Aircraft MRO Market Size, Share & Trends Report

Aircraft MRO Market Size, Share & Trends Analysis Report By Service Type (Engine Overhaul, Airframe Maintenance), By Organization Type, By Aircraft Type, By Aircraft Generation, And Segment Forecasts, 2019 - 2025

  • Published Date: Oct, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-997-5
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 118

Industry Insights

The global aircraft MRO market size was valued at USD 75.71 billion in 2018 and is anticipated to register a CAGR of over 4.7% from 2019 to 2025. Aircraft maintenance can be viewed as the integration of various multifaceted activities, commonly referred to as Servicing, Maintenance Repair, and Overhaul (SMRO) or MRO. These tasks are either carried out by OEMs or outsourced to aerospace Engineering Service Providers (ESPs). These ESPs are closely monitored with the help of the Service Level Agreement (SLA), to ensure a high-level of proficiency.

U.S. aircraft MRO market size

A substantial amount is spent by airlines every year on MRO activities to abide by the stringent regulations laid down by airworthiness authorities to ensure the safety of the passengers and crew. This makes up a significant portion of their total operational costs. Despite the widespread knowledge regarding the market and process, MRO service was a relatively untapped domain by OEMs such as Boeing, Airbus, Bombardier, and others until a few years ago. However, these OEMs are gradually getting actively involved in the MRO industry and are emphasizing new technologies, such as aircraft maintenance software, which is expected to stimulate the MRO landscape significantly over the forecast period.

Various engine development programs are also expected to witness prominence due to a rise in aircraft modernization, environmental concerns, and norms and regulations for the retirement of older fleets. Most engine manufacturers focus on developing efficient and economical engines for new fleets. One of the important trends in this area includes the rise of refurbished and used parts in the engine and non-engine maintenance. The demand for used aircraft parts is anticipated to double in the next decade, driven by the rise in the retirement of older planes worldwide.

The dynamics of the MRO sector within commercial aviation are changing rapidly, as a result, survival in the industry requires swift development of strategies to counter the dynamism. For instance, the introduction of a new-generation fleet in the aviation sector requires a high degree of expertise and knowledge in the properties of contemporary materials.

Low-Cost Carriers (LCCs) have also forayed into the aerospace sectors. These LCCs are highly cost-sensitive as a result of which the MRO providers need to revamp their pricing strategies to make it more competitive. This is imperative in determining the success across various aircraft fleet types.

Service Type Insights

The engine overhaul segment held the leading market share of 40% in 2018. The growing presence of OEMs in the MRO industry providing engine maintenance activities is expected to drive the growth.

The components segment is anticipated to witness a significant CAGR of almost 5.0% from 2019 to 2025, attributed to the increase in spending by airline companies on aircraft maintenance and spare parts. Maintenance and crucial repairs of cargo planes due to an increase in flying frequency also contribute to the segment growth.

The line maintenance segment is anticipated to witness a steady growth accounting for over 15.0% of the market share in 2018. This is attributed to the fact that routine in-service examinations, addressing as per pre-determined schedules have an immense bearing on ensuring the safety of the passengers

Organization Type Insights

Independent MRO accounts for the largest share of the aircraft MRO market in 2018 and is projected to reach almost USD 47 billion by 2025. OEMs have been traditionally outsourcing their ancillary activities (including MRO) to specialized ESPs. This factor is anticipated to fuel the growth of the segment in the forthcoming years.

OEMs are percolating into the MRO arena at a rapid pace since they can possibly alter the original maintenance program specified for each airplane type, being well-versed with their technicalities. As OEMs can assume full control of a plane, ranging from designing and manufacturing to in-flight service operations, they can gather substantial maintenance-related data and analyze the performance of an aircraft.

As OEMs can customize the maintenance procedures, they can better predict when the aircraft is due for maintenance—be it after a certain period has elapsed or after the completion of a set number of cycles since the first flight. OEMs can also help eliminate redundant maintenance work since they possess substantial reliable data regarding aircraft health.

Aircraft Type Insights

Narrow-body aircraft held the dominant market share of over 50% in 2018 and is anticipated to continue leading over the forecast period. Airline operators are upgrading their plane models to enable cost-saving that results in fuel efficiency, which has consequently increased the fleet of narrow-body planes. For instance, Airbus upgraded A320 into A320neo—a fuel-efficient airliner that possesses two-new generation engines.

Wide-body aircraft is anticipated to witness the fastest CAGR over the forecast period, owing to tremendous transformation in the past few years in the development of turbofan engines. Widebody planes incur a high percent of MRO expenditures due to their complexity and high maintenance.

Aircraft Generation Insights

The Mid-generation segment is anticipated to continue leading the market in terms of revenue share over the forecast period. The use of Artificial Intelligence (AI) is gaining traction as connected aircraft technologies are transforming the aviation landscape encompassing the MRO and mechanical domain for mid-generation planes.

Global aircraft MRO Market share

New generation aircraft is anticipated to witness the fastest growth and is estimated to attain a high revenue share by 2025. The growth can be attributed to the development of new planes and the replacement of old generation models with high-efficiency fleets. Asia Pacific is recognized as the fastest-growing market and it is anticipated to gain a prominent market position in the new generation segment.

Regional Insights

Asia Pacific held the largest market share in 2018 and is presumed to emerge as the dominating region with the fastest CAGR by 2025. Rise in air-traffic in upcoming years is expected to fuel the regional growth. China holds a larger market value with more than 5000 aircraft in service. Other factors, such as the rise in international trade and demand for new aircraft is expected to drive regional growth. Emphasis on novel technologies for maintenance activities and OEMs highly influences the growth of the market in Europe.

Aircraft MRO Market Share Insights

Some of the prominent market players are AAR Corp; Air-France Industries KLM Engineering & Maintenance; Bombardier Inc.; Delta TechOps; GE Aviation; Hong Kong Aircraft Engineering Co. Ltd.; Lufthansa Technik; MTU Aero Engines AG; and Triumph Group, Inc.

An increase in the presence of OEMs in the MRO industry and the emergence of advanced technologies is expected to trigger the market growth by leap and bounds in the upcoming years. The advent of low-cost airlines and high professionalism demonstrated by ground and maintenance staff leverages commercialization of the airline industry all across the world.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East

Country scope

U.S., Canada, Mexico, Germany, U.K., China, India, Japan, Brazil.

Report coverage

Revenue forecasts, company ranking, competitive landscape, and growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global aircraft MRO market report based on service type, organization type, aircraft type, aircraft generation, and region:

  • Service Type Outlook (Revenue, USD Billion, 2015 - 2025)

    • Engine Overhaul

    • Airframe Maintenance

    • Line Maintenance

    • Modification

    • Components

  • Organization Type Outlook (Revenue, USD Billion, 2015 - 2025)

    • Airline/Operator MRO

    • Independent MRO

    • Original Equipment Manufacturer (OEM) MRO

  • Aircraft Type Outlook (Revenue, USD Billion, 2015 - 2025)

    • Narrow-Body

    • Wide-Body

    • Regional Jet

    • Others

  • Aircraft Generation Outlook (Revenue, USD Billion, 2015 - 2025)

    • Old Generation

    • Mid Generation

    • New Generation

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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