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Military Aviation Maintenance, Repair, and Overhaul Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2031)

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  • 176 Pages
  • February 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5176029
UP TO OFF until Mar 31st 2024
The military aviation maintenance, repair, and overhaul market registered a value of USD 38.12 billion in 2021, and it is expected to register a CAGR of over 2.5% during the forecast period 2022-2031.

The military aviation MRO industry has been relatively less impacted by the COVID-19 pandemic compared to the civil aviation MRO industry. The global defense expenditure increased in 2020, and the armed forces’ budget witnessed an upward trend during 2021-2022. Suppliers and MRO service providers located in Asia-Pacific and South America faced supply chain disruptions to some extent in 2020. However, the market has improved since then due to the streamlining of supply chain activities, in turn, helping the growth of the market.

The market is anticipated to be driven by a consistent increase in the global military aircraft fleet, internal and external security threats, technological innovations, the prevalence of an aging aircraft fleet, joint ventures, and strategic alliances formed to address the specific requirements of modernization initiatives undertaken by the global armed forces.

Starting with aircraft maintenance facility management and managing MRO throughout the supply chain, the use of advanced digital technologies is imperative to establish high-efficiency operations. With the advancement in AI and analytics, MRO companies are progressing from centralized maintenance diagnostic operations to prescriptive maintenance operations through real-time condition monitoring services.

Key Market Trends

Engine MRO Segment Expected to Dominate the Market During the Forecast Period

The engine is one of the vital components of any aircraft and must be airworthy irrespective of the aircraft's operational status. The increasing complexity of engine parts and the increased number of military aircraft crashes due to engine failures have resulted in the global armed forces’ increasing focus on frequent engine maintenance and periodic checks. The active fleets of several countries are aging faster than others due to the extreme operating conditions that the aircraft are exposed to regularly. The older aircraft need MRO services much more frequently than their newer counterparts to prevent the systems from malfunctioning or becoming obsolete. On this note, several contracts are being awarded for MRO services for the active fleets. 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 the 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. Similarly, in April 2021, Saab, in partnership with General Electric Aviation Canada (GE), selected StandardAero to maintain and repair Gripen’s engine in Canada as a part of Saab's offer for Canada's Future Fighter Capability Project (FFCP). As part of the contract, StandardAero will provide support to the fleet of Gripen fighters in Winnipeg to maintain the GE-F414-39E engine. Such developments are envisioned to foster the growth of the engine MRO segment of the market studied during the forecast period.

North America Expected to Maintain Dominance in Terms of Revenue During the Forecast Period

The global MRO market is dominated by North America, sheerly due to its diverse and superior fleet size. The US currently has the largest fleet of military aircraft in the world. By the end of 2021, the country operated a fleet of 2,740 combat aircraft, 774 special mission aircraft, 627 tanker aircraft, 982 transport aircraft, 5,463 helicopters, and 2,661 training aircraft. The major driving factor for MRO in this country is the significant demand to upgrade such a vast fleet with the latest technologies and systems. The US Air Force is slowly addressing its aging aircraft problem as it takes the delivery of newer generation jets. In May 2021, the US Air Force (USAF) sought permission from the US Congress to retire 201 aircraft in the fiscal year 2022 to reinvest savings from the operations and maintenance of these aircraft into R&D, as well as procurement of next-generation aircraft and weapons. 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 extend their service life. The US envisions achieving an 80% readiness rate for all military aircraft in the future. The country is awarding several modification contracts designed to improve the performance and effectiveness of the aircraft. In April 2021, the US Air Force Life Cycle Management Center (AFLCMC) announced that the Mobility and Training Aircraft Directorate had awarded a USD 92.8 million Alternate Modification Installation (AMI) contract for the installation of ‘avionic modifications’ on the C-5 Galaxy aircraft fleet. Such initiatives are expected to propel the growth of MRO activities in North America.

Competitive Landscape

Lockheed Martin Corporation, The Boeing Company, Raytheon Technologies Corporation, BAE Systems PLC, and Safran SA are some of the largest players in the market studied. The 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 untapped markets in the long run. As most MRO contracts are for the long term, it could be a time-consuming process for new players to establish themselves in the market by competing with the existing ones. Artificial intelligence (AI)-based predictive maintenance technologies are also envisioned to witness mass adoption during the forecast period. Potential investments would be required to enhance the IT capabilities of MRO operators for maintenance execution, supply chain management, enhancing mobility, and adopting e-signatures. Advanced data analytics are also being used by MROs for inventory optimization to plan, stock, and optimize spares as and when required at minimal procurement costs. Such tools enable operators to function efficiently, derive maximum profits, and support the digitization of global aircraft MRO operations.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
1.3 Currency Conversion Rates for USD
3.1 Market Size and Forecast, Global, 2018 - 2031
3.2 Market Share by MRO Type, 2021
3.3 Market Share by Aircraft Type, 2021
3.4 Market Share by Geography, 2021
3.5 Structure of the Market and Key Participants
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 - 2031)
5.1 MRO Type
5.1.1 Engine MRO
5.1.2 Components and Modifications MRO
5.1.3 Airframe MRO
5.1.4 Field Maintenance
5.2 Aircraft Type
5.2.1 Fixed-wing Aircraft
5.2.2 Rotorcraft
5.3 Geography
5.3.1 North America US Aircraft Type Canada Aircraft Type
5.3.2 Europe UK Aircraft Type France Aircraft Type Germany Aircraft Type Russia Aircraft Type Rest of Europe Aircraft Type
5.3.3 Asia-Pacific China Aircraft Type India Aircraft Type Japan Aircraft Type South Korea Aircraft Type Rest of Asia-Pacific Aircraft Type
5.3.4 Latin America Brazil Aircraft Type Rest of Latin America Aircraft Type
5.3.5 Middle-East and Africa Saudi Arabia Aircraft Type UAE Aircraft Type Qatar Aircraft Type Egypt Aircraft Type Rest of Middle-East and Africa Aircraft Type
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 ROSTEC
6.2.9 Amentum Services Inc.
6.2.10 Raytheon Technologies Corporation
6.2.11 Rolls-Royce Holding PLC
6.2.12 Safran SA
6.2.13 MTU Aero Engines
6.2.14 AMETEK Inc.
6.2.15 AMMROC (EDGE Group PJSC)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • The Boeing Company
  • BAE Systems PLC
  • Elbit Systems Ltd
  • Saab AB
  • Lockheed Martin Corporation
  • General Atomics
  • Northrop Grumman Corporation
  • Amentum Services Inc.
  • Raytheon Technologies Corporation
  • Rolls-Royce Holding PLC
  • Safran SA
  • MTU Aero Engines
  • AMETEK Inc.