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Military Aviation Maintenance, Repair, and Overhaul Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2030)

The Military Aviation Maintenance, Repair, and Overhaul Market is segmented by MRO Type (Engine MRO, Components and Modifications MRO, Airframe MRO, and Field Maintenance), Aircraft Type (Fixed-wing Aircraft, and Rotorcraft), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size and forecasts by value (USD billion) for all the above segments.

Market Snapshot

Military Aviation MRO market over
Study Period: 2018-2030
Base Year: 2020
Fastest Growing Market: Europe
Largest Market: North America
CAGR: 2.88 %

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Market Overview

The military aviation maintenance, repair, and overhaul market registered a value of USD 37.17 billion in 2020, and it is expected to reach USD 49.22 billion in 2030, witnessing a CAGR of 2.88% during the forecast period, 2021-2030.

The military aviation MRO industry has been relatively less impacted by the COVID-19 pandemic compared to the civil aviation MRO industry. Though the global defense expenditure is on an increasing trend in 2020, the ongoing global economic slowdown is anticipated to result in a subsequent decline in defense spending of some countries on a short-term basis. Suppliers and MRO service providers located in Asia-Pacific and South America faced supply chain disruptions to some extent in 2020.

The market in focus is anticipated to be driven by a consistent increase in the global military aircraft fleet, internal and external security threats, technological innovations, the prevalence of aging aircraft fleet, joint ventures and strategic alliances formed to address the specific requirements of the modernization initiatives undertaken by the global armed forces.

Starting with aircraft maintenance facility management and managing MRO throughout the supply chain, the use of advanced digital technologies is imperative to establish high-efficiency operations. With the advancement in AI and analytics, MRO companies are progressing from centralized maintenance diagnostic operations, through real-time condition monitoring services, to prescriptive maintenance operations.

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 study includes MRO of all military aircraft, including helicopters used for combat and non-combat missions. The study excludes VIP aircraft used/owned by the government for the movement of VIPs. The revenues from component, modifications, and interior MRO segments are considered under the component and modifications MRO segment. The military aviation maintenance, repair, and overhaul market are segmented by MRO type into engine MRO, component and modifications MRO, airframe MRO, and field maintenance, and by aircraft type into fixed-wing aircraft and rotorcraft. The report also offers the market sizes and forecasts for the market across the major regions in the world. For each segment, the market sizes and forecasts are represented in value (USD billion).

MRO Type
Engine MRO
Components and Modifications MRO
Airframe MRO
Field Maintenance
Aircraft Type
Fixed-wing Aircraft
Rotorcraft
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Qatar
Egypt
Rest of Middle-East and Africa

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Key Market Trends

The Engine MRO Segment is Expected to Dominate the Market During the Forecast Period

The engine is one of the vital components of any aircraft and is required to be maintained airworthy irrespective of the operational status of the aircraft. The increasing complexity of the engine parts and the increased number of military aircraft crashes due to engine failures have resulted in the global armed forces divesting enhanced focus on frequent engine maintenance and periodic checks. The active fleets of several countries are aging at a much faster pace than others due to extreme operating conditions that the aircraft are exposed to regularly. The older aircraft need MRO services much frequently than their newer counterparts to prevent the systems from malfunctioning or becoming obsolete. On this note, several contracts are being awarded for availing MRO services for the active fleets. For instance, Rolls-Royce was selected by the UK Ministry of Defence (MoD) in August 2019 to provide maintenance and repair support for the EJ200 engines of Typhoon fighter aircraft fleet in service of the Royal Air Force (RAF) until 2024. The engine support contract (EJISS) was worth USD 431.06 million, a follow-on to the ten-year Partnered Support Operational Phase arrangement. Similarly, in April 2021, Saab, in partnership with General Electric Aviation Canada (GE), selected StandardAero to maintain and repair Gripen’s engine in Canada as a part of Saab's offer for Canada's Future Fighter Capability Project (FFCP). As part of the contract, StandardAero will provide support to the fleet of Gripen fighters in Winnipeg to maintain the GE-F414-39E engine. Such developments are envisioned to foster the growth of the engine MRO segment of the market in focus during the forecast period.

Military Aviation MRO Market_Segmentation

North America is Expected to Maintain its Dominance in Terms of Revenue During the Forecast Period

The global market is anticipated to be dominated by North America, sheerly due to its diverse and superior fleet size. The United States currently has the largest fleet of military aircraft in the world. By the end of 2020, the country operates a fleet of 2,717 combat aircraft, 749 special mission aircraft, 625 tanker aircraft, 941 transport aircraft, 5,434 helicopters, and 2,766 training aircraft. 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 Air Force is slowly addressing its aging aircraft problem, as it takes the delivery of newer generation jets. As of May 2021, the US Air Force (USAF) sought permission from the US Congress to retire 201 aircraft in the fiscal year 2022 to reinvest savings from the operations and maintenance of these aircraft into R&D, as well as procurement of next-generation aircraft and weapons. The average age of the US Air Force fleet is over 25 years, and the bombers have an average age of over 50 years. This necessitates upgrade and regular maintenance to keep the aircraft at par with the newer generation aircraft and extend their service life. The United States envisions achieving an 80% readiness rate for all military aircraft in the future. The country is awarding several modification contracts designed to improve the performance and effectiveness of the aircraft. In April 2021, the US Air Force Life Cycle Management Center (AFLCMC) announced that the Mobility and Training Aircraft Directorate has awarded a USD 92.8 million Alternate Modification Installation (AMI) contract for the installation of ‘avionic modifications’ on the C-5 Galaxy aircraft fleet. Such initiatives are expected to propel the growth of MRO activities in North America.

Military Aviation MRO Market_Geography

Competitive Landscape

Lockheed Martin Corporation, The Boeing Company, Raytheon Technologies Corporation, BAE Systems PLC, and Safran SA are some of the largest players in the market studied. The market is fragmented, with numerous local and international players providing various MRO services to the existing military aircraft fleets. Strategic partnerships between the players may help them gain more contracts while expanding their reach to untapped markets in the long run. As most MRO contracts are in the long term, it could be a time-consuming process for new players to establish themselves in the market by competing with the existing ones. The adoption of artificial intelligence (AI)-based predictive maintenance technologies are also envisioned to witness mass adoption during the forecast period. Potential investments would be required to enhance the IT capabilities of MRO operators for maintenance execution, supply chain management, enhance mobility, and adopt e-signatures. Advanced data analytics are also being used by MROs for inventory optimization to plan, stock, and optimize spares as and when required at minimal procurement costs. Such tools enable operators to function efficiently, derive maximum profits, and support the digitization of global aircraft MRO operations.

Recent Developments

  • In April 2021, the US Air Force Life Cycle Management Center (AFLCMC) announced that the Mobility and Training Aircraft Directorate had awarded an alternate modification installation (AMI) contract for the installation of ‘avionic modifications’ on the C-5 Galaxy fleet of aircraft. The contract is valued at USD 92.8 million and was awarded to Tyonek Native Corporation.
  • In November 2020, Norway-based Kongsberg Aviation Maintenance Services (KAMS) officially opened its F135 engine maintenance depot in Rygge. The facility is scheduled to become operational by 2021 and function as one of the five F135 MRO and upgrade (MRO&U) facilities worldwide that will sustain the global engine fleet powering the F-35 Lightning II combat aircraft.
  • In November 2020, Boeing announced that it had secured a contract worth up to USD 9.8 billion related to modernization and support work for Saudi Arabia’s F-15 fleet. The contract is expected to be completed by 2025.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    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

  5. 5. MARKET SEGMENTATION (Market Size by Revenue - USD billion)

    1. 5.1 MRO Type

      1. 5.1.1 Engine MRO

      2. 5.1.2 Components and Modifications MRO

      3. 5.1.3 Airframe MRO

      4. 5.1.4 Field Maintenance

    2. 5.2 Aircraft Type

      1. 5.2.1 Fixed-wing Aircraft

      2. 5.2.2 Rotorcraft

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Qatar

        4. 5.3.5.4 Egypt

        5. 5.3.5.5 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 The Boeing Company

      2. 6.2.2 BAE Systems PLC

      3. 6.2.3 Elbit Systems Ltd

      4. 6.2.4 Saab AB

      5. 6.2.5 Lockheed Martin Corporation

      6. 6.2.6 General Atomics

      7. 6.2.7 Northrop Grumman Corporation

      8. 6.2.8 Amentum Services Inc.

      9. 6.2.9 Raytheon Technologies Corporation

      10. 6.2.10 Rolls-Royce Holding PLC

      11. 6.2.11 Safran SA

      12. 6.2.12 MTU Aero Engines

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Military Aviation Maintenance, Repair, and Overhaul Market market is studied from 2018 - 2030.

The Military Aviation Maintenance, Repair, and Overhaul Market is growing at a CAGR of 2.88% over the next 5 years.

The Military Aviation Maintenance, Repair, and Overhaul Market is valued at 37 Billion USD in 2018.

The Military Aviation Maintenance, Repair, and Overhaul Market is valued at 49 Billion USD in 2030.

Europe is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BAE Systems plc, Lockheed Martin Corporation, The Boeing Company, Safran SA, Raytheon Technologies Corporation are the major companies operating in Military Aviation Maintenance, Repair, and Overhaul Market .

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