global-aircraft-maintenance-repair-and-overhaul-market-industry
Published

April 2017

Global Aircraft Maintenance, Repair and Overhaul Market - Growth, Trends And Forecasts (2017 - 2022)

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The global MRO market is estimated to be about USD 65.99 billion in 2016 and is expected to grow at a CAGR of 6.17% to USD 82.86 billion by the end of 2020 and USD 94.25 billion by 2022. The majority share is held by the engine MRO market, followed by the interior maintenance, field maintenance, airframe MRO, components maintenance & repair and other modifications. Maintenance, repair and overhauls are very critical in the sustenance of an aircraft over time. With the growing air traffic, carriers are more inclined towards maintaining the health of their current fleet and going for new aircraft, only if they have no other option, since the costs included in buying a new aircraft are considerably higher than the maintenance of the current fleet. Different MROs have introduced improvement processes to enhance efficiency; while several are using new technological systems to gain additional upgrades and prepare for the bigger data requirements of the next-generation aircraft and power plants.

  • Boeing plans to earn revenue worth USD 50 billion from MRO services for commercial, defense and business class aircraft clients.

MRO providers can be categorized into in-house, independent third party, airline third-party and original equipment manufacturers (OEMs). The shift from in-house to outsourced MRO services is due to the emergence of low-cost carriers, which do not have the capability or the infrastructure; hence, find outsourcing a better option, economically.

Global Aircraft Engine MRO Market Revenue, 2016 -2022

  • Aircraft Engine MRO expected to account for 38% of the revenue by 2022 to reach an estimated revenue size of USD XX billion growing at a CAGR of 6.32%.

Line Fit controls the majority of the aircraft cabin interiors. It has a larger share in the developed aviation markets than in the emerging markets, as the equipment levels are standardized in the developed markets and there are no frequent changes in the onboard equipment.

Market Dynamics

The low-cost carriers are expanding at a fast-pace in the airline industry. These airlines offer minimal passenger amenities, and they aim to squeeze in as many seats as possible to maximize the revenue per trip. The latest trend gives an indication towards the general state of full-service airlines. With such tough competition from low-cost players, full-fare carriers are trying to add value to the services they provide to the customers. The governments have started various initiatives to encourage airports to support MRO as a strategic activity. A holistic approach is being adopted by governments to ensure that adequate space is mandatorily allocated at various airports within the country for MRO. However, a lot of initiatives and measures are required to be implemented to encourage various MRO activities in these developing countries, especially in the highly potential Asia-Pacific market.

In order to reduce operating costs, airlines have been actively working to reduce the weight of the aircraft. This involves installing new seats and systems aboard the aircraft, which will boost the interior MRO market. Changing of seats is also a common occurrence around the world and it happens in cases where the role of the aircraft gets changed. Additionally, due to the highly competitive market, airlines are actively working to increase seat density.

The report focuses on upcoming technologies and trends in the industry and the need and ways to shift from reactive to proactive maintenance. It also emphasizes on the presence of major players across the globe and the markets they cater to. Asia-Pacific is expected to lead the market due to the growing number of aging fleets, followed by North America.

  • V2500 and CFM 56 are expected to be the most frequent visitor of engine MRO service.

Breaking News- On Dec 8, 2016 - GE Aviation agreed to provide Flight Analytics Solutions to Japan based Airline Company - All Nippon Airways. The GE’s Flight Analytics will improve fuel efficiency and reduce aircraft emissions.

The Aircraft MRO market is segmented by Type into

  • Engine MRO
  • Component MRO
  • Interior MRO
  • Airframe MRO
  • Field Maintenance

The Aircraft MRO market is segmented by Geography into

  • North America
  • Europe
  • Asia – Pacific
  • South America
  • Middle East and Africa
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