The aircraft maintenance repair and overhaul(MRO) market, accounted to USD 66 billion in 2016, and is expected to reach USD XX billion by 2022, at an estimated CAGR of 6.17%, during the forecast period.
The growing worldwide aircraft fleet size and market for LCC airlines, in addition to an increased demand for technological upgrades of existing fleet, are expected to provide the anticipated boost to the global MRO market during the next five years.
In 2015, the aviation industry saw the biggest orders, for the purchase of Narrow Body Jets, when Indigo Airlines of India placed a second order for 250, A320 aircrafts, to cater to the increasing demands of connectivity and regular services, in the country. The delivery of the aircrafts began in 2017 and are expected to be completed post-2021.
Global Aircraft Engine MRO Market Revenue, 2016 -2022
Led by increasing penetration of commercial airliners in emerging markets, the number of aircrafts in service, along with the new orders, has been increasing rapidly, thus, providing the necessary impetus to the aircraft maintenance and repair operation market.
ENTERTAINMENT SYSTEMS TO LEAD THE INTERIOR DIRECTED MARKET
In-flight entertainment systems are expected to constitute a major part of the interior MRO market, as the pieces of expensive equipment undergo the most frequent changes, to cater to the changing traveller luxury preferences. Owing to the high dynamic nature of the electronic products, cabin entertainment retrofitting for every two years, as a part of the regular aircraft maintenance operation, has become a major trend among the new market entrants, hence offering continuous revenue for the MRO market. The interior MRO market is expected to witness a CAGR of 7.75% till 2022.
ASIA-PACIFIC TO OPEN NEW LATITUDES FOR AIRCRAFT MRO INDUSTRY
The Asia-Pacific region is witnessing an exponential increase in daily air traffic, owing to the growing number of MRO facility establishments in the region, through JVs of OEMs with in-country specialties. China, India, Japan, and South Korea are few of the leading countries in the Asian commercial aviation market.. South Korea is attracts a huge crowd of tourists annually, while Japan is invests a lot in aircraft and airlines. Commuters seem to prefer the cheaper bullet and maglev train fares, which connect domestic cities quickly. The Asia-Pacific aircraft MRO market is estimated to reach USD 30.48 billion by the end of 2022.
ROCKWELL’s ACQUISITION OF B/E AEROSPACE TO SHIFT THE MARKET LANDSCAPE
In 2016, Kelly Ortberg announced the acquisition of B/E Aerospace by Rockwell Collins for USD 8.3 billion, including the USD 6.4 billion cash/ stock, plus the assumed USD 1.9 billion net debt. The transaction is believed to combine the B/E expertise of cabin interior products with Rockwell’s capabilities in cabin electronics, mission communications, IMS, and flight deck avionics. The acquisition is believed to accelerate the growth of Rockwell in cockpit and cabin solutions, increasing its share to over 2.45%, by the end of 2017, in the MRO market landscape.
Source: Mordor Intelligence Analysis
NOTABLE MARKET DEVELOPMENTS
Our report on aircraft maintenance repair and overhaul covers the following: