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

  • ID: 5120100
  • Report
  • April 2022
  • Region: Asia Pacific
  • 72 Pages
  • Mordor Intelligence

FEATURED COMPANIES

  • AAR Corporation
  • Dassault Aviation
  • General Electric
  • Lufthansa Technik
  • Safran SA
  • ST Engineering

The Asia-Pacific Aircraft MRO Market is anticipated to register a CAGR of over 5% during the forecast period (2022 - 2027).



Asia-Pacific has been the fastest-growing region in the world for the aviation industry before the advent of the COVID-19 pandemic, which attracted global MRO players to enter the market and expand their customer base. However, the outbreak of COVID-19 caused a severe downturn in the airline and associated industries. Due to lower demand for commercial aviation, major airlines have restructured their growth strategies, which include early retirement of few aircraft, postponement of new aircraft deliveries, and scaling down operations, among others. A majority of the fleet remained grounded for a significant period in 2020 and a few months in 2021, some airlines opted for major maintenance work during this period.



In the military segment, though several countries are procuring new aircraft every year, the region still has some of the oldest aircraft fleets in the world, which is also increasing the demand for aircraft MRO activities. On the other hand, the demand for general aviation operations like the jet charters grew in the region, as the demand for commercial airlines declined, which had a positive effect on the general aviation MRO industry.



Key Market Trends


Commercial Aviation Segment Projected to Dominate the Market During the Forecast Period


The commercial aviation segment held the largest market share in the region in 2021 and is expected to continue its growth during the forecast period. After a severe downturn in passenger traffic in 2020 due to the COVID-19 pandemic, domestic airline traffic has quickly recovered in key markets like China and India in 2021, which has helped the Low-Cost Carriers (LCCs) in the region to focus on quickly operationalizing their fleets. Hence MRO providers in the Asia-Pacific region are expected to face a capacity crunch temporarily as airlines return more of their fleets to service. Also, the region is also witnessing an increase in the penetration and expansion of LCCs, thereby increasing the demand for aircraft MRO. In addition to China and India, countries like Japan, Thailand, Singapore, and South Korea in the Asia-Pacific region are also experiencing a recovery in the domestic commercial aviation passenger traffic and are witnessing an increasing trend for commercial aircraft MRO activities. The airlines in the region are also planning to strengthen their MRO capabilities, in addition to awarding contracts to other specialized MRO providers. In February 2022, AirAsia's parent Capital A Bhd announced that it is raising more than USD 95 million (RM400 million) in capital for its engineering arm, as it plans to build maintenance, repair and overhaul (MRO) facilities at the Kuala Lumpur International Airport. Such activities are expected to drive the commercial aviation segment during the forecast period.



China Held the Largest Market Share in 2021


In segmentation by country, China held the largest share in the market as of 2021. In the commercial sector, according to the Civil Aviation Administration of China, Air passenger numbers rose to 440 million in 2021, which is 66.8 percent of the pre-pandemic levels. By the end of 2021, the active aircraft fleet of China crossed its pre-pandemic levels, which has resulted in an increased demand for MRO operations. Furthermore, the increase in aircraft fleet and a quick recovery in flight activity are expected to make China one of the few countries in the world to cross pre-pandemic MRO levels in 2022. The airlines of China are planning to procure a large number of aircraft during the forecast period, which is expected to further increase the demand for commercial aircraft MRO activities in the country. Several MRO contracts are being awarded by Chinese airlines to various MRO providers. In February 2022, Collins Aerospace announced that China Airlines and its low-cost subsidiary Tigerair Taiwan have awarded long-term contracts to Collins Aerospace for its FlightSense program. Under the contract, Collins will provide engine accessory repair services for China Airlines’ fleet of 25 A321neo aircraft, and engine accessory repair and spare support for Tigerair Taiwan’s fleet of 15 A320neo aircraft. Such contracts are expected to boost market growth in China during the forecast period. In the military segment, the Chinese government is working to make its air force stronger, more efficient, and more technologically advanced to become a top-tier force within the next thirty years. With the rapid induction of new aircraft, the need for quality MRO services also becomes significant to maintain the airworthiness of the fleet. The country also has the largest number of general aviation aircraft in the Asia-Pacific, which is reflected in the higher demand for the general aviation MRO activities. All these factors are expected to support the dominance of the Chinese Aircraft MRO industry during the forecast period.



Competitive Landscape


ST Engineering, SIA Engineering Company, Hong Kong Aircraft Engineering Company Limited (HAECO), AAR, Lufthansa Technik are some of the prominent players in the market. Players from Singapore and Hong Kong dominate the MRO market in Asia. In recent years, several players from other Asian countries have increased their investment in MRO facilities, in a pursuit to replicate the success of the players from Singapore and Hong Kong in this sector. Simultaneously, companies from Indonesia and Thailand are entering the market to challenge the dominance of established Singapore-based players, which is expected to change the competitive landscape of the region in the years to come. In addition, due to the huge potential of the Asia-Pacific aviation market, several global players are establishing new centers in the region to cater to the growing demand. For instance, AAR has recently obtained several new maintenance contracts with customers from China, Japan, and India, and is looking to increase its presence in the region with the help of partnerships and joint ventures. Moreover, with the growing dominance of the OEMs, small and independent MRO facilities have to rework their business models to sustain the increasing competition in the MRO industry in the Asia-Pacific.



Additional Benefits:

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


This product will be delivered within 2 business days.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • AAR Corporation
  • Dassault Aviation
  • General Electric
  • Lufthansa Technik
  • Safran SA
  • ST Engineering

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
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, 2018 - 2027
3.2 Market Share by MRO 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 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 MRO Type
5.1.1 Airframe MRO
5.1.2 Engine MRO
5.1.3 Component MRO
5.1.4 Line Maintenance
5.2 Application
5.2.1 Commercial Aviation
5.2.2 Military Aviation
5.2.3 General Aviation
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Australia
5.3.1.6 Thailand
5.3.1.7 Singapore
5.3.1.8 Rest of Asia-Pacific
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Hong Kong Aircraft Engineering Company Limited (HAECO)
6.1.2 ST Engineering
6.1.3 Lufthansa Technik
6.1.4 AAR Corporation
6.1.5 SIA Engineering Company
6.1.6 Air Works India (Engineering) Private Limited
6.1.7 Guangzhou Aircraft Maintenance Engineering Company Limited
6.1.8 Lockheed Martin Corporation
6.1.9 The Boeing Company
6.1.10 Dassault Aviation
6.1.11 General Electric
6.1.12 Safran SA
6.1.13 GMF AeroAsia
6.1.14 Rolls Royce PLC
6.1.15 ExecuJet MRO Services
6.1.16 AVIA SOLUTIONS GROUP PLC
6.1.17 Sepang Aircraft Engineering Sdn Bhd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Hong Kong Aircraft Engineering Company Limited (HAECO)
  • ST Engineering
  • Lufthansa Technik
  • AAR Corporation
  • SIA Engineering Company
  • Air Works India (Engineering) Private Limited
  • Guangzhou Aircraft Maintenance Engineering Company Limited
  • Lockheed Martin Corporation
  • The Boeing Company
  • Dassault Aviation
  • General Electric
  • Safran SA
  • GMF AeroAsia
  • Rolls Royce PLC
  • ExecuJet MRO Services
  • AVIA SOLUTIONS GROUP PLC
  • Sepang Aircraft Engineering Sdn Bhd
Note: Product cover images may vary from those shown

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