According to the latest research report titled “Aircraft MRO Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 68.35 billion by 2028, registering a CAGR of 4.3% during 2021–2028.
Growing Demand for MRO Services in Emerging Economies to Drive Market Growth during Forecast Period
With the rapid growth of the aviation industry in recent years, demand for airline MRO services has risen as well. Emerging economies in APAC are putting a strong emphasis on providing MRO services to both commercial and military aircraft manufacturers. Guangzhou Aircraft Maintenance Engineering Co., Ltd. (GAMECO), China; MTU Maintenance; and ExecuJet Haite Aviation Services China Co., Ltd. are a few major aircraft MRO companies operating in APAC. The adoption of aircraft maintenance services is being driven by increased spending on aviation infrastructure, economic growth, and a rise in passenger numbers. Furthermore, an increasing number of middle-class travelers—particularly in APAC countries such as China, Singapore, and India—propels the air travel development, which is driving the demand for aircraft maintenance services in the region.
Request for Sample PDF @ https://www.theinsightpartners.com/sample/TIPRE00007899/
Singapore dominates the aircraft MRO market in APAC due to its existing hubs of MRO and significant presence of major industry players such as GE Aviation, Airbus, and Rolls-Royce. The country comprises 120 aerospace firms, according to the Wisconsin Economic Development Corporation (WEDC), accounting for one-quarter of the APAC MRO industry.
The aircraft count in Asia is rising, which, in turn, is accelerating the demand for advanced aircraft MRO services. For example, AirAsia India added three new A320 neo planes to their fleet in December 2020. By 2021, the company intends to expand its fleet by buying two more A320 neo aircraft. In addition, according to Boeing’s aviation market forecast, APAC countries will need 16,930 additional planes by 2037 to meet the growing number of travelers. To meet future aircraft demand, the region is projected to account for 40% of future airline production. Thus, increasing growth of aviation industry in emerging countries is driving the market growth.
Key Findings of Study:
- The commercial aviation sector is booming at a rapid pace, which is providing new opportunities for Chinese airlines as well as international airlines to establish new routes to, from, and around China. The boosting demand for commercial aircraft is leading airlines to order more modern aircraft with the latest technologies integrated into the aircraft. In the long run, MRO activities would shift toward the APAC as India and China are lined up to establish their importance as MRO centers.
- The retrofitting trend is exploding among MRO service providers, which is propelling the aircraft MRO market growth. A similar trend is expected to continue in the coming years, and the convergence of advanced and new technology on older aircraft fleets is expected to transform the aircraft MRO market environment as well as the aviation industry’s face.
- The commercial aviation sector is putting a lot of pressure on the aircraft MRO industry, including civil aviation airlines, business jet owners, training aircraft owners, and military forces. Since the engine is the most important part of an aircraft, it is critical to maintain and repair it on a regular basis. Additionally, military forces maintain their aircraft engines on a regular basis to keep their fleets mission-ready. As a result, the emphasis on engine MRO is increasing. The engine MRO market is expected to be driven by all of the above factors year after year.
SINGAPORE TECHNOLOGIES ENGINEERING LTD., LUFTHANSA TECHNIK, AAR CORP. – PROMINENT MARKET PARTICIPANTS IN AIRCRAFT MRO MARKET
The maintenance, repair, and overhaul (MRO) processes are essential and unavoidable aspect of every business. A proper MRO of an aircraft or its component can help businesses to avoid significant risks to their survival. Thus, aviation industry players majorly focus on creating appropriate business processes and infrastructure to support. The growth of the commercial as well as military segments in the aviation industry is likely to fuel the MRO market growth during the forecast period. Further, due to growth in the global population that can afford air travel is one of the factors boosting the growth of the aviation MRO market.
Considering the growing competition worldwide, the implementation of digital technologies is a necessary step toward the growth of MRO companies; this helps them create a continuous stream of data flowing through different levels of the supply chain, further streamlining the communication between the stakeholders and accelerating innovation in various operations. The digital transformation in the aviation industry substantially impacts all areas of the supply chain of the aviation industry, including air traffic management, aircraft operations, and aircraft and component manufacturing and servicing. The data-driven technologies such as data analytics which helps in tracking aircraft MRO activities in real-time would also optimize the air travel experience of crew and passengers. In addition, other advanced technologies such as AI and machine learning facilitates the airline crew and management to understand the airworthiness of the aircraft. This enable the airline to opt for MRO services.
The top five market leaders in this market include Singapore Technologies Engineering Ltd., Lufthansa Technik, AAR Corp., Collins Aerospace, and GE Aviation. The above listing of top players is based on multiple factors such as overall sales, current MRO service portfolio, investment in technology up-gradation, and industry activities. Companies have taken several market initiatives to expand their footprint, service portfolio across the world and to fulfill the growing demand of the market. In 2019, ST Engineering secured a 15-year engine Maintenance-By-the-Hour contract from Japan Transocean Air. AS per the contract, ST Engineering would offer integrated suite of engine MRO solutions to the airline’s Boeing 737NG fleet. In 2018, AAR Announced Joint Venture with Indamer for New MRO Facility in India, for the development of new airframe maintenance, repair and overhaul (MRO) facility in Nagpur, India.
The players present in the aircraft MRO market mainly concentrate on the contracts, partnerships, and collaboration, and product developments. Activities for the deployment of new technological solutions across the world is permitting these companies to maintain their brand name globally.
Few of the important market initiatives from the industry are mentioned below:
2021 Barnes Aerospace is expanding its maintenance, repair, and overhaul facility in West Chester, Ohio. The West Chester MRO operation specializes in a variety of critical machining functions and extensive inspection applications for the global aviation industry.
2021 ST engineering has entered into a 10 year agreement with honeywell aerospace that will see the group appointed as the only licened MRO service provider based in Asia-pacific for honeywell components install on the LEAP-series engines
2021 Sichuan Airlines and Lufthansa Technik AG signed a 5-year agreement for digital fleet solutions through AVIATAR and engine maintenance services for the V2500 and CFM56-5B engines of the Airbus A320 fleet. AVIATAR will support Sichuan Airlines’ Airbus A350, A330 and A320 fleets.
About Us:
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Contact Us:
If you have any queries about this report or if you would like further information, please contact us:
Contact Person: Sameer Joshi
E-mail: [email protected]
Phone: +1–646–491–9876