GVR Report cover 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, 2022 - 2030

  • Report ID: GVR-3-68038-997-5
  • Number of Pages: 300
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global aircraft MRO market was evaluated at USD 87.01 billion in 2021 and is expected to expand at a CAGR of 4.57% from 2022 to 2030. Rapid urbanization and 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 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.

U.S. aircraft MRO market size, by service type, 2020 - 2030 (USD Billion)

Rising investments in aircraft 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, as foreign companies focused on acquiring billions of dollars in aircraft MRO services. Therefore, investments and acquisitions are expected to create lucrative opportunities for the market.

It also has capabilities that help with 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 emphasizes continuous monitoring and maintenance of older planes, thereby creating traction for the market. Furthermore, the global outburst of the COVID-19 pandemic and shutting down of travel and tourism due to strict lookdowns imposed by the government 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 guarantee that enough space is available for MRO at various airports around the country, which might raise aircraft MRO activities during the forecasted period. The MRO industry faces the issues due to a shortage in workforce supply, rising workforce costs, a lack of an experienced workforce, and reduced interest in technical maintenance jobs from recent graduate engineers.

This affects the aircraft maintenance, repair, and overhaul (MRO) industry in the forecasted period without any significant change. For MRO operators, right-sourcing and outsourcing are two options that are more relevant to MRO service providers. Ever-increasing material prices are becoming a critical factor affecting the expansion of the aircraft MRO market. 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-headquarter 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.

Organization Type Insights

Independent MRO is expected to account for the largest share of the market in 2021 and is expected to reach USD 38.31 billion by 2030. Ever-increasing aircraft MRO market is further fueled as OEMs outsource their ancillary activities to MRO service providers and specialize 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. OEMs can gather enough reliable information to eliminate unnecessary work.

Aircraft Type Insights

The narrow body aircraft in the commercial aircraft MRO market is anticipated to generate USD 44.10 billion in revenue in 2030. Narrow-body aircraft is a smaller type of aircraft used for short-distance cross-border flights and domestic flights. A narrow-body aircraft carries over 295 passengers due to its small and short-distance journey. The aircraft MRO market 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 grow rapidly with the fastest CAGR of 5.26% 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 has increased participation in OEMs in wide-body aircraft MRO service. The expansion in increased aircraft fleet provides increased opportunities for OEMs for aircraft MRO services.

Service Type Insights

The engine MRO overhaul service segment is expected to grow and is leading the market share of 40.1% in 2021. 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 engines, parts, and subassemblies. Whereas Field level maintenance shop type work and on-equipment maintenance activities.

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

MTU recently announced that they had won the contract of more than $700 million; owing to that, 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, various strategies adopted by the market players such as is expected to impact the aircraft MRO industry positively.

The component segment for the aircraft MRO is expected to grow significantly with a CAGR of 4.58% from 2022 to 2030. The increasing demand for air travel increases aircraft frequency due to aircraft maintenance growth, 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 depot-level maintenance for north Atlantic treaty organization E-3A aircraft fleet.

Aircraft Generation Insights

The new-generation segment is expected to grow rapidly in terms of revenue share over the forecast period. As the new-generation aircraft are more fuel-efficient aircraft, they are powered by sustainable fuel. According to the Airbus report, many active commercial aircraft are going to be replaced by a new generation, compared to the current 13%. The major concern for this enormous replacement process is a significant improvement in CO2-related efficiency.

Global aircraft MRO market share, by aircraft generation, 2021 (%)

Major players in the market are making collaborations with OEMs for aircraft maintenance and developing services for new-generation aircraft. This will create an infrastructure for 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 aircraft maintenance and aviation service with airbus in India. The MoU has been signed at aero India 2021, Bengaluru. GMR group and airbus team up for enhancement of services for military and commercial aircraft.

Regional Insights

Asia Pacific held the largest market share in 2021 and is expected to continue as the dominating region with the highest CAGR by 2030. The Asia Pacific region operates a third of global aircraft and is expected to increase in the forecast period. Airlines in this market can increase the lifespan of their air fleets due to 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.

The 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 aircraft MROs. Entering the aircraft MRO market in this region has significantly high barriers due to the high-level safety standards and laws. However, the wide accessibility and ease of deployment of advanced technologies for MROs make it an attractive market.

Key Companies & Market Share Insights

The aircraft MRO market 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.

Over 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 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 forecast period for the aircraft MRO market. Some of the key players operating in the global aircraft MRO market include:

  • AAR Corp.

  • Airbus SE

  • Delta Airlines, Inc. (Delta TechOps)

  • Hong Kong Aircraft Engineering Company Limited

  • KLM UK 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

Report Attribute

Details

Market size value in 2022

USD 90.40 billion

Revenue forecast in 2030

USD 129.25 billion

Growth rate

CAGR of 4.57% from 2022 to 2030

Base year for estimation

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

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

Segments covered

Service type, organization type, aircraft type, aircraft generation, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa.

Country scope

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

Key companies profiled

AAR Corp.; Airbus SE; Delta Airlines, Inc. (Delta TechOps); Hong Kong Aircraft Engineering Company Limited; KLM UK 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)

Customization scope

Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2022 to 2030. For 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, 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

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

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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