Aircraft MRO Market Growth, Share and Size | 2030

[Research Report] The aircraft MRO market was valued at US$ 91,158.12 million in 2022 and is projected to reach US$ 134,072.28 million by 2030; it is expected to register a CAGR of 4.9% during 2022–2030.

Analyst Perspective:

The global aircraft MRO market size has been segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The global air passenger traffic is increasing at a constant pace, which has forced the airlines to increase their flight movements and introduce new aircraft. Aircraft MRO activities are essential in keeping up component availability, consistency, and quality. Airline operators depend on MRO services to ensure the safety of the aircraft and enhance fuel efficiency. The aircraft MRO market has become a viable business in the aviation industry since original equipment manufacturers (OEMs) mainly focus on the development of aircraft. In most of the regions of the world, economic performance has been remarkable over the last few years, largely due to better consumer buying power, growing equity markets, and industry consolidation. In spite of Brexit and various other trade barriers, the global aircraft MRO market have remained relatively stable.

The aviation industry, however, is growing and will continue to grow, owing to the ever-expanding global middle class. According to the report published by IATA in December 2022, passenger traffic recovered from 41.7% of 2019 volumes in 2021 and further increased by 68.5% in 2022. International passenger traffic more than doubled, with 152.7% YoY growth in 2022. Hence, the demand for the maintenance and repair of aircraft components will increase. Growth in the aviation industry would be more concentrated in APAC, particularly in India and China. In the near future, the Rest of APAC countries, such as Singapore and Malaysia, would be the major global aircraft MRO market, and APAC would be the new center of the global aviation industry. China is concentrating on building new airports.

For instance, the Civil Aviation Administration of China (CAAC) aims to build 216 new airports by 2035 to meet the growing demands for air travel, which will have a direct impact on the aircraft MRO market in a positive way.

According to the Bureau of Transportation Statistics (BTS) analysis, in 2022, US airlines carried 194 million more passengers than in 2021, which was 30% year-to-year growth. The European aircraft MRO market would experience sluggish growth as the aircraft fleets from the region are sent to APAC for maintenance and repair due to low labor costs and heavy infrastructure spending, especially in China and Southeast Asian countries. Further, the MEA and SAM are experiencing sluggish growth. The growth outlook of the aircraft MRO market in all the major geographic regions is estimated to be quite positive during the forecast period.

 

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Aircraft MRO Market: Strategic Insights

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Market Overview:

The maintenance, repair, and overhaul (MRO) services are an essential and unavoidable aspect of every business. A proper MRO of an aircraft or its component can help businesses avoid significant risks to their survival. Thus, aviation industry players majorly focus on creating appropriate business processes and infrastructure to support industry growth. The rising demand for air travel worldwide is encouraging aircraft manufacturers such as Airbus and Boeing to increase their production volumes and offer maintenance services for these aircraft as well. With the constant growth in air traffic, carriers are more liable to maintain the optimum condition of the aircraft so as to extend their life span; otherwise, they would have to procure new aircraft. Several engine development programs are being adopted, owing to the mounting spending toward aircraft modernization, norms and regulations, and environmental concerns for the retirement of older fleets. Most of the engine manufacturers are robustly focusing on the development of economical and efficient engines for new aircraft fleets. The procurement of advanced aircraft parts is expected to double in the next few years, which is resulting in the retirement of older planes across the globe. Further, the integration of the Internet of Things (IoT), Blockchain, artificial intelligence (AI), and other advanced technologies into aircraft is demanding a high level of maintenance services, which is further boosting the aircraft MRO market growth.

Market Driver:

Increasing Air Travel is Boosting Aircraft MRO Market

Airlines are maximizing the utilization of their aircraft to meet the growing passenger demand. This means that aircraft spend more time in the air and require more frequent maintenance checks to ensure their airworthiness. As more people choose air travel, airlines are operating more flights with shorter turnaround times between departures. This increased flight frequency places greater demands on aircraft maintenance to ensure safe and reliable operations. In 2021, the European Union (EU) experienced a significant rebound in air travel as the total number of passengers reached 373 million. This figure reflects a remarkable increase of 34.9% compared to the previous year, 2020. The highest surge in air passenger numbers was observed in Croatia, which experienced a remarkable increase of 129.4% in comparison with the previous year. Following closely, Cyprus and Greece recorded substantial growth rates of 104.8% and 85.9%, respectively. This surge in passenger numbers, particularly in countries such as Croatia, Cyprus, and Greece, highlights the growing demand for air travel and the subsequent need for more frequent and efficient maintenance and repair services to ensure the safety and reliability of aircraft. As air travel continues to rise, MRO providers play a crucial role in meeting the maintenance demands of airlines, contributing to the growth of the aircraft MRO market.

Segmental Analysis:

Based on component, the aircraft MRO market is segmented into engine MRO, avionics MRO, airframe MRO, cabin MRO, landing gear MRO, and others. The airworthiness of an aircraft can be achieved by scheduling MRO activities of its components at regular intervals. The aircraft MRO market has been analyzed on the basis of revenue generated from these MRO activities. The demand for each component’s MRO service is currently at a constant rise and is expected to grow at a steady rate during the forecast period. The cost incurred in engine MRO facilitates service providers to generate significantly higher revenues than other components. The cost incurred in maintaining aircraft engines, maintenance frequency of aircraft engines, and rise in new and aged aircraft fleets cumulatively led the aircraft MRO market for the engine MRO segment from 2018–2022, and the aircraft MRO market growth is foreseen to continue during the forecast period. Thus, the engine MRO segment is expected to capture the maximum market share and is also likely to register the highest CAGR from 2022 to 2030. However, the future of avionics MRO and cabin MRO segments appears to be promising with the rise in the demand for advanced electronics on flight decks and cockpits.

 

Regional Analysis:

According to The Insight Partners analysis, by the end of 2022, North America had a fleet of more than 8,000 operational commercial aircraft, which is expected to reach ~10,000 by the end of 2033. Such a huge number of operating commercial aircraft will further generate the growth for aircraft MRO market in the region.

Moreover, the increase in the number of aircraft fleets across North America is expected to bolster the requirement of MRO for major aircraft components such as engines and airframes.

Besides this, one of the factors catalyzing the aircraft MRO market is the continued emphasis on rising spending on maintenance and repair activities of various components. Furthermore, MRO service providers in the region continually focus on creative integrated technologies, such as digital MRO technology, which enables service providers to carry out MRO activities more effectively and efficiently. As a result, digital MRO technology is expected to create lucrative opportunities for aircraft MRO market players.

Various North American behemoths are engaged in offering MRO services to gain momentum in the industry. GE Aviation, Barnes Group Inc., Rolls Royce PLC, Delta TechOps, and Collins Aerospace are among the leading players in the aircraft MRO market. Several international aircraft MRO market players are also present in the region. Southwest Airlines and United Airlines are preparing to open new aircraft hangars for their MRO operations in Houston and Los Angeles, respectively. Furthermore, airlines in the region are engaging in MRO outsourcing activities to cut costs associated with MRO activities.

Key Player Analysis:

AAR, Barnes Group Inc, Collins Aerospace, Delta TechOps, FLTechnics, UAB, GE Aviation, Lufthansa Technik, Rolls-Royce plc, Singapore Technologies Engineering Ltd, and Turkish Technic Inc are among the key players operating in the aircraft MRO market.

Aircraft MRO Market Regional Insights

The regional trends and factors influencing the Aircraft MRO Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Aircraft MRO Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Aircraft MRO Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Aircraft MRO Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Aircraft MRO Market are:

1. AAR, Barnes Group Inc
2. Collins Aerospace
3. Delta TechOps
4. FLTechnics
5. UAB

Disclaimer: The companies listed above are not ranked in any particular order.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global aircraft MRO market. A few recent developments by key aircraft MRO market players are listed below:

 

Year	News	Country
2023	AAR CORP, a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced it has signed an agreement with United Airlines to extend its existing airframe MRO services relationship through 2030 and expand its heavy maintenance commitments.	North America