North America Aircraft MRO Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 15.27 Billion |
| Market Size (2029) | USD 18.30 Billion |
| CAGR (2024 - 2029) | 3.69 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Aircraft MRO Market Analysis
The North America Aircraft MRO Market size is estimated at USD 15.27 billion in 2024, and is expected to reach USD 18.30 billion by 2029, growing at a CAGR of 3.69% during the forecast period (2024-2029).
North America has the largest fleet of commercial, general, and military aircraft in the world, and they require regular MRO services for operational availability. Several contracts and agreements are underway between aircraft MRO service providers and airlines, defense agencies, etc., due to the induction of new aircraft due to the ongoing/planned fleet expansion initiatives. Moreover, implementing stringent safety standards and introducing new laws by legislative authorities have also encouraged fleet upgrades, triggering demand for aircraft MRO services in the region.
North America, especially the US, is the frontrunner in defense aviation, with several aircraft models being deployed in the fleet and several units of new advanced aircraft being inducted each year. This also generates demand for MRO services as these aircraft are subjected to extreme wear and tear due to operation in harsh terrains for an extended period. The growth of emission regulations for the airspace by various regulatory bodies, like FAA, IATA, and ICAO, will lead to generating greater demand for better engine maintenance for older aircraft, as their emissions are higher compared to the newer generation aircraft engines, which in turn will be a significant factor driving the market during the forecast period. On the other hand, supply chain issues and shortage of skilled workforce and components hinder the market growth.
North America Aircraft MRO Market Trends
Military Aviation Segment is Projected to Significant Growth During the Forecast Period
The military aviation segment will showcase remarkable growth during the forecast period. The growth is attributed to the increasing defense expenditure, rising procurement of next-generation military aircraft, and growing aircraft modernization programs from the US Air Force. The US Air Force’s logistics enterprise is building its first artificial intelligence-driven data system, called the Basing & Logistics Analytics Data Environment (BLADE). BLADE gathers information from more than 300 Air Force and broader Defense Department data sources. The US Air Force has expanded its artificial intelligence (AI)-powered predictive maintenance tools, called Condition-Based Maintenance Plus, to 16 of its aircraft fleets. Furthermore, Canada is also struggling with the aging fleet of its CF-18 fighter aircraft, which has reached the age of more than 33 years. A few aircraft in the Royal Canadian Air Force are too old to be upgraded with the latest equipment to comply with the latest air traffic and aviation rules. Also, 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.
The United States is Estimated to Dominate the Market During the Forecast Period
The US held the highest shares in the market and will continue its domination during the forecast period. The growth is due to the presence of the highest commercial and military aircraft fleet, the largest number of airports, and a large number of MRO service providers. The United States is the leading producer of commercial, defense, and general aviation aircraft. The increase in spending on aircraft development is further propelling the growth of the aircraft and aircraft MRO markets. 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. 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. Thus, the increase in several aircraft acquisitions and the growing presence of aircraft engine MRO service providers within the United States will lead to a positive outlook and significant market growth during the forecast period.
North America Aircraft MRO Industry Overview
The aircraft MRO market in North America is semi-consolidated in nature, with the presence of several players holding significant shares in the market. Some of the prominent players in this market are Lockheed Martin Corporation, General Electric Company, The Boeing Company, Rolls-Royce plc, and RTX Corporation. The region is marked by the presence of several foreign MRO service providers as well. MRO service providers are increasing their focus on IT and technological developments to increase efficiency and reduce the time consumed on MRO activities. The primary revenue generation strategy of market players is to win long-term contracts from the armed forces, airlines, and freight carriers.
Strategic alliances among players may help them win more contracts while also expanding their reach into unexplored markets in the long run. Predictive maintenance solutions based on artificial intelligence (AI) are also expected to gain traction throughout the projected period. Potential expenditures would be necessary to improve MRO operators' IT capabilities for maintenance execution, supply chain management, mobility enhancement, and adoption of e-signatures. MROs are increasingly using advanced data analytics for inventory management to plan, stock, and optimize spares as needed at the lowest possible cost. Such tools allow operators to operate more efficiently, profitably, and contribute to the digitalization of North America aircraft MRO operations.
North America Aircraft MRO Market Leaders
Lockheed Martin Corporation
The Boeing Company
General Electric Company
RTX Corporation
Rolls-Royce plc
*Disclaimer: Major Players sorted in no particular order
North America Aircraft MRO Market News
January 2023: SupplyCore received a USD 375 million contract from the Defense Logistics Agency to provide supplies necessary for the maintenance, repair, and operation of US military facilities.
September 2022: The US Department of Defense (DoD) received two contracts worth USD 1.8 billion for five years for Rolls-Royce to service engines for US Navy and Marine Corps aircraft. The first contract includes intermediate, depot-level maintenance and logistics support for over 200 Rolls-Royce F405 engines that power US Navy T-45 flight trainer aircraft. The second contract includes depot-level engine repair services for Rolls-Royce AE 2100D3 turboprop engines that power C-130J and KC-130J transport airport aircraft flown by the US Marine Corps.
North America Aircraft MRO Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 MRO Type
5.1.1 Engine
5.1.2 Components
5.1.3 Airframe
5.1.4 Line
5.2 Application
5.2.1 Commercial Aviation
5.2.2 Military Aviation
5.2.3 General Aviation
5.3 Geography
5.3.1 United States
5.3.2 Canada
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Singapore Technologies Engineering Ltd.
6.1.2 Delta Air Lines, Inc.
6.1.3 RTX Corporation
6.1.4 General Electric Company
6.1.5 Safran SA
6.1.6 Rolls-Royce plc
6.1.7 Honeywell International Inc.
6.1.8 Lockheed Martin Corporation
6.1.9 The Boeing Company
6.1.10 Textron Inc.
6.1.11 IAG Aero Group
6.1.12 Lufthansa Technik AG
6.1.13 AAR Corp.
6.1.14 StandardAero
6.1.15 MTU Aero Engines AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Aircraft MRO Industry Segmentation
Aircraft MRO refers to the overhaul, inspection, repair, or modification of an aircraft or its components. The report on the North American aircraft MRO market covers the latest trends and technological developments and provides an analysis of various aspects of the market.
The North American aircraft MRO market is segmented by MRO type, application, and geography. By MRO type, the market is segmented into the airframe, engine, component, and line. By application, the market is segmented into commercial aviation, military aviation, and general aviation. The report also offers the market size and forecasts for two countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| MRO Type | |
| Engine | |
| Components | |
| Airframe | |
| Line |
| Application | |
| Commercial Aviation | |
| Military Aviation | |
| General Aviation |
| Geography | |
| United States | |
| Canada |
North America Aircraft MRO Market Research FAQs
How big is the North America Aircraft MRO Market?
The North America Aircraft MRO Market size is expected to reach USD 15.27 billion in 2024 and grow at a CAGR of 3.69% to reach USD 18.30 billion by 2029.
What is the current North America Aircraft MRO Market size?
In 2024, the North America Aircraft MRO Market size is expected to reach USD 15.27 billion.
Who are the key players in North America Aircraft MRO Market?
Lockheed Martin Corporation, The Boeing Company, General Electric Company, RTX Corporation and Rolls-Royce plc are the major companies operating in the North America Aircraft MRO Market.
What years does this North America Aircraft MRO Market cover, and what was the market size in 2023?
In 2023, the North America Aircraft MRO Market size was estimated at USD 14.71 billion. The report covers the North America Aircraft MRO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Aircraft MRO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Aircraft MRO Industry Report
Statistics for the 2024 North America Aircraft MRO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Aircraft MRO analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
