Southeast Asia Aircraft MRO Market Size
|Study Period:||2018 - 2028|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Southeast Asia Aircraft MRO Market Analysis
The Southeast Asia Aircraft MRO Market size is expected to grow from USD 4,624 million in 2022 to USD 6,724.88 million by 2028, at a CAGR of 5.94% during the forecast period (2023-2028).
Prior to 2020, the air passenger traffic and new aircraft orders were increasing rapidly in the region, which attracted global MRO players to enter the market and expand. However, the outbreak of COVID-19 caused a severe downturn in the airline and associated industries. Major airlines have now restructured their growth strategies, including early retirement of few aircraft, postponement of new aircraft deliveries, cutting down the workforce, scaling down operations, and optimizing operational costs. As most of the fleet remained grounded for a significant period in 2020, some airlines opted for major maintenance work.
Over the last two decades, Southeast Asia has been making the most of its favorable geographic location by complementing it with state-of-the-art aviation infrastructure. The region's strategic position and the strong local supply chain have contributed to its position as a preferred location for many MRO companies. Maintenance constitutes a major portion of the financial business model of aircraft operators in the region.
Players from Singapore have established themselves as dominant players in the industry over the years. Following the success of Singapore in the industry, players from countries like Indonesia, Malaysia, and Thailand are trying to replicate the success of Singaporean players and developing their MRO capabilities, which is positioning Southeast Asia as an important hub for Aircraft MRO globally.
Technological advancement in additive manufacturing, predictive maintenance, aircraft health monitoring systems, composite repair capabilities, artificial intelligence, and big data will play a major role in the coming years, as most of the MRO players in the region will opt to streamline their operations through automation to generate higher revenue during the latter half of the forecast period.
Southeast Asia Aircraft MRO Industry Segmentation
Aircraft Maintenance, Repair, and Overhaul (commonly abbreviated as MRO) refer to overhaul, inspection, repair, or modification of an aircraft or any parts and components. The study includes the revenues sourced from the MRO activities of military, commercial, and general aviation aircraft fleet opting to undergo MRO operations in Southeast Asia. The report has also been segmented by MRO Type into Airframe MRO, Engine MRO, and Other MRO Types. The Other MRO Types include line, modification, and component maintenance. The report also covers the market sizes and forecasts for the market in major countries across the region. For each segment, the market sizes and forecasts are represented in value (USD billion).
|Other MRO Types|
|Rest of Southeast Asia|
Southeast Asia Aircraft MRO Market Trends
This section covers the major market trends shaping the Southeast Asia Aircraft MRO Market according to our research experts:
Commercial Aviation Segment Projected to Exhibit the Highest Growth Rate During the Forecast Period
The growth in air traffic in the region over the years has put pressure on airline operators to maintain their fleet in operational condition. Since Asia-Pacific overshadows the other regions in terms of new aircraft deliveries, and Southeast Asia, in specific, has become a focal point in terms of the commercial aviation industry growth, the operators in the region are ramping up their capabilities to cater to a growing aircraft fleet that is propelling the demand for aircraft maintenance. For decades, the commercial aircraft Maintenance, Repair, and Overhaul (MRO) market in Southeast Asia has been dominated by established players in Singapore, providing maintenance services for airlines both in and outside the region. However, several players have entered the market in countries like Indonesia, Thailand, and Malaysia over the years and have challenged the dominance of established Singaporean players. The low labor costs in countries like Indonesia attract foreign players to set up their own MRO facilities in these countries. Despite the considerable growth in competition in the market, several major airlines in the region have only minimal in-house maintenance capabilities and outsource most of the work to companies affiliated with rivals or independent service providers. In this regard, the airlines in the region are enhancing their maintenance capabilities to cut out cash outflow to third parties and rivals by developing their in-house maintenance businesses. For instance, the Garuda Maintenance Facility (GMF) by AeroAsia is taking aggressive steps to expand its MRO business overseas while improving its in-house maintenance capacity in the country to cater to more airlines. In January 2021, Revima Group, which has set up a new landing gear maintenance facility for the A320 and the B737NG narrowbody aircraft in Thailand, announced that it has obtained Part-145 certification from three key agencies, namely CAAT (Civil Aviation Authority of Thailand), EASA, and FAA, and is ready to start its activities. Likewise, Thai Airways International, Thailand's national flag carrier, is also expanding its MRO business. However, in the wake of the COVID-19 pandemic, the commercial aviation sector has suffered massive losses. Due to the depleting economic reserves of the players and prospective customers, uncertainty now looms over the envisioned MRO projects in the region.
To understand key trends, Download Sample Report
Singapore Accounted for a Major Market Share in 2021
Singapore is leading the aircraft MRO market in Southeast Asia. The aviation sector is the major contributor to the development of the Singaporean economy. Despite its relatively small size, Singapore has been one of the fastest-growing aviation markets in the region over the years, driven by the huge tourist inflow and growing business travel into the country. Singapore caters to about 1/4 of Asia’s maintenance, repair, and overhaul (MRO) requirements and 1/10 of the global MRO output, and it possesses comprehensive nose-to-tail MRO capabilities. Singapore’s home-grown aviation companies, ST Aerospace and SIA Engineering, are among the top MRO companies globally, both in terms of revenues and capabilities. ST Engineering, one of the major players in the country, is looking for expansion of its aerospace MRO business, both locally and internationally. While the company is pursuing capacity expansion in countries like the US, it has also set up a Joint Venture with Vietnam Airlines Engineering Company (VAECO), a subsidiary of Vietnam Airlines Co. Ltd, Vietnam Singapore Technologies Engineering Aerospace Co. Ltd. In February 2021, the government of Singapore announced a defense budget of about USD 11.56 billion for 2021, a 12.7% increase over the 2020 defense budget. As most of Singapore’s fleet is aging or due for a mid-life upgrade, the demand for military MRO is also expected to grow during the forecast period. At the same time, driven by the positive outlook for general aviation demand in the country, several foreign players are entering the market in Singapore. In October 2020, Jetex, an executive aviation provider, announced the expansion of its global FBO network in the Asia-Pacific region with the addition of a fixed-base operator in Singapore. In collaboration with Bombardier, the new FBO expands the Singapore Service Centre at Seletar Aerospace Park beyond aircraft service and maintenance and now offers a full range of services to the business jet operators. Such developments are expected to drive the growth of the market in Singapore during the forecast period.
To understand geography trends, Download Sample Report
Southeast Asia Aircraft MRO Industry Overview
The market for aircraft MRO services in the Southeast Asia region is moderately consolidated. Singapore Technologies Engineering Ltd, GMF AeroAsia, Safran SA, StandardAero, and Sepang Aircraft Engineering Sdn Bhd are some of the prominent players in the market. For a long time, the market was dominated by players based in Singapore, but the dynamics are now changing. The market is witnessing investments from players into countries like Thailand, Indonesia, etc., owing to the growing aircraft fleet and lower labor costs compared to Singapore. The market is witnessing a huge investment from key players in facility development, technological innovations, joint ventures, and partnerships. Players are focusing on developing their MRO capabilities in the region, making the market more competitive with the entry of new players. Such developments are expected to make the market more competitive during the forecast period.
Southeast Asia Aircraft MRO Market Leaders
Singapore Technologies Engineering Ltd
Sepang Aircraft Engineering Sdn Bhd
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Aircraft MRO Market News
- In December 2021, Safran Aircraft Engines signed a new 10-year engine MRO contract with SIA Engineering Company (SIAEC). Under the agreement, Singapore Airlines' MRO division will provide engine testing services for CFM International's LEAP-1A (A320neo family) and LEAP-1B (737 MAX family) through a modernized engine test facility upgraded with the latest data acquisition and control system supplied by Safran Test Cells.
- In September 2021, Singapore Airlines (SIA) and Heston MRO extended their MRO partnership for another three years. Under the newly extended agreements, Heston MRO will handle all incoming and departing SIA passenger flights in Melbourne, Brisbane, and Perth, utilizing Boeing 777, 787, and Airbus 350, 380 aircraft types. The handling agreements also cover SIA's Boeing 747 freighter flights to Melbourne.
- In August 2021, ST Engineering announced that it received an exclusive five-year contract from Alaska Airlines. Under the agreement, which is an extension of an existing contract, ST Engineering will provide engine heavy maintenance to the airline's fleet of 14 Boeing 737-700 and 12 Boeing 737-900 aircraft. These services will be provided starting from 2022 at the Group's engine MRO facilities in Singapore.
- In January 2021, ST Engineering entered into a 10-year agreement with Honeywell Aerospace to provide component MRO and warranty repair services to operators in the Asia-Pacific region for Honeywell components installed on LEAP engines used in the Airbus A320neo family, Boeing 737 MAX, and COMAC C919.
Southeast Asia Aircraft MRO Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Size and Forecast, Global, 2018 - 2027
3.2 Market Share by Application, 2021
3.3 Market Share by MRO Type, 2021
3.4 Market Share by Country, 2021
3.5 Structure of the Market and Key Participants
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 (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1.1 Commercial Aviation
5.1.2 Military Aviation
5.1.3 General Aviation
5.2 MRO Type
5.2.1 Airframe MRO
5.2.2 Engine MRO
5.2.3 Other MRO Types
5.3.5 Rest of Southeast Asia
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Singapore Technologies Engineering Ltd
6.1.2 AAR Corp.
6.1.3 MTU Maintenance (MTU Aero Engines AG)
6.1.5 Garuda Indonesia (GMF AeroAsia)
6.1.6 Guangzhou Aircraft Maintenance Engineering Co. Ltd (GAMECO)
6.1.7 General Dynamics Corporation (Jet Aviation)
6.1.8 Safran SA
6.1.9 Rolls Royce PLC
6.1.10 ExecuJet MRO Services
6.1.11 AVIA SOLUTIONS GROUP PLC
6.1.12 Textron Inc.
6.1.13 Lufthansa Technik AG
6.1.14 Sepang Aircraft Engineering Sdn Bhd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Southeast Asia Aircraft MRO Market Research FAQs
What is the study period of this market?
The Southeast Asia Aircraft MRO Market is studied from 2018 - 2028.
What is the growth rate of Southeast Asia Aircraft MRO Market?
The Southeast Asia Aircraft MRO Market is growing at a CAGR of 5.94% over the next 5 years.
What is Southeast Asia Aircraft MRO Market size?
The Southeast Asia Aircraft MRO Market is expected to reach USD 6,325.42 Million in 2023 and grow at a CAGR of 5.94% to reach USD 6724.88 Million by 2028.
Who are the key players in Southeast Asia Aircraft MRO Market?
Safran SA, GMF AeroAsia, Singapore Technologies Engineering Ltd, StandardAero, Sepang Aircraft Engineering Sdn Bhd are the major companies operating in Southeast Asia Aircraft MRO Market.
Southeast Asia Aircraft MRO Industry Report
Statistics for the 2023 Southeast Asia Aircraft MRO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Aircraft MRO analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.