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

  • ID: 992792
  • Report
  • February 2022
  • Region: Global
  • 653 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

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

Global Aircraft Maintenance, Repair and Overhaul (MRO) Market to Reach $55.6 Billion by 2026


Aircraft MRO or Aircraft Maintenance, Repair and Overhaul, is the process of providing scheduled upkeep, care and airworthiness of an aircrafts and its engine and components. Strong growth in the global market is being driven by expansion of the global aviation industry and rising demand for air travel. Increasing disposable income levels and expansion of the middle-class have made air travel more affordable that are driving the uptake of air travel globally. These factors are also prompting various airlines to invest in fleet expansion to accommodate the increasing demand. However, the COVID-19 pandemic has severely hit the aviation industry and aircraft MRO market. The industry faced a tough period during March-April, and is estimated to bear heavy losses in terms of air passenger revenues in 2020 owing to containment measures implemented by various countries. While the aviation industry has started recovering, it is expected to take time to reach to pre-pandemic levels. 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.

Amid the COVID-19 crisis, the global market for Aircraft Maintenance, Repair and Overhaul (MRO) estimated at US$44.8 Billion in the year 2020, is projected to reach a revised size of US$55.6 Billion by 2026, growing at a CAGR of 3.7% over the analysis period. Engine Overhaul, one of the segments analyzed in the report, is projected to record a 4.1% CAGR and reach US$24.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Components Maintenance segment is readjusted to a revised 4.3% CAGR for the next 7-year period. Engine Overhaul includes maintenance of aircraft engines, comprising of inspection, dismantling, reassembling and testing among others. Engine Overhaul accounts for the largest share driven by robust demand in the CF6-80C2, CFM56-3 and PW4000-94 submarkets. Aircraft engines from leading player Pratt & Whitney account for about 30% of the entire MRO demand due to their huge installed aircraft base.



The U.S. Market is Estimated at $9.9 Billion in 2021, While China is Forecast to Reach $6.3 Billion by 2026


The Aircraft Maintenance, Repair and Overhaul (MRO) market in the U.S. is estimated at US$9.9 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.3 Billion by the year 2026 trailing a CAGR of 5.9% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.2% and 2.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.8% CAGR. Low labor, service costs, easy access to skilled labor and enhanced service levels, have made Asia-Pacific a highly attractive outsourcing and MRO destination. Asian operators are driving MRO growth with low-cost labor markets such as Vietnam and Thailand. Airline operators worldwide are currently outsourcing nearly 30% of wide-body heavy airframe maintenance needs to China and Asia-Pacific region. The repatriation of wide-body heavy maintenance work is anticipated to create some revenue growth in stagnant MRO markets in North America and Western Europe.

Line Maintenance Segment to Reach $8.9 Billion by 2026


Aircraft Line Maintenance involves inspection, identification and rectification of problem on the aircraft body. The process also comprises of crucial aircraft maintenance and regular repairs as per requirement. Line maintenance and planning which was preferred to be retained in-house accounts for a larger share of MRO outsourcing in recent years as several carriers are increasingly moving heavy and base maintenance work to the emerging regions, primarily in Asia, as they offer cheaper and efficient services. In the global Line Maintenance segment, USA, Canada, Japan, China and Europe will drive the 2.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$5.5 Billion in the year 2020 will reach a projected size of US$6.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$1.2 Billion by the year 2026, while Latin America will expand at a 2.5% CAGR through the analysis period.

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
Frequently Asked Questions about the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO)

What is the estimated value of the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO)?

The Global Market for Aircraft Maintenance, Repair and Overhaul (MRO) was estimated to be valued at $44.8 Billion in 2020.

What is the growth rate of the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO)?

The growth rate of the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO) is 3.7%, with an estimated value of $55.6 Billion by 2026.

What is the forecasted size of the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO)?

The Global Market for Aircraft Maintenance, Repair and Overhaul (MRO) is estimated to be worth $55.6 Billion by 2026.

Who are the key companies in the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO)?

Key companies in the Global Market for Aircraft Maintenance, Repair and Overhaul (MRO) include AAR Corp, Aeroman, AIRBUS SAS, Air France KLM Engineering & Maintenance, Ameco Beijing, AMETEK MRO, Aviation Technical Services, Inc., Bedek Aviation Group and Delta TechOps.

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
  • COVID-19 Pandemic Dents Airline Revenues: Commercial Airline Revenue Growth (in %) for 2010-2020E
  • 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
  • Aircraft Maintenance, Repair and Overhaul (MRO) - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • The Ever-Present Threat of Air Accidents Reinforces the Importance of MRO
  • Global Commercial Aircraft Accident Rate: Number of Accidents Per Million Departures for the Years 2010-2019
  • 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
  • Global Airline Industry: Number of Scheduled Passengers Boarded (in Million) for 2010-2020E
  • Aging Aircraft Fleet Presents Opportunities for MRO Services
  • 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
  • Average Age (in Years) of Select Airlines Around the World
  • Expanding Aircraft Fleet to Fuel Need for Routine MRO Services
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Leading Countries Ranked by Defense Budgets in US$ Billion for 2019
  • Global Military MRO Market Breakdown (in %) by Aircraft Platform: 2020E
  • Low Cost Carriers (LCCs) Expand MRO Opportunity in Asia-Pacific
  • 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
  • US Civil Aviation Employment by Sector for 2020

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • 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

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • COVID-19 Impacts Market Outlook

EUROPE

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • 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

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

UNITED KINGDOM

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)

SPAIN


RUSSIA


REST OF EUROPE

ASIA-PACIFIC

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Market Overview

AUSTRALIA

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)

INDIA

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • 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

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)

ARGENTINA

BRAZIL

  • Market Overview

MEXICO


REST OF LATIN AMERICA

MIDDLE EAST

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
  • Market Overview

IRAN


ISRAEL


SAUDI ARABIA


UNITED ARAB EMIRATES


REST OF MIDDLE EAST

AFRICA

  • Aircraft Maintenance, Repair and Overhaul (MRO) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)

IV. COMPETITION

  • Total Companies Profiled: 141

A selection of companies mentioned in this report includes:

  • 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