for LEAP-1B engines.

Aircraft Engine MRO Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

    3. 1.3 Currency Conversion Rates for USD

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)

    1. 5.1 By Engine Type

      1. 5.1.1 Turbine Engine

        1. 5.1.1.1 Turboprop

        2. 5.1.1.2 Turbofan

        3. 5.1.1.3 Turboshaft

      2. 5.1.2 Piston Engine

    2. 5.2 By Application

      1. 5.2.1 Commercial Aviation

      2. 5.2.2 Military Aviation

      3. 5.2.3 General Aviation

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 France

        3. 5.3.2.3 Germany

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 United Arab Emirates

        3. 5.3.5.3 Egypt

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Lufthansa Technik

      2. 6.2.2 Rolls-Royce Holding PLC

      3. 6.2.3 Raytheon Technologies Corporation

      4. 6.2.4 General Electric Company

      5. 6.2.5 Safran SA

      6. 6.2.6 Singapore Technologies Engineering Ltd

      7. 6.2.7 Delta Air Lines Inc.

      8. 6.2.8 Hong Kong Aircraft Engineering Company Limited (HAECO)

      9. 6.2.9 MTU Aero Engines AG

      10. 6.2.10 Textron Inc.

      11. 6.2.11 Honeywell International Inc.

      12. 6.2.12 Israel Aerospace Industries Ltd

      13. 6.2.13 S7 Technics

      14. 6.2.14 SR Technics Switzerland Ltd

    3. 6.3 Other Players

      1. 6.3.1 Lockheed Martin Corporation

      2. 6.3.2 AFI KLM E&M

      3. 6.3.3 Magnetic MRO AS

      4. 6.3.4 Sanad Aerotech

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

Aircraft Engine MRO Industry Segmentation

Engine maintenance, repair, and overhaul (MRO) involve the repair, service, or inspection of engines to ensure the safety and airworthiness of the aircraft by international standards. The market is segmented based on engine type into turbine and piston engines. The turbine engine is further segmented into turboprop, turbofan, and turboshaft engines. By application, the market is segmented into commercial aviation, military aviation, and general aviation. The report also covers the market sizes and forecasts in major countries across different regions. The market size and forecasts have been provided in value (USD billion).

By Engine Type
Turbine Engine
Turboprop
Turbofan
Turboshaft
Piston Engine
By Application
Commercial Aviation
Military Aviation
General Aviation
By Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Egypt
Rest of Middle-East and Africa

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Aircraft Engine MRO Market Research FAQs

The Aircraft Engine MRO Market size is expected to reach USD 37.75 billion in 2023 and grow at a CAGR of 6.37% to reach USD 51.41 billion by 2028.

In 2023, the Aircraft Engine MRO Market size is expected to reach USD 37.75 billion.

Lufthansa Technik, Rolls-Royce Holding PLC, General Electric Company, Safran SA and Raytheon Technologies Corporation are the major companies operating in the Aircraft Engine MRO Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in the Aircraft Engine MRO Market.

Aircraft Engine MRO Industry Report

Statistics for the 2023 Aircraft Engine MRO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aircraft Engine MRO analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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