Aerospace And Defense MRO Market Size, Share & Trends Report

Aerospace And Defense MRO Market Size, Share & Trends Analysis Report By Product (Engine, Airframe, Line, Component), By Application, By End-use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-041-5
  • Number of Report Pages: 206
  • Format: PDF, Horizon Databook
  • Historical Range: 2017 - 2020
  • Forecast Period: 2022 - 2030 
  • Industry: Advanced Materials

Research Methodology

A three-pronged approach was followed for deducing the aerospace and defense mro market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for aerospace and defense mro market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of aerospace and defense mro market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Aerospace And Defense MRO Market Categorization:

The aerospace and defense mro market was categorized into four segments, namely product (Engine, Airframe, Line, Component), application (Narrow Body Aircraft, Wide Body Aircraft, Regional Aircraft), end-use (Commercial Aviation, Business & General Aviation, Military Aviation), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The aerospace and defense mro market was segmented into product, application, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The aerospace and defense mro market was analyzed at a regional level. The global was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into nineteen countries, namely, the U.S.; Canada; Mexico; Germany; the UK.; France; Italy; Spain; China; India; Japan; Australia; Indonesia; Malaysia; Singapore; Brazil; Argentina; UAE; Saudi Arabia.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Aerospace and defense mro market companies & financials:

The aerospace and defense mro market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • AAR Corporation, AAR Corporation, established in 1955 and headquartered in Illinois, U.S., provides aviation services to commercial, defense, and governmental aircraft fleet operators, original equipment manufacturers, and independent service providers worldwide. The company operates through two business segments: aviation services and expeditionary services. The aviation services segment offers aftermarket support and services, inventory management & distribution services, maintenance, repair & overhaul, and engineering services. This segment provides inventory and repair programs, warranty claim management, outsourcing programs, and sells & leases new, overhauled, and repaired engine and airframe parts. The expeditionary services segment manufactures and repairs transportation pallets, containers & shelters, and composite materials for commercial, business, and military aircraft. This segment provides engineering, design, and system integration services for command & control systems. In 2020, the aviation services segment represented 95% of the company’s total revenue, which included the sales of new and repaired engine and airframe parts, inventory, repair, & logistics planning services, and airframe maintenance, repair, and overhaul (MRO) services. AAR currently serves as a prime contractor to the U.S. Navy, the U.S. Air Force, the U.S. Marshals Service, and the U.S. Department of State (DoS).

  • SIA Engineering Company Ltd. (SIAEC), SIA Engineering Company Ltd. (SIAEC) is a Singaporean company that specializes in aircraft maintenance, repair, and overhaul (MRO). It was established in 1992 and is headquartered in Singapore. The company was formed from the engineering division of Singapore Airlines (SIA). SIAEC operates through three business segments: airframe overhaul and line maintenance, fleet management, and engine & component segment. The airframe overhaul and line maintenance segment includes a wide range of services such as airframe structural repair and modification, cabin refurbishment and modification, and retrofitting of in-flight entertainment and avionics systems. The fleet management segment offers fleet and inventory technical management services, providing comprehensive engineering and MRO solutions customized to provide maintenance support to airlines. The engine & component segment provides engine repair and overhaul services for various components through partnerships with leading engine and engine component manufacturers such as GE Aviation, Safran S.A., and Raytheon Technologies Corporation. SIAEC has a global MRO network, including six hangars in Singapore and three hangars in the Philippines, and serves a large client base of international airlines and aerospace companies. The company has approvals from 27 national aviation regulatory authorities to provide MRO services for aircraft registered in the U.S., Europe, China, and other countries. In 2020, it generated 79% of its overall revenue from East Asia, 9% from Europe, 1% from Southwest Pacific, 6% from the Americas, and 6% from West Asia & Africa. 

  • Embraer S.A., Embraer S.A., established in 1969 and headquartered in São Paulo, Brazil, is a leading manufacturer of commercial & executive aircraft and defense & security aircraft. The company also provides MRO services and parts for the aircraft it manufactures. It operates through four business segments: commercial aviation, executive aviation, defense & security business, and services & support. The commercial aviation business segment manufactures a variety of commercial aircraft, including the ERJ Jet family, Embraer 170/190 Jet family, and E-Jets E2 family. The executive aviation business segment comprises entry-level Phenom 100 EV, light Phenom 300E, midsize Praetor 500, and super-midsize Praetor 600 aircraft. The defense & security business segment designs and manufactures integrated solutions for the defense and security market. The services & support business segment focuses on services and customer support, including MRO operations through its subsidiary named Embraer Aircraft Maintenance Services (EAMS). EAMS is a certified repair center operating under the regulatory authorities of the U.S. (FAA), Europe (EASA), Australia (CASA), El Salvador (AAC), and Brazil (ANAC). 

  • Air France KLM Group, Air France KLM Group, established in 2004 and headquartered in Paris, France, is a global provider of air passenger and cargo transportation. The group was formed by the merger of Air France and Netherlands-based KLM. It operates through four business segments: commercial aviation, executive aviation, defense & security business, and services & support. The company’s network includes wholly owned airlines such as HOP, KLM Cityhopper, Transavia, Martinair, and Joon, and it has minority stakes in several other airlines. Air France KLM Group is a member of the SkyTeam alliance, offering customer access to a global network of over 14,500 daily flights to over 1,150 destinations in over 175 countries through Air France, KLM Royal Dutch Airlines, and Transavia. The group’s Flying Blue loyalty program is one of the major aerospace programs in Europe with over 15 million members. 

  • Raytheon Technologies Corporation, Raytheon Technologies Corporation, headquartered in Massachusetts, U.S., was formed in 2020 through the merger of Raytheon Company and the United Technologies Corporation aerospace businesses. The company is engaged in providing advanced systems and services for commercial, military, and government customers worldwide. Its operations are classified into four business segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense segment. Collins Aerospace Systems designs, manufactures, and services systems and components, and provides integrated solutions for commercial, military, and space platforms, whereas Pratt & Whitney segment is engaged in suppling aircraft engines for commercial, military, business jet, and general aviation customers. Raytheon Intelligence & Space segment develops and provides integrated sensor and communication systems for advanced missions, advanced training, and cyber & software solutions to intelligence, defense, federal, and commercial customers, whereas Raytheon Missiles & Defense segment develops integrated air and missile defense systems. 

  • Delta Air Lines, Inc., Delta Air Lines, Inc., founded in 1929 and headquartered in Georgia, U.S., operates through two business segments: airline and refinery. The airline segment provides scheduled air transportation for passengers and cargo, while the refinery segment consists of jet fuel and non-jet fuel products. The company offers aircraft maintenance, repair, and overhaul (MRO) services through its business unit named Delta TechOps (DTO), which is a major MRO service provider in North America. It provides maintenance and engineering support to a large fleet of Delta Air Lines and supports more than 150 other aviation and airline customers around the world. Delta TechOps specializes in high-skill work such as engines, components, hangar, and line maintenance. The company is one of the most experienced service providers in the world with more than 90 years of aviation experience and has over 10,000 technicians, engineers, and support staff for MRO activities. It also provides complete fleet services, engineering services, military services, and training services. Delta TechOps is a certified MRO service provider in the U.S., Europe, China, Korea, Japan, Argentina, Brazil, Canada, India, Malaysia, Mexico and has FAA, EASA, ISO 9001:2015 for components, engines, and landing gears maintenance. As of December 2020, the company had approximately 74,000 employees worldwide.

  • General Dynamics Corporation, General Dynamics Corporation, incorporated in 1952 and headquartered in Virginia, U.S., is a diversified defense company consisting of 10 business units organized into four operating segments: Aerospace, Marine Systems, Combat Systems, and Technologies. Its aerospace segment, consisting of Gulfstream and Jet Aviation business units, is a leading producer of business jets and provides aircraft repair, support, and completion services. Jet Aviation has been a global leader in business-aviation services for over 50 years and provides comprehensive services and an extensive network of locations for aircraft owners and operators. The Marine Systems segment manufactures nuclear-powered submarines, surface combatants, and auxiliary ships for the U.S. Navy. The Combat Systems segment manufactures land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems, and munitions. The Technologies segment provides a full spectrum of services, technologies, and is organized into two business units, namely Information Technology (GDIT) and Mission Systems. 

  • MTU Aero Engines AG, MTU Aero Engines AG, a German aircraft engine manufacturer, was founded in 1934 and is headquartered in Munich, Germany. The company is engaged in the development, manufacturing, marketing, and support of commercial and military aircraft engines in all thrust and power categories, as well as industrial gas turbines. MTU Aero Engines operates through two business segments: Original Equipment Manufacturing (OEM) and Maintenance, Repair, and Overhaul (MRO). The OEM segment covers new commercial engines, including spare parts and components for the military sector, while the MRO segment comprises commercial maintenance activities. The company has technical expertise in low-pressure turbines, high-pressure compressors, turbine center frames, and repair techniques. It is involved in international MRO technology programs and works with leading companies such as GE Aviation, Pratt & Whitney, and Rolls-Royce. Through its subsidiaries, joint ventures, and equity investments, MTU Aero Engines has a presence in all aerospace key markets and regions worldwide. In 2020, the company generated 69% of its overall revenue from North America, 7% from Europe (excluding Germany), 6% from Asia, 15% from Germany, and 3% from other regions. 

  • Lufthansa Technik, Lufthansa Technik, a German company founded in 1995 and headquartered in Hamburg, provides services through eight divisions, including aircraft maintenance, aircraft overhaul, engine maintenance, component maintenance, aircraft systems, development and manufacture of cabin products, digital solutions, and initial equipment and servicing of VIP aircraft. The company is an independent provider of maintenance, repair, and overhaul services (MRO) for civilian commercial aircraft. It comprises 36 plants and holds direct and indirect stakes in 63 companies. Lufthansa Technik has over 800 customers worldwide, including OEMs, aircraft leasing firms, VIP jet operators, and airlines. The company is certified globally as a maintenance (Part 145), design (Part 21/J), and production (Part 21/G) organization. It has been approved as a maintenance organization by the authorities of the EU and more than 40 other countries. The company provides maintenance support through its subsidiaries, including MTU Aero Engines AG, MTU Maintenance Hannover GmbH, MTU Maintenance Berlin-Brandenburg GmbH, MTU Maintenance Coating Services, MTU Maintenance Zhuhai Co. Ltd., MTU Maintenance Canada Ltd., MTU Maintenance Dallas Inc., MTU Aero Engines Polska, MTU Maintenance Lease Services, MTU Maintenance Serbia d.o.o., and Airfoil Services Sdn. In 2020, Lufthansa Technik generated 69% of its overall revenue from North America, 7% from Europe (excluding Germany), 6% from Asia, 15% from Germany, and 3% from other regions. As of December 2020, the company employed 22,745 personnel worldwide.

  • Honeywell International Inc., Honeywell International Inc. was established in 1885, incorporated in 1985, and is headquartered in New Jersey, U.S. The company manages its business operations through four segments, namely aerospace, home & building technologies, performance materials & technologies, and safety & productivity solutions. Aerospace segment is a leading supplier of products, software, and services for aircraft that the company sells to OEMs and other customers in a variety of end markets including air Honeywell International Inc. is a U.S.-based company established in 1885 and headquartered in New Jersey. It operates through four segments, namely aerospace, home & building technologies, performance materials & technologies, and safety & productivity solutions. The aerospace segment is a leading supplier of products, software, and services for aircraft, including auxiliary power units, propulsion engines, integrated avionics, wireless connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, management and technical services, satellite components, and aircraft wheels and brakes. The company also offers spare parts and MRO services. The home & building technologies segment provides products, software, solutions, and technologies that help homeowners to stay connected and in control of their comfort, security, and energy use. The performance materials and technologies segment develops advanced materials, process technologies, and automation solutions. The safety and productivity solutions segment offers products, software, and connected solutions to customers around the globe that improve productivity, workplace safety, and asset performance. In 2020, the company generated 60% of overall revenue from the U.S., 19% from Europe, 6% from Asia, and 20% from other international locations. It had approximately 834 locations, of which 226 were manufacturing sites in 70 countries, and an employee strength of 103,000 as of December 2020. In 2023, Honeywell announced plans to realign its business segments to three megatrends: automation, the future of aviation, and energy transition.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Aerospace And Defense MRO Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2021, historic information from 2017 to 2020, and forecast from 2022 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Aerospace And Defense MRO Market Report Assumptions:

  • The report provides market value for the base year 2021 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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