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Aircraft Maintenance, Repair and Overhaul (MRO) - Global Market Trajectory & Analytics

  • ID: 992792
  • Report
  • April 2021
  • Region: Global
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • AAR Corp
  • AIRBUS SAS
  • AMETEK MRO
  • Bombardier, Inc.
  • GMF AeroAsia
  • MTU AeroEngines AG
Massive Numbers of Parked Aircraft & Unprecedented Strain on Airline Finances Send the MRO Market Crashing by -39.1% Despite the Need to Maintain Air Worthiness of Grounded Planes

The global market for Aircraft Maintenance, Repair and Overhaul (MRO) is expected to plummet sharply by -39.1% in the year 2020 and thereafter recover and grow to reach US$57.7 billion by the year 2027, trailing a post COVID-19 CAGR of 3.7% over the analysis period 2020 through 2027. The aviation industry is worst hit by the crisis, as the lockdowns and shutdowns in almost all countries across the world led to widespread restrictions being imposed on domestic and international air travel. The cancellation of flights has and still continues to wield an adverse impact on the global airline industry. The US airline industry has been facing catastrophic losses in terms of passenger numbers and revenues due to the coronavirus crisis. Delta Air Lines, Inc. for instance recorded $2.8 billion in losses for Q1 2020 alone. The rapid spread of COVID-19 has led almost all nations issuing travel advisories, requesting people to refrain from travelling unless it is absolutely necessary. Several countries put in place travel restrictions even before Aviation sector started experiencing the impacts of COVID-19 as early as February. There was a significant reduction in the capacity of airlines from and to China around the Chinese Lunar New Year. Due to imposition of restrictions on air travel, several airlines limited their flight schedules, adversely affecting the revenue of both airline companies and airports. In order to reduce losses, airlines resorted to cost cutting measures such as flight cancellations and relocation of aircraft to places with low parking charges. Airports which have to necessarily maintain their fixed assets have seen drastic fall in revenue from other sources such as restaurants and airport shopping due to low footfall.

The eerie silence in the skies means that the temporary hiatus in aircraft maintenance will cost MRO service providers $28.7 billion in losses & lost opportunities in 2020. The screeching halt of the expanding Asian aviation industry doubles the blow on MRO service providers. As airports run out of space, the current focus is shed on hunting for safe spaces to park airplanes. The post COVID-19 period will see demand for MRO services recover led by the fact that grounded planes cannot be re-deployed without maintenance and service. Appropriate storage and lack of routine maintenance can make maintenance more expensive for the over 16,000 grounded planes worldwide. The speed of recovery however remains largely uncertain & heavily dependent on the economic climate which can be more powerful than the pandemic in keeping people from flying. In the post COVID-19 period, remote maintenance which is yet to find broad acceptance in the commercial aviation industry, despite holding numerous merits in terms of process, business and workforce efficiencies, will grow in importance. While there are compelling benefits of the shift toward paperless and mobile operations, regulatory along with technical glitches are hindering the transition. However, the COVID-19 pandemic is likely to catalyze expansion of the remote maintenance market, which is bound to hold noteworthy implications for the aircraft MRO landscape.

The outbreak has coerced various regulators and aviation organizations to explore options for ensuring remote working and social distancing. The new policy announced by the Federal Aviation Administration (FAA) is expected to allow the use of remote technology and video links for conducting inspections and validating regulatory compliance amid COVID-19. The scenario is also leading to other digital breakthroughs such as 'e-delivery' of A320neo aircraft by Airbus to Pegasus Airlines, a low-cost carrier in Turkey. Aircraft maintenance service providers are also taking cues from other industries and offering remote assistance for ensuring service continuity. These companies are providing airline clients with advanced remote assistance capabilities for enhanced user experience. Some of the companies are working with clients to explore the utility of mixed reality technology for different scenarios like challenging troubleshooting activity and independent inspections. The increasing focus on social distancing amid COVID-19 pandemic is likely to drive the adoption of remote MRO collaboration tools. These solutions are anticipated to alter workflows for supporting and making aircraft maintenance more efficient in the future. Disadvantages of paper-based processes will prompt providers to embrace paper-free approaches to boost productivity and efficiencies of planners and mechanics. Digital alternatives facilitate quick availability of information to supervisors and planners while ensuring real-time visibility into process status as well as progress. The paperless approach is expected to gain from the remote maintenance specifications from the FAA that are likely to reduce burden on resources. The extensive adoption of smart mobile devices and advanced maintenance apps for mobiles are anticipated to result in merger of virtual and real worlds for seamless and more efficient maintenance activity. Various companies are relying on advanced remote assistance tools for collaboration of and information sharing between team members over distances.

Select Competitors (Total 141 Featured):
  • AAR Corp
  • Aeroman
  • AIRBUS SAS
  • Air France KLM Engineering & Maintenance
  • Ameco Beijing
  • AMETEK MRO
  • Aviation Technical Services, Inc.
  • Bedek Aviation Group
  • Bombardier, Inc.
  • Delta TechOps
  • GMF AeroAsia
  • Honeywell International Inc.
  • Hong Kong Aircraft Engineering Company
  • Lufthansa Technik AG
  • MTU AeroEngines AG
  • Sabena Technics
  • Singapore Technologies Aerospace (ST Aerospace)
  • SR Technics
  • SIA Engineering Company
  • STAECO
  • TAP Maintenance & Engineering
  • The Boeing Company
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • AAR Corp
  • AIRBUS SAS
  • AMETEK MRO
  • Bombardier, Inc.
  • GMF AeroAsia
  • MTU AeroEngines AG
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • Exhibit 1: COVID-19 Pandemic Dents Airline Revenues: Commercial Airline Revenue Growth (in %) for 2010-2020E
  • Exhibit 2: Global Airlines Performance by Region: 2020 Vs 2019
  • Shrinking Air Travel Demand amid COVID-19 to Squeeze Margins of Aircraft MROs
  • COVID-19 Impacts Commercial Aviation Maintenance
  • COVID-19 Leaves Engine MRO Market in Turmoil
  • Gains in Remote Maintenance Set to Alter Aircraft MRO Landscape
  • Going Paperless & Remote Collaboration
  • Aircraft MRO Market in Southeast Asia Suffers due to COVID-19
  • Airlines Revisit Long-Term MRO Agreements for Payment Obligations amid COVID-19
  • Aircraft Maintenance, Repair and Overhaul (Aircraft MRO): A Definition
  • Types of MRO Maintenance Activities
  • Maintenance Schedules and Approval Systems
  • Military Aircraft MRO
  • Commercial Aircraft MRO
  • Aircraft MRO Norms and Regulations: An Overview
  • Aircraft MRO: Continuing Importance in Airworthiness Management to Propel Long-term Growth
  • Competition
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • The Ever-Present Threat of Air Accidents Reinforces the Importance of MRO
  • Exhibit 3: Global Commercial Aircraft Accident Rate: Number of Accidents Per Million Departures for the Years 2010-2019
  • Exhibit 4: Despite the Strides Taken in Safe Flying, Ever-Present Threat of Plane Crashes Drives Emphasis on Airworthiness & Plane Maintenance: Global Number of Fatalities on Commercial Flights for the Period 2010-2019
  • Commercial Aviation Industry: The Barometer of Health of the MRO Market
  • Exhibit 5: Global Airline Industry: Number of Scheduled Passengers Boarded (in Million) for 2010-2020E
  • Aging Aircraft Fleet Presents Opportunities for MRO Services
  • Exhibit 6: Aging Aircraft & the Ensuing Need to Ensure Airworthiness of Older Airplanes to Spur Opportunities in the MRO Services Market: Average Age (in Years) of Globally Operating Aircraft Fleet for 2020 & 2030
  • Exhibit 7: Average Age (in Years) of Select Airlines Around the World
  • Expanding Aircraft Fleet to Fuel Need for Routine MRO Services
  • Exhibit 8: Expanding Global Aircraft Fleet to Inject a Steady Stream of Routine Maintenance Revenues for MRO Service Providers: Global Commercial Aircraft Fleet Projections: Breakdown of Fleet (in Units) by Region for 2019 and 2039
  • Corrosion & Fatigue Wear and Tear: The Most Important Aspect of MRO
  • Exhibit 9: High Cost of Corrosion for the Transportation Industry Makes Corrosion Management Systems (CMS) an Integral Part of Aircraft MRO Programs: Percentage Breakdown of Cost of Corrosion by Industry for the Year 2019
  • Smart Assets Management & Focus on Predictive and Condition Based Maintenance Bodes Well for Aircraft MRO Services
  • Exhibit 10: Aircraft Maintenance Decision System Based on Real-time Condition Monitoring Grows in Prominence: Global Aircraft Health Monitoring (AHMS) Market Size (US$ Billion) for the Years 2019, 2022 and 2025
  • Aircraft Big Data: A Key Enabler of Effective Condition Based Monitoring
  • Rising Prominence of Nondestructive Evaluation & Inspection of Aircraft
  • Exhibit 11: Use of Fillers in Aerospace Composites & Resultant High Risk of Moisture Infiltration Spurs Opportunities for Diagnostic NDT Testing for Crack & Corrosion Detection: Global Aerospace Composites Market (In US$ Billion) for the Years 2020, 2023 & 2026
  • Avionics MRO Emerges into a Key Revenue Spinner
  • Exhibit 12: Expanding Avionics Market Drives Parallel Opportunities for Avionics MRO in the Form of Avionics Upgrade: Global Avionics Market (In Million) for the Years 2019, 2022 & 2025
  • As Defense Budgets Come Under Intense Pressure, Military MRO Market to be Impacted
  • Exhibit 13: Defense Spending Trends Set Demand Dynamics for Military Electro Optics and Infrared Systems: Defense Expenditure Worldwide in US$ Billion for the Years 2001 through 2019
  • Exhibit 14: Leading Countries Ranked by Defense Budgets in US$ Billion for 2019
  • Exhibit 15: Global Military MRO Market Breakdown (in %) by Aircraft Platform: 2020E
  • Low Cost Carriers (LCCs) Expand MRO Opportunity in Asia-Pacific
  • Exhibit 16: Low Cost Airlines Market Gives Rise to Need for Right Sized MRO Practices and Procedures: Global Low Cost Airlines Market (In US$ Billion) for the Years 2019, 2022 & 2025
  • Need to Reduce Operating Costs Drives Growth in MRO Outsourcing Services
  • Developing Countries Emerge as MRO Hubs
  • Narrowing Wage Differentials Threaten to Disrupt MRO Outsourcing
  • Growing Use of Composites in Airframes Drive MRO Providers to Offer Improved Tools and Techniques
  • Engine MRO Segment Drives Aircraft MRO Market
  • Cost Competitive PMA Certified Parts Grow in Importance in the MRO Market
  • Threat of PMA Forces OEMs to Reevaluate their Role in the MRO Market
  • Trend towards Digitization of MRO Operations
  • Latest Technological Trends Transforming the Aircraft MRO Market
  • Big Data to Transform Aviation Sector
  • Cloud Services Gain Traction in MRO Industry
  • Drones to Reduce Maintenance Time
  • Digital Twins: The New Standard of Maintenance in Aviation Industry
  • Aviation Maintenance: A Glance into Recent Technological Advancements
  • Shortage of Skilled Technicians: A Major Challenge for Labor Intensive MRO Industry
  • Exhibit 17: US Civil Aviation Employment by Sector for 2020
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • Harsh Impact of COVID-19 Pandemic on Aviation Industry Impacts MRO Market
  • New Laws and Enforcement of Strict Safety Standards Drive Aircraft MRO Services Market
  • CANADA
  • JAPAN
  • CHINA
  • COVID-19 Impacts Market Outlook
  • EUROPE
  • Post-COVID-19 Period Favors Growth in the European MRO Services Market
  • Aging Aircraft Offer Present Opportunities in the European Aircraft MRO Services Market
  • Eastern Europe Emerges as a Low Cost MRO Hub
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • ASIA-PACIFIC
  • Market Overview
  • AUSTRALIA
  • INDIA
  • Market Overview
  • India Poised to Become a Key Centre for Aircraft MRO
  • Indian Aviation MRO Services Market to Gain from Revised Tax Structure
  • SINGAPORE
  • Market Overview
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • Market Overview
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • Market Overview
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 141
Note: Product cover images may vary from those shown
  • AAR Corp
  • Aeroman
  • AIRBUS SAS
  • Air France KLM Engineering & Maintenance
  • Ameco Beijing
  • AMETEK MRO
  • Aviation Technical Services, Inc.
  • Bedek Aviation Group
  • Bombardier, Inc.
  • Delta TechOps
  • GMF AeroAsia
  • Honeywell International Inc.
  • Hong Kong Aircraft Engineering Company
  • Lufthansa Technik AG
  • MTU AeroEngines AG
  • Sabena Technics
  • Singapore Technologies Aerospace (ST Aerospace)
  • SR Technics
  • SIA Engineering Company
  • STAECO
  • TAP Maintenance & Engineering
  • The Boeing Company
Note: Product cover images may vary from those shown
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