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GCC Aircraft MRO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 106 Pages
  • October 2021
  • Region: Middle East
  • Mordor Intelligence
  • ID: 5458989

The GCC aircraft MRO market was valued at about USD 1,970.35 million in 2020 and is projected to grow to USD 4,514.08 million by 2026, registering a CAGR of 18% during the forecast period (2021-2026).

Due to the COVID-19 pandemic, several airlines and aircraft operators in the region had to temporarily cease their operations and ground their aircraft fleet. This has led to significant decline in the overall flight hours (for both commercial and general aviation sector), thereby adversely effecting the maintenance, repair, and overhaul market in the region.

However, in the coming years, with the gradual growth in passenger traffic, it is anticipated to generate demand for new aircraft orders from airlines and aircraft operators. Such orders and deliveries during the forecast period are expected to drive the growth of the market during the forecast period.

The countries in GCC region like United Arab Emirates and Saudi Arabia, among others are anticipated to become major hubs for aviation industry in the coming years. Due to this, the governments are supporting the foreign MRO providers to expand their presence in the region through partnerships and joint ventures with local players. This is expected to support the growth of the aircraft MRO market in the GCC countries in the coming years.

Key Market Trends

The Engine Segment Anticipated to Generate Highest Growth During the Forecast Period

The engine segment of the market is anticipated to witness the highest growth majorly due to the need for frequent engine maintenance and periodic checks. The majority of the engine MRO in the region is handled by the engine OEMs like Rolls Royce, General Electric (GE), and Pratt & Whitney, among others. Therefore, most expansion projects in the GCC are partnerships of airlines or third-party providers with engine OEMs. For instance, GE partnered with Abu Dhabi’s Mubadala Development Company to develop Abu Dhabi Aircraft Technologies (ADAT), world-class maintenance, repair, and overhaul (MRO) company. ADAT is the world’s first GEnx independent MRO quick-turn engine maintenance operation center to receive regulatory approval. The growing demand for larger powerplants in GCC has necessitated MRO players to develop capabilities to facilitate quality services. For instance, in February 2020, Aerostructures Middle East Services (AMES) opened a facility at Dubai’s Jebel Ali Free Zone to accommodate fan stator module repair services for the GE90 engine. Such factors have strengthened the growth of the segment during the forecast period. However, the COVID-19 pandemic impacted the market as many major operators have deferred engine maintenance to 2022. This significantly affected the market share of the segment in 2020.

United Arab Emirates Accounted for a Major Share in 2020

The United Arab Emirates currently dominates the market and is expected to continue its dominance in the market majorly due to the large fleet of commercial aircraft (majorly wide-body aircraft) and business jets (majorly large-sized jets). Emirates and Etihad are the two major airlines in the country. As of August 2021, Emirates had a fleet of 253 aircraft with 198 aircraft on order. Among the aircraft on order are Boeing 777X, A350-900, A380, and Boeing 787-9 aircraft. Similarly, Etihad had a fleet size of 96 aircraft with 80 aircraft on order as of July 2021. The aircraft on order includes 26 A321neo, 16 A350-1000, 6 777-9, 11 787-9, and 21 787-10 aircraft. Due to the large operational fleet, there is a steady rise in business opportunities as airlines seek MRO services to maintain the airworthiness of their grounded fleet. On this note, in June 2020, Etihad Engineering, the MRO arm of Etihad Aviation Group, expanded its operations in aircraft maintenance and parking, to meet the new requirements of airline operators, as fleets have been grounded due to the COVID-19 pandemic. Furthermore, to support the local MRO industry, third-party MRO service providers are also collaborating with the MRO wings of major airlines to enhance their target audience. Such partnerships and developments render a positive outlook for the aircraft MRO industry in the United Arab Emirates during the forecast period.

Competitive Landscape

The market of GCC aircraft MRO is slightly fragmented and is majorly dominated by local players who perform base maintenance and line maintenance ranging from simple A checks to complex D checks. Some of the major players in the GCC aircraft MRO market are Saudia Aerospace Engineering Industries, Emirates Engineering (Emirates Group), Rolls Royce Holding PLC, Raytheon Technologies Corporation, and Etihad Airways Engineering LLC. With the growing support of the governments to establish maintenance hubs in the region, the local players are entering into partnerships with other local players and foreign players. For instance, in June 2021, Joramco and VD Gulf (UAE) signed a framework agreement to expand their existing MRO capabilities, capacities and optimize their synergies for a one-stop-shop upscaled customer experience. In addition to collaborations, the companies have increased their investments into innovative MRO solutions for the planning and development of MRO operations following the COVID-19 pandemic. Such investments by the companies are anticipated to support them to increase their share in the market in the coming years.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 MRO Type
5.1.1 Airframe
5.1.2 Engine
5.1.3 Component and Interior
5.1.4 Line
5.2 Countries
5.2.1 United Arab Emirates Line Component and Interior Engine Airframe
5.2.2 Saudi Arabia Line Component and Interior Engine Airframe
5.2.3 Qatar Line Component and Interior Engine Airframe
5.2.4 Oman Line Component and Interior Engine Airframe
5.2.5 Kuwait Line Component and Interior Engine Airframe
5.2.6 Bahrain Line Component and Interior Engine Airframe
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Safran SA
6.2.2 General Electric Company
6.2.3 Rolls Royce Holding PLC
6.2.4 Raytheon Technologies Corporation
6.2.5 Lufthansa Technik AG
6.2.6 Jordan Aircraft Maintenance Limited
6.2.7 Etihad Airways Engineering LLC
6.2.8 Saudia Aerospace Engineering Industries
6.2.9 Qatar Airways
6.2.10 ExecuJet MRO Services
6.2.11 Emirates Engineering (Emirates Group)
6.2.12 Mamoura Diversified Global Holding PJSC
6.2.13 Oman Air

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Safran SA
  • General Electric Company
  • Rolls Royce Holding PLC
  • Raytheon Technologies Corporation
  • Lufthansa Technik AG
  • Jordan Aircraft Maintenance Limited
  • Etihad Airways Engineering LLC
  • Saudia Aerospace Engineering Industries
  • Qatar Airways
  • ExecuJet MRO Services
  • Emirates Engineering (Emirates Group)
  • Mamoura Diversified Global Holding PJSC
  • Oman Air