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Military Aviation MRO Market - Growth, Trends, and Forecasts (2020 - 2025)

  • ID: 4771705
  • Report
  • May 2020
  • Region: Global
  • 130 pages
  • Mordor Intelligence
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FEATURED COMPANIES

  • BAE Systems plc
  • DynCorp International
  • Elbit Systems Ltd
  • General Atomics
  • MTU Aero Engines
  • Rolls-Royce Holding PLC
  • MORE
The military aviation MRO market is anticipated to register a CAGR of 2.81%, during the forecast period.
  • Military aircraft are more complex compared to commercial aircraft due to an increased amount of additional technical military equipment and the level of expertise required for MRO services.
  • With the dynamic nature of the security landscape and the continuous upgrade and procurement of newer generation military aircraft, the MRO market is constantly evolving and experiencing growth.
  • The in-service military fleet is expected to grow very rapidly in the coming years and the MRO industry will need to evolve significantly to meet this challenging demand.
  • Older aircraft require frequent maintenance checks since with age the reliability of the aircraft decreases. Also, the necessary upgrade extends the service life of an aging aircraft.
  • As the market comprises of several players, competition for the most efficient and cost-effective MRO service is increasing. Also, innovation and technological advances have fueled the competition in the market.
Key Market Trends

The Engine MRO Segment to Grow with the Highest CAGR During the Forecast Period

Engine MRO is an extremely important part of MRO and also the most expensive one. The increasing complexity of the engine parts and the increased number of military aircraft crashes, due to engine failures, have made the militaries to focus on frequent engine maintenance and periodic checks. Moreover, the engine is one of the components of the aircraft, which has to be maintained regularly irrespective of whether it is flying or on the ground. The current aging fleet of aircraft in service is generating the need for engine maintenance from various military forces in the world. Further, the induction of newer, advanced aircraft models, like F-35, Rafale, and Eurofighter Typhoon is anticipated to enhance the prospects for the MRO for those engines in the coming future. 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. Such factors are expected to increase the revenues for the engine segment in the years to come, making this segment to register the fastest growth during the forecast period.

North America Accounted for the Largest Share in the Market in 2019

Currently, North America has the highest military aircraft fleet in the world, with the US having more than 13,000 military aircraft alone. The major driving factor for the MRO in this country is the significant demand to upgrade the existing fleet with the latest technology systems. 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 airframe, along with field and component maintenance services. The US Air Force is slowly addressing its aging aircraft problem as it takes delivery of newer generation jets. Total aircraft numbers have declined since 2000 despite increasing budgets. As inventories decreased, average aircraft age has increased over the past decade. 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 to extend their service life. The US is planning to achieve an 80% readiness rate for all military aircraft in the near future. Such initiatives are expected to propel the growth of MRO activities in the near future in the North American region. However, the market is expected to witness the highest growth in the Asia-Pacific region, with most of the demand being generated from countries like China, India, Japan, South Korea, among others.

Competitive Landscape

Lockheed Martin Corporation, The Boeing Company, Pratt & Whitney (Raytheon Technologies Corporation), BAE Systems PLC, Safran, and Northrop Grumman Corporation are some of the largest players in the market studied. The military aviation MRO market is fragmented, with numerous local and international players providing various MRO services to the existing military aircraft fleet. Strategic partnerships between the players may help them gain more contracts while expanding their reach to the untapped markets in the long run. As most of the MRO contracts are of the long term, it is a time taking process for new players to establish themselves in the market, by competing with the existing ones. The COVID lockdown situation across the world is expected to delay some of the existing maintenance programs and planned projects at least by half a year, as players face issues with the supply chain, mainly due to the temporary shutdown of the aftermarket parts manufacturing industry. The impact of the same will be visible directly on the aftermarket parts logistics as well. In situations like these, players should adopt novel strategies in order to keep the business running with the existing inventory, which can help them reduce losses.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • BAE Systems plc
  • DynCorp International
  • Elbit Systems Ltd
  • General Atomics
  • MTU Aero Engines
  • Rolls-Royce Holding PLC
  • MORE
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 Industry Attractiveness - 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 MRO
5.1.2 Components MRO
5.1.3 Interior MRO
5.1.4 Airframe MRO
5.1.5 Modifications MRO
5.1.6 Field Maintenance
5.2 Aircraft Type
5.2.1 Fixed-wing Aircraft
5.2.2 Rotorcraft
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Qatar
5.3.5.4 Egypt
5.3.5.5 Rest of Middle-East and Africa

6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 BAE Systems plc
6.2.3 Elbit Systems Ltd
6.2.4 Saab AB
6.2.5 Lockheed Martin Corporation
6.2.6 General Atomics
6.2.7 Northrop Grumman Corporation
6.2.8 DynCorp International
6.2.9 Pratt & Whitney (Raytheon Technologies Corporation)
6.2.10 Rolls-Royce Holding PLC
6.2.11 Safran SA
6.2.12 MTU Aero Engines

7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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  • The Boeing Company
  • BAE Systems plc
  • Elbit Systems Ltd
  • Saab AB
  • Lockheed Martin Corporation
  • General Atomics
  • Northrop Grumman Corporation
  • DynCorp International
  • Pratt & Whitney (Raytheon Technologies Corporation)
  • Rolls-Royce Holding PLC
  • Safran SA
  • MTU Aero Engines
Note: Product cover images may vary from those shown
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