Aircraft MRO Market Size, Share & Trends Analysis Report By Service Type (Engine Overhaul, Airframe Maintenance), By Organization Type, By Aircraft Type, By Aircraft Generation, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global aircraft MRO market size was valued at USD 78.60 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.02% from 2023 to 2030. Rapid urbanization and the rising economic growth in emerging countries with increased business and tourism travels are expected to increase the market growth. Various external factors, such as air traffic volumes, global fleet size, and aircraft utilization, are the factors expected to significantly impact the market. Also, the increased air travel by individuals for business and personal purposes is expected to create more aircraft production, thereby substantially impacting the market.

The rise in investments in aircraft (maintenance, repair and overhaul) MRO software are also expected to create new business prospects. Aircraft MRO software consists of maintenance tracking, logbook tracking, flight time tracking, service bulletins management, maintenance scheduling, budget forecasting, electronic task card management, and work order management. For instance, in May 2021, India observed significant foreign direct investments in different sectors, including aircraft maintenance, repair, and overhaul industries. Therefore, investments and acquisitions are the factors expected to create lucrative opportunities for the market.

The market is also influenced by the regulatory compliance with organizations like the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO). Furthermore, the rise in demand for older planes and environmental concerns emphasize the continuous monitoring and maintenance of the older planes, thereby creating traction for the market. Furthermore, the global outburst of the COVID-19 and shutting down of travel and tourism due to strict lookdowns imposed by the governments to curb the spread hampered the revenue and profit margins of the airline industry.

The shutting down of the functioning of airlines resulted in more airlines turning to MRO to maintain fleet efficiency. Moreover, numerous government programs have been developed to encourage airports to embrace MRO as a strategic activity. Governments are currently pursuing a variety of holistic measures to ensure that enough space is available for the MRO at various airports around the country, which could boost aircraft MRO activities during the forecasted period.

The MRO industry has faced challenges such as shortage in workforce supply, rise in labor force costs, lack of an experienced workforce, and reduced interest in technical maintenance jobs from the recent graduate engineers. This is expected to affect the aircraft maintenance, repair, and overhaul (MRO) industry in the forecast period. For MRO operators, right-sourcing and outsourcing are the two options that are more relevant to MRO service providers.

Ever-increasing material prices are becoming a critical factor that affect the expansion. Due to this, MRO service providers are targeting to create strategic alliances with OEMs to get help in procuring aircraft parts and components. For instance, in November 2021, Singapore-headquartered SIA Engineering Company (SIAEC) announced that it has set up 23 joint ventures and subsidiaries across seven countries with OEMs, including Pratt & Whitney, Collins, Jamco, Rolls-Royce, GE, Safran, aiming to develop a range of MRO capabilities.

Service Insights

The engine overhaul segment is expected to grow with a leading market share of above 41.0% in 2022. OEM involvement in engine maintenance activity is a significant factor that accounts for the growth in the aircraft MRO market. Engine MRO includes field maintenance and depot maintenance. Depot-level maintenance includes substantial maintenance, repair, and complete rebuilding of the engines, parts, and sub-assemblies. Field level maintenance covers shop type work and on-equipment maintenance activities.

The engine segment in aircraft MRO is expected to dominate the market throughout the forecasted period. Also, the Engine segment has become more dynamic and competitive during the recent years. For instance, in April 2019, AAR announced its PW2000 engine support contract with MTU maintenance for another five years. AAR supplied engine components to MTU, a major engine overhaul providing company.

MTU recently announced that they had won the contract of more than $700.0 million; owing to that, and they will remain determined to its PW2000 engine MRO plan for at least another ten years. ARR is an essential source of serviceable material (USM) supporting these engine overhauls. Therefore, the various such strategies adopted by the market players are expected to impact the aircraft MRO industry, positively.

The component segment for the aircraft MRO is expected to grow significantly with a CAGR of 4.9% from 2023 to 2030. The increasing demand for air travel augments aircraft frequency resulting in growth for the aircraft maintenance, including components and spare parts. Also, the increase in air shipment in logistics industries has fueled cargo aircraft maintenance which contributed to the rise in the segment growth. Many major players contribute to this segment by making alliances with other key players and OEMs.

For instance, in February 2022, AAR, a primary supplier of aviation assistance to commercial as well as government sector, MROs, and OEMs, announced the ten years of extension for its component MRO and made a contract with the International Aerospace Management Company, which is accountable for the depot-level maintenance intended for the North Atlantic Treaty Organization E-3A aircraft fleet.

Organization Type Insights

Independent MRO is expected to account for the largest share of the market in 2022 and is expected to reach USD 50.11 billion by 2030. The ever-increasing market is further fueled as OEMs outsource their ancillary activities to MRO service providers and specialized ESPs. For instance, in March 2022, a leading provider of aviation industry MRO services, ARR has signed an entire distribution agreement with Collins Aerospace’s Goodrich De-icing and specialty heating System business. The contract aims to provide the de-icers and heating systems to other aircraft and MROs across the globe.

The OEMs control approximately half of the market, with another half split into independent and airline overhaul industries. OEMs have a distinctive position and can change the original maintenance program documented for each aircraft depending on data examination. OEMs can change the complete picture in order to enhance their asset and can use the data to analyze performance. Furthermore, OEMs can gather enough reliable information to eliminate unnecessary work.

Aircraft Insights

The narrow body aircraft in the commercial aircraft MRO market is anticipated to generate USD 58.77 billion in revenue in 2030. Narrow-body aircraft is a smaller type of aircraft used for the short-distance cross-border flights and domestic flights. A narrow-body aircraft carries more than 295 passengers due to its small and short-distance journey.

The aircraft MRO industry is majorly dependent on a narrow-body aircraft fleet. For instance, in March 2018, Lufthansa Technik AG contracted a total component maintenance agreement with the fleet for Jet Airway of narrow-body 80 Boeing 737NG. The aim is to provide single parts repaired at a flat rate and closed-loop based process.

Wide-body aircraft is expected to expand rapidly with the fastest CAGR of 36.25% in the forecast period. The increase in demand for wide-body aircraft MRO is owing to the increase in long-distance routes with massive traffic connecting international destinations. Many new wide-body aircraft manufacturing infrastructures have been established in many countries in recent years, which have increased participation of OEMs in wide-body aircraft MRO service. The expansion in increased aircraft fleet provides bigger opportunities for the OEMs aimed at aircraft MRO services.

Aircraft Generation Insights

The new-generation segment is expected to grow rapidly in terms of revenue share during the forecast period. The new-generation aircrafts are more fuel-efficient aircrafts, and can be powered by sustainable fuel. According to an Airbus report, many active commercial aircrafts are going to be replaced by a new generation aircraft. The major concern for this enormous replacement process is a significant improvement in CO2-related efficiency.

Major players in the market are making collaborations with OEMs for the aircraft maintenance and developing services for the new-generation aircraft. This will create an infrastructure for the MRO services of new-generation aircraft which is expected to witness an increased adoption rate in the aviation fleet. For instance, in February 2021, GMR collaborated for the aircraft maintenance and aviation service with airbus in India. The MoU was signed at aero India 2021, Bengaluru. GMR group and airbus have teamed up for enhancement of the services for military and commercial aircraft.

Regional Insights

Asia Pacific held the largest market share of 34% in 2022 and is expected to continue as the dominating region with the highest CAGR by 2030. Asia Pacific operates a third of global aircraft fleet and this is expected to increase during the forecast period. Airlines in this market are able to increase the lifespan of their air fleets due to the advanced and widely available MRO options. MRO providers often target the Asia Pacific market as it offers them more clients, attractive investment opportunities, and cheaper labor.

North American aircraft MRO market dominates with the use of advanced technologies to meet sustainable goals. North America has the largest fleet of aircraft, so they generate a sizeable demand for the aircraft MROs. The market entrants from this region face significantly high barriers owing to regulation and compliance with the high-level safety standards and laws. However, the ease of deployment of advanced technologies for the MROs makes it an attractive market.

Key Companies & Market Share Insights

The aircraft MRO industry is present worldwide as almost every country has airports, and airplanes can require maintenance, repair, and operational assistance anywhere and at any moment. As the requirement drives the demand, the market is highly fragmented, and companies offer different levels of services. As advancements in technology occur at a rapid pace, the number of new entrants in the aircraft MRO industry is rising significantly. The established companies in this market have been able to strengthen their stronghold over the industry by expanding operations around the world.

During the past few years, aircraft MRO companies have adopted automation processes to reduce errors and labor costs. For instance, in February 2021, SIA Engineering Company Ltd. invested in a brand-new subdivision called as Engine Services Division to research, develop, and assist in advanced aircraft engine servicing, repairs, wing testing, and so forth. Modern MRO companies are using artificial intelligence, drones, and robots to drastically reduce the time required for the maintenance and repairs.

For instance, in December 2021, Korean Air displayed its technology advancements by using drone swarms to conduct a full-body aircraft inspection with only four drones. Therefore, the increased adoption of automation processes is expected to positively impact the market during the forecast period. Some of the key players in global aircraft MRO market include:

• AAR Corp.

• Airbus SE

• Delta Airlines, Inc. (Delta TechOps)

• Hong Kong Aircraft Engineering Company Limited

• KLM U.K. Engineering Limited

• Lufthansa Technik

• MTU Aero Engines AG

• Raytheon Technologies Corporation (Previously United Technologies Corporation)

• Singapore Technologies Engineering Ltd

• TAP Maintenance & Engineering (TAP Air Portugal)

Aircraft MRO Market Report Scope

Global Aircraft MRO Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels in addition to provides an analysis of the latest industry trends in each of the sub-segments from 2023 to 2030. For this study, Grand View Research has segmented the global aircraft MROmarket report based on the service, organization type, aircraft, aircraft generation, and region:

• Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Engine Overhaul

  • Airframe Maintenance

  • Line Maintenance

  • Modification

  • Components

• Organization Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Airline/Operator MRO

  • Independent MRO

  • Original Equipment Manufacturer (OEM) MRO

• Aircraft Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Narrow-body

  • Wide-body

  • Regional Jet

  • Others

• Aircraft Generation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Old Generation

  • Mid Generation

  • New Generation

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa