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Aircraft Engine MRO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • ID: 4828309
  • Report
  • March 2022
  • Region: Global
  • 105 Pages
  • Mordor Intelligence

FEATURED COMPANIES

  • Delta Air Lines Inc.
  • General Electric Company
  • Lufthansa Technik
  • MTU Aero Engines AG
  • Rolls-Royce Holding PLC
  • S7 Technics
The aircraft engine MRO market is poised to grow with a CAGR of more than 5% during the forecast period (2022 - 2027).

The impact of the COVID-19 pandemic on the aircraft engine MRO market has been significant. As a result of a large number of stored aircraft and lower utilization, the aircraft engine MRO demand significantly dropped in 2020. However, in 2021, aviation began to witness gradual recovery, which has led to an increase in passenger traffic and aircraft movements. This has led to an increase in demand for aircraft maintenance, repair, and overhaul activities.

The rapid fleet expansion plans of the airlines and military forces are anticipated to boost further the growth of the aircraft engine MRO market during the forecast period.

The aging military aircraft fleet in some countries may generate significant demand, as some of these countries have plans to extend the service life of these aging aircraft due to a lack of defense funding.

The introduction of newer generation engines in new aircraft is anticipated to further increase the aircraft engine MRO demand. The new engines will have more expensive material requirements than the older generation aircraft.

The introduction of advanced technologies that will digitize and automate maintenance activities to increase overall maintenance process efficiency, reduce the overall turnaround time, and improve safety by the engine MRO players is anticipated to boost the growth of the market in the coming years.

Key Market Trends


The Commercial Aviation Segment Dominates the Market in Terms of Market Share


The commercial aviation segment currently has the highest market share, and it is expected to continue its dominance during the forecast period. This is majorly due to the large fleet of commercial aviation compared to military aviation and the high cost of engine maintenance cost compared to general aviation. In recent years, several new contracts have been signed for the maintenance of aircraft engines between airlines and MRO service providers. For instance, in November 2021, SR Technics signed a Memorandum of Understanding (MoU) with Vietjet Air to provide MRO services for CFM56-5B engines onboard Vietjet’s Airbus A320 and Airbus A321 aircraft fleet. The agreement was signed worth USD 150 million and under the contract, the company will provide engine maintenance, component requirements, repair, technical and training services, and will set up a new Aviation training center, as a joint venture between Vietjet and SR Technics. In addition to this, the MRO service providers are also expanding their presence in various countries to cater to the growing demand for commercial engine MRO services. In this regard, in September 2021, S7 Technics announced its plan to open a new engine maintenance facility at Sheremetyevo airport (Moscow) for the overhaul of CFM56-5B and -7B engines, and Honeywell 131-9A/9B auxiliary power units (APU). The maintenance capacity of new shop is expected to be reach up to 100 APUs and up to 42 engines per year. Such expansions are expected to accelerate the growth of the segment in the coming years.

Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period


Asia-Pacific has experienced a significant growth in the total aircraft fleet over the past decade, which has increased the demand for engine MRO services. This has resulted in several MRO service providers from the United States and Europe establishing their maintenance facilities in this region. Also, in order to reduce the overseas maintenance cost, several airlines have partnered with engine MRO service providers to develop in-house capabilities. In January 2021, MTU Maintenance, the MRO division of the MTU Aero Engines, signed a five-year contract with Air Sial, a new Pakistan-based airline for the maintenance, repair, and overhaul of the V2500 engines onboard the fleet of three Airbus A320 aircraft. The contract also includes the provision of engine trend monitoring, on-site services, and lease engine support along with technical training to the airline. In addition to this, the majority of the armed forces in the region are currently using aging military aircraft. Due to this, there has been an increased demand for maintenance services from the military sector. For instance, Safran Helicopter Engines and Global Turbine Asia (GTA) renewed their contract to support Makila 2A engines of the Royal Malaysian Air Force (RMAF). According to the contract, over 30 Makila engines that will power H225M helicopters will be maintained under Safran’s Global Support Package (GSP). The contract is extension of previous contract signed in 2014. Such long-term agreements are expected to propel the growth of the market during the forecast period.

Competitive Landscape


The prominent players in the aircraft engine MRO market are Lufthansa Technik, Rolls-Royce Holding PLC, Raytheon Technologies Corporation, General Electric Company, and Safran SA. The major engine MRO providers are entering into long-term partnerships or forming joint ventures to grow their engine MRO customers. For instance, in February 2021, Hindustan Aeronautics Ltd (HAL) and Rolls-Royce signed an agreement to collaborate on expanding the supply chain for the civil and defense aerospace market as well as establish an authorized maintenance center for Adour Mk871 engines. Despite the impact of the pandemic on operations in 2020, the operations of the MRO players witnessed significant growth in 2021. For instance, the two engine shops of S7 Technics (at Domodedovo and Mineralyne Vody) completed the MRO activities on 60 engines, which includes base maintenance of 12 engines. The company surpassed its pre-pandemic levels as the company performed 106 engine checks compared to 85 in 2019. Moreover, the use of advanced technology for providing maintenance services may help these companies attract new customers by reducing their maintenance costs. On that note, in November 2020, Rolls Royce announced that the company is investing in Reinstate project to develop 20 emerging technologies (like deployment of snake robots into engines to access and repair complex parts and embedded cameras, among others) aimed to enhance the engine maintenance processes while reducing airline disruption and environmental impacts. However, the long-term contracts of the established players with the armed forces and airlines may act as a barrier for new players to enter the market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


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Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Delta Air Lines Inc.
  • General Electric Company
  • Lufthansa Technik
  • MTU Aero Engines AG
  • Rolls-Royce Holding PLC
  • S7 Technics

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
3.1 Market Size and Forecast, Global, 2018 - 2027
3.2 Market Share by Engine Type, 2021
3.3 Market Share by Application, 2021
3.4 Market Share by Geography, 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 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 (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1 Engine Type
5.1.1 Turbine Engine
5.1.1.1 Turboprop
5.1.1.2 Turbofan
5.1.1.3 Turboshaft
5.1.2 Piston Engine
5.2 Application
5.2.1 Commercial Aviation
5.2.2 Military Aviation
5.2.3 General Aviation
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 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
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 India
5.3.3.3 Japan
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 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Egypt
5.3.5.4 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Lufthansa Technik
6.2.2 Rolls-Royce Holding PLC
6.2.3 Raytheon Technologies Corporation
6.2.4 General Electric Company
6.2.5 Safran SA
6.2.6 Singapore Technologies Engineering Ltd
6.2.7 TAP Maintenance and Engineering
6.2.8 Delta Air Lines Inc.
6.2.9 Hong Kong Aircraft Engineering Company Limited (HAECO)
6.2.10 MTU Aero Engines AG
6.2.11 Textron Inc.
6.2.12 Honeywell International Inc.
6.2.13 Israel Aerospace Industries Ltd
6.2.14 S7 Technics
6.2.15 SR Technics Switzerland Ltd.
6.3 Other Players
6.3.1 Lockheed Martin Corporation
6.3.2 AFI KLM E&M
6.3.3 Magnetic MRO AS
6.3.4 Sanad Aerotech
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Lufthansa Technik
  • Rolls-Royce Holding PLC
  • Raytheon Technologies Corporation
  • General Electric Company
  • Safran SA
  • Singapore Technologies Engineering Ltd
  • TAP Maintenance and Engineering
  • Delta Air Lines Inc.
  • Hong Kong Aircraft Engineering Company Limited (HAECO)
  • MTU Aero Engines AG
  • Textron Inc.
  • Honeywell International Inc.
  • Israel Aerospace Industries Ltd
  • S7 Technics
  • SR Technics Switzerland Ltd.
Note: Product cover images may vary from those shown

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