Market Trends of Commercial Aircraft Maintenance, Repair, And Overhaul (MRO) Industry
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 part manufacturing, technical assistance, and testing. Field-level maintenance comprises shop-type work and on-equipment maintenance activities at levels other than depot maintenance. Intermediate or shop-type work includes limited repair of commodity-oriented assemblies and end-items, job shop, bay, and production line operations as per requirement, software maintenance, and repair of subassemblies, such as fabrication or the manufacturing of repair parts, assemblies, and components.
OEMs control approximately half of the market in the engine maintenance sector, with the other half roughly split between independent and airline overhaul shops. Airlines frequently outsource engine maintenance for new powerplant generations and use complete MRO-support programs. For instance, in February 2024, the Lion Group of Indonesia extended its engine maintenance, repair, and overhaul (MRO) agreement with ST Engineering for an additional five years. This contract pertains explicitly to the CFM56-7B engines utilized by the airline group's fleet of Boeing B737NG-family aircraft, which are in service with Lion Air, Batik Air, Batik Air Malaysia, and Thai Lion Air. Such developments are anticipated to drive the engine MRO segment of the market during the forecast period.
Asia-Pacific is Expected to Witness the Highest Growth During the Forecast Period
The commercial aviation industry in Asia-Pacific is expected to witness rapid growth over the next decade due to the strong demand for new narrow-body aircraft, which will enhance the need for MRO operations. The Asia-Pacific region operates one-third of the global commercial aircraft fleet, and the fleet in the area is expected to reach over 13,000 aircraft by 2031, with China's airline fleet accounting for over 45% of the region's total. According to industry experts, with the extension of airline lease contracts, the average age of the aircraft fleet in the Asia-Pacific region increased to 18 to 24 years.
With a large fleet and growing potential for the aviation industry in the region, many major MRO players are rapidly enhancing their presence in the market. Such developments are expected to drive the region's growth in focus.
Owing to this, large international engine manufacturers have expressed interest in investing in the Indian markets for strategic, market, and geographic positioning advantages. For instance, in July 2022, Safran, a prominent French aircraft engine manufacturer, announced that it would invest up to USD 200 million to set up its biggest MRO facility in Hyderabad, India. The facility will be capable of handling up to 300 engine shop visits annually, primarily 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.
