Market Trends of Military Aviation Maintenance, Repair, and Overhaul Industry
Fixed-Wing Aircraft Segment Will Showcase the Highest Growth During the Forecast Period
Fixed-wing aircraft segment is projected to show significant growth in the military aviation MRO market during the forecast period. The growth is attributed to the increasing demand for fighter jets and rising expenditure on improving military aviation capabilities from the defense forces. The United States and Russia have the highest number of military aircraft due to higher expenditures on the procurement of next-generation fighter jets. Rising warfare situations, political disputes among neighboring countries, and a growing number of cross-border conflicts lead to growing spending on the defense sector. The United States has the highest military aircraft fleet of 13,232 in 2021, followed by Russia, with a fleet of 4,143 aircraft. Fixed-wing aircraft in the armed forces play critical roles during war or special missions. This always necessitates proper maintenance of this aircraft and requires upgrades after certain years of operation to extend its service life.
In June 2023, the Norwegian Defense Materiel Agency (NDMA) signed an extension contract with Kongsberg Aviation Maintenance Services to overhaul and make ready-for-sale a total of 32 F-16 combat aircraft. The contract also includes technical assistance and support for training Romanian technical personnel. The value of the contract was over USD 63.61 million. In April 2023, GE Aerospace signed an agreement with Lockheed Martin Corporation to support avionics and electrical power systems on the F-35 military aircraft. Under the four-year agreement, the company will provide MRO services for GE Aerospace systems on the F-35 Lightning II aircraft. The company will service the F-35 systems at its repair and maintenance locations in California, Georgia, and Utah. Thus, growing procurement of fighter jets and rising expenditure on military aircraft modernization programs drive the growth of the market during the forecast period.
North America to Dominate Market Share
North America held the highest shares in the market and continued its domination during the forecast period. The growth is due to the presence of the largest military aircraft fleet, growing spending on enhancing US Air Force (USAF) capabilities, and rising aircraft modernization programs.
The US currently has the largest fleet of military aircraft in the world. In 2023, the country operates a fleet of 2,757 combat aircraft, 731 special mission aircraft, 632 tanker aircraft, 962 transport aircraft, 5,584 combat helicopters, and 2,634 training aircraft/ helicopters. The major driving factor for the MRO in this country is the significant demand to upgrade such a vast fleet with the latest technologies and systems. The US Department of Defense (DoD) plans to spend USD 61.1 billion on aircraft and related systems in 2024. The DoD plans to buy a diverse mix of 270 aircraft, ranging from nearly USD 700 million B-21 stealth bombers for the USAF to twin-engine King Air 200-derived trainers for the US Navy.
In FY2021, the US DoD received USD 32.5 billion for procurement, and research, operations & maintenance, development, test, and evaluation appropriations for depot maintenance activities. The US DoD budget requests for FY2022 and FY2023 depot maintenance reached USD 32.6 and USD 35.1 billion, respectively. According to DoD, the FY2023 budget request would fund 50% of total executable Army depot maintenance requirements, 85% of Air Force requirements, 80% of Marine Corps requirements, 71% of Navy requirements, and 83% of Space Force requirements. The majority of the MRO expenditure is on the nation's large fleet of multi-role aircraft, transport aircraft, and surveillance aircraft that require high maintenance on engines and airframes, along with field and component maintenance services.
