Latin America Aircraft MRO Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

The Latin America Aircraft MRO Market is segmented by MRO Type (Airframe MRO, Engine MRO, Component and Modifications MRO, and Line Maintenance), End-User (Commercial​, Military​, General Aviation), and Geography. The report offers market size and forecast for Latin America Aircraft MRO Market in value (in USD million) for all the above segments.

Market Snapshot

Latin America Aircraft MRO Market Forecast
Study Period: 2018-2027
Base Year: 2021
CAGR: >2.5 %
Latin America Aircraft MRO Market Key Players

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Market Overview

The Latin America Aircraft MRO Market is projected to grow with a CAGR of over 4% during the forecast period (2022 - 2027).

The COVID-19 pandemic had a major impact on the aviation industry in Latin America, as the demand for air travel dropped and airlines were forced to cut down their capacity in 2020 and 2021. However, the demand for domestic travel and cargo movements coupled with the earlier relaxation of travel restrictions has helped the passenger traffic recovery in the region. According to IATA, the 2019 passenger numbers are forecast to be surpassed in 2023 for Central America (102%), followed by South America in 2024 (103%) and the Caribbean in 2025 (101%). 

Due to the weakening of the economies, most of the major military powers in the region have opted to reduce their defense spending and investments in aircraft procurements in recent years. This might force the militaries to operate older aircraft for some more years, which might drive the demand for the military aircraft MRO services.

Scope of the Report

Aircraft MRO includes tasks performed to ensure the continuing airworthiness of an aircraft and its parts. MRO service providers perform overhaul, inspection, replacement, defect rectification, and the embodiment of modifications, in compliance with airworthiness directives and repair.​ The market is segmented by MRO type​ into airframe MRO, engine MRO, component and modifications MRO, and line maintenance and by application into commercial aviation, military aviation, and general aviation. The report covers the market size and forecast in major countries in the Latin America region. For each segment, the market size and forecasts have been provided in value (USD billion).

MRO Type
Airframe MRO
Engine MRO
Component and Modifications MRO
Line Maintenance
General Aviation
Rest of Latin America

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Key Market Trends

Commercial Aircraft Segment Held the Largest Market Share in 2021

The Commercial Aircraft segment held the largest market share in 2021. Although several airlines declared bankruptcy during the pandemic, the fleet has bounced back and stood at 90% of its pre-pandemic size by the end of 2021. Furthermore, during the forecast period, the recovery and the expansion of low-cost carriers in Latin America, such as FlyBondi, JetSMART, Viva Air, etc. might help the recovery of the market in the region. Latin America’s airline fleet has an average age of over 12 years. Though several airlines in the region are in financial crisis, some major airlines have resumed plans to increase their fleet size by procuring new aircraft. For instance, in October 2021, LATAM Airlines Group announced that it has placed an order for 70 new Airbus A320 aircraft. The purchase order is in addition to the 42 aircraft that were previously ordered. The aircraft will be received between 2022 and 2028. On the other hand, the emphasis of the airlines of the region to keep their fleet airworthy is expected to help the growth of the segment. In June 2021, the Mexican carrier Transportes Aeromar has awarded a contract to Piedmont Propulsion Systems to support its next-generation ATR 42 and 72 aircraft fleet. As part of the multi-year contract, Piedmont Propulsion Systems will provide complete propeller maintenance for the aircraft. Such contracts are expected to drive the demand for commercial aircraft MRO in the region. Nevertheless, with about 30% of the region's fleet expected to retire during the forecast period, the demand for MRO services might witness a decline in the coming years, thereby hampering the growth of the segment in the years to come.

Latin America Aircraft MRO Market Trends

Brazil Held the Largest Market Share in 2021

As of 2021, Brazil had the highest market share in the Latin America MRO market. Brazil is one of the booming markets in the commercial aviation industry globally. Brazil’s domestic flights, which fell to less than one-tenth of pre-COVID levels in May 2020, had risen to about 90% of the pre-pandemic levels by the beginning of 2022. On the other hand, international flights rose to 55% of normal schedules during the same period. With the shrinking revenue streams, airlines in the country are employing new methods to increase the efficiency of MRO operations while reducing costs. LATAM Airlines Group is employing drones to inspect aircraft fuselages at its Maintenance, Repair, and Overhaul (MRO) facilities in São Carlos, Brazil. By using this new technology, the airline is making the maintenance process faster and better. On the other hand, Brazil is also one of the top 15 military spenders in the world. In the past few years, the Army and the Navy of Brazil have started to emphasize fleet modernization by replacing their aging aircraft fleet. Brazil procured 36 Gripen NG fighter aircraft from Sweden, and in February 2022, the country upgraded its order and placed an order for 30 additional Gripen NG fighter aircraft for the Brazilian Air Force. In addition to fleet expansion, the focus on keeping the fleet combat-ready will drive the market growth. In 2021, Russian Helicopters announced it has signed maintenance deals to repair Mi-35M helicopters belonging to the Brazilian Air Force. In accordance with contracts, Russian Helicopters will supply repair and maintenance complexes for parts that will be repaired in Brazil, and a range of new parts. Such contracts are expected to drive the growth of the market in the country during the forecast period. 

Latin America Aircraft MRO Market Growth

Competitive Landscape

Raytheon Technologies Corporation, aeroman (MRO Holdings), Rostec, General Electric Company, and Lufthansa Technik AG are some of the prominent players in the market. With the emerging LCCs and smaller general aviation operators in the region, aircraft maintenance is increasingly being outsourced to independent third-party providers. As a result, MRO providers are expanding their activities in the region with an aim to have stronger proximity to the end-users. As most of the maintenance carried out in Latin America is focused on aircraft checks, diversifying the offerings by components like brakes, batteries, things that can be repaired very quickly and easily, as well as offering engine modification and maintenance services could help the players get new customers. Players can also enhance the efficiency of their MRO operations by adopting emerging technologies, like AI and predictive analytics, which will help their revenue growth during the forecast period.

Recent Developments

In May 2022, Safran Nacelles announced that it has signed a 10-year service contract with Viva Air Colombia for the maintenance of nacelles of the low-cost airline’s growing fleet of A320neo aircraft powered by LEAP-1A engines from CFM International (the 50/50 joint company of Safran Aircraft Engines and GE). 

In February 2022, the Chilean low-cost operator SKY signed an agreement with Airbus to obtain FHS-Components Flight Hour Services for its entire A320 Family fleet. The contract, part of the Airbus Flight Hour Services offering, will allow SKY to entrust the daily management and servicing of the airline’s components to the manufacturer.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    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


    1. 5.1 MRO Type

      1. 5.1.1 Airframe MRO

      2. 5.1.2 Engine MRO

      3. 5.1.3 Component and Modifications MRO

      4. 5.1.4 Line Maintenance

    2. 5.2 End-User

      1. 5.2.1 Commercial

      2. 5.2.2 Military

      3. 5.2.3 General Aviation

    3. 5.3 Geography

      1. 5.3.1 Brazil

      2. 5.3.2 Mexico

      3. 5.3.3 Argentina

      4. 5.3.4 Rest of Latin America


    1. 6.1 Company Profiles

      1. 6.1.1 QET Tech Aerospace S.A. de C.V.

      2. 6.1.2 aeroman (MRO Holdings)

      3. 6.1.3 General Electric Company

      4. 6.1.4 Safran SA

      5. 6.1.5 Raytheon Technologies Corporation

      6. 6.1.6 Lufthansa Technik AG

      7. 6.1.7 TAP M&E

      8. 6.1.8 MTU Maintenance

      9. 6.1.9 Rostec


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Frequently Asked Questions

The Latin America Aircraft MRO Market market is studied from 2018 - 2027.

The Latin America Aircraft MRO Market is growing at a CAGR of >2.5% over the next 5 years.

Raytheon Technologies Corporation, aeroman (MRO Holdings), Rostec, General Electric Company, Lufthansa Technik AG are the major companies operating in Latin America Aircraft MRO Market.

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